IES Prelims 2025: General Studies & Engineering Aptitude Solved MCQs with Explanations

IES/ESE Prelims – General Studies and Engineering Aptitude (Paper 1) MCQ Solutions

1. Which one of the following is the advantage of an ‘equity capital’?

Options:

(a) Dividends paid by a company are not tax deductible(b) Equity holders expect greater return as they undertake more risk(c) Equity shares are not repayable to the shareholders as these are nonrefundable(d) Issue of equity shares also result in dilution of control of the company

Correct Answer: (c) Equity shares are not repayable to the shareholders as these are nonrefundable

Explanation:Equity capital refers to the funds raised by issuing shares to investors. It is a permanent form of capital and does not carry a repayment obligation. Shareholders are owners of the company and are entitled to dividends only when declared by the company. Unlike loans or debt capital, equity does not need to be returned, making it nonrefundable and financially flexible for the company. This characteristic is a key advantage of equity capital. Other options, while relevant to equity, do not represent its core benefit in terms of financial structure.

2. Which one of the following branch of economics is focusing on improving fiscal, economic and social conditions in developing (low income) countries?

Options:

(a) Social economics(b) Fiscal economics(c) Development economics(d) Micro economics

Correct Answer: (c) Development economics

Explanation:Development economics is a branch of economics that specifically studies the challenges and strategies associated with improving economic conditions in low-income countries. It deals with policies aimed at poverty alleviation, income redistribution, infrastructure growth, employment generation, and overall economic sustainability. It integrates macroeconomic policy analysis with micro-level social reform, making it central to economic transformation in developing nations.

3. Which one of the following is correct with respect to the Industrial Relations Bill?

Options:

(a) Workers can raise objection to retrenchment within five years(b) Government consent required for workers to move courts in case conciliation fails(c) Trade union deemed registered if application not processed within six months by government(d) Labour court, board of arbitration and tribunal court won’t exist; only industrial tribunal to continue

Correct Answer: (a) Workers can raise objection to retrenchment within five years

Explanation:The Industrial Relations Code, 2020, consolidates existing laws related to trade unions, employment conditions, and dispute resolution. It allows workers to raise disputes regarding retrenchment, dismissal, or termination within five years from the date of the incident. This provision protects workers from immediate dismissal without legal remedy and supports delayed legal action due to procedural or personal barriers. Other options either misstate the code’s intent or are not supported by the new provisions.

4. What is PPP in sustainable agricultural sector?

Options:

(a) Public Product Percentage(b) Present Product Partnership(c) Public Private Partnership(d) Present Private Percentage

Correct Answer: (c) Public Private Partnership

Explanation:In agriculture, a Public Private Partnership (PPP) involves collaboration between government entities and private sector participants to enhance productivity, efficiency, and sustainability. These partnerships are used to promote investments in rural infrastructure, irrigation systems, agri-processing, cold storage, and digital platforms. The PPP model enables risk-sharing, innovation, and long-term development, especially in areas where government funding alone is insufficient.

5. Which one of the following is an effort to get to the next stage of creating a pan-India electronic portal, which networks the existing APMC mandis by creating a national market for agricultural commodities?

Options:

(a) National APMC Market(b) National Agricultural Market(c) National Network Portal(d) National Electronic Portal

Correct Answer: (d) National Electronic Portal

Explanation:The National Electronic Portal refers to eNAM (Electronic National Agricultural Market), which connects over 1,000 APMC mandis to create a unified national agricultural market. This online platform provides farmers with price transparency, real-time data, and broader access to buyers. It is part of the government’s digital and agricultural reform agenda, aiming to reduce middlemen, standardize practices, and improve price discovery mechanisms. While "National Agricultural Market" is the name of the scheme, the portal created is correctly referred to as the National Electronic Portal.

6. Which one of the following Yojanas replaces two schemes — National Agricultural Insurance Scheme (NAIS), 1999 as well as the Modified National Agricultural Insurance Scheme (MNAIS), 2010 — by incorporating the best features of all these schemes while removing the previous shortcomings and weaknesses?

Options:

(a) Pradhan Mantri Krishi Sinchayee Yojana(b) Pradhan Mantri Fasal Sinchayee Yojana(c) Pradhan Mantri Krishi Bharat Yojana(d) Pradhan Mantri Fasal Bima Yojana

Correct Answer: (d) Pradhan Mantri Fasal Bima Yojana

Explanation:The Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in 2016, was designed to replace the earlier crop insurance schemes NAIS and MNAIS. It integrates their best features while addressing the shortcomings of slow claim processing, low coverage, and lack of transparency. PMFBY offers comprehensive crop insurance coverage against natural calamities, pests, and diseases. It uses technology such as remote sensing and GPS to assess crop damage and ensure faster claim settlements. The scheme is a major step in improving risk management in Indian agriculture.

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