UPSC Prelims 2020 · CSAT (Paper II): With reference to the above passage, the following assumptions have been made :1. Relying…
Read the passage
Private investment in general is volatile. Foreign private investment is more volatile because the available investment avenues are significantly greater (i.e., the entire world). Therefore, the responsibility of providing employment cannot be left to Foreign Direct Investment (FDI). The current FDI inflows are volatile over time and, across sectors and regions, which is a necessary consequence of their search for the highest returns. The adverse consequences are unstable employment and an accentuation of income and regional inequalities. A probable positive consequence of foreign investment is the inflow of new technology and its subsequent diffusion. However, the technology diffusion is not at all certain because the existing state of physical and human capital in India may prove inadequate for the diffusion.
With reference to the above passage, the following assumptions have been made :
- 1. Relying on foreign investment in the long run is not an economically sound policy.
- 2. Policies must be undertaken to reduce volatility in foreign private investment.
- 3. Policies must be undertaken to strengthen domestic private investment.
- 4. Public investment should be given priority over private investment.
- 5. Substantial public investment in education and health should be undertaken.
Which of the above assumptions is/are valid?
Answer (b) & explanation
Assumptions 1, 3 and 5 are valid (b). Step 1: the passage says jobs "cannot be left to FDI". So relying on foreign investment in the long run is unwise (1), and domestic private investment must be strengthened (3). Step 2: it says weak human capital blocks the spread of technology. So spending on education and health is needed (5). Step 3: assumption 2 fails because the passage calls FDI volatility a "necessary consequence", which policy cannot remove. Assumption 4, putting public over private investment, is not argued. So options (a), (c) and (d) fail.
Tip: if a passage calls something unavoidable, reject options that ask policy to prevent it.
Answer as per the official UPSC answer key.
Same theme in UPSC Mains
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.