UPSC Prelims 2015— Question 4

Correct answer: Option A. The tax-to-GDP ratio measures tax revenue relative to the size of the economy. A decline can reflect weaker tax collection or slower economic performance relative to tax receipts. In the context of this question, it does not by itself establish that income distribution has become less equitable. Tax-to-GDP and income inequality are distinct indicators. Option-wise analysis: Option A: “1 only” is correct. It directly matches the factual or conceptual requirement tested by the question and is supported by the principle explained above. Option B: “2 only” is incorrect. It does not match the specific fact, definition, institutional role, geographical association, or constitutional/economic principle required here. The key distinction is the one identified in the core explanation, so this option can be eliminated. Option C: “Both 1 and 2” is incorrect. It does not match the specific fact, definition, institutional role, geographical association, or constitutional/economic principle required here. The key distinction is the one identified in the core explanation, so this option can be eliminated. Option D: “Neither 1 nor 2” is incorrect. It does not match the specific fact, definition, institutional role, geographical association, or constitutional/economic principle required here. The key distinction is the one identified in the core explanation, so this option can be eliminated. Prelims takeaway: Focus on the precise institutional role, constitutional provision, geographical association, or technical definition being tested. UPSC questions often place a broadly familiar fact beside a narrowly incorrect qualifier; identifying that qualifier is essential for elimination.