Explanation
- A
1 only
(a) 1 only. PPP exchange rates compare the price of a common basket of goods and services across countries (ICP). Statement 2, which ranked India as the sixth-largest economy in PPP dollars, was false: India was already among the top three in PPP GDP. That is the official key.
- B
2 only
(b) 2 only. The sixth-largest PPP ranking was wrong at the time of the paper. Not the key.
- C
Both 1 and 2
(c) Both 1 and 2. Statement 2 fails. Not the key.
- D
Neither 1 nor 2
(d) Neither 1 nor 2. Statement 1 is true, so neither is wrong.
Summary. Official key is (a). PPP is a basket-price conversion, not a market-exchange-rate ranking. In PPP terms India was already the third-largest economy (after China and the United States), not the sixth. Honour (a).
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2022 · Q67 · General Studies · 2 marks
Consider the following statements: 1. Vietnam has been one of the fastest growing economies in the world in the recent years. 2. Vietnam is led by a multi-party political system. 3. Vietnam's economic growth is linked to its integration with global supply chains and focus on exports. 4. For a long time Vietnam's low labour costs and stable exchange rates have attracted global manufacturers. 5. Vietnam has the most productive e-service sector in the Indo-Pacific region. Which of the statements given above are correct? -
2026 · Q100 · General Studies · 2 marks
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