UPSC Prelims Current Affairs Quiz: June 11, 2025

Q1. Consider the following statements about the revision of the base year for National Accounts (GDP) in India:

The base year revision scheduled for 2026 will be the eighth such revision since independence.
The first official estimates of national income were prepared by a committee chaired by V.K.R.V. Rao in 1949.
The last base year revision of GDP was implemented in 2015, shifting from 2004–05 to 2011–12.

How many of the above statements are correct?

(a) Only one

(b) Only two

(d) None

Explanation:

Statement I – Correct: As per official data, the base year has been revised seven times so far, and the upcoming 2026 revision will be the eighth.
Statement II – Incorrect: The first national income estimates were compiled by the National Income Committee under the chairmanship of P.C. Mahalanobis, not V.K.R.V. Rao, although Rao had a role in early economic studies.
Statement III – Correct: The most recent base year revision was indeed done in 2015, where the base was updated from 2004–05 to 2011–12.
Correct Answer: (b) Only two

GDP Base Year Revision

The base year of national accounts has been revised on seven different occasions:

From 1948–49 to 1960–61 in August 1967;
From 1960–61 to 1970–71 in January 1978;
From 1970–71 to 1980–81 in February 1988;
From 1980–81 to 1993–94 in February 1999;
From 1993–94 to 1999–2000 in January 2006;
From 1999–2000 to 2004–05 in January 2010;
From 2004–05 to 2011–12 on January 30, 2015.

Q2. Consider the following features of a robust GDP base year revision:

Incorporation of latest business register and enterprise-level data
Shift to constant prices to eliminate inflationary effects
Inclusion of digital economy and gig sector in estimation
Real-time data collection using GST and EPFO databases

How many of the above are generally part of the GDP base year revision process in India?

(a) Only one

(b) Only two

(d) All four

Explanation:

Statement I – Correct: With every base year revision, updated business and enterprise data are included. For example, the MCA21 database has been used since the 2015 revision.
Statement II – Incorrect: Use of constant prices (real GDP) is a standard practice in national accounts, but not a change unique to base year revision. Constant prices are used every year to calculate real GDP, not just when the base year changes.
Statement III – Correct: New sectors like the digital economy, gig platforms, and emerging service sectors are gradually being incorporated to reflect structural changes in the economy.
Statement IV – Correct: Real-time administrative data from GST, EPFO, and e-way bills is increasingly used to refine GDP estimates. This began with the 2011–12 series and is expected to expand in the 2022–23 series.
Correct Answer: (c) Only three

Q3. Consider the following statements regarding the base year revision in India’s National Accounts:

Every revision of the GDP base year in India is accompanied by changes in methodology, sectoral coverage, and data sources.
The base year revision from 2011–12 to 2022–23 will be the first instance of aligning GDP and CPI base years simultaneously.
The revision of the GDP base year is a statutory requirement mandated under the Indian Constitution.

Which of the above statements is/are correct?

(a) 1 only

(b) 1 and 2 only

(d) 1, 2 and 3

Explanation:

Statement 1 is correct. Every GDP base year revision includes not just a change in the year, but also an overhaul in methodology, coverage of economic activities, and adoption of updated international norms.
Statement 2 is incorrect. While the 2022–23 GDP base year and 2023–24 CPI base year are being revised around the same period, this is not the first instance of overlapping base year changes. Historical revisions have not always been synchronised, but such coordination is not unprecedented in the planning process.
Statement 3 is incorrect. There is no constitutional mandate for revising the GDP base year. It is a statistical and administrative function handled by the Ministry of Statistics and Programme Implementation (MoSPI), not a constitutional requirement.
Correct Answer: (a) 1 only

Q4. In the context of GDP measurement, which of the following transactions would be included as part of GDP?

Purchase of a new tractor by a farmer
Sale of wheat by a farmer to a flour mill
Government expenditure on salaries of public school teachers
Purchase of company shares by an individual in the stock market

How many of the above contribute directly to the calculation of GDP?

(a) Only one

(b) Only two

(d) All four

Explanation:

Statement I – Correct: The purchase of a new capital good like a tractor is counted in GDP, as it is a final good used in production.
Statement II – Incorrect: Sale of wheat to a flour mill is an intermediate transaction, not final consumption. It is not counted separately in GDP to avoid double counting.
Statement III – Correct: Salaries of government employees (e.g., public school teachers) are part of government final consumption expenditure, hence included in GDP.
Statement IV – Incorrect: Purchase of financial assets like shares is not counted in GDP, as it does not represent production of goods or services.
Correct Answer: (c), only three

Q5.

Statement I:
Since 2015, India has not followed the five-year cycle for revising the GDP base year, despite earlier adherence to this pattern.

Statement II:
The recommendation to revise the base year every five years was made by the National Statistical Commission to ensure economic indices reflect current structural changes.

Statement III:
India has consistently revised the GDP base year at intervals of exactly five years since independence.

Which one of the following is correct in respect of the above statements?

(a) Both Statement II and Statement III are correct and both of them explain Statement I

(b) Both Statement II and Statement III are correct but only one of them explains Statement I

(d) Neither Statement II nor Statement III is correct

Explanation:

Statement I – Correct. After the last base year revision in 2015 (to 2011–12), India has not followed the expected five-year cycle. The next revision (to 2022–23) is now scheduled for 2026, a gap of over 10 years.
Statement II – Correct. The National Statistical Commission did recommend a five-year revision cycle to ensure better alignment with current economic realities. This recommendation provides context and explanation for Statement I.
Statement III – Incorrect. India did not consistently revise the base year every five years since independence. In fact, before 1999, revisions typically occurred once in a decade, often with base years ending in ‘1’. Thus, only Statement II is correct, and it explains Statement I.
Correct Answer: (c) Only one of the Statements II and III is correct and that explains Statement I

Q6.

Statement I:
India periodically undertakes revisions to the base year and methodology used in national income accounting.

Statement II:
Such revisions aim to incorporate structural changes in the economy, update datasets, and reflect evolving consumption and production patterns more accurately.

Statement III:
Frequent revisions of the base year tend to systematically inflate real GDP growth rates over time by lowering the base effect.

Which one of the following is correct in respect of the above statements?

(a) Both Statement II and Statement III are correct and both of them explain Statement I

(b) Both Statement II and Statement III are correct but only one of them explains Statement I

(d) Neither Statement II nor Statement III is correct

Explanation:

Statement I – Correct: This is a factual statement — India revises its GDP base year and methodology periodically, as recommended by the National Statistical Commission.
Statement II – Correct: This is the primary rationale for such revisions. Base year revisions aim to include emerging sectors, incorporate newer datasets (e.g., GST, MCA21), and align with changing consumption and production structures.
Statement III – Incorrect: This is a misconception. While a lower base year can affect year-on-year comparisons, the intent and design of GDP revisions is not to systematically inflate real GDP. In fact, real GDP growth is calculated using constant prices, and revisions usually improve accuracy, not inflate growth.
Thus, only Statement II is correct, and it explains Statement I.
Correct Answer: (c) Only one of the Statements II and III is correct and that explains Statement I

Q7. Which of the following is often referred to as the "evil twin" of climate change?

(a) Ocean acidification

(b) Coral bleaching

(d) Arctic ice melt

Explanation:

Ocean acidification is called the “evil twin” of climate change because it is a direct consequence of increased atmospheric carbon dioxide (CO₂) levels.

As oceans absorb more CO₂, their pH decreases, making them more acidic. This threatens marine ecosystems, particularly species that rely on calcium carbonate for their shells and skeletons.

While other options are related to climate change, only ocean acidification is known by this specific term.

Correct Answer: (a) Ocean acidification

Q8. Consider the following terms:

Evil Twin
Ramsar Shadow Sites
Representative Concentration Pathways (RCPs)
Ecological Fiscal Transfers (EFTs)

Which of the above are concepts directly associated with climate change and global warming?

(a) 1 and 3 only

(b) 1, 3 and 4 only

(d) 1, 2, 3 and 4

Explanation:

Evil Twin: true: Refers to ocean acidification, a direct result of rising CO₂ levels — hence, clearly a climate change concept.
Ramsar Shadow Sites: False: These are wetlands that qualify for Ramsar status but are not officially recognized yet. While important for biodiversity and hydrology, they’re not directly related to climate change frameworks.
Representative Concentration Pathways (RCPs): True: Used in climate modeling by the IPCC to simulate warming scenarios based on different GHG concentrations — a core climate science concept.
Ecological Fiscal Transfers (EFTs): False: This is a governance and fiscal policy tool where states receive financial transfers based on conservation efforts (e.g., forest cover). It supports ecological sustainability, but not specifically climate change.
Correct Answer: (a) 1 and 3 only

Q9. Consider the following statements:

Ocean acidification leads to a reduction in the availability of calcium carbonate, which is essential for shell-forming marine organisms.
Ocean acidification and ocean warming are both included in the Planetary Boundaries framework.
Oceans absorb more than 50% of the carbon dioxide released from anthropogenic sources annually.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

Explanation:

Statement 1 is correct: Acidification reduces the pH of seawater and affects the concentration of carbonate ions, which are crucial for organisms like corals and shellfish to form calcium carbonate shells.
Statement 2 is correct: Ocean acidification is explicitly included as one of the nine planetary boundaries.
Statement 3 is incorrect: Oceans absorb about 23% of anthropogenic CO₂ annually—not more than 50%.
Correct Answer: (a)

Q10. With reference to the changing chemical and physical properties of oceans, consider the following statements:

Ocean acidification primarily occurs due to the uptake of CO₂ and results in a decrease in pH levels.
Warming of oceans increases their salinity, which in turn reduces their capacity to hold dissolved oxygen.
A reduction in phytoplankton population can affect both oxygen production and the marine food web.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 1 and 3 only

(d) 1, 2 and 3

Explanation:

Statement 1 is correct: The uptake of CO₂ by oceans leads to carbonic acid formation, reducing pH—i.e., acidification.
Statement 2 is correct: Warming increases evaporation, making the ocean more saline and reducing dissolved oxygen content.
Statement 3 is correct: Phytoplankton form the base of the marine food chain and produce oxygen via photosynthesis. A decrease disrupts the entire marine ecosystem and reduces oxygen levels.
Correct Answer: (d)

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