2012 Prelims Paper 2 UPSC Question Paper

How have the human beings influenced the biodiversity?
1. By smuggling live organisms.
2. By building highways.
3. By making ecosystem sensitive so that new species are not allowed.
4. By ensuring that new species do not have major impact on local species.
Which of the statements given above are correct?

What can be the impact of invasion of exotic species on an ecosystem?
1. Erosion of endemic species.
2. Change in the species composition of the community of the ecosystem.
Select the correct answer using the codes given below:

Passage - 2
Most champions of democracy have been rather reticent in suggesting that democracy would itself promote development and enhancement of social welfare __ they have tended to see them as good but distinctly separate and largely independent goals. The detractors of democracy, on the other hand, seemed to have been quite willing to express their diagnosis of what they see as serious tensions between democracy and development. The theorists of the practical split __"Make up your mind: do you want democracy, or instead, do you want development?" __ often came, at least to start with, from East Asian countries, and their voice grew in influence as several of these countries were immensely successful ___ through the 1970s and 1980s and even later __ in promoting economic growth without pursuing democracy.

To deal with these issues we have to pay particular attention to both the content of what can be called development and to the interpretation of democracy ( in particular to the respective roles of voting and public reasoning). The assessment of development cannot be divorced from the lives that people can lead and the real freedom that they enjoy. Development can scarely be seen merely in terms of enhancement of inanimate objects of convenience, such as a raise in the GNP ( or in personal incomes), or industrialization __ important as they may be as means to the real ends. Their value must depend on what they do to the lives and freedom of the people involved, which must be central to the idea of development.

If development is understood in a broader way, with a focus on human lives, then it becomes immediately clear that the relation between development and democracy has to be seen partly in terms of their constitutive connections, rather than only through their external links. Even though the question has often been asked whether political freedom is " conductive to development", we must not miss the crucial recognition that political liberties and democratic rights are among the "Constituent components" of development. Their relevance for development. Their relevance for development does not have to be established indirectly through their contribution to the growth of GNP.

According to the passage, why is a serious tension perceived between democracy and development by the detractors of democracy?

Passage - 3
The need for competition Law becomes more evident when foreign direct investment(FDI) is liberalised. The impact of FDI is not always pro-competitive. Very often FDI takes the form of a foreign corporation accruing a domestic enterprise or establishing a joint venture with one. By making such an acquisition the foreign investor may substantially lesson competition and gain a dominant position in the relevant market, thus charging higher prices. Another scenario is where the affiliates of two separate multinational companies (MNCs) have been established in competition with one another in a particular developing economy, following the liberalisation of FDI, Subsequently, the parent companies overseas merge. with the affiliates no longer remaining independent, competition in the host country may be virtually criminated and the prices of the products may be artificially inflated. Most of these adverse consequences of mergers and acquisitions by MNCs can be avoided if an effective competition law is in place. Also, an economy that has implemented an effective competition law is in a better position to attract FDI than one that has not. This is not just because most MNCs are expected to be accustomed to the operation of such a law in their home countries and know how to deal with such concerns but also that MNCs expect competition authorities to ensure a level playing field between domestic and foreign firms.

With reference to the passage, consider the following statements:
1. It is desirable that the impact of Foreign Direct Investment should be pro-competitive.
2. The entry of foreign investors invariably leads to the inflated prices in domestic markets.
Which of the statements given above is/are correct?

According to the passage, how does a foreign investor dominate the relevant domestic market?
1. Multinational companies get accustomed to domestic laws.
2. Foreign companies establish joint ventures with domestic companies.
3. Affiliates in a particular market/sector lose their independence as their parent companies overseas merge.
4. Foreign companies lower the cost of their products as compared to that of products of domestic companies.
Which of the statements given above are correct?

Examine the following statements:
1. I watch TV only if I am bored.
2. I am never bored when I have my brother's company.
3. Whenever I go to the theatre I take my brother along.
Which one of the following conclusions is valid in the context of the above statements?