UPSC Prelims 2000 · General Studies
Question 73: Economy and Social Development
Match List I with List II and select the correct answer using the codes given below the Lists: List I I. Boom II. Recession III. Depression IV. Recovery List II A) Business activity at high level with increasing income, output and employment at macro level B) Gradual fall of income, output and employment with business activity in a low gear C) Unprecedented level of under employment and unemployment, drastic fall in income, output and employment D) Steady rise in the general level of prices, income, output and employment Codes:
AnswerThe answer is (a).
A business cycle moves through four phases. A boom has high activity with rising income, output and employment. A recession is a gradual fall of income, output and employment with business in low gear. A depression is the extreme case, with heavy unemployment and a drastic fall in income and output. Recovery is the steady rise in prices, income, output and employment.
- I. Boom: high activity with rising income, output and employment (A).
- II. Recession: gradual fall of income, output and employment (B).
- III. Depression: unprecedented unemployment and a drastic fall (C).
- IV. Recovery: steady rise in prices, income, output and employment (D).
Why each option is right or wrong
- (a) Right: Boom-A, Recession-B, Depression-C, Recovery-D.
- (b) Swaps Depression and Recovery.
- (c) Swaps Boom with Recession and Depression with Recovery.
- (d) Swaps Boom with Recession, which is wrong.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2000, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.