NTA UGC NET/JRF Exam, December 2022 (Commerce) Shift-I

Total Questions: 100

91. Read the following passage and answer the question.

The economy of India is a mixed, middle-income, developing social market economy. It is the world's fifth-largest economy by purchasing power parity (PPP) and the third-largest by GDP. According to the International Monetary Fund (IMF), on a per capita income basis, India ranked 142nd by GDP (nominal) and 125th by GDP (PPP).

From independence in 1947 to 1991, the economy was characterized as dirigisme, and the era of the Licence Raj.The end of the Cold War, an acute balance of payments crisis in 1991 led to the adoption of a broad economic liberalisation in India. Since the start of the 21st century, annual average GDP growth has been 6% to 7%, and from 2013 to 2018, India was the world's fastest growing major economy, surpassing China.

Economy of India is unbounded with the largest share of world most of the recorded history until the onset of colonialism in early 19th century. Share of India economy is 7.5% of world economy by PPP terms. The long-term growth perspective of the Indian economy remains positive due to its young population and corresponding low dependency ratio, healthy savings, and investment rates, increasing globalization in India and integration into the global economy. Nearly 70% of India's GDP is driven by domestic private consumption.

The country remains the world's sixth-largest consumer market. Apart from private consumption, India's GDP is also fuelled by government spending, investments, and exports. India has been a member of the World Trade Organization since 1 January 1995. It ranks 37th on the Ease of Doing Business Index and 37th on the Global Competitiveness Report. Due to extreme poverty and income fluctuations, India's nominal GDP fluctuates significantly.

With 50 crore (500 million) workers, the Indian labour force is the world's second-largest. India has one of the world's highest number of billionaires and extreme income inequality. Because of several exemptions, barely 5% of Indians pay income taxes.

Given below are two statements:
Statement I : India has one of the world's highest number of billionaires and extreme income inequality. Because of several exemptions, barely 5% of Indians pay income taxes.
Statement II : With 50 crore (500 million) workers, the Indian labour force is the world's second-largest.
In the light of the above statements, choose the most appropriate answer from the options given below:

Correct Answer: (a) Both Statement I and Statement II are correct
Solution:

Statement I : India has one of the world's highest number of billionaires and extreme income inequality. Because of several exemptions, barely 5% of Indians pay income taxes is correct.
Statement II : With 50 crore (500 million) workers, the Indian labour force is the world's second largest is correct.

92. Which of the following is not a correct statement?

Correct Answer: (c) India has been a member of the World Trade Organization since 1 January 1996
Solution:

India has been a member of the world trade organization since 1 January 1995 is incorrect statement. The correct statement will be India has been a member of the world trade organization since January 1995.

93. Which one of the following is not a supportive factor to the Indian economy's long-term growth perspective?

Correct Answer: (d) Continuous increasing defence expenditure
Solution:

"Continuous increasing defence expenditure" is not a supportive factor to the Indian economy's long-term growth perspective.

94. Given below are two statements:

Statement I : Since the start of the 21st century, annual average GDP growth rate of India has been 6% to 7%
Statement II : From 2013 to 2018, India was the world's fastest growing major economy, surpassing china.
In the light of the above statements, choose the most appropriate answer from the options given below:

Correct Answer: (a) Both Statement I and Statement II are correct
Solution:

Statement I: since the start of the 21st century, annual average GDP growth rate of India has been 6% to 7% is correct.
Statement-II: from 2013 to 2018, India was the world's fastest growing major economy, surpassing china is correct.
So, both statement I and statement II are correct.

95. Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R.

Assertion A : Nearly 70% of India's GDP is driven by domestic private consumption.
Reason R : The country (India) remains the world's sixth largest consumer market.
In the light of the above statements, choose the most appropriate answer from the options given below:

Correct Answer: (b) Both A and R are correct but R is not the correct explanation of A
Solution:

Assertion A : Nearly 70% of India's GDP is driven by domestic private consumption is correct.
Reason R : The country (India) remains the world's sixth largest consumer market is correct but not the correct explanation of A.

96. Which one of the following explains Aadhaar?

Correct Answer: (a) National Identification program
Solution:

National identification program explains Aadhaar. Aadhaar is 12 digit individual identification number serves as proof of identity and address.

97. Which one of the following describe India Stack better?

(a) A decentralized public utility offering a low-cost comprehensive digital identity.
(b) Payment and data-management system
(c) A network for lowering credit costs
(d) A trading platform
Choose the correct answer from the options given below:

Correct Answer: (d) (A), (B) and (D) only
Solution:

Following describes India stack better which are:-
■ A decentralized public utility offering a low-cost comprehensive digital identity.
■ Payment and data management system.
■ A network for lowering credit costs.

98. Given below are two statements:

Statement I : Credit availability is an important component of economic growth.
Statement II : India is currently one of the most under leveraged countries in the world.
In the light of the above statements, choose the most appropriate answer from the options given below:

Correct Answer: (a) Both Statement I and Statement II are true
Solution:

Statement I "Credit availability is an important component of economic growth" is true.
Statement II "India is currently one of the most under leveraged countries in the world" is true.
So, Both statement I and statement II are true.

99. "The system creates biometric IDs to establish proof of residence and has been instrumental in digitising financial transactions, among other benefits." The above statement talks about which one of the following?

Correct Answer: (c) Aadhar
Solution:

"The system creates biometric IDs to establish proof of residence and has been instrumental in digitising financial transactions, among other benefits." The above statement talks about Aadhaar.

100. Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R.

Assertion A : India's income distribution could flip over the next decade.
Reason R : Overall consumption in the country could be more than double from $2 trillion in 2022 to $4.9 trillion by the end of the decade.
In the light of the above statements, choose the most appropriate answer from the options given below:

Correct Answer: (a) Both A and R are true and R is the correct explanation of A
Solution:Assertion A : India's income distribution could flip over the next decade is true.
Reason R : Overall consumption in the country could be more than double from $2 trillion in 2022 to $4.9 trillion by the end of the decade is true and correct explanation of (assertion).