LIC ADO — 2019 — Previous Year Paper — Kerala PSC PYQ Practice with Answers

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  • Paper code: lic-ado-previous-year-2019
  • Format: Full previous year paper — PYQ practice with answers

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Question 1 Insurance Awareness
Why India might be in much more loss than US if the trade war prevails?
  1. A. The richer India becomes, the less the world will be willing to put up with one-sided trade policies.
  2. B. India cannot export directly on its own terms, coddling domestic manufacturers while blocking imports.
  3. C. US has always had a grouse over India being categorized as a less developed country.
  4. D. India is the largest exporter to the US after China.
  5. E. None of these.

Correct answer: D. India is the largest exporter to the US after China.

Correct answer (Option D):\nAccording to the second paragraph of the passage, India may lose much more than the US in the trade war because US exports account for barely 12% of its GDP, whereas India is the largest exporter to the US after China. This significant export dependence exposes India to greater potential losses.\n\nWhy others are wrong:\nOptions A and B mention generalized concepts not stated as the structural reason for the loss. Option C points out a grievance of the US rather than the structural reason why India stands to lose more.
Question 2 Insurance Awareness
Why the only global trade organization, WTO has become less relevant lately?
  1. A. Since most of nations have shown preference for bilateral trade agreements.
  2. B. Due to the limits set by WTO agricultural agreement.
  3. C. Bilateral trade agreements are much faster and less complicated.
  4. D. Only (a) and (c).
  5. E. Only (b) and (c).

Correct answer: D. Only (a) and (c).

Correct answer (Option D):\nThe third paragraph indicates that the WTO has become nearly irrelevant because most nations prefer bilateral trade agreements. It explicitly notes that these bilateral agreements are preferred because they are faster and less complicated. Hence, both statement (a) and statement (c) are valid explanations.\n\nWhy others are wrong:\nOption B refers to agricultural disputes under the WTO agricultural agreement, which is a specific issue raised by the US rather than the global structural reason for the decline in WTO's overall relevance.
Question 3 Insurance Awareness
Why according to US President India is no longer a less developed country?
  1. A. India's a free-market economy and can access global technology and capital to fuel its own innovative startups.
  2. B. The export-import sector of India also provides jobs and other benefits.
  3. C. As its per capita income is over $1000 a month.
  4. D. It has abundant resources and keeps on monetizing them.
  5. E. All of these

Correct answer: C. As its per capita income is over $1000 a month.

Correct answer (Option C):\nThe passage directly mentions in the third paragraph that in Mr. Trump's view, India is no longer a Less Developed Country (LDC) because its per capita income is over $1,000 a month. Therefore, he believes India should end its export subsidies.\n\nWhy others are wrong:\nOptions A, B, and D mention other general economic facts or features discussed in different portions of the text, but they do not serve as the specific indicator used by the US President to justify reclassifying India's LDC status.
Question 4 Insurance Awareness
What is the reason behind US's opposition to India's support in agricultural sector?
  1. A. MSP for some entities is over 60 to 70 per cent of the limits set by the WTO agriculture agreement.
  2. B. Because it wants India to open its markets to US farm exports as US farm lobby is very strong.
  3. C. Since it has always had a grouse use over India being categorized as LDC
  4. D. Both (a) and (b).
  5. E. Both (b) and (c).

Correct answer: D. Both (a) and (b).

Correct answer (Option D):\nThe third paragraph states that the US opposes India's assistance to the farm sector because the US farm lobby is very strong and wants India to open its markets to US farm exports. It also mentions that the US held up the WTO's Doha Round because India's Minimum Support Price (MSP) for wheat and rice is well over 60 to 70 per cent of the limits set by the WTO agriculture agreement. Thus, both statements (a) and (b) are explicitly supported reasons.\n\nWhy others are wrong:\nStatement (c) represents a general political and developmental dispute regarding categorization rather than the specific agricultural market dynamics described in statements (a) and (b).
Question 5 Insurance Awareness
How does the world trade contribute to the world peace?
  1. A. Without having to do the hard cost cutting and increased competitiveness
  2. B. By somehow preserving access to capital and technology from behind high tariff walls
  3. C. Economies undergoing the exchange of goods and services with each other are unlikely to go to war.
  4. D. By demonetizing of resources which can only be achieved through trade
  5. E. None of these

Correct answer: C. Economies undergoing the exchange of goods and services with each other are unlikely to go to war.

Correct answer (Option C):\nThe final paragraph highlights that world trade contributes to world peace because countries trading with each other are highly unlikely to engage in military conflicts or go to war with one another.\n\nWhy others are wrong:\nOptions A and B introduce outside phrasing not detailed in the text. Option D uses the term 'demonetizing' which directly contradicts the passage's statement that trade helps countries 'monetize' their abundant resources.

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