UPSC Prelims 2014 · CSAT (Paper II): Consider the following statements :According to the passage, private oil companies re-enter the oil…
Read the passage
It is easy for the government to control State-owned companies through nods and winks. So what really needs to be done as a first step is to put petrol pricing on a transparent formula — if the price of crude is x and the exchange rate y, then every month or fortnight, the government announces a maximum price of petrol, which anybody can work out from the x and the y. The rule has to be worked out to make sure that the oil-marketing companies can, in general, cover their costs. This will mean that if one company can innovate and cut costs, it will make greater profits. Hence, firms will be more prone to innovate and be efficient under this system. Once the rule is announced, there should be no interference by the government. If this is done for a while, private companies will re-enter this market. And once a sufficient number of them are in the fray, we can remove the rule-based pricing and leave it truly to the market (subject to, of course, the usual regulations of anti-trust and other competition laws).
Consider the following statements :
According to the passage, private oil companies re-enter the oil producing market if
- 1. a transparent rule-based petrol pricing exists.
- 2. there is no government interference in the oil producing market.
- 3. subsidies are given by the government.
- 4. regulations of anti-trust are removed.
Which of the statements given above are correct ?
Answer (a) & explanation
Transparent pricing and no interference bring private firms back (a). Step 1: find the sequence. The government sets a transparent formula; "once the rule is announced, there should be no interference by the government"; then "private companies will re-enter". That gives items 1 and 2. Step 2: test the others. Item 3 is wrong: subsidies are not mentioned. Item 4 is wrong: the passage says anti-trust and competition rules stay even after the market is freed. So options (b), (c) and (d) fail.
Tip: words like "subject to, of course, the usual regulations" mean those rules remain. An option saying they are removed reverses the text.
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.