2014 CSAT, all questions

UPSC Prelims 2014 · CSAT

Question 4: Reading Comprehension

Passage - 2 · as printed by UPSC
Passage beginning “It is easy for the government to…”Passage beginning “It is easy for the government to…”

Consider the following statements : According to the passage, an oil company can make greater profits, if a transparent formula for petrol pricing is announced every fortnight or month, by

  1. 1.promoting its sales.
  2. 2.undertaking innovation.
  3. 3.cutting costs.
  4. 4.selling its equity shares at higher prices.

Which of the statements given above is/are correct ?

a1 only
b2 and 3
c3 and 4
d1, 2 and 4

AnswerUPSC’s answer is (b).

Under the proposed fortnightly or monthly price rule, a firm that finds new methods and brings its expenses down keeps the extra profit; that is what pushes firms to improve. Increasing sales volume and a better share price are never suggested as sources of that extra profit. So only innovation and cost reduction are supported. In statement questions, accept only what the passage says or clearly implies.

  • 1. Promoting sales is not mentioned.
  • 2. Innovation is named as a way to earn more profit.
  • 3. Cost reduction is the other named route.
  • 4. Share prices are not discussed.

How you could have got this

  1. If you were sure statement 1 is not correct, (a) and (d) go: each of them includes 1.

    What you needed to know: Promoting sales is not mentioned.

  2. Then, if you were sure statement 2 is correct, (c) goes: it leaves 2 out.

    What you needed to know: Innovation is named as a way to earn more profit.

Only (b) is left. You didn’t need statements 3 or 4.

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) Sales promotion is not mentioned in the passage.
  • (b) Right. Innovation and cost-cutting are the two routes to higher profit under a transparent rule.
  • (c) Cost-cutting is named, but higher equity prices are not mentioned.
  • (d) Sales promotion and equity prices are not mentioned, and innovation alone is only one of the two routes.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2014, General Studies Paper II (CSAT), Series A. The paper on upsc.gov.in.