UPSC Prelims 2014 · CSAT
Question 5: Reading Comprehension
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 ?
AnswerUPSC’s answer is (a).
The author's plan: first fix a published pricing formula, then keep the government's hands off. If that is sustained for some time, private firms return to the business. Subsidies play no part in this plan. Anti-trust and competition laws are expected to continue even after the formula is dropped, so scrapping them is not part of it.
- 1. A published pricing formula is the first step that draws private firms back.
- 2. Staying out after the formula is announced is the stated condition.
- 3. Subsidies are not mentioned.
- 4. Anti-trust and competition laws are expected to remain.
How you could have got this
- If you were sure statement 1 is correct, (b), (c) and (d) go: each of them leaves 1 out.
What you needed to know: A published pricing formula is the first step that draws private firms back.
Only (a) is left. You didn’t need statements 2, 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) Right. A transparent rule plus no interference after it is announced brings private firms back.
- (b) Subsidies are not mentioned as a reason for re-entry.
- (c) Neither subsidies nor removal of anti-trust rules is mentioned; competition laws are expected to stay.
- (d) Non-interference is right, but anti-trust regulations are to remain, not be removed.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2014, General Studies Paper II (CSAT), Series A. The paper on upsc.gov.in.