IAS (Admin.) Prelims CSAT Paper-II (Aptitude): Questions 40 - 43 of 405

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Passage

Net profits are only 22 % of their total assets for central public sector undertakings, lower than for the private corporate sector. While the public sector or the State-led entrepreneurship played an important role in triggering India’s industrialization, our evolving development needs, comparatively less-than satisfactory performance of the public sector enterprises, the maturing of our private sector, a much larger social base now available for expanding entrepreneurship and the growing institutional capabilities to enforce competition policies would suggest that the time has come to review the role of public sector.

What should the portfolio composition of the government be? It should not remain static all times. The airline industry works well as a purely private affair. At the opposite end, rural roads, whose sparse traffic makes tolling unviable, have to be on the balance-sheet of the State. If the government did not own rural roads, they would not exist. Similarly, public health capital in our towns and cities will need to come from the public sector. Equally, preservation and improvement of forest cover will have to be a new priority for the public sector assets.

Take the example of steel. With near-zero tariffs, India is a globally competitive market for the metal. Indian firms export steel into the global market, which demonstrates there is no gap in technology. Indian companies are buying up global steel companies, which shows there is no gap in capital availability. Under these conditions, private ownership works best. Private ownership is clearly desirable in regulated industries, ranging from finance to infrastructure, where a government agency performs the function of regulation and multiple competing firms are located in the private sector. Here, the simple and clean solution - government as the umpire and the private sector as the players is what works best. In many of these industries, we have a legacy of government ownership, where productivity tends to be lower, fear of bankruptcy is absent, and the risk of asking for money from the tax payer is ever present.

There is also the conflict of interest between government as an owner and as the regulator. The formulation and implementation of competition policy will be more vigorous and fair if government companies are out of action. (2014)

Question number: 40 (3 of 4 Based on Passage) Show Passage

» Decision Making and Problem Solving » Judgment

MCQ▾

Question

According to the passage, rural roads should be in the domain of public sector only. Why?

Choices

Choice (4) Response

a.

Private sector need not have any social responsibility.

b.

Government takes money from tax payers and hence it is the responsibility of government only.

c.

Private sector cannot have monetary gains in this.

d.

Rural development work is the domain of government only.

Question number: 41 (4 of 4 Based on Passage) Show Passage

» Decision Making and Problem Solving » Judgment

MCQ▾

Question

The author prefers government as the umpire and private sector as players because

Choices

Choice (4) Response

a.

Government is the ultimate in policy formulation.

b.

Government has no control over private sector players.

c.

Government prescribes norms for a fair play by the private sector.

d.

All of the above

Question number: 42

» Arithmetic » Basic Statistics

Appeared in Year: 2014

MCQ▾

Question

The following table shows the marks obtained by two students in different subjects:

Marks of the students obtained in various subjects

Details of the marks of the various students obtained across subjects.

Student A

Maximum Marks

Student B

Maximum Marks

English

60

100

80

150

Psychology

70

100

70

100

History

50

100

60

100

Sanskrit

30

50

15

25

The difference in the mean aggregate percentage marks of the students is

Choices

Choice (4) Response

a.

2.5%

b.

13.75%

c.

Zero

d.

1.25%

Passage

Climate change poses potentially devastating effects on India’s agriculture. While the overall parameters of climate change are increasingly accepted a 1 degree Celsius average temperature increase over the next 30 years, sea level rise of less than 10 cm in the same period, and regional monsoon variations and corresponding droughts - the impacts in India are likely to be quite site and crop specific. Some crops may respond favorably to the changing conditions, others may not. This emphasizes the need to promote agricultural research and create maximum flexibility in the system to permit adaptations.

The key ingredient for “drought proofing” is the managed recharge of aquifers. To ensure continued yields of important staple crops (e. g. wheat), it may also be necessary to shift the locations where these crops are grown, in response to temperature changes as well as to water availability. The latter will be a key factor in making long term investment decisions. For example, water runoff from the Himalayas is predicted to increase over the next 30 years as glaciers melt, but then decline substantially thereafter. It will be critical to provide incentives to plan for these large-scale shifts in agro-ecological conditions.

India needs to make long term investment in research and development in agriculture. India is likely to experience changed weather patterns in future. (2014)

Question number: 43 (1 of 2 Based on Passage) Show Passage

» Logical Reasoning » Inference

MCQ▾

Question

Climate change may force the shifting of locations of the existing crops due to

1. melting of glaciers.

2. water availability and temperature suitability at other locations.

3. poor productivity of crops.

4. wider adaptability of crop plants.

Which of the statements given above are correct?

Choices

Choice (4) Response

a.

1, 2 and 3

b.

1, 2, 3 and 4

c.

1 and 4 only

d.

2 and 3 only

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