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7 Test
SET CODE Booklet No
GROUP - II PAPER - 3
TS-Gr-II INDIAN ECONOMY, TELANGANA ECONOMY
260524
Duration : 2.30 Hrs (ENGLISH & TELUGU MEDIUM) Marks : 150


1. Ans : 1

2. Answer : 2
Explanation: The annual population growth rate has declined, and the population is projected to peak
around 1.5 billion by 2050. The fertility rate has beendeclining and is below 3.0 children per woman since
2000.

3. Answer : 4

4. Answer : 2

5. Answer : 2

Explanation: The demographic dividend refers topotential economic growth from changes in a country’s
age structure, specifically when there are more people ofworking age than non-working age. It does not
guarantee economic growth without appropriate policies.

6. Answer : 4

7. Answer : 3
Explanation: There is a declining trend in agricultural employment and a significant increase in the service
sector. The industrial sector has not remained stagnant;it has grown, though not as significantly as the
service sector

8. Answer : 3

9. Answer 4

10. Answer: 1
Explanation: GDP measures the total value of all final goods and services produced within a country in
a given period. It excludes intermediate goods to avoid double counting.

11. Answer: 1
Explanation: GNP includes the income earned by residents from abroad. GNP can be higher or lower
than GDP depending on the net income from abroad.

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12. Answer: 1
Explanation: NNP is calculated by subtracting depreciation from GNP. It is not always less than GDP; it
depends on the relative values of GNP and depreciation
.
13. Answer: 2
Explanation: National Income includes the total income earned by residents and businesses, including
income from abroad. It includes taxes and subsidies on production and imports to reflect the true
income.

14. answer: 3
Explanation: DPI is the income available to individuals after taxes, and it includes transfer payments
such as pensions and unemployment benefits.

15. Answer: 1
Explanation: Real GDP is adjusted for inflation to reflect the true value of goods and services. It does
not reflect current market prices, which is the characteristic of Nominal GDP.

16. Answer: 3

Explanation: The GDP deflator measures the change in prices of all goods and services in GDP and is
used to convert nominal GDP into real GDP.

17. Answer: 2
Explanation: PPP compares different countries' currencies through a basket of goods approach. It does
not consider exchange rates directly, but rather the relative cost of the basket of goods

18. Answer : 1

19. Answer : 1

20. Answer : 3

21. Answer : 1

22. Answer : 3

23. Answer : 1
Explanation: GVA measures the value of goods and services produced in an area, industry, or sector. It
excludes intermediate goods to avoid double counting.

24. Answer : 2
Explanation: The Income Method sums up all incomes earned by individuals and businesses, including
income from abroad if calculating GNP.

25. Te Answer : 3

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26. Answer : 1
Explanation: The circular flow of income shows the movement of money as well as goods and services
between producers and consumers.

27. Answer : 4
Explanation: Double counting refers to counting the same item more than once, which can lead to an
overestimation of national income

28. Answer :: 1
Explanation: The Expenditure Method includes consumption, investment, government spending, and
net exports. It includes changes in inventories as part of investment.

29. Answer : 2
Explanation: GNI is GDP plus net income from abroad. Depreciation is not included in GNI; it is
deducted when calculating Net National Income (NNI).

30. Answer : 3
Explanation: VAT is included in GDP as it is a part of the value added at each production stage,
reflecting the market value of goods and services.

31. Answer : 4

32. Answer : 1

33. Answer : 4

34. answer : 2

35. Answer 1
Explanation: High inflation can erode real per capita income. Nominal per capita income does not
always accurately reflect changes in purchasing power.

36. Answer : 2
Explanation: Economic growth has led to an increase in per capita income, but it has not equally
benefited all sections of society due to income inequality

37. Answer : 2

Explanation: Agriculture and allied sectors contribute around 15-20% to India's GDP, and it employs
more than 50% of the workforce. However, the share of agriculture in GDP has been decreasing as
other sectors grow.

38. Answer : 2
Explanation: Rice and wheat are the most commonly grown crops, and crop diversification is
encouraged for sustainability. However, the cropping pattern is not uniform across states due to
climatic and soil variations.
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39. Answer: 1
Explanation: India is one of the largest producers of milk and a major exporter of cereals. However, the
productivity of agriculture in India is not among the highest in the world; it lags behind due to various
challenges.

40. Answer: 2
Explanation: Adoption of modern farming techniques and improved access to credit can help improve
productivity. Reduction in the use of fertilizers and pesticides needs to be managed carefully to not
affect productivity negatively.

41. Answer: 1

42. Answer: 3
Explanation: Organic farming avoids synthetic inputs and organic products often fetch premium
prices. However, it has not been widely adopted across all states in India.

43. Answer: 2
Explanation: Increasing consumer demand and government incentives contribute to the adoption of
organic farming. However, initial yields are often lower compared to conventional farming.

44. Answer:4
Explanation: The agricultural sector in India faces challenges such as limited access to modern
technology, high post-harvest losses, and excessive dependence on monsoon rains.

45. Answer: 4

Explanation: Cropping intensity in India is influenced by the availability of irrigation facilities, the use
of high-yielding varieties, and seasonal rainfall patterns

46. Answer: 2
Explanation: Land fragmentation and poor rural infrastructure are significant challenges. However,
agricultural credit is not abundantly available for small farmers.

47. Answer: 2
Explanation: Climate change increases the frequency of extreme weather events and changes crop
yield patterns. It generally does not improve soil moisture retention; rather, it can lead to more
variability

48. Answer : 2
Explanation: PMKSY and NFSM aim to improve agricultural productivity. MGNREGA focuses on
providing rural employment and indirectly benefits agriculture by improving rural infrastructure.

49. Answer : 4

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50. Answer : 3

51. Answer : 2

52. Answer : 3

53. Answer : 3

54. Answer : 3

55. Answer : 3

56. Answer : 4

57. Answer : 4

58. Answer : 2
Explanation: The Dhar Commission was tasked with evaluating the
financial disparities between the Telangana region and the rest of Andhra Pradesh

59. Answer : 1
Explanation: The Wanchu Committee primarily focused on land
reforms and suggested measures to address land ownership inequalities in Telangana.

60. Answer : 3
Explanation: Option C is correct. The Bhargava Committee concentrated on exploring
ways to increase the export potential of agricultural products from Telangana.

61. Answer : 2
Explanation: Statement 1 and Statement 2 contribute significantly to the rapid population
growth of Telangana. Cultural factors often lead to higher birth rates, while migration from
neighboring states adds to the population influx

62. Answer : 3
population.
Explanation: Statement 2 is correct. A large workingage population is essential for realizing the
demographic dividend as it signifies a higher proportion of the population contributing to the workforce and
economy.

63. Answer : 3

Explanation: Statement 2 is correct. Migration often leads to rapid urbanization, which can pose
challenges related to infrastructure, housing, and resource allocation in urban areas.

64. Answer : 2
Explanation: Statement 2 is correct. The services sector indeed covers various activities,
including finance, healthcare, education, tourism, etc. Statement 1 is incorrect as the
services sector often contributes significantly to national income, sometimes even
surpassing the contribution of the manufacturing or agricultural sectors
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65. Answer : 4

66. Answer : 1
Explanation: Statement 2 is correct. In many advanced economies, the services sector
indeed constitutes the largest portion of GDP. Statement 1 is incorrect as while the
private sector may play a significant role in economic infrastructure investments,
governments also heavily invest in infrastructure development due to its public good
nature and long-term benefits for the economy.

67. Answer : 2

Explanation: Statement 2 is correct. Investments in economic infrastructure, such as

transportation and communication networks, can enhance productivity and efficiency
across various sectors of the economy. Statement 1 is incorrect as the services sector
encompasses both consumer-oriented and business-oriented activities

68. Answer : 1
Explanation: Statement 2 is correct. Financial services and insurance are essential subsectors
of the services sector. Statement 1 is incorrect as economic infrastructure
investments can contribute to social equity by improving access to essential services,
reducing disparities between regions, and creating opportunities for marginalized
communities.

69. Answer : 3

To foster sustainable and inclusive industrial development.

Explanation: The primary objective of industrial policies in India is to promote sustainable and
inclusive industrial development that benefits all sections of society and contributes to longterm
economic growth.

70. Answer : 1
Explanation: Large scale industries are significant contributors to employment generation in India,
particularly in rural areas where they often serve as major sources of livelihood for the local population

71. Answer : 2

FTP 2023 is a dynamic and open ended Policy that will accommodate the emerging needs
(Hence, statement C is not correct).
FTP seeks to take India's exports to 2 trillion dollars by 2030:
(Hence, statement A is not correct).
4 pillars of FTP 2023: Incentive to Remission, Export promotion through collaboration, Ease of doing
business and Emerging Areas
The FTP 2023 encourages recognition of new towns through “Towns of Export Excellence Scheme”
and exporters through “Status Holder Scheme”. (Hence, statement B is correct).

The FTP 2023 is facilitating exports by streamlining the popular Advance Authorization and EPCG
schemes, and enabling merchanting trade from India
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The FTP 2023 aims at process re-engineering and automation to facilitate ease of doing business for
exporters. It also focuses on emerging areas like dual use high end technology items under SCOMET,
facilitating e-commerce export, collaborating with States and Districts for export promotion.

72. Answer :3
A foreign direct investment (FDI) is an investment in the form of controlling ownership in a business in one
country by an entity based in another country. It is thus distinguished from a foreign portfolio investment
by a notion of direct control. Broadly, foreign direct investment includes “mergers and acquisitions,
building new facilities, reinvesting profits earned from overseas operations, and intra company loans”. FDI
is the sum of equity capital, long-term capital, and short-term capital as shown in the balance of
payments.
Non-Resident external deposits are a ‘debt creating’ flow in balance of payments accounts and therefore,
not part of Foreign Direct investments.

73. Answer :4

74. Answer : 1

Explanation: Statement 1 is true. The Sixth Plan did see some reduction in poverty, but
environmental concerns were not adequately addressed during this period

75. Answer : 4
Explanation: Both statements are accurate. External economic factors and internal
governance issues hampered the Tenth Plan's performance

76. Answer : 3
Explanation: Both statements are correct. Agriculture was vital for food security, and GDP
growth targets were set to ensure overall economic development.

77. Answer : 1

78. Answer : 2

79. Answer 4

80. Answer 3

81. Answer 3

82. Answer 1

83. Answer 4
Telangana has the 2nd lowest transmission loss among South Indian states
Telangana HAS the 4th lowest transmission loss in the country
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84. Answer 3

85. Answer 2
Rythu Bandhu Government launched the Rythu Bandhu Scheme in 2018

86. Answer 4

87. Answer 4

88. Answer 1

89. Answer 3

90. Answer 1

91. Answer 4

92. Answer 3

93. Answer 2

94. Answer 1

95. Answer 4

96. Answer 3

97. Answer 4

98. Answer 2

99. Answer 3

100. Answer 1

101. Answer 2

102. Answer 1

Explanation: Purchasing Power Parity (PPP) adjusts income or consumption levels to reflect differences
in living costs across regions or countries, providing a more accurate comparison of poverty levels.
Option A focuses on a fixed income threshold, while Option B compares income relative to others
within a society.

103. Answer : 2
Explanation:. Structural unemployment arises from a mismatch between the
skills or location of job seekers and the requirements or location of available jobs, while frictional
unemployment (Option B) results from temporary transitions between jobs or sectors. Option A
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misrepresents frictional unemployment.

104. Answer : 1
Explanation: The poverty trap refers to conditions or mechanisms that reinforce poverty, making it
difficult for individuals or households to break out of poverty due to various factors such as limited
access to education, healthcare, and economic opportunities. Option A and Option C misrepresent the
concept of the poverty trap

105. Answer : 4

Explanation: Welfare programmes aim to alleviate poverty and unemployment

by providing financial assistance, access to essential services, skill development, and job training
to vulnerable populations, promoting social inclusion and economic stability. Options A and C
disregard the positive impacts of welfare programmes.

106. Answer : 3

Explanation: The Human Development Index (HDI) is a composite measure used to compare levels
of human development across countries, considering indicators such as life expectancy, education
(measured by mean years of schooling and expected years of schooling), and income (measured by
Gross

107. Answer : 4
Explanation: . The Gender Development Index (GDI) measures gender disparities in human development
outcomes such as education, health, and income, providing insights into gender-based inequalities in a
society's development progress. Options A and C do not accurately represent the purpose of GDI

108. Answer : : 4

109. Answer :: 3

110. Answer : : 4
Explanation: Eutrophication is indeed caused by excessive nutrients,bioaccumulation occurs in aquatic
organisms, and BOD is a measure of organic matter decomposition in water.

111. Answer : : 3
Explanation: . Light pollution disrupts ecosystems and affects wildlife, and excessive artificial light can
indeed impact human health. However, it is primarily caused by human activities such as street
lighting and urban development, rather than natural sources like lightning

112. Answer : 3
Explanation: . Radioactive pollution can indeed result from nuclear accidents and improper waste
disposal, and radon gas is a significant contributor to indoor radioactive pollution. However, radioactive
pollution poses serious health risks to humans, including cancer and genetic mutations

113. Answer: 1

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114. Answer: 3

115. Answer : 1
The Kisan Credit Card (KCC)scheme was introduced in 1998 for providing adequate and timely credit
support It is Implemented by the Agencies like Commercial Banks, Regional Rural Banks (RRBs),
Small Finance Banks, and Cooperative Banks.

116. Answer : 3
PM-SVANidhi has provided credit assistance to 78 lakh street vendors. From that total, 2.3 lakh have
received credit for the third time

117. Answer : 4
PM Awas Yojana (Grameen) is close to achieving the target of three crore houses and two crore more
Zouses will be taken up in the next five years to meet the requirement arising from increase in the
number of families.Similarly, through rooftop solarization, one crore households will be enabled to
obtain up to 300 units free electricity every month

118.Answer :1
India is the world’s largest milk producer but with low productivity of milch-animals. The programme
will be built on the success of existing schemes such Rashtriya Gokul Mission, National Livestock
Mission, and Infrastructure Development Funds for dairy processing and animal husbandry. The main
objective of Rashtriya Gokul Mission is to develop indigenous cattle breeds in a focused and scientific
manner

119. Answer :4

120. Answer :1
CAPEX would be 3.4 % of GDP

121. Answer :4
Coal gasification and liquefaction capacity of 100 MT will be set up by 2030.

122. Answer :1

123. Answer :3
India’s external liabilities include all the investments made in India either in the form of debt or equity.
So, it will include everything FDI, FPI (debt and equity both), External Commercial Borrowing, Govt.
of India borrowings from abroad, NRI deposits in India.

124. Answer :3

125. Answer :4

126. Answer :4
India’s Forex Reserve include:
Foreign Currency Assets Gold reserves
Special Drawing Rights Reserve position with the International Monetary Fund (IMF

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127. Answer :4
Agriculture Infrastructure and Development Cess.
This Cess was abolished in the budget 2024, as the government decided to subsume it under the basic
customs duty and excise duty.

128. Answer :3

129. Answer :1
Forestry is not part of industrial activity

130. Answer :2
BoP accounts, economic transactions between a country and the rest of the world are grouped under
- Current account, Capital account and Financial Account and Errors and Omissions

131. Answer :4

132. Answer :1

133. Answer :3
Revenue Deficit= Revenue Expenditure - Revenue Receipts
Gross Fiscal Deficit = Total Expenditure - (Revenue Receipts+Non-debt creating capital receipts)

134. Answer :1

135. Answer :2
Effective Revenue Deficit = Revenue Deficit - Net Grants for Capital Creation

136. answer : 4

137. Answer : 3

138 Answer : 4

139. Answer : 4

140. Answer : 1

Cropping Intensity: Number of crops cultivated in a piece of land per annum. Cropping Pattern: Different
crops grown in an area at a particular point of time.

141. Answer : 2

First in milk production

Second largest fish producer in the world in 2018-19.

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142. Answer : 1
Does not track the actual Production

143. Answer : 2
Covers both Private Sector as well as PSUs

144. Answer : 1
It classified industries into four broad areas

145. Answer : 2

Make in India 2.0 Focuses on 27 sectors, which include 15 manufacturing sectors and 12 service sectors

146. Answer : 2

147. Answer : 3

Explanation: Both statements are incorrect. The services sector comprises both for-profit
and non-profit activities. Economic infrastructure, which includes transportation,
communication, energy, etc., is indeed a vital part of the services sector.

148. Answer: 3
Explanation: The Green Revolution led to regional disparities in agricultural development and
environmental degradation due to excessive chemical use. However, it did not uniformly improve the
socio-economic conditions of all farmers.

149. Answer:1
Explanation: The Expenditure Method includes total spending on final goods and services, including
government spending and exports

150. Answer: 1

Explanation: India has the second-largest population in the world. However, the majority of India's
population still lives in rural areas, and the sex ratio is skewed in favor of males.

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