VTS-12-GS-M-02

VAJIRAM IAS TEST SERIES

[Institute for IAS Examination]
GENERAL STUDIES TEST NO. 2 Indian Economy & Statistics
Time Allowed: Three Hours Maximum Marks: 300

INSTRUCTIONS

Answers must be written in the medium specified in the Admission Certificate issued to you, which must be stated clearly on the cover of the answer-book in the space provided for the purpose. No marks will be given for the answers written in a medium other than that specified in the Admission Certificate. The number of marks carried by each question is indicated at the end of the question. Important Note: All parts of a question being attempted are to be answered contiguously. That is, all parts of the question being attempted must be completed before attempting the next question. Pages left blank in the answer book must be clearly struck out. Answers following blank pages may not be given credit.
9-B, Bada Bazar Marg, Old Rajinder Nagar, New Delhi-110060

1.

Answer any TWO of the following in about 250 words each: (20 x 2 = 40 marks) (a) Which important reform measures have been undertaken at the 14th General Review of the International Monetary Fund (IMF)? Do you think that these reforms will help to shift the control of IMF from the developed to the developing and underdeveloped countries? (b) The potential of microfinance is not limited to the provisions of the financial services alone but it can address larger development issues like gender equality and right to livelihood as well. Comment in the context of the Indian Economy. Has Malegam Committee Report contributed to tap this potential? (c) What do you mean by Doha Development Round of WTO? Critically examine the assertion that this round is practically dead for both the developed and developing countries.

2.

Answer any TWO of the following in about 250 words each: (20 x 2 = 40 marks) (a) Discuss to what extent the goals of Sustainable Development and Poverty Removal are contradictory to each other in the developing countries like India. In this backdrop critically examine the lacunae in the policy-making by the developed and developing countries at the recent Rio+20 summit. (b) Despite numerous reforms during the post-1991 period, the manufacturing sector failed to become one of the building blocks of Indian economic development vis--vis the services sector. Comment. Do you think that the National
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Manufacturing Policy, 2011 can help remove this bias? (c) Indirect Tax Reforms are more crucially needed for the Indian Economy than the Direct Tax Reforms. Comment. Bring out the important bottlenecks in implementing one uniform All-India Indirect Tax. 3. Answer any FIVE of the following in about 150 words each: (14 x 5 = 70 marks) (a) Examine the effect of Greek Bailout in the aftermath of the Eurozone crisis on the Indian Economy. (b) Has the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) actually tackled poverty problem in India? Comment. (c) Explain how has the General Agreement on Trade in Services (GATS) under WTO affected the Services sector in the Indian Economy. (d) Poverty Estimation itself is very poor in India. Comment with special emphasis on the methodology proposed by the Tendulkar Committee. (e) Critically examine the role of General AntiAvoidance Rules (GAAR) incorporated in the Direct Tax Code in tackling recent Indian economic problems like high fiscal and current account deficits. (f) Do you agree that after twenty years of privatization and liberalization reforms, planning has now become obsolete in the Indian Economy?
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(g) The recent Central Statistical Organization data on Indian economy for 2011-12 describe it as the Gasping Elephant. Do you agree? 4. Write short notes in about 50 words on any TWELVE of the following topics: (5 x 12 = 60 marks) (a) Exchange Rate based on Purchasing Power Parity (b) Qualified Foreign Investors in India (c) Multidimensional Poverty Index (d) Liquidity Adjustment Facilities of RBI (e) Infrastructure Debt Funds (f) Special Safeguard Mechanism (g) Effective Revenue Deficit (h) De-Minimis Level of Subsidies (i) Inflation-Growth Trade-off (j) Current Daily Status of Employment (k) Non-Agricultural Market Access (l) Supply-side bottlenecks in Indian Economy (m) Swarna Jayanti Shahri Rozgar Yojna (n) Mode-IV Services under WTO (o) PURA model of rural development.

NOTE: Answer the following questions on a separate answer booklet. 5. Answer the following questions: (a) Using Less Than Type cumulative frequencies, draw an Ogive to represent the following information. (6 marks)
I.Q.
No. of Students :

: 60-70 70-80 80-90 90-100 100-110 110-120 120-130 2 5 12 31 39 10 4

(b) Show graphically the value of Median for the above mentioned data on the Ogive you draw. (2 marks)
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6. Answer the following questions: (2 x 4 = 8 marks) (a) If the value of mode and mean is 60 and 66 respectively, find the value of the median. (b) If the arithmetic mean of two numbers is 10 and their geometric mean is 8, find their harmonic mean. (c) Justify the statement: Statistics should not be used as a blind man uses a lamp-post for support instead of illumination. (d) The interest paid on each of three different sums of money yielding 3%, 4% and 5% simple interest per annum respectively, is the same. What is the average yield per cent on the total sum invested? 7. Answer the following questions:

(a) The following table gives the debt position of the Central Government as the amount (in Rs. Crore) outstanding at the end of March 31st of each year. Represent the data by a suitable diagram showing the relative changes in the components over the years. (8 marks)
Years : 1984-85 Internal Debt : 58537 External Debt : 16637 Other Liabilities : 38267 Total : 113441 1985-86 71039 18153 48422 137614 1986-87 86313 20299 59934 166546 1987-88 98646 23223 73692 195561

(b) Represent the following data by a suitable diagram. (6 marks)

Year : Indias Exports :
(Rs Crore)

1972 1823

1976 4970

1980 6591

1984 9981

1988 20295

8. (a) Answer the following questions: (3 x 3 = 9 marks) (i) State Sturges Rule for finding ideal number of classes. (ii) What is Gamblers Fallacy? (iii) What is the Law of Inertia of Large Numbers? (b) In each of the following, name the most appropriate diagrammatic/graphical presentation. (1 x 4 = 4 marks) (i) Where one needs to show the relative changes in the components of an aggregate over a period of time. (ii) Distribution of employees in a Public Sector Enterprise as per different age groups. (iii) Where one needs to represent the net quantities; for example, exports/imports or profits/losses over the years. (iv) Where one needs to represent the components distribution/contribution in an aggregate over a period of time. 9. (a) Answer the following questions: (2 x 2 = 4 marks) (i) What is Skewness? (ii) Which of the three measures of central tendency mean/median/mode - is more appropriate for a skewed distribution and why? (b) Answer the following questions: (2 x 2 = 4 marks) (i) If for a set of two variables, the value of the Coefficient of Correlation (r) is found to be 0.7 then comment upon the relationship/causation. (ii) If the value of the Coefficient of Determination is 0.36 for a given situation involving two
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variables, then find out the value of the Coefficient of Correlation. (c) The arithmetic mean of the runs scored by three batsman X, Y and Z in the series are 50, 48 and 12 respectively. The standard deviations of their runs are respectively 15, 12 and 2. Find out, who is the most consistent player of the three? (5 marks) 10. (a) The following table gives the distribution of daily expenditures of 900 students. However the frequencies of the classes 40-50 and 60-70 are missing. If the median of the distribution is Rs 59.25, find the missing frequencies. (6 marks)
Expenditures (Rs): No. of Students : 30-40 120 40-50 ? 50-60 200 60-70 ? 70-80 185

(b) The daily sales of a candy seller in a week are given below. If the profit is 20% of sales, find his average profit per day. (3 marks)
Days Sales (Rs.) : : Mon 100 Tue 150 Wed 125 Thurs 140 Fri 160 Sat 200 Sun 250

(c) For a group containing 100 observations, the arithmetic mean and standard deviation are 8 and 10.5. For 50 observations selected from these 100 observations, the mean and standard deviation are 10 and 2 respectively. Find the mean and standard deviation of the other half. (5 marks) 11. (a) The class marks of a distribution are: 26, 31, 36, 41, 46, 51, 56, 61, 66, 71. Find the true class limits. (4 marks)
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(b) The distances (in km) covered by 24 cars in 2 hours time are given below: 125, 140, 128, 108, 96, 149, 136, 112, 84, 123, 130, 120, 103, 89, 65, 103, 145, 97, 102, 87, 67, 78, 98, 126. Represent these distances through a Frequency Distribution with 60 as the lower limit of the first class and a uniform class interval of 15 throughout. (6 marks) 12. A survey of 370 students from the Commerce Faculty and 130 students from the Science Faculty revealed that 180 students were studying for only C.A. examinations, 140 for only Costing examinations and 80 for both C.A. and Costing examinations. The rest had opted for parttime Management Courses. Of those studying Costing only, 13 were girls and 90 boys belonged to the Commerce Faculty. Out of 80 students studying for both C.A. and Costing, 72 were from the Commerce Faculty amongst which 70 were boys. Amongst those who opted for part-time Management Courses, 50 boys were from the Science Faculty and 30 boys and 10 girls from the Commerce Faculty. In all there were 110 boys in the Science Faculty. (i) Present the above information in a tabular form. (8 marks) (ii)Find the number of students from the Science Faculty studying for part-time Management Courses. (2 marks)