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Indian EconomyEasyAsked in: NDA · NDA-II 2022, GAT

Consider the following statements about 'Ude Desh ka Aam Nagrik (UDAN)' scheme : 1. It is an innovative scheme to develop the regional aviation market. 2. It creates affordability yet economically viable and profitable flight on regional routes. Which of the statements given above is/are correct?

  1. A.1 only
  2. B.2 only
  3. C.Both 1 and 2
  4. D.Neither 1 nor 2

Correct answer

C. Both 1 and 2

Explanation

The correct answer is C, Both 1 and 2. UDAN is the regional connectivity scheme meant to grow regional air travel and make it affordable while keeping the routes viable for airlines.

UDAN (Ude Desh ka Aam Nagrik) was launched by the Ministry of Civil Aviation in 2016 under the National Civil Aviation Policy, and the first flight under it, Shimla to Delhi, flew in April 2017. It links unserved and underserved airports, heliports and water aerodromes. Fares on about half the seats of a UDAN flight are capped, and airlines get viability gap funding shared by the Centre and the states, along with concessions on airport charges, so the routes stay profitable.

A is wrong because statement 2 is also correct: affordable fares with viable, profitable routes is the core design of the scheme. B is wrong because statement 1 is correct too; developing the regional aviation market is the scheme's stated aim. D is wrong because both statements describe the scheme correctly.

Exam tip: UDAN = regional connectivity scheme, 2016; first flight Shimla–Delhi, April 2017; capped fares plus viability gap funding.

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Q1.Indian EconomyAsked in: NDA · NDA-II 2026, GATMedium

Which one of the following Five-Year Plan documents was titled as "Towards Faster and More Inclusive Growth"?

  1. A.Eighth Plan
  2. B.Ninth Plan
  3. C.Tenth Plan
  4. D.Eleventh Plan
Show answer
Correct answer: D. Eleventh Plan

The Eleventh Five-Year Plan (2007–2012) carried the title "Towards Faster and More Inclusive Growth". The Eleventh Plan was prepared by the Planning Commission under Prime Minister Manmohan Singh, with Montek Singh Ahluwalia as Deputy Chairman.

Q2.Indian EconomyAsked in: CDS · CDS-II 2018, GKHard

The Fourteenth Finance Commission assigned different weights to the following parameters for distribution of tax proceeds to the States :

1. Income distance

2. Population

3. Demographic changes

4. Area

Arrange the aforesaid parameters in descending order in terms of their weights.

  1. A.1-2-3-4
  2. B.1-2-4-3
  3. C.1-3-2-4
  4. D.4-3-2-1
Show answer
Correct answer: B. 1-2-4-3

Income distance had the highest weight, followed by population, area and demographic change. The Fourteenth Finance Commission, chaired by Y.V.

Q3.Indian EconomyAsked in: CDS · CDS-II 2024, GKHard

Which one of the following statements for a firm's equilibrium in Perfect Competition is not correct ?

  1. A.The market price must be greater or equal to average variable cost in the short run.
  2. B.The market price must be equal to marginal cost.
  3. C.The market price must be equal to average cost in the long run.
  4. D.The marginal cost decreases at the equilibrium output.
Show answer
Correct answer: D. The marginal cost decreases at the equilibrium output.

This statement is not correct, because at the equilibrium of a competitive firm marginal cost must be rising. A firm in perfect competition is a price taker, so the price it gets equals its marginal revenue.

Q5.Indian EconomyAsked in: CDS · CDS-II 2024, GKEasy

Which of the following is not included in the Capital Account of the Balance of Payments of a country?

  1. A.Foreign Direct Investment
  2. B.Commercial Borrowing
  3. C.Invisibles
  4. D.External Assistance
Show answer
Correct answer: C. Invisibles

Invisibles are part of the current account of the balance of payments, not the capital account. The balance of payments records all of a country's transactions with the rest of the world and has two main parts.