(IGP) IAS Pre Paper - 2: GS - Logical Reasoning & Analytical Ability - Deriving Conclusion (MCQ -5)

Logical Reasoning & Analytical Ability
Deriving Conclusion (MCQ -5)

Directions (Q. Nos. 1 to 5) A passage is given below followed by several possible inferences which can be drawn fro the facts stated in the passage. You have to examine each inference separately in the context of the passage and decide, upon its degree of truth or falsity, Mark answer
(a) if the inference is definitely true ie, it properly follows from the statement of facts given.
(b) if the inference is probably true though not definitely true in the light of the facts given.
(c) if the data are inadequate, ie, from the facts given you can not say whether the inference is likely to be true false.
(d) if the inference is ‘definitely false’ ie, it cannot possibly be drawn from the facts given or it contradicts the give facts.

Passage 1

One of the promising features of the current market is that domestic institutions seem to heave turned buyers after very long time. They have been net buyers this month with inflows exceeding by by 80 crore till early this month. That admittedly a small amount, but its significance lies in the fact that domestic institutions have been net sellers every month this financial year except in September when their net purchases amounted to amicroscopic Rs. 28 crore. The financial year’s net sales by domestic institutions amounted to Rs. 2964 crore, which has substantially offset the net inflows of Rs. 3187 crore by Flls. The net purchases by domestic institutions could indicate that money is once again flowing into equity funds, eager not to miss the widely expected rally. Part of this reason could be a shift in invest portfolios, as people lighten up on debt and put that money into equity.

1. Domestic institutions have been consistently selling only in all the months in this financial years.

2. Flls bought more than what was sold by domestic institutions this financial year.

3. The equity market is expected to experience a subdued activity in near future.

4. The activities in equity market has direct relationship with the debt market.

5. It is expected that in the early next financial year the gap between the net sales and net purchases will reduce, substantially.

Directions (Q. Nos. 6 to 10) Based on the passage given below. For the conclusions following the passage, mark you answer (a) if conclusion is definitely true (b) if conclusion is probably true(c) if data given are inadequate (d) conclusion is definitely false.

Passage 2

In the absence of an integrated sugar field to sale policy, the Indian sugar industry has become a victim of surplus production and pricemismatch of sugarcane and finished sugar. Despite a lower estimated sugar production at around 12.8 million tonnes for 2009-10 against 16.7 million tonnes in the previous year, the total availability is put to 20million tonnes including a carry over stock of 8 million tonnes from the previous year. Of this the domestic consumptionmay not exceed 13.5 million tonnes. Though the industry could export 10.5 million tonnes to different countries during 2008- 09, this year’s export policy, existing norms and international market conditions may bring down the export quantity to half a million tonnes.

6. There may be a fall in the sugar price during 2010-11.

7. The quantum of current years’ sugar production is close to the envisaged.

8. India’s sugar export was the highest in recent times during 2008-09.

9. India need riot import sugar during the next few years.

10. India’s export policy hasmade the sugar price noncompetitive in the internationalmarket.

Directions (Q. Nos. 11 to 16) Based on the passage given below. For the conclusions following the passage, mark your answer (a) if conclusion is definitely true, (b) if conclusion is probably true, (c) if data given in passage are inadequate to answer, (d) if conclusion is definitely false.

Passage 3

Urban services have not expanded fast enough to cope with urban expansion. Lowinvestment allocations have tended to he underspent. Both public (eg, water and sewage) and private (eg low income area housing) infrastructure quality has declined. The impact of the environment in which children live and the supporting services available to themwhen they fall ill, seems clear. The decline in average food availability and the rise in absolute poverty, point in the same unsatisfactory directions.

11. There is nothing to boast about urban services.

12. The public transport system is in the hands of private sector.

13. Birth rate is higher in urban areas as compared to rural areas.

14. Low cost urban housing is on the priorities.

15. The environment around plays an important role on the health status.

16. Though adequate provision of funds were made but they were received under spent.

Directions (Q. Nos. 17 to 20) Questions from 17-20 are based on the passage given below. For the conclusions following the passage, mark your answer (a) if conclusion is definitely true, (b) if conclusion is probably true, (c) if data given in passage are inadequate to answer, (d) if conclusion is definitely false.

Passage 4

Efficiency of capital has long been an area of neglect and remains so. This aspect is underscored in theeleventh plan draft, ironically in its demand for the rate of investment being raised to 35.1% of GDP from29.1% in 2004-2005. The irony lies in the fact that the planning commission has consistently relied on the Incremental Capital Output Ratio (ICOR) as tools of expediency rather than one designed to promote efficiency. Yet, the ratio conceptually seeks to get themost out of the capital stock that is existing and is being added. The ratio now is 3.7, ie, the capital needed for an output of 1 is 3.7 times If the effective ratio is brought down during 2007- 2012, then it would be possible to achieve aGDP growth value of 8 9% over the period with a lesser level of investment than 35.1%. Nobody doubts that capital formation is critical to a higher rate of growth in GDP, but efficiency lies not somuch on the capital stock as its utilisation.

17. The present rate of investment is around 30% of GDP.

18. Higher the capital output ratio, higher is the growth of GDP.

19. When the rate of investment increases the capital output ratio also increase.

20. Efficiency of capital largely depends upon capital stock.