UPSC Prelims 2015 · GS Paper I
Question 81: Economy and Social Development
With reference to Indian economy, consider the following statements :
- 1.The rate of growth of Real Gross Domestic Product has steadily increased in the last decade.
- 2.The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade.
Which of the statements given above is/are correct?
AnswerUPSC’s answer is (b).
The growth rate of real GDP has not risen steadily over the decade; it has gone up and down with events such as the 2008 global crisis and the slowdown of 2012-14, so statement 1 is wrong. GDP at market prices in rupees, which includes inflation, has increased year after year, so statement 2 is correct. Remember: nominal GDP keeps rising; the growth rate does not.
- 1. Real GDP growth fluctuated, falling in years such as 2008-09 and 2012-14.
- 2. GDP at market prices in rupees rose every year, helped by inflation.
How you could have got this
- If you were sure statement 1 is not correct, (a) and (c) go: each of them includes 1.
What you needed to know: Real GDP growth fluctuated, falling in years such as 2008-09 and 2012-14.
- Then, if you were sure statement 2 is correct, (d) goes: it leaves 2 out.
What you needed to know: GDP at market prices in rupees rose every year, helped by inflation.
Only (b) is left. This one needs every statement.
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) Wrong: growth rate fell in several years, so it did not rise steadily.
- (b) Correct: only the rupee value of GDP at market prices rose steadily.
- (c) Wrong: statement 1 is false.
- (d) Wrong: statement 2 is true.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2015, General Studies Paper I, Series A. The paper on upsc.gov.in.