UPSC 2013 Prelims Questions with Answers

Explanation

Under the Section 6(1) of Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (commonly known as the Forest Rights Act or FRA), the Gram Sabha is designated as the primary authority to initiate the process of determining the nature and extent of individual and community forest rights. Forest Rights Act, 2006:

The act recognizes and vests the forest rights and occupation in Forest land to forest Dwelling Scheduled Tribes (FDST) and Other Traditional Forest Dwellers (OTFD) who have been residing in for at least three generations prior to the 13th day of December, 2005. For the purpose of this clause, "generation" means a period comprising of twenty-five years The act further enjoins upon the Gram Sabha and rights holders the responsibilities and authority for sustainable use, conservation of biodiversity and maintenance of ecological balance of FDST and OTFD. While protecting the FDST and OTFD’s way of life and food security, it strengthens the conservation regime for the forests.

Explanation

Statement 1, 2 and 4 are correct: The Capital Account in a country’s Balance of Payments (BoP) records the transactions that involve the transfer of capital assets and liabilities between residents and non-residents. It primarily includes:

Foreign Loans are borrowings from foreign entities by the government, private sector, or other institutions. Foreign Direct Investment (FDI) made by foreign entities in the domestic economy, typically involving a significant degree of control or influence over the business operations. Portfolio Investment in financial assets such as stocks and bonds by foreign investors, without the intention of controlling or managing the enterprise.

Statement 3 is incorrect: Private remittances (money sent by individuals working abroad back to their home country) are considered current transfers and are part of the Current Account, not the Capital Account. They represent a flow of in-come, not a capital investment. Current Account Capital Account Meaning Records imports and exports of visible and invisibles Short term implication transactions Covers only earnings and spending. Excludes any borrowings and lending. Shows capital expenditure and income for country Long term implication transactions Only includes borrowings and lending by a country Components Visible trade (Export and Import of goods - Merchandise transactions) Invisible trade (Export and Import of services) Unilateral transactions Direct Investment (FDI) Portfolio Investment (FPI) Loans / External commercial borrowing (ECB) Non-resident investment in Bank, Insurance, Pension schemes. RBI’s foreign exchange reserve

Explanation

India’s foreign exchange reserves are the external assets maintained by the Reserve Bank of India (RBI) to man-age balance of payments, stabilize the currency, and provide a buffer against economic shocks. The components of foreign exchange reserves include:

Foreign Currency Assets (FCAs): These consist of foreign currencies held by the RBI, mainly in US dollars and other major international currencies (Euro, Pound, and Yen). These are invested in highly liquid assets, such as treasury bills of foreign countries. Gold Reserves: The physical gold held by the RBI as a part of India’s reserve assets. Special Drawing Rights (SDRs): SDRs are an international reserve asset created by the International Monetary Fund (IMF) and allocated to its member countries. SDRs can be exchanged for freely usable currencies to meet external financial needs. Reserve Position in the IMF (RTP): It is India’s quota contributions to the IMF, which can be withdrawn if needed.

Option (a), (c) and (d) are incorrect:

Foreign loans are not included in India’s official forex reserves. Loans from the World Bank are not part of foreign exchange reserves.

Explanation

Article 76 of the Constitution of India deals with the provisions of the Attorney General of India. The Attorney General of India is appointed by the President of India. Eligibility: He/She should be qualified to be Judge of Supreme Court (i.e. Citizen of India and must have been a judge of some high court for 5 years or an advocate of some high court for 10 years) or an eminent jurist, in the opinion of the president. Rights: He/She has the Right to speak and to take part in the proceedings of Parliament or their joint sitting and any committee of the Parliament of which he is a member, but without a right to vote.

Explanation

Statement 1 is incorrect: National Development Council (NDC) and Planning Commission (PC) have been abolished now. NDC was an advisory body and used to advise the Planning Commission on planning and included all CMs and union ministers etc.

Statement 2 is correct: The Economic and Social Planning is kept in the Concurrent List in the Constitution of India.

Statement 3 is correct: Preparation of plans and implementation of plans for economic development and social justice are one of the major powers and functions that comes under Panchayat Raj Institution.

Explanation

NDC comprises the Prime Minister, all the Union Cabinet Ministers, the Chief Ministers of all States and Union Territories and the Members of the Planning Commission. It does not include the chairman of the Finance Commission.

Explanation

The National Development Council, the Planning Commission and the Zonal Councils do not find its mention in the Constitution. They are the Non-Constitutional Bodies. Few details about the same are as follows:

National Development Council (NDC) was set up on 6 August, 1952 by an executive order of the government. It served as "the highest decision-making authority" in the country on development matters. The National Development Council used to advise the Planning Commission on planning. Currently, there is no existence of NDC and Planning Commission, it has been replaced by NITI AAYOG. The Planning Commission of India was set up by a Resolution of the Government of India in March 1950. The Zonal Councils are the statutory (and not the constitutional) bodies. They are established by an Act of the Parliament, that is, the States Reorganisation Act of 1956. The act divided the country into five zones-Northern, Central, Eastern, Western and Southern and provided a zonal council for each zone.

Explanation

Demographic dividend refers to the potential economic boost a country can experience when it has a higher proportion of working-age people relative to non-working de-pendents, provided there are sufficient jobs and investments in health, education, and skills.

Option (a) is correct: To fully benefit from the demographic dividend, India must ensure its young and growing workforce is equipped with the right skills and training. A skilled workforce increases productivity, drives economic growth, and makes the most of the working-age population before it begins to age.

Option (b) is incorrect: While social security schemes improve welfare and reduce poverty, they do not directly enhance the productivity or employability of the workforce, which is essential to harness the demographic dividend.

Option (c) is incorrect: Lowering infant mortality is crucial for improving public health and quality of life, but it doesn’t directly impact the current working-age population’s productivity, which is key to leveraging the demographic dividend.

Option (d) is incorrect: Privatizing higher education might improve access and quality in some cases, but without widespread, affordable, and inclusive education and vocational training, it won’t address the broader need for skill development across the population.

Explanation

Pair 1 is correctly matched: Nokrek Biosphere Re-serve is located in the Garo Hills district of Meghalaya. The biosphere reserve’s name comes from Nokrek Hill, the highest peak of the Garo Hills. It was designated a UNESCO biosphere reserve in 2009 and is home to the red panda and a rich variety of flora and fauna. The reserve is also a significant part of the Western Meghalaya Elephant Landscape and contains the Nokrek National Park.

Pair 2 is incorrectly matched: The Loktak Lake is a freshwater lake in Manipur and is the largest freshwater lake in Northeast India. It is not located in the Barail Range, which is a mountain range in Assam and Nagaland. It is well-known for the phumdis that float above it. Keibul Lamjao National Park, the only floating national park in the world is located in this lake.

Pair 3 is incorrectly matched:: Namdapha National Park is situated in the Changlang district of Arunachal Pradesh. It is part of the Patkai Range, not the Dafla Hills. The Noa Dihing River runs east to west through the national park. The Dafla Hills are located on the Arunachal Pradesh-Assam border, near Pakke Wildlife Sanctuary.

Explanation

Disguised unemployment occurs when more workers are employed than necessary, contributing little to no additional output. In such cases, removing some workers would not impact overall productivity. This condition is commonly observed in the agricultural sector of developing countries, where labor redundancy is prevalent. The defining characteristic of disguised unemployment is zero marginal productivity of labor, meaning additional workers do not increase output.