UPSC Prelims Practice Questions — 100 years ago: Supply of safety razors to British Army
Q1. With reference to the financial committees of the Indian Parliament, consider the following statements: Which of the statements given above is/are correct?
- The Public Accounts Committee's examination is usually limited to the audit reports of the Comptroller and Auditor-General and the issues they raise, including losses and financial irregularities.
- The Estimates Committee is drawn only from members of the Lok Sabha.
- After the Departmentally Related Standing Committees took over the examination of ministries' demands for grants, the Estimates Committee has mostly examined the working of selected government organisations.
- A. 1 and 3 only
- B. 1, 2 and 3
- C. 1 and 2 only
- D. 2 and 3 only
Q2. An audit report of the Comptroller and Auditor-General, laid before Parliament, finds that a Union ministry lost money on a contract that had already been carried out, because old equipment it handed over in part-exchange was undervalued. Which parliamentary committee would ordinarily take up this finding and call the ministry's officials to explain it?
- A. Estimates Committee
- B. Committee on Government Assurances
- C. Committee on Public Undertakings
- D. Public Accounts Committee
Q3. Consider the following statements: Which of the following is correct in respect of the above statements?
- The early safety-razor business made its product a commercial success even though it sold its razors at a loss.
- The blades of that razor were meant to be thrown away once dull, so every razor owner became a repeat buyer of blades.
- A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
- B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
- C. Statement-I is correct, but Statement-II is incorrect
- D. Statement-I is incorrect, but Statement-II is correct
Q4. A firm sells a durable base unit below cost and earns its profits on a consumable that fits only its own base unit. Consider the following statements about the likely effects of this strategy: Which of the statements given above is/are correct?
- The firm's earnings are largely independent of how often customers use the base unit, since its revenue is booked when that unit is sold.
- The firm gains from making it hard for rival producers to supply consumables that fit its base unit.
- A customer who already owns the base unit faces a cost in switching, since moving to a rival system means buying a new base unit.
- A. 1, 2 and 3
- B. 3 only
- C. 2 and 3 only
- D. 1 and 2 only
Q5. Consider the following facts about an early safety-razor company: its first sale, in 1903, was 51 razors and 168 blades; by the end of 1904 it had produced 90,000 razors and 12,400,000 blades; it sold its razors below cost; and its blades were meant to be thrown away once dull. Which of the following inferences can be validly drawn from these facts?
- The company relied on repeat purchases of blades, rather than a one-time sale of razors, for its profits.
- The company must have made an overall loss in 1904, since each razor was sold below cost.
- Each razor sold by 1904 was bundled with a fixed pack of more than a hundred blades.
- A. 1 only
- B. 2 and 3 only
- C. 1 and 2 only
- D. 1 and 3 only
Q6. Consider the following statements: Which of the following is correct in respect of the above statements?
- By the end of the Second World War, India owed Britain large sterling balances for military stores and equipment that Britain had supplied to it.
- During the Second World War, India shipped large quantities of military stores and wheat to Britain and to various war fronts.
- A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
- B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
- C. Statement-I is correct, but Statement-II is incorrect
- D. Statement-I is incorrect, but Statement-II is correct
Q7. With reference to the replacement of the straight (open) razor by the safety razor with a disposable blade, consider the following statements: Which of the statements given above is/are correct?
- A straight razor is kept in service by honing its edge, whereas a safety-razor blade is removed and discarded once dull.
- Like the straight razor, the safety-razor blade depended on individual hand-finishing by skilled craftsmen to get its edge.
- The disposable-blade design became commercially workable only after a method was found to mass-produce blades from sheet metal.
- A. 1 and 2 only
- B. 3 only
- C. 1, 2 and 3
- D. 1 and 3 only
Q8. In 1926 the British War Office decided to issue soldiers razors with throw-away blades instead of open blades that had to be honed. As an episode in industrial history, what does this change best illustrate?
- A. The putting-out system moving craft production into rural households
- B. Standardised mass production making a skill-dependent tool cheap and uniform
- C. Import substitution replacing a foreign-made good with a domestically produced one
- D. Mercantilist rules directing colonial raw materials towards the imperial centre