2004 General Studies, all questions

UPSC Prelims 2004 · General Studies

Question 75: Economy and Social Development

Assertion (A): For the first time, India had no trade deficit in the year 2002-03. Reason (R): For the first time, India's exports crossed worth $50 billion in the year 2002-03.

aBoth A and R are individually true and R is the correct explanation of A
bBoth A and R are individually true but R is not the correct explanation of A
cA is true but R is false
dA is false but R is true

AnswerThe answer is (d).

The assertion is false: India still ran a merchandise trade deficit in 2002-03, though it had a current account surplus that year, helped by remittances and software earnings. The reason is true: exports crossed 50 billion dollars for the first time in 2002-03. So A is false and R is true.

  • A. There was still a trade deficit; the current account was in surplus.
  • R. Exports crossed 50 billion dollars for the first time.

How you could have got this

If you were sure statement 1 is not correct, only (d) is left: every other option says it is correct.

This follows an unofficial answer: UPSC has not published its key for this year, and if that answer is wrong, so is this path.

Which options go is worked out from UPSC’s key and the options, not by a model.

Why each option is right or wrong
  • (a) A is false, so this cannot be right.
  • (b) A is false, so this cannot be right.
  • (c) R is true, so this cannot be right.
  • (d) Correct: A is false but R is true.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2004, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.