APPSC Group-1 2023 Economy Previous Year Questions

The correct answer is (1) Both (A) and (R) are true and (R) is the correct explanation for (A). GST is non-inflationary because it eliminates the cascading effect of taxes (tax on tax). Under the previous system, taxes were levied on taxes at multiple stages. GST replaces this with a single unified tax, thus avoiding the cascading effect and keeping prices in check.

The correct answer is (2) (A) is true, but (R) is not the correct explanation of (A). Printing money to finance deficit does cause inflation (A is true). But the reason is NOT that more goods are produced — in fact, printing money without corresponding increase in production causes inflation. The correct reason would be excess money chasing the same goods.

The correct answer is (3) Authorisation of Expenditure and Distribution of Revenues. Part V of the AP Reorganisation Act 2014 deals with financial provisions — specifically the authorisation of expenditure and distribution of revenues between the two newly formed states of Andhra Pradesh and Telangana.

The correct answer is (4) National Project. The Polavaram Irrigation Project on the Godavari river in Andhra Pradesh was declared a National Project by the Government of India. It is funded by the Central Government as part of the Accelerated Irrigation Benefits Programme (AIBP).

The correct answer is (2) 14 Schedules. The Andhra Pradesh Reorganisation Act, 2014 contains 14 Schedules dealing with various aspects of bifurcation including division of assets, liabilities, services, and institutions between Andhra Pradesh and Telangana.

The correct answer is (1) Minister of Water Resources, Government of India as chairperson and Ministers of Irrigation of both Andhra Pradesh and Telangana as members. The Apex Council for supervision of the two river management boards consists of the Union Water Resources Minister as Chair and the Irrigation Ministers of both AP and Telangana.

The correct answer is (1) ₹13,500 is given to a farmer’s family in three instalments every year. Under YSR Rythu Bharosa-PM Kisan, farmers receive ₹13,500 per year — ₹6,000 from PM-Kisan (Central) and ₹7,500 from the AP state government — in three instalments annually.

The correct answer is (2) YSR Jala Yagnam. The Navaratnalu (nine jewel schemes) of the YS Jaganmohan Reddy government include: YSR Arogyasri, YSR Pension Kanuka, Amma Vodi, Jagananna Thodu, YSR Rythu Bharosa, Jagananna Vidya Deevena, Vasathi Deevena, Housing for All Poor, and Vahana Mitra. YSR Jala Yagnam is a separate irrigation scheme, NOT part of Navaratnalu.

The correct answer is (2) Bharosa. The ‘Bharosa’ app developed by the Government of Andhra Pradesh is an SOS/emergency service application designed specifically for women in distress or danger, allowing them to quickly alert authorities and contacts.

The correct answer is (2) Crop Cultivation Registration on Certificate for pledging lands for bank loan. CCRC stands for Crop Cultivation Registration Certificate — a certificate given to farmers of Andhra Pradesh to help them pledge their lands as collateral for bank loans.

The correct answer is (3) Annamayya. Among the listed districts, Annamayya district (carved out of YSR Kadapa district) is the smallest by area in Andhra Pradesh.

The correct answer is (1) Sathish Sivalingam. Sathish Sivalingam is a renowned Indian weightlifter who has won gold medals at the Commonwealth Games and other international competitions. He hails from Tamil Nadu though — the AP champion in weightlifting from this list would be Dhruva Chakravarthi. Please verify with the official key.

The correct answer is (2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). India’s national income composition has changed with services sector growing at the expense of agriculture (A is true). Economic growth was initiated (R is true). But the structural change is more specifically due to industrialization and service sector growth, not just ‘economic growth was initiated’.

The correct answer is (2) Alfred Marshall. Alfred Marshall, the founder of neo-classical economics, equated Net Social Product with Social Income. He defined national income as the aggregate net product of and the sole source of payment for all the agents of production.

The correct answer is (2) Both (A) and (R) are true and (R) is the correct explanation of (A). When population grows faster than national income, per capita income falls even as total national income rises. This is a common challenge in developing countries.

The correct answer is (2) 10th Five Year Plan. The 10th Five Year Plan (2002–2007) recorded the highest average GDP growth rate of about 7.8%. The plan targeted 8% growth and came close to it, making it the highest among all five-year plans in terms of actual GDP growth achieved.

The correct answer is (1) 15–64 years. Demographic dividend occurs when a country has a higher proportion of working-age population (15–64 years) compared to dependents. This creates a window of opportunity for rapid economic growth if the working population is productively employed.

The correct answer is (1) Both (A) and (R) are true and (R) is the correct explanation of (A). India’s agriculture is heavily dependent on monsoon rains. Since agriculture contributes significantly to national income, its fluctuations due to weather directly cause fluctuations in national income growth.

The correct answer is (2) Tax Revenue. National Income includes wages/salaries, rent, interest, and profits — i.e., factor incomes. Tax Revenue is a transfer payment from the government perspective and is NOT directly included in National Income calculation.

The correct answer is (1) Treasury Bills and Government Bond Market. The Gilt-edged market refers to the market for government securities including Treasury Bills (short-term) and Government Bonds (long-term). These are called ‘gilt-edged’ because they are backed by the government and considered very safe.

The correct answer is (2) A loan whose instalment of principal and interest amount has remained overdue for a period of 90 days. As per RBI norms, an asset becomes NPA when interest or principal payments remain overdue for more than 90 days for term loans.

The correct answer is (3) Committee on Financial System. The Narasimham Committee (officially the Committee on the Financial System) was constituted in 1991 under M. Narasimham to recommend reforms for the Indian banking and financial sector. Its recommendations led to major banking sector reforms.