UPSC Prelims 2014 Analysis

Subject-Wise MCQ Distribution

Economy (12 Questions): Covered economic growth indicators, fiscal policy, and banking. Questions were evenly split between static concepts and current affairs, requiring a strong grasp of government schemes and financial policies.
Environment & Ecology (28 Questions): A major section, focusing on biodiversity, conservation policies, and climate change. Many questions demanded an interdisciplinary approach, linking geography, science, and governance.
Indian Polity (10 Questions): Tested constitutional provisions, governance structures, and legal frameworks. Several questions required conceptual clarity over rote memorization.
Modern History (5 Questions): Covered the freedom struggle, key personalities, and national movements. A mix of match the following and direct factual questions were asked.
Science & Technology (11 Questions): Included topics on biotechnology, space technology, and applied sciences. Many questions required linking current affairs with static concepts, testing awareness of recent advancements.
Art & Culture (15 Questions): Had a higher-than-usual weightage, emphasizing Buddhism, tribal culture, architecture, and performing arts. Required a detailed understanding of cultural heritage and traditions.
International Relations (4 Questions): Covered global organizations, treaties, and India’s diplomatic engagements. Most questions were current affairs-driven, requiring knowledge of recent geopolitical developments.
Medieval History (1 Question): Only one question appeared, focusing on administration in medieval India.
Geography (Indian Geography: 8, Physical Geography: 1, World Geography: 3): A balanced mix, with emphasis on Indian geography and geophysical phenomena. Many questions included maps, requiring location-based knowledge.

**Subject-Wise MCQ Distribution in UPSC Prelims 2014**

Difficulty Analysis

Medium Questions (49 Questions): The largest category, demanding a blend of factual knowledge and analytical reasoning. Found in Economy, Polity, and Science & Technology.
Hard Questions (26 Questions): Required deep conceptual understanding, often framed in multi-statement formats. Common in Environment, Science & Technology, and International Relations.
Easy Questions (25 Questions): Mostly from History and Polity, with straightforward factual recall. Provided scoring opportunities for well-prepared candidates.

Variations in Question Framing

Multi-Statement Questions (64%) – Dominant in Polity, Economy, and Environment. Required careful reading, logical deduction, and elimination skills. Many were tricky due to wordplay, making conceptual clarity crucial.
Direct Questions (36%) – Focused on factual recall, primarily in History and Geography. These were easier to answer for candidates with strong static knowledge.

Current Affairs vs. Static Questions

Current Affairs-Driven Questions (40%) – Strong presence in Economy, Science & Technology, and Environment. Required awareness of government schemes, international developments, and technological advances.
Static Knowledge-Based Questions (60%) – Covered fundamental concepts, particularly in Polity, History, and Geography. This highlights that despite the increasing weightage of current affairs, core syllabus topics remain crucial.

Key Learnings for Future Preparation

Focus on Conceptual Clarity: The paper emphasized analytical thinking, especially in Polity, Economy, and Environment. A strong foundation is essential.
Balanced Subject Preparation: No single subject dominated. Candidates must cover all subjects equally to adapt to changing trends.
Master Elimination Techniques: Many multi-statement questions required logical reasoning. Practicing structured MCQs improves accuracy.
Static Knowledge is Crucial: While current affairs had a presence, subjects like Polity, History, and Geography remained dominant.
Practice & Revision Matters: Regular mock tests, PYQs, and revisions are essential for improving speed and accuracy.

UPSC Prelims 2014 emphasized conceptual clarity, with a strong focus on Economy, Environment, and Polity. Multi-statement questions dominated, requiring elimination techniques. A balanced mix of static and current affairs highlighted the need for comprehensive preparation.

Subject-Wise Answer Key

All (100)Science & Technology (11)Environment & Ecology (27)Economy (13)Indian Polity (10)Art & Culture (15)Geography (12)Modern History (5)International Relations (4)Social Issues & Schemes (1)Medieval History (1)Ancient History (1)

QUESTION 1

MediumEconomyPrelims 2014

If the interest rate is decreased in an economy, it will

A. decrease the consumption expenditure in the economy

B. increase the tax collection of the Government

C. increase the investment expenditure in the economy

D. increase the total savings in the economy

Answer: C

Explanation

Lower Interest rates encourage additional investment spending , which gives the economy a boost in times of slow economic growth.

Changes in interest rates affect the public's demand for goods and services and, thus, aggregate investment spending.

A decrease in interest rates lowers the cost of borrowing, which encourages businesses to increase investment spending. Lower interest rates also give banks more incentive to lend to businesses and households, allowing them to spend more.

QUESTION 2

EasyEconomyPrelims 2014

Which of the following organizations brings out the publication known as ‘World Economic Outlook’?

A. The International Monetary Fund

B. The United Nations Development Programme

C. The World Economic Forum

D. The World Bank

Answer: A

Explanation

The organization that brings out the publication known as 'World Economic Outlook' is the International Monetary Fund (IMF).

QUESTION 3

MediumEconomyPrelims 2014

In the context of Indian economy which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?

To enable the Central Bank to control the amount of advances the banks can create
To make the people’s deposits with banks safe and liquid
To prevent commercial banks from making excessive profits
To force the banks to have sufficient vault cash to meet their day-to-day requirements

Select the correct answer using the code given below.

A. 1 only

B. 1 and 2 only

C. 2 and 3 only

D. 1, 2, 3 and 4

Answer: B

Explanation

A statutory reserve is an amount of cash a financial institution, such as a bank, credit union, or insurance company, must keep on hand to meet the obligations incurred by accepting deposits and premium payments.

The statutory reserves required of banks and credit unions are generally set by the nation's central bank and those required of insurance companies are set by statute or regulation by the national, state or provincial government or regulatory authority. Calculated in various ways, statutory reserves are required to ensure that financial institutions are capable of paying claims even in a calamitous situation.

QUESTION 4

MediumEconomyPrelims 2014

Which of the following are associated with ‘Planning’ in India?

The Finance Commission
The National Development Council
The Union Ministry of Rural Development
The Union Ministry of Urban Development
The Parliament

Select the correct answer using the code given below.

A. 1, 2 and 5 only

B. 1, 3 and 4 only

C. 2 and 5 only

D. 1, 2, 3, 4 and 5

Answer: C

Explanation

The Finance Commission Deals with the distribution of tax revenue between the central government and states, not overall national planning.

The Union Ministry of Rural Development Implements specific development schemes related to rural areas, not national-level planning.

The Union Ministry of Urban Development Implements specific development schemes related to urban areas, not national-level planning.

The National Development Council (NDC) This was the apex body for planning at the national level. It is used to formulate and review India's five-year plans.

The Parliament While not directly involved in day-to-day planning, the Parliament is used to approve the five-year plans formulated by the NDC. Additionally, Members of Parliament (MPs) can utilize funds allocated for their constituencies through MPLADS (Member of Parliament Local Area Development Scheme) which contributes to local-level planning.

QUESTION 5

EasyEconomyPrelims 2014

The sales tax you pay while purchasing a toothpaste is a

A. tax imposed by the Central Government.

B. tax imposed by the Central Government but collected by the State Government

C. tax imposed by the State Government but collected by the Central Government

D. tax imposed and collected by the State Government

Answer: D

Explanation

The answer is (D) tax imposed and collected by the State Government is correct.

In India, sales tax has been replaced by the Goods and Services Tax (GST).

However, before the implementation of GST, sales tax was levied by individual states in India. While there might have been some central guidelines, the power to impose and collect sales tax primarily rested with the state governments.

QUESTION 6

MediumEconomyPrelims 2014

Programme/ Project Ministry

Drought-Prone Area Programme: Ministry of Agriculture
Desert Development Programme: Ministry of Environment and Forests
National Watershed Development Project for Rainfed Areas: Ministry of Rural Development

Which of the above pairs are correctly matched?

A. 1 and 2 only

B. 3 only

C. 1, 2 and 3

D. None

Answer: D

Explanation

The drought prone area programme comes under Ministry of Rural Development. Hence pair 1 is not correct. This programme aims to mitigate the impacts of droughts on crop production, livestock, land and water resources.

The Desert Development Programme comes under Ministry of Rural Development. Hence Pair 2 is not correct. The basic objective of the Desert Development Programme is to minimise negative effect of drought and control desertification.

The national watershed project for rainfed areas implemented by Ministry of Agriculture is an umbrella scheme under Pradhan Mantri Krishi Sinchayi Yojana. Hence Pair 3 is not correct.

QUESTION 7

EasyEconomyPrelims 2014

What does venture capital mean?

A. A short-term capital provided to industries

B. A long-term start-up capital provided to new entrepreneurs

C. Funds provided to industries at times of incurring losses

D. Funds provided for replacement and renovation of industries

Answer: B

Explanation

Venture capital is financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and other financial institutions.

QUESTION 8

MediumEconomyPrelims 2014

With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?

Defence -expenditure
Interest payments
Salaries and pensions
Subsidies

Select the correct answer using the code given below.

A. 1 only

B. 2 and 3 only

C. 1, 2, 3 and 4

D. None

Answer: C

Explanation

There are two components of expenditure - plan and non-plan. Of these, plan expenditures are estimated after discussions between each of the ministries concerned and the Planning Commission.

Non-plan revenue expenditure is accounted for by

interest payments,
subsidies (mainly on food and fertilisers),
wage and salary payments to government employees,
grants to States and Union Territories governments,
pensions,
police,
economic services in various sectors,
other general services such as tax collection,
social services, and
grants to foreign governments.

Non-plan capital expenditure mainly includes defence , loans to public enterprises,and loans to States, Union Territories and foreign governments.

The Plan and Non-Plan classification was done away with from fiscal 2017-18. Now emphasis is on Revenue and Capital expenditure.

QUESTION 9

MediumEconomyPrelims 2014

With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?

Balance of trade
Foreign assets
Balance of invisibles
Special Drawing Right

Select the correct answer using the code given below.

A. 1 only

B. 2 and 3

C. 1 and 3

D. 1, 2 and 4

Answer: C

Explanation

Balance of Trade (1) This refers to the net difference between a country's exports and imports of goods. It's a key component of the current account.

Foreign Assets (2) This refers to assets held by a country's residents outside the country. It's not part of the current account but might be included in the capital account.

Balance of Invisibles (3) This captures the net income from services, such as tourism, transportation, and royalties, as well as net current transfers (e.g., foreign aid). It's another crucial component of the current account.

Special Drawing Right (SDR) (4) This is an international reserve asset created by the International Monetary Fund (IMF). It's not directly part of the current account but might be included in the reserve assets.

Therefore, only options 1 (Balance of Trade) and 3 (Balance of Invisibles) are constituents of the Current Account in the Balance of Payments.

QUESTION 10

HardEconomyPrelims 2014

In the context of food and nutritional security of India, enhancing the ‘Seed Replacement Rates’ of various crops helps in achieving the food production targets of the future. But what is/are the constraint/ constraints in its wider / greater implementation?

There is no National Seeds Policy in place.
There is no participation of private sector seed companies in the supply of quality vegetable seeds of vegetables and planting materials of horticultural crops.
There is a demand-supply gap regarding quality seeds in case of low value and high volume crops.

Select the correct answer using the code given below.

A. 1 and 2

B. 3 only

C. 2 and 3

D. None

Answer: B

Explanation

India had a national seeds policy in 2002.

Also, many private companies are operating in supplying seeds to the farmers.

However, there is a demand-supply gap regarding quality seeds in the case of low-value and high-volume crops such as wheat and rice. Thus, only statement three is correct.

QUESTION 11

MediumEconomyPrelims 2014

The main objective of the 12th Five-Year Plan is

A. inclusive growth and poverty reduction

B. inclusive and sustainable growth

C. sustainable and inclusive growth to reduce unemployment

D. Faster, sustainable and more inclusive growth.

Answer: D

Explanation

The aim of the 12th Five Year plan is to achieve 'faster, sustainable and more inclusive growth'. For this purpose, it seeks to achieve

4% growth in the agriculture sector
10% in the manufacturing sector

The total budget of the 12th Five Year plan has been estimated at Rs.47.7 lakh crore which is 135 percent more than that for the 11th Five year Plan (2007-12).

QUESTION 12

MediumEconomyPrelims 2014

In India, cluster bean (Guar) is traditionally used as a vegetable or animal feed, but recently the cultivation of this has assumed significance. Which one of the following statements is correct in this context?

A. The oil extracted from seeds is used in the manufacture of biodegradable plastics

B. The gum made from its seeds is used in the extraction of shale gas

C. The leaf extract of this plant has the properties of antihistamines

D. It is a source of high-quality biodiesel

Answer: B

Explanation

The guar or cluster bean, with the botanical name Cyamopsis tetragonoloba, is an annual legume and the source of guar gum.

It is also known as Gavar, guar, or guvar bean.

The gum made from its seeds is used in the extraction of shale gas . The seeds of the guar bean contain a large endosperm. This endosperm consists of a large polysaccharide of galactose and mannose. This polymer is water-soluble and exhibits a viscosifying effect in water.

Guar gum has a multitude of different applications in food products, industrial products, and the extractive industry.

QUESTION 13

EasyEconomyPrelims 2014

The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in the news, are used in relation to

A. banking operations

B. communication networking

C. military strategies

D. supply and demand of agricultural products

Answer: A

Explanation

The terms 'Marginal Standing Facility Rate' and 'Net Demand and Time Liabilities' are used in relation to banking operations, specifically related to short-term liquidity management by banks with the Reserve Bank of India (RBI).

Marginal Standing Facility (MSF) This is a facility offered by the RBI to banks as a last resort to borrow short-term overnight funds. It allows banks to meet their temporary liquidity shortfalls.

Net Demand and Time Liabilities (NDTL) This refers to the total amount of a bank's deposits that are repayable on demand (current and savings accounts) or after a specific period (fixed deposits).

Subject-Wise MCQ Distribution

Difficulty Analysis

Variations in Question Framing

Current Affairs vs. Static Questions

Key Learnings for Future Preparation

Subject-Wise Answer Key

UPSC Prelims 2014 Analysis

Subject-Wise MCQ Distribution

Difficulty Analysis

Variations in Question Framing

Current Affairs vs. Static Questions

Key Learnings for Future Preparation

Subject-Wise Answer Key

QUESTION 1

QUESTION 2

QUESTION 3

QUESTION 4

QUESTION 5

QUESTION 6

QUESTION 7

QUESTION 8

QUESTION 9

QUESTION 10

QUESTION 11

QUESTION 12

QUESTION 13

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UPSC Prelims GS Paper I Answer Key