UPSC 2010 Prelims Questions with Answers

Explanation

The term "Special Safeguard Mechanism (SSM)" is related to the World Trade Organization (WTO) negotiations, particularly in the context of agriculture. It refers to a proposed tool for developing countries to temporarily increase tariffs on agricultural imports in response to surges in imports or price depressions, as part of the ongoing Doha Development Round.

Explanation

Statements 1 is correct: India lacks sufficient alternative technologies, such as those for renewable energy and waste management, which are essential for mitigating global warming. This gap hampers the country’s ability to address climate change effectively. Statements 2 is correct: As a developing country, India faces challenges in investing significant funds into research and development due to its economic constraints.

Statement 3 is incorrect: It is not accurate to claim that developed countries have primarily set up polluting industries in India. Developed countries have shifted some industries to developing nations due to lower environmental regulations and labor costs (a process known as carbon leakage) but this is not a dominant factor in India’s overall emissions. India has strict environmental regulations such as Extended Producer Responsibility (EPR) and Corporate Social Responsibility (CSR) norms.

Explanation

The Stiglitz Commission, formally known as the Commission of Experts on Reforms of the International Monetary and Financial System, was established by the UN General Assembly President in 2008. Its primary objective is to examine the global financial system’s operations and identify strategies to achieve a more sustainable and stable global economic order.

Explanation

The Earth’s atmosphere contains gases and particles that contribute to the greenhouse effect, trapping heat and leading to global warming. These gases absorb and re-emit infrared radiation, while particles like soot can alter solar radiation balance and reduce the reflectivity of surfaces like ice and snow, further influencing climate change.

Option (d) is correct:

Soot directly contributes to warming by absorbing sunlight and reducing the reflectivity of snow and ice. Sulphur hexafluoride is a potent greenhouse gas with a high global warming potential. Water vapour is the most significant greenhouse gas and amplifies the warming effect through feedback mechanisms. Other gases that contribute to the greenhouse effect and cause global warming are Carbon Dioxide, Methane, Nitrous Oxide, Ozone and Chlorofluorocarbons (CFCs).

Explanation

The region with the fastest growth rate of urbanization in the last three decades, according to the UN-Habitat’s Global Report on Human Settlements 2009, is Asia.

Explanation

Pair 1 is correctly matched: A meltdown, typically triggered by a black swan event, leads to a rapid loss of financial asset value and liquidity crises, as seen in India’s Sensex drop from 20,000 in 2008 to 10,000 in 2009.

Pair 2 is incorrectly matched: A recession is a broader economic phenomenon characterized by a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. While a fall in the growth rate can be a precursor to or associated with a recession, it’s not the definition of a recession itself. A fall in the growth rate means the economy is still growing, but at a slower pace.

Pair 3 is incorrectly matched: An economic slowdown refers to a period of slower economic growth, but not necessarily a decline in GDP. GDP is still increasing (positive growth), but at a reduced rate. A "fall" in GDP signifies a contraction in the economy, which is closer to the definition of a recession.

Explanation

The United Nations Framework Convention on Climate Change (UNFCCC) was drawn up at the UN Conference on Environment and Development, Rio de Janeiro, 1992. This conference, also known as the Earth Summit, set the foundation for global cooperation on climate change and sustainable devel-opment.

Explanation

Statement 1 is incorrect: During 2010 (but correct at present, January 2025) the Wholesale Price Index (WPI) was on a monthly basis and on a weekly basis for primary and fuel items. However, the Cabinet Committee on Economic Affairs (CCEA) in 2012 decided to discontinue weekly data on primary and fuel items. These changes were on the recommendation of Abhijit Sen committee’s proposals in 2004-05. The current base year for WPI is 2011-12.

Statement 2 is correct: The WPI which is published by the Office of Economic Adviser, Ministry of Commerce and Indus-try, gives less weight to food articles (24.38%) as compared to the Consumer Price Index for Industrial Workers (CPI IW), which assigns a higher weight (39.17%) to food items in the new series with base year 2016. The WPI and CPI have different weightages for various components. In the WPI, the weightage for food articles is relatively lower compared to the CPI for Indus-trial Workers (CPIIW). The CPIIW gives a higher weight to food and beverages because it reflects the consumption pattern of industrial workers, who spend a significant portion of their income on food. In contrast, the WPI covers a broader range of goods, including manufactured products, fuel, and power, and thus assigns a lower weight to food articles.

Explanation

Option (c) is correct: Deflation is a persistent fall in the general price level of goods and services. It is just the opposite of inflation which is continuous increase in the general price level of goods and services. As per the IMF "Deflation is defined as a sustained decline in an aggregate measure of prices, such as the consumer price index or the GDP deflator. " Options (a), (b) and (d) are incorrect:

A sudden fall in the value of a currency against other currencies is currency depreciation. A persistent recession in both the financial and real sectors of the economy may become Depression. A fall in the rate of inflation over a period of time may not lead to fall in general price level but just less inflation. This is also called disinflation.

Explanation

The Cripps Mission of 1942 was sent by the British government to secure Indian support during World War II in exchange for a promise of post war constitutional reforms. The Congress Party engaged in negotiations, although the proposal was ultimately rejected.

Option (c) is correct: Pandit Jawaharlal Nehru and Maulana Abul Kalam Azad were the official Congress negotiators with the Cripps Mission. They rejected the proposal because it did not grant immediate independence, allowed provinces to opt out of a united India, and retained British control during the war. Gandhi famously referred to the offer as a "post-dated cheque on a crashing bank", reflecting the discontent with the mission’s limited concessions.