UPSC Prelims 2026 · CSAT

Question 16: Reading Comprehension

Passage beginning “How is deflation done? Most countries…” — Passage · as printed by UPSC

Which of the following statements is/are correct?

1.Real value should not change in the instance of static output cost and unchanged quantities against falling oil prices.
2.Deflators are to be used separately for inputs and outputs, and this is a practice universally adopted by all economies.

Select the answer using the code given below.

a1 only

b2 only

cBoth 1 and 2

dNeither 1 nor 2

AnswerUPSC’s answer is (d).

Statement 2 is plainly wrong: the passage says most countries deflate inputs and outputs separately, but India uses a single deflator for both, so separate deflation is not universal. Statement 1 is treated as wrong by the key because it speaks of static output cost: when oil gets cheaper, the cost of producing the output falls, whereas the passage holds output prices steady. It also says real value where the passage speaks of real value added. On that strict reading it misdescribes the passage's case.

1. The key reads 'output cost' as a cost that falls with oil prices, not the steady output price in the passage's case.
2. India uses a single deflator, so separate deflation is not universal.

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: The key reads 'output cost' as a cost that falls with oil prices, not the steady output price in the passage's case.
Then, if you were sure statement 2 is not correct, (b) goes: it includes 2.
What you needed to know: India uses a single deflator, so separate deflation is not universal.

Only (d) is left. This one needs every statement.

This follows UPSC’s provisional key; the final key could change it.

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 per the key: statement 1 misstates the passage's terms, though it is close.
(b) Wrong: India uses one deflator for inputs and outputs, so separate deflators are not universal.
(c) Wrong: statement 2 is false.
(d) Right per the key: neither statement is accurate as worded.

Worth knowing: Statement 1 closely restates the passage's oil example, so (a) is arguable; the key's 'neither' rests on a strict reading of its wording.

Only the provisional key (27 May 2026) was found; the final key replaces it when found.

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

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Source: UPSC, Civil Services (Preliminary) Examination 2026, General Studies Paper II (CSAT), Series A. The paper on upsc.gov.in.