UPSC Prelims 2014 · CSAT (Paper II): "Price is not the same thing as value. Suppose that on a day the…
"Price is not the same thing as value. Suppose that on a day the price of everything viz., coal, bread, postage stamps, a day's labour, the rent of houses, etc. were to double. Prices then would certainly rise, but values of all things except one would not."
The writer wants to say that if prices of all things were doubled
Answer (d) & explanation
Only the value of money is halved (d). Step 1: understand the claim. If every price doubles, things still trade for the same amounts against each other: a loaf still costs as many hours of labour as before. So their real values do not change. Step 2: the "one" thing whose value changes is money: one rupee now buys only half as much. Step 3: test the others. Option (a) is wrong: it misses the exception the writer mentions. Options (b) and (c) are wrong: values of goods neither double nor halve.
Tip: price is value measured in money. If all prices rise together, it is money that has lost value; this is what inflation means.
Answer as per the official UPSC answer key.
Related questions from other years
Question : X receives three coins of different denominations : 1, 2, 5, 10 and 20. If the total amount received by X is m, does X receive a coin of denomination 5?
Statement I : m is not a prime number.
Statement II : The sum of the digits of m is greater than 5.
Answer (a) & explanation
Statement II alone is enough; Statement I alone is not (a). Step 1: three different coins from 1, 2, 5, 10, 20 give ten totals. With a 5: 8, 16, 17, 26, 27, 35. Without a 5: 13, 23, 31, 32. Step 2: Statement I (m not prime): 8, 16, 26, 27, 35 have a 5, but 32 (2 + 10 + 20) does not. Mixed answers, so I fails. Step 3: Statement II (digit sum above 5): 8, 16, 17, 26, 27, 35 qualify, and every one has a 5. (13, 23, 31, 32 have digit sums 4, 5, 4, 5.) So II answers "yes". Options (b), (c) and (d) fail.
Tip: when cases are few, list them all. Then check each statement against the full list.
don't assume both statements are needed. Listing all ten cases takes thirty seconds and settles it.
Answer as per the official UPSC answer key.
Read the passage
How is deflation done? Most countries use a method called ‘double deflation’, where input and output prices are deflated separately. Consider a manufacturer importing oil for use in production. If oil prices fall, output prices do not and quantities remain the same, real value added should not change. But if the same deflator is used for inputs and outputs, as in India, it would look as if the manufacturer had become more productive.
Which of the following assumptions is/are valid?
- 1. Deflation strategies can be used to make manufacturers appear to be doing better than they actually are.
- 2. When input and output prices are both deflated against a single input price, it is referred to as ‘double deflation’.
Select the answer using the code given below.
Answer (a) & explanation
Only assumption 1 is valid (a). Step 1: the passage says that using one deflator for inputs and outputs, as in India, makes it "look as if the manufacturer had become more productive". So deflation methods can make firms appear better than they are (1). Step 2: assumption 2 says double deflation means deflating both against a single price. But the passage defines double deflation as deflating inputs and outputs separately. So 2 reverses the definition. Step 3: options (b), (c) and (d) fail.
Tip: check definitions word for word against the passage. Deflating means removing the effect of price changes to find real growth, as in real GDP.
Answer as per the official UPSC answer key.
P, Q, R, S and T are ranked 1 to 5 (not necessarily in that order). The rank of P is 4, the rank of Q is not 5, the rank of R is 1, the rank of S is not 2, the rank of T is not 3. Then which of the following is/are correct?
- I. If the rank of S is 3, then that of T is 2.
- II. If the rank of Q is 3, then that of T is 5.
Select the answer using the code given below.
Answer (d) & explanation
Neither statement is correct (d). Step 1: P = 4 and R = 1 are fixed. Ranks 2, 3 and 5 remain for Q, S and T, with rules: Q is not 5, S is not 2, T is not 3. Step 2: statement I: if S = 3, then Q and T share 2 and 5. Q cannot be 5, so Q = 2 and T = 5, not 2. I is wrong. Step 3: statement II: if Q = 3, then S and T share 2 and 5. S cannot be 2, so S = 5 and T = 2, not 5. II is wrong. Options (a), (b) and (c) fail.
Tip: fix the known ranks first, then apply each "if" condition and let the "not" rules decide the rest. Write the small table on paper.
Answer as per the official UPSC answer key.
How many times does 5 appear in all two-digit positive integers?
Answer (b) & explanation
The digit 5 appears 19 times (b). Step 1: 5 in the tens place: 50, 51, …, 59 = 10 times. Step 2: 5 in the units place: 15, 25, 35, 45, 55, 65, 75, 85, 95 = 9 times (05 is not a two-digit number). Step 3: total = 10 + 9 = 19. The number 55 has two 5s, and both are counted. Option (a), 18, counts 55 once. Options (c) and (d) wrongly add 05 or 5.
Tip: count place by place. The question asks how many times the digit appears, not how many numbers contain it (that would be 18).
Answer as per the official UPSC answer key.