UPSC Prelims 2015— Question 81

Correct answer: Option B. Real GDP growth is not required to increase steadily every year; economic growth rates fluctuate with business cycles and shocks. Nominal GDP at market prices, however, can rise over a long period because of both real output growth and changes in prices. Therefore the statement that nominal GDP steadily increased is the one supported in the question. Option-wise analysis: Option A: “1 only” is incorrect. It does not match the specific fact, definition, institutional role, geographical association, or constitutional/economic principle required here. The key distinction is the one identified in the core explanation, so this option can be eliminated. Option B: “2 only” is correct. It directly matches the factual or conceptual requirement tested by the question and is supported by the principle explained above. Option C: “Both 1 and 2” is incorrect. It does not match the specific fact, definition, institutional role, geographical association, or constitutional/economic principle required here. The key distinction is the one identified in the core explanation, so this option can be eliminated. Option D: “Neither 1 nor 2” is incorrect. It does not match the specific fact, definition, institutional role, geographical association, or constitutional/economic principle required here. The key distinction is the one identified in the core explanation, so this option can be eliminated. Prelims takeaway: Focus on the precise institutional role, constitutional provision, geographical association, or technical definition being tested. UPSC questions often place a broadly familiar fact beside a narrowly incorrect qualifier; identifying that qualifier is essential for elimination.