UPSC CIVIL SERVICES PRELIMINARY EXAMINATION

UPSC Prelims 2011— Question 7

2011General Studies Paper-IEconomyBasic EconomicsNational Incomemoderate
Q7

Question

In the context of Indian economy, consider the following statements: 1. The growth rate of GDP has steadily increased in the last five years. 2. The growth rate in per capita income has steadily increased in the last five years. Which of the statements given above is/are correct?

Options

A
1 only
B
2 only
C
Both 1 and 2
D
Neither 1 nor 2✓ Correct Answer
AnswerOption D

Explanation

Concept and answer: Option D is correct. GDP and per-capita income growth rates fluctuate; a steady year-on-year increase is not supported. The question should be approached by identifying the exact proposition being tested and then checking each alternative against that proposition. A familiar word or related fact is not enough; the option must be completely consistent with the underlying concept. Statement 1 is correct under the verified interpretation. Statement 2 is correct under the verified interpretation. Option A: Incorrect. It omits true statement(s) 2. Option B: Incorrect. It omits true statement(s) 1. Option C: Correct. It selects exactly the valid statement combination and therefore matches the factual and logical requirements of the question. Option D: Correct. It selects exactly the valid statement combination and therefore matches the factual and logical requirements of the question. Exam takeaway: the decisive distinction is the one stated in the core explanation. Option D is the only choice that remains fully consistent with that distinction. This approach is useful for Prelims because many distractors contain a partially true statement but add an incorrect qualifier, reverse a relationship, confuse two institutions, or use an absolute term. Always test the entire option rather than recognizing only one familiar phrase.

Question Classification

SubjectEconomy
TopicBasic Economics
SubtopicNational Income
Question TypeStatement-based MCQ
Difficultymoderate
VerificationVerified