IBPS PO General Awareness: Economics and Development questions with solutions

Q1. According to the Mind the Gap State of Employment Report released in March 2019, which of the following is not one of the reasons for the low participation of women in rural jobs?

1. Transformation and development in rural areas
2. Social stigma
3. Unavailability of rural others
4. Burden of household work

Answer: Transformation and development in rural areas

The report lists social stigma, lack of suitable rural opportunities, and household responsibilities as reasons for low participation. Transformation and development in rural areas would generally support employment rather than reduce it. Therefore, it is not a reason for low participation.

Q2. What are the benefits to farmers of access to urban markets?

1. Farmers having direct access to the market can have the opportunity to increase their income
2. Both (a) and (c)
3. Farmers with higher income from the market can be able to switch to higher value crops
4. Government provides warehouse storage for crops to farmers for avoiding spoilage of crops

Answer: Both (a) and (c)

The passage says direct access to markets can increase farming incomes and encourage shifts to higher-value crops or livestock. Therefore, statements (a) and (c) are both correct.

Q3. Which of the following states has a low rural unemployment rate with high utilization of MGNREGA funds?

1. Haryana, Kerala, Goa
2. Uttar Pradesh, Goa, Mizoram
3. Tripura, Tamil Nadu, Rajasthan
4. Uttar Pradesh, Tamil Nadu, Rajasthan

Answer: Uttar Pradesh, Tamil Nadu, Rajasthan

The correct set is Uttar Pradesh, Tamil Nadu, and Rajasthan. These states were identified in the context of low rural unemployment alongside high utilization of MGNREGA funds.

Q4. The deepest and longest-lasting economic ______ in the Western industrialized world up to that time. Which word fits the blank?

1. expansion
2. growth
3. prosperity
4. downturn

Answer: downturn

The blank needs a word meaning a severe decline in economic activity. Among the options, "downturn" best fits the context of a prolonged economic slump.

Q5. Who among the following was the winner of the Nobel Prize in Economics in 2019?

1. Michel Mayor
2. James Peebles
3. Didier Queloz
4. Michael Kremer

Answer: Michael Kremer

The 2019 Nobel Memorial Prize in Economic Sciences was awarded to Abhijit Banerjee, Esther Duflo, and Michael Kremer. Since only one of these appears in the options, Michael Kremer is the correct answer.

Q6. What can be inferred from the statement, "Happiness is the end goal," as highlighted in the passage?

1. Ensuring universal basic income will promote happiness within countries, which is the primary goal of every country
2. Dignity should not be framed as a metric to fulfill happiness
3. The author considers happiness the highest priority, and countries must find means to achieve it for overall development
4. GDP should be given due attention to achieve the overall happiness of citizens

Answer: The author considers happiness the highest priority, and countries must find means to achieve it for overall development

The line means that happiness is the ultimate objective, and different policies or measures are only tools to achieve it. The passage contrasts this with relying only on GDP or other metrics, emphasizing human well-being as the real goal.

Q7. Statement mentions a slump in home sales and scope for price correction. Which inference follows?

1. NCR cities face similar issues
2. Prices will rise
3. Government will intervene
4. Price correction is possible

Answer: Price correction is possible

The phrase "scope for price correction" directly indicates that prices may adjust downward or become more realistic. The other options introduce assumptions not stated in the passage.

Q8. Which of the following suggestions was NOT considered by the government?

1. Suggestion 1
2. Suggestion 2
3. Suggestion 5
4. Suggestion 4

Answer: Suggestion 5

The passage says the government considered suggestions 1, 2, 3, and 4, and explicitly states that option 5 was not mentioned. Therefore, Suggestion 5 is the one not considered.

Q9. Which one of the following statements is not correct based on the information provided?

1. The concept of raising taxes on the wealthy has been floated several times.
2. Some rich Americans have backed the concept of raising taxes on the wealthy.
3. Many European countries were harmed due to the collapse of the Soviet Union.
4. The idea of taxing the rich more has been propounded for the first time.

Answer: The idea of taxing the rich more has been propounded for the first time.

The passage states that proposals to tax the rich more have been around since 2011 and have come up several times. Therefore, saying it was propounded for the first time is incorrect. The other statements are supported by the passage.

Q10. It has been reported in recent years that a very large number of seats in engineering colleges in the country remain vacant at the end of the admission session. Which of the following may be the probable cause of the above effect?

1. There has been a considerable decrease in hiring of engineering graduates due to economic slowdown in recent years
2. Students have always preferred to complete graduation in three years instead of four years for engineering
3. The Government has recently decided to provide post-qualification professional training to all engineering graduates at its own cost
4. There has always been a very poor success rate among engineering students

Answer: There has been a considerable decrease in hiring of engineering graduates due to economic slowdown in recent years

If hiring of engineering graduates falls due to an economic slowdown, students are less likely to choose engineering courses, leaving seats vacant. The other options do not logically explain a recent rise in vacant seats.

Q11. Statement: As an emerging economic superpower, it is quite tragic that more than one in three children in India are stunted. Stunting is associated with an underdeveloped brain, with long-lasting harmful consequences, and increased risks of nutrition-related chronic diseases such as diabetes, hypertension, and obesity in the future. Thus, stunting can be classified by itself as an illness as it leads to negatively affecting the present and future of the child. (I) Higher economic growth and increased spending on nutrition access programmes have not resulted in a proportionate decrease in child malnutrition or stunting. (II) Multiple researchers have proven the link between illness and malnutrition/stunting in children. Which of the following is correct?

1. Both I and II strengthen
2. I strengthens while II weakens
3. II strengthens while I weakens
4. Statement I strengthens while Statement II is neutral

Answer: Statement I strengthens while Statement II is neutral

Statement I supports the passage by showing that economic growth and nutrition spending have not reduced stunting proportionately, which aligns with the seriousness of the issue. Statement II is neutral because it only says researchers have proven a link between illness and malnutrition/stunting; it does not directly strengthen or weaken the specific claim that stunting itself can be classified as an illness.

Q12. Which among the given options is not a critical analysis of Volcker's policies?

1. His policies were able to quell inflation to a large extent
2. His policies created a recession in the country
3. His policies are widely regarded to be highly perceptive
4. His policies included raising of federal funds rates

Answer: His policies are widely regarded to be highly perceptive

A critical analysis points out drawbacks or consequences of the policy. The option saying the policies are “widely regarded to be highly perceptive” is positive, not critical, so it is the correct choice.

Q13. In India, 65% of the population is below the age of ______.

1. 25
2. 45
3. 35
4. 50

Answer: 35

A standard demographic fact used in Indian economics is that about 65% of the population is below 35 years of age. Hence, 35 is the correct option.