Important Concepts in Economy: UPSC Previous Year Questions (Indian Economy)
2 previous year UPSC Prelims questions on Important Concepts in Economy (Indian Economy). Choose an option to see the answer and explanation.
Explanations state facts as of the year each question was asked; words like “recently” refer to that year.
Showing 1–2 of 2 questions
UPSC 1996Indian Economy · Important Concepts in Economy
Q1. Hawala transactions relate to payments:
Explanation
Hawala transactions refer to an informal and unof-ficial system of transferring money across borders without using formal banking channels or regulatory oversight. It involves a network of brokers (hawaladars) who facilitate the transfer of money between individuals or entities in different countries. For example, if Person A in Country X wants to send money to Person B in Country Y, they give the money to a hawaladar in Country X. The hawaladar then instructs their coun-terpart in Country Y to deliver the equivalent amount to Person B. No physical movement of money occurs across borders, and the transaction is based on trust and informal records. Options (b), (c) and (d) are incorrect:
Unauthorized stock transfers without using stock exchanges fall under insider trading or securities fraud and not Hawala. Received as commission for services rendered to overseas investors/buyers/sellers in assisting them to get over the red tape and/or in getting preferential treatment" refers to bribery or facilitation payments to bypass bureaucratic hurdles, which is a corruption issue. While Hawala channels can be used for illegal election funding, the term itself does not directly refer to political payments.
UPSC 1996Indian Economy · Important Concepts in Economy
Q2. As per the 1991 Census, the average size of households in terms of number of persons per household in respect of the given states follows the sequence (highest first, lowest last)
Explanation
The average household size refers to the average number of people living in a household. It is calculated using the following formula:
Average Household Size=Total Population/Total Number of Households. For example, if a country has a population of 100 million and 20 million households, the average household size would be: 100,000,000/20,000,000=5 persons per household. Based on the 1991 Census data, the average household sizes (number of persons per household) for the given states are as follows:
1. Uttar Pradesh: 6.2 persons per household
2. West Bengal: 5.4 persons per household
3. Gujarat: 5.5 persons per household
4. Kerala: 5.3 persons per household The average household size in India has been decreasing over the decades due to declining birth rates, urbanization, and changes in family structures. States like Uttar Pradesh and Bihar have larger household sizes due to higher fertility rates and joint families. Kerala and Tamil Nadu have smaller household sizes due to better education, family planning, and higher migration. v v v
Answer key for these questions
Q
UPSC year
Correct answer
1
1996
(a) received in rupees against overseas currencies and vice versa without going through the official channels
2
1996
(b) Uttar Pradesh, West Bengal, Gujarat, Kerala
Frequently asked questions
How many previous year UPSC questions are there on Important Concepts in Economy?
This page covers 2 previous year UPSC Prelims GS Paper-I questions on Important Concepts in Economy (Indian Economy), asked from 1996 to 2022. Each has the correct answer and an explanation.
How should I use previous year UPSC questions for Prelims?
Attempt each question first, then open the answer and read the explanation for every option. Repeat by chapter, and track which statements UPSC reuses across years. Previous year questions show the exam pattern and difficulty level.
Which years are covered for Important Concepts in Economy?
Questions on Important Concepts in Economy (Indian Economy) are available for 11 years, from 1996 to 2022. Use the Year filter to practise a single paper.
