APPSC Group-I Prelims 2010
382 questions from the 2010 papers, each with the official answer and an explanation.
A question repeated across years is listed once, under one of the years it appeared.
- Q81Local government and decentralisation
Article 243-G of the Indian Constitution contains:
- aFinancial resources of Panchayat Raj institutions
- bPowers of Nyaya Panchayats
- cPowers and functions of Gram PanchayatsAnswer
- dPowers of Zilla Parishad and Mandal Parishad Presidents
Explanation
Option C is correct because Article 243-G empowers the state legislature to endow Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government, including the preparation and implementation of economic development and social justice schemes. Article 243-G: Powers, authority, and responsibilities of Panchayats Article 243-H: Powers to impose taxes by, and funds of, the Panchayats Article 243-I: Constitution of Finance Commission to review financial position Option A: Financial resources and taxing powers of Panchayats are addressed under Article 243-H and Article 243-I, not Article 243-G. Option B: Nyaya Panchayats are not defined or established under Article 243-G. Option D: The internal powers and duties of Mandal and Zilla Parishad Presidents are governed by specific state legislation rather than Article 243-G directly.
- Q82Local government and decentralisation
Where was the first Municipal Corporation in India set up?
- aMadrasAnswer
- bDelhi
- cBombay
- dCalcutta
Explanation
Option A is correct because the first Municipal Corporation in India was established at Madras in 1687 (constituted in 1688) by a royal charter issued by King James II of England. 1687: Madras Municipal Corporation established 1726: Municipal Corporations established at Bombay and Calcutta Option B: Delhi was established as a municipal corporation much later under the Delhi Municipal Corporation Act, 1957. Option C: Bombay Municipal Corporation was established later in 1726 by royal charter. Option D: Calcutta Municipal Corporation was established later in 1726 by royal charter.
- Q83Constitutional, statutory and regulatory bodies
Who is responsible for the registration of voters?
- aGovernment
- bVoters
- cPolitical Parties
- dElection CommissionAnswer
Explanation
Option D is correct because Article 324 read with the Representation of the People Act, 1950 entrusts the preparation, revision, and maintenance of electoral rolls entirely to the Election Commission. Option A: Government provides administrative staff and logistical resources but does not hold constitutional responsibility for enrolling voters. Option B: Voters submit applications and claims, but they do not hold legal authority for maintaining voter rolls. Option C: Political parties deploy booth-level agents to aid verification but cannot register electors.
- Q84Constitutional, statutory and regulatory bodies
Who appoints the Chief Election Commissioner of India?
- aPrime Minister
- bPresidentAnswer
- cParliament
- dChief Justice of India
Explanation
Option B is correct because under Article 324(2) of the Constitution of India, the President appoints the Chief Election Commissioner as well as other Election Commissioners. Option A: The Prime Minister chairs the selection committee under recent statutory provisions but does not make the formal appointment. Option C: Parliament enacts laws governing the conditions of service but does not hold the power of appointment. Option D: The Chief Justice of India does not possess constitutional authority to appoint members of the Election Commission.
- Q85Constitutional, statutory and regulatory bodies
Identify the following symbol:

- aUniversity Grants Commission
- bUnion Public Service Commission
- cAndhra Pradesh Public Service Commission
- dNational Council of Educational Research and TrainingAnswer
Explanation coming soon.
- Q86Constitutional, statutory and regulatory bodies
Regarding the Central Government, the Comptroller and Auditor General submits the annual report to:
- aThe Prime Minister
- bThe PresidentAnswer
- cThe Parliament
- dThe Chairman of the Planning Commission
Explanation
Option B is correct because under Article 151(1) of the Constitution of India, the Comptroller and Auditor General submits the audit reports relating to the accounts of the Union to the President. The President then causes these reports to be laid before both Houses of Parliament. Article 151(1): CAG submits Union audit reports to the President Article 151(2): CAG submits State audit reports to the Governor Option A: The Prime Minister does not receive the CAG reports directly under constitutional provisions. Option C: The Parliament receives the report from the President, not directly from the CAG. Option D: The Planning Commission has no role in receiving or processing constitutional audit reports.
- Q87Constitutional, statutory and regulatory bodies
Among the following, there is one organization with an official emblem. Identify it.
- aAir Force
- bAir India
- cInternational Airport Authority of IndiaAnswer
- dIndian Navy
Explanation coming soon.
- Q88Constitutional, statutory and regulatory bodies
All India Institution for Judicial Education, Research and Training was established in:
- aHyderabad
- bNew Delhi
- cLucknow
- dBhopalAnswer
Explanation
Option D is correct because the National Judicial Academy, established as an All India Institution for Judicial Education, Research and Training, is located in Bhopal, Madhya Pradesh. Option A: Incorrect because Hyderabad hosts the National Academy of Legal Studies and Research, not the National Judicial Academy. Option B: Incorrect because New Delhi houses the Supreme Court and Indian Law Institute, not this specific academy. Option C: Incorrect because Lucknow is the site of the Judicial Training and Research Institute of Uttar Pradesh.
- Q89Parties, elections and representation
What is the event that led to the Prime Minister of India becoming 'Primus inter pares'?
- aMany regional parties
- bThe verdict formed in Lok Sabha elections
- cCoalition governmentsAnswer
- dConcept of good governance
Explanation
Option C is correct because the advent of coalition governments diluted single-party dominance and compelled the Prime Minister to consult, compromise, and build consensus with cabinet colleagues representing alliance partners, restoring the literal meaning of primus inter pares or first among equals. Option A: The growth of regional parties caused regionalization, but executive authority transformed specifically inside the cabinet framework of coalition governments. Option B: Lok Sabha election verdicts decide seat counts, not the working relationship inside the Union Council of Ministers. Option D: Good governance is an administrative benchmark unrelated to the Prime Minister's constitutional power balance within cabinet.
- Q90Parties, elections and representation
In the party system of India, the emergence of Bharatiya Janata Party as a strong political party led to what kind of consequence?
- aPolarization of votes on religious basis
- bFormation of a two-party system
- cBeginning of coalition politics
- dEnd of single-party dominanceAnswer
Explanation
Option D is correct because the rise of the Bharatiya Janata Party as a formidable national competitor dismantled the long-standing Congress system, effectively ending the era of single-party dominance in Indian politics. Option A: Religious polarization describes an ideological or electoral strategy rather than the structural transformation of the party system. Option B: India developed a multi-party coalition system rather than a two-party system. Option C: Coalition politics at the national level began in 1977 with the Janata Party, prior to the rise of the BJP.
- Q91Parties, elections and representation
The number of women members elected in the 2009 general elections to the Lok Sabha:
- a59Answer
- b45
- c48
- d44
Explanation
Option A is correct because 59 women candidates won seats in the 2009 general elections, constituting roughly 10.86% of the 15th Lok Sabha. 14th Lok Sabha (2004): 45 women MPs elected. 15th Lok Sabha (2009): 59 women MPs elected. Option B: wrong because 45 was the number of women MPs elected in the 2004 Lok Sabha elections. Option C: wrong because 48 was not the total number of women members elected in the 2009 elections. Option D: wrong because 44 was the count of women MPs elected in the 1991 Lok Sabha elections.
- Q92Public policy and governance
Recently, the Prime Minister of India announced that higher education in India can be achieved by adopting which of the following immediate approaches?
- aThrough Privatization
- bBy including donations procured from foreign countries
- cBy allocating 6 percent of the national income to higher education
- dThrough Public Private PartnershipAnswer
Explanation
Option D is correct because the Government has highlighted the Public Private Partnership model as an immediate strategy to mobilize private capital, expertise, and infrastructure for expanding higher education. Option A: Complete privatization is not the adopted national policy approach for higher education. Option B: Foreign donations are neither a primary policy instrument nor a viable immediate mechanism for systemic educational expansion. Option C: Allocating six percent of national income is a long-standing overall educational target rather than a novel immediate approach.
- Q93Public policy and governance
The method being practiced for appointing individuals to various types of jobs in the public and private sectors in the present era:
- aContract appointments
- bEmergency recruitment
- cOutsourcingAnswer
- dOnline recruitment
Explanation
Option C is correct because outsourcing has emerged as a widely adopted modern human resource method in both the public and private sectors to procure non-core and specialized operational staff via external third-party agencies. Option A: Pertains to direct, fixed-term employment contracts rather than third-party service arrangements. Option B: Represents an ad-hoc, situational hiring mechanism used during crises rather than a standard contemporary staffing practice. Option D: Refers to the technological channel or medium of recruitment (the application process) rather than the method/form of appointment itself.
- Q94Central laws outside the Constitution: PMLA, UAPA, NSA and AFSPA
When did the new anti-terror laws come into force after Presidential assent ?
- a31-10-2008
- b31-11-2008
- c31-12-2008Answer
- d1-1-2009
Explanation
Option C is correct because following the 26/11 Mumbai terror attacks, Parliament passed the National Investigation Agency (NIA) Act and the Unlawful Activities (Prevention) Amendment Act, both of which received the President's assent and came into force on 31-12-2008. Passed by Parliament in late December 2008 Presidential assent granted on 31-12-2008 Published in the Gazette and entered into force on 31-12-2008 Option A: 31-10-2008 is incorrect because the 26/11 attacks had not even taken place in October 2008. Option B: 31-11-2008 is incorrect because November only has 30 days and the bills were enacted after late November. Option D: 1-1-2009 is incorrect because the enactments were assented to and officially notified on the final day of 2008.
- Q95Central laws outside the Constitution: PMLA, UAPA, NSA and AFSPA
Lok Sabha passed National Investigation Bill in the year
- a2006
- b2007
- c2008Answer
- d2009
Explanation
Option C is correct because the National Investigation Agency Bill was introduced and passed by the Lok Sabha in December 2008 in the aftermath of the Mumbai terror attacks. National Investigation Agency Bill passed by Lok Sabha: December 2008 Presidential assent received: December 31, 2008 Act published in Gazette: January 2009 Option A: 2006 is incorrect as the legislation was not introduced or passed in this year. Option B: 2007 is incorrect as the Act was drafted following the November 2008 attacks. Option D: 2009 is incorrect because Lok Sabha passed the bill in December 2008, even though the agency commenced operational setup in 2009.
- Q96Rights issues and social justice
The date on which the Right to Education Act came into force:
- a1 February, 2010
- b1 March, 2010
- c1 April, 2010Answer
- d1 May, 2010
Explanation
Option C is correct because the Right of Children to Free and Compulsory Education Act, 2009 officially came into force across India on 1 April, 2010. RTE Act received presidential assent on 26 August, 2009 RTE Act came into force on 1 April, 2010 Option A: 1 February, 2010 is two months prior to the statutory enforcement date. Option B: 1 March, 2010 is one month prior to the official commencement date. Option D: 1 May, 2010 is one month after the Act had already come into effect.
- Q97India's foreign policy and international relations
Which organ of UNO is considered as World Parliament?
- aSecurity Council
- bGeneral AssemblyAnswer
- cInternational Court of Justice
- dTrusteeship Council
Explanation
Option B is correct because the General Assembly is the main deliberative, policymaking, and representative organ of the UN where all member states have equal representation, leading political analysts to describe it as the World Parliament. Option A: is wrong because the Security Council is an executive body tasked specifically with maintaining international peace and security, consisting of only 15 members. Option C: is wrong because the International Court of Justice is the principal judicial organ of the UN. Option D: is wrong because the Trusteeship Council was created to oversee the administration of trust territories and suspended operations in 1994.
- Q98India's foreign policy and international relations
With reference to BRIC countries, consider the following statements: A. At present, China's GDP is more than the combined GDP of all the three other countries. B. China's population is more than the combined population of any two other countries. Which of the statements given above is/are correct?
- aA only
- bB onlyAnswer
- cBoth A and B
- dNeither A nor B
Official answer shown. The explanation is under review.
- Q99Other countries' constitutions: presidential and parliamentary systems compared
In which of the following aspects are the Indian and American Constitutions similar?
- aFundamental RightsAnswer
- bDirective Principles
- cFederal Governance
- dConstitutional Rigidity
Explanation
Option A is correct because the framers of the Indian Constitution drew inspiration for the justiciable Fundamental Rights in Part III directly from the American Bill of Rights. Option B: Directive Principles of State Policy were borrowed from the Irish Constitution, not the American Constitution. Option C: India adopted a quasi-federal structure with a strong central bias modeled after Canada, unlike the classic dual federalism of the USA. Option D: The American Constitution is exceptionally rigid, whereas the Indian Constitution combines both rigidity and flexibility under Article 368.
- Q100STATE POLITY: how the state itself is governed
During the tenure of which of the following Chief Ministers was the Andhra Pradesh Panchayat Raj system introduced?
- aN. Sanjeeva ReddyAnswer
- bD. Sanjeevaiah
- cK. Brahmananda Reddy
- dP.V. Narasimha Rao
Explanation
Option A is correct because the three-tier Panchayati Raj system was formally launched in Andhra Pradesh at Shadnagar on 11 October 1959 by Prime Minister Jawaharlal Nehru, during the tenure of Chief Minister N. Sanjeeva Reddy. N. Sanjeeva Reddy first tenure as CM: 1956 to 1960 AP Panchayat Samithis and Zilla Parishads Act: enacted in 1959 Inauguration at Shadnagar: 11 October 1959 Option B: D. Sanjeevaiah served as Chief Minister between 1960 and 1962, after the launch. Option C: K. Brahmananda Reddy served as Chief Minister from 1964 to 1971. Option D: P.V. Narasimha Rao held the Chief Minister office between 1971 and 1973.
- Q101STATE POLITY: how the state itself is governed
Identify the following Emblem:
- aUniversities Grants Commission
- bUnion Public Service Commission
- cAndhra Pradesh Public Service Commission
- dNational Council of Educational Research and TrainingAnswer
Explanation coming soon.
- Q102STATE POLITY: how the state itself is governed
The name of the comprehensive plan implemented by the Andhra Pradesh government by merging all poverty eradication schemes into one:
- aVelugu
- bIndira Prabha
- cRajiv Gandhi Pragathi Patham
- dIndira Kranthi PathakamAnswer
Explanation
Option D is correct because the Andhra Pradesh government consolidated its various anti-poverty programmes, including the earlier Velugu framework, into a unified umbrella initiative titled Indira Kranthi Pathakam. Option A: Velugu was the precursor programme that was integrated into the wider Indira Kranthi Pathakam. Option B: Indira Prabha was a specific scheme focused on developing assigned agricultural lands of poor households. Option C: Rajiv Gandhi Pragathi Patham was a separate rural infrastructure programme, not the consolidated anti-poverty umbrella.
- Q103STATE POLITY: how the state itself is governed
The 'Koodabettu' scheme, a microfinance loan assistance and savings program for poor women. Through which of the following is it provided?
- aJawahar Rozgar Yojana
- bSelf-Help GroupsAnswer
- cNational Rural Employment Scheme
- dIndira Prabha
Explanation
Option B is correct because the 'Koodabettu' scheme is an innovative savings-led microfinance and lending initiative specifically routed through women Self-Help Groups (SHGs) under rural development and poverty eradication programs in Andhra Pradesh. Option A: Jawahar Rozgar Yojana was a nationwide wage-employment scheme created by merging NREP and RLEGP, not a microfinance savings program for women. Option C: National Rural Employment Scheme provides guaranteed wage employment through manual work, not microfinance credit and savings services. Option D: Indira Prabha was a land development initiative aimed at bringing fallow lands assigned to SC/ST beneficiaries into cultivation.
- Q104STATE POLITY: how the state itself is governed
President's Rule was imposed in Andhra Pradesh in the year 1973. Because:
- aTelangana Movement
- bJai Andhra MovementAnswer
- cPolitical instability
- dFailure of constitutional machinery
Explanation
Option B is correct because the Jai Andhra Movement of 1972-73 in Coastal Andhra and Rayalaseema created severe administrative breakdown and led to the resignation of Chief Minister P.V. Narasimha Rao, resulting in the imposition of President's Rule. Option A: The separate Telangana Movement occurred intensely during 1969 and was not the immediate trigger for the 1973 President's Rule. Option C: Political instability was a symptom resulting directly from the Jai Andhra Movement rather than the standalone root cause. Option D: Failure of constitutional machinery was the formal legal ground under Article 356, but the specific event that precipitated it was the Jai Andhra agitation.
- Q105STATE POLITY: how the state itself is governed
The year the Congress party won the fewest seats in the Andhra Pradesh State Assembly elections:
- a1983
- b1985
- c1994Answer
- d1999
Explanation
Option C is correct because in the 1994 Andhra Pradesh Legislative Assembly elections, the Indian National Congress won only 26 seats out of 294, marking its lowest tally in the history of united Andhra Pradesh. 1983 assembly elections: Congress won 60 seats. 1985 assembly elections: Congress won 50 seats. 1994 assembly elections: Congress won 26 seats. 1999 assembly elections: Congress won 91 seats. Option A: Congress secured 60 seats in 1983, which is significantly more than 26. Option B: Congress secured 50 seats in 1985, which is higher than the 1994 low. Option D: Congress secured 91 seats in 1999, recovering notably from 1994.
- Q106STATE POLITY: how the state itself is governed
When President rule imposed on Andhra Pradesh?
- a1974-75Answer
- b1954-55
- c1959-69
- d1975-76
Official answer shown. The explanation is under review.
- Q107What an economy is measured by
Who first compiled the national income estimates of India during British rule:
- aLord Curzon
- bDadabhai NaorojiAnswer
- cR.C. Dutt
- dV.K.R.V. Rao
Explanation
Option B is correct because Dadabhai Naoroji pioneered the compilation of India's national income and per capita income during British colonial rule. Dadabhai Naoroji estimation period: 1867-68 Work: Poverty and Un-British Rule in India Estimated per capita income: Rs 20 per year Option A: Lord Curzon was a British Viceroy who presented an official per capita income estimate in 1901, decades after Naoroji. Option C: R.C. Dutt analyzed colonial economic exploitation and agriculture but did not compile the first national income estimates. Option D: V.K.R.V. Rao provided the first scientific and census-based national income estimates in 1931-32, much later than Naoroji.
- Q108What an economy is measured by
Saving is a:
- aprimary determinant for growth
- bonly determinant for growth
- cone of the determinants for growthAnswer
- dno relation with growth
Explanation
Option C is correct because saving provides the domestic funds required for capital formation and investment, which drives growth alongside technology, human capital, and institutional efficiency. Option A: saving is vital for financing investment, but designating it as the sole primary driver ignores essential inputs like labor productivity and technological change. Option B: economic growth depends on a combination of capital, innovation, labor, and natural resources, so saving is not the only determinant. Option D: saving determines the supply of loanable funds for investment, so it has a direct and well-established relationship with growth.
- Q109What an economy is measured by
The first estimates of National Income for India During British rule was provided by:
- aLord Curzon
- bDadabhai NaorojiAnswer
- cR. Giffen
- dV.K.R.V. Rao
Explanation
Option B is correct because Dadabhai Naoroji prepared the first non-official estimates of India's national income for the year 1867-1868, published in his landmark work Poverty and Un-British Rule in India. Year of Dadabhai Naoroji's estimate: 1867-1868 Estimated per capita income: 20 rupees per annum Option A: Lord Curzon is wrong because his official estimate was made much later, in 1901. Option C: R. Giffen is wrong because he was a British statistician who did not provide the first national income estimate of India. Option D: V.K.R.V. Rao is wrong because he provided the first scientifically and statistically rigorous estimate of India's national income in 1931-1932, decades after Naoroji.
- Q110What an economy is measured by
Human Development Index was developed by:
- aFAI
- bWTO
- cUNDEAnswer
- dWHO
Explanation coming soon.
- Q111What an economy is measured by
Human Development Index is developed by:
- aFAO
- bWTO
- cUNDPAnswer
- dWHO
Explanation
Option C is correct because the Human Development Index was formulated by economists Mahbub ul Haq and Amartya Sen and launched under the auspices of the United Nations Development Programme in 1990. Option A: Incorrect because the Food and Agriculture Organization handles agricultural productivity and food security initiatives. Option B: Incorrect because the World Trade Organization administers multilateral trade rules and agreements. Option D: Incorrect because the World Health Organization is concerned exclusively with global public health directives and disease control.
- Q112Economic data, indices and state rankings
Karl Pearson's coefficient of correlation lies between which of the following?
- a-1 to +1Answer
- b-1 % to 0
- c0 to 1
- d1 to 100
Explanation
Option A is correct because Karl Pearson's coefficient of correlation measures the degree of linear association between two variables and mathematically ranges from -1 (perfect negative correlation) to +1 (perfect positive correlation). Option B: The coefficient is not measured in percentages and does not terminate at 0. Option C: The range 0 to 1 excludes negative relationships, which Pearson's r accounts for. Option D: The scale 1 to 100 is completely outside the mathematical bounds of the correlation coefficient.
- Q113Planning, reform and the shape of policy
The main objective of the Eleventh Five-Year Plan:
- aStrengthening food security for all people
- bAchieving a growth rate of 9.5 percent
- cStabilizing the achievements made through liberalized policies
- dReducing growing income inequalities to the lowest levelAnswer
Explanation
Option D is correct because the Eleventh Five Year Plan, titled Towards Faster and More Inclusive Growth, aimed to ensure that the benefits of expansion reached marginalized sections by curbing growing disparities and income inequalities. Option A: Strengthening food security was an important sectoral strategy through the National Food Security Mission, but not the broad overarching objective of the entire plan. Option B: The targeted GDP growth rate set for the Eleventh Plan was 9.0 percent, not 9.5 percent. Option C: Consolidating and stabilizing liberalization reforms was the central policy environment of the Eighth Plan, not the Eleventh Plan.
- Q114Planning, reform and the shape of policy
Achieving a growth rate of 9.5 percent is the target of which of the following?
- aMinistry of Finance
- bEleventh Five Year PlanAnswer
- cTenth Five Year Plan
- dPlanning Commission
Explanation
Option B is correct because the Eleventh Five Year Plan (2007–2012) envisioned accelerating economic growth sequentially from 8 percent to reach a peak annual growth target of close to 9.5 percent by its terminal year. Eleventh Five Year Plan period: 2007 to 2012 Initial vision: Accelerating GDP growth to reach up to 9.5 percent towards the end of the plan period Theme: Towards Faster and More Inclusive Growth Option A: Ministry of Finance implements fiscal policy and does not independently set five-year macroeconomic target rates. Option C: Tenth Five Year Plan targeted an overall average growth rate of 8 percent, not 9.5 percent. Option D: Planning Commission is the administrative body that drafts plans rather than a specific planning document or target framework.
- Q115Planning, reform and the shape of policy
The heavy industry sector strategy is associated with which of the following?
- aBrahmananda
- bMahalanobisAnswer
- cBhagwati
- dChakravarty
Explanation
Option B is correct because P.C. Mahalanobis developed the two-sector and four-sector growth models that formed the bedrock of the Second Five Year Plan, prioritizing capital goods and heavy industries. Option A: P.R. Brahmananda, together with C.N. Vakil, advocated the Wage-Goods Model in contrast to the heavy industry approach. Option C: Jagdish Bhagwati is an international trade theorist noted for advocating market reforms and export-oriented growth. Option D: Sukhamoy Chakravarty contributed to macroeconomic planning models and headed the committee on the monetary system, not the heavy industry strategy.
- Q116Planning, reform and the shape of policy
The main target of the Eleventh Five Year Plan is:
- aEnsuring food security to all persons
- bAchievement of Growth rate of 9.5%
- cStabilizing the achievements of Liberalisation PoliciesAnswer
- dReducing the growing income disparities to the minimum level
Official answer shown. The explanation is under review.
- Q117Planning, reform and the shape of policy
When did National Development Council was established?
- a15th March 1950
- b6th August 1952Answer
- c2nd October 1952
- d1st November 1959
Explanation
Option B is correct because the National Development Council was set up by an executive resolution of the Government of India on 6th August 1952 to strengthen and mobilize the effort and resources of the nation in support of the Five Year Plans. Establishment of Planning Commission: 15th March 1950 Establishment of National Development Council: 6th August 1952 Launch of Community Development Programme: 2nd October 1952 Option A: 15th March 1950 is incorrect because it is the date of establishment of the Planning Commission. Option C: 2nd October 1952 is incorrect because it marks the inauguration of the Community Development Programme. Option D: 1st November 1959 is incorrect because it has no relevance to the inception of the National Development Council.
- Q118Planning, reform and the shape of policy
What kind of Economy is there in India?
- aMixedAnswer
- bFree
- cClosed
- dLiberal
Explanation
Option A is correct because the Indian economy features the co-existence of both public and private sectors, combining market mechanisms with state planning and regulation. Option B: Free is incorrect because a free or capitalist economy leaves resource allocation entirely to market forces with minimal state intervention, unlike India. Option C: Closed is incorrect because India actively participates in international trade and foreign capital flows, meaning it is an open economy. Option D: Liberal is incorrect because liberal describes a political philosophy or a regime of market deregulation rather than the structural definition of the economic system itself.
- Q119Planning, reform and the shape of policy
Which of the following measures does not fall under the purview of economic reforms?
- aSpecial Economic Zones
- bRigid labor lawsAnswer
- cFewer special provisions for the small-scale sector
- dRemoval of entry barriers in industries
Explanation
Option B is correct because economic reforms aim at deregulation, flexibility, and ease of doing business, whereas rigid labor laws introduce inflexibility and restrict business growth. Option A: Special Economic Zones are a hallmark export-promotion reform designed to liberalize manufacturing and trade. Option C: Fewer special reservations or provisions for small-scale industries was part of the reform agenda to encourage economies of scale. Option D: Removal of entry barriers via delicensing is one of the core elements of the 1991 reforms.
- Q120Planning, reform and the shape of policy
The main impact of globalization on India's economy:
- aSteep increase in the export of national goods
- bStabilizing the balance of payments
- cSignificant increase in industrial development
- dDecrease in poverty but increase in economic inequalitiesAnswer
Explanation
Option D is correct because while post-1991 globalisation and market-oriented reforms expanded the economy and reduced overall headcount poverty rates, they significantly deepened income and wealth inequalities across sectors and regions. Option A: India experienced rapid growth in services exports, particularly information technology, rather than an extraordinary surge in domestic merchandise exports. Option B: While foreign exchange reserves improved, the balance of payments saw recurring current account deficits due to high import dependence. Option C: The manufacturing and industrial sector registered uneven and sluggish growth compared to the dominant expansion of the services sector.
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