Q81. In the context of sustainable production, what does the transition from "cradle to grave" to "cradle to cradle" signify?
Economic Growth, Development and Sustainable Development: RAS Prelims MCQs
99 RAS Prelims MCQs on economic growth, development and sustainable development test the national income aggregates and the difference between growth and development. Nominal and real GDP, GDP and GNP, NDP, national income, per capita income and the factors that raise growth are asked as definitions and relationships, and each explanation shows how the aggregates are linked.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Showing 81–90 of 99 questions
Q82. Which of the following is NOT an inherent characteristic of a circular economy?
Explanation
A circular economy prioritizes resource efficiency, waste minimization, and the retention of material value. It seeks to decouple economic activity from the consumption of finite resources. Therefore, the continuous exploitation of raw materials is not a characteristic of this model; instead, the focus is on reusing existing materials. This approach helps protect ecosystems and reduces the volatility of resource prices for the global economy.
Q83. Consider the following statements regarding the benefits of adopting a circular economy:
I. It reduces greenhouse gas emissions by lowering the need for virgin material extraction.
II. It increases the volatility of raw material prices for manufacturers.
III. It promotes innovation and generates new employment opportunities in recycling and remanufacturing sectors.
Which of the above statement(s) is/are correct?
I. It reduces greenhouse gas emissions by lowering the need for virgin material extraction.
II. It increases the volatility of raw material prices for manufacturers.
III. It promotes innovation and generates new employment opportunities in recycling and remanufacturing sectors.
Which of the above statement(s) is/are correct?
Explanation
Transitioning to a circular economy reduces emissions because it lowers the need for energy-intensive extraction and processing of new materials. It also fosters innovation and creates new jobs in sectors like repair and recycling. Far from increasing price volatility, circular practices can actually stabilize costs by reducing dependence on external raw material markets. This makes businesses more resilient to supply chain disruptions and resource scarcity.
Q84. Match List I with List II and select the correct answer using the codes given below:
| Principles of Circular Economy | Descriptions |
|---|---|
| A. Reduce | i. Processing waste materials into new products to prevent waste of potentially useful materials. |
| B. Reuse | ii. Using less material or energy in the production and consumption phases. |
| C. Recycle | iii. Capturing energy from waste materials that cannot be otherwise utilized. |
| D. Recover | iv. Using a product again for the same or a different purpose without altering its physical form. |
Explanation
Reduction involves using less material from the start. Reuse means using a product again without changing its form. Recycling is the process of turning waste materials back into new products. Recovery involves capturing energy from waste that cannot be recycled. These "Rs" form a hierarchy of waste management that guides producers and consumers toward more sustainable and efficient use of the planet’s finite resources.
Q85. The term "Hindu rate of growth" refers to:
Explanation
The "Hindu rate of growth" is a term coined to describe the relatively slow and stagnant growth rate of the Indian economy from the 1950s to the 1980s. During this period, growth hovered around 3.5% per annum, which was barely enough to keep up with population increases. This performance was largely attributed to restrictive economic policies, heavy state intervention, and a lack of market-oriented reforms.
Q86. The 1991 economic reforms in India fundamentally shifted the nation’s economic trajectory by:
Explanation
The 1991 economic reforms in India introduced the model of Liberalization, Privatization, and Globalization. These changes moved the economy away from central planning and toward a market-driven system. By reducing industrial licensing, lowering trade barriers, and encouraging foreign investment, the reforms integrated India into the global economy. This shift led to a significant increase in growth rates and a transformation of the nation’s economic structure.
Q87. A unique feature of India’s post-1991 economic growth trajectory compared to many East Asian countries is that India’s growth was primarily led by:
Explanation
Unlike many East Asian "tiger" economies that grew through labor-intensive manufacturing, India’s growth has been uniquely led by the services sector. The expansion of information technology and IT-enabled services provided a major boost to the national economy. This "leapfrogging" past the traditional manufacturing stage has created a distinct economic profile for India, though it has also led to challenges regarding broad-based employment generation.
Q88. Consider the following phases of India’s economic growth trajectory:
I. Post-independence era marked by state-led industrialization and central planning.
II. The 1980s characterized by partial deregulation and debt-led growth.
III. The 1991 reforms leading to structural adjustment and market liberalization.
IV. The post-2000s marked by high growth rates but significant challenges of jobless growth.
Which of the above statement(s) is/are correct?
I. Post-independence era marked by state-led industrialization and central planning.
II. The 1980s characterized by partial deregulation and debt-led growth.
III. The 1991 reforms leading to structural adjustment and market liberalization.
IV. The post-2000s marked by high growth rates but significant challenges of jobless growth.
Which of the above statement(s) is/are correct?
Explanation
India’s economic history is marked by distinct phases. The early post-independence era focused on state-led heavy industry. The 1980s saw the beginning of deregulation, while the 1991 reforms brought structural changes. Since the 2000s, India has experienced periods of high growth, yet the issue of "jobless growth" remains a concern, where GDP increases do not translate into a proportional rise in employment opportunities for the workforce.
Q89. Based on their percentage contribution to India’s Gross Value Added (GVA) in recent years, select the correct descending order of the three main economic sectors:
Explanation
In the modern Indian economy, the services sector is the largest contributor to Gross Value Added, typically accounting for over 50% of the total. The industrial sector follows as the second-largest contributor. While the agricultural sector employs a large portion of the workforce, its percentage share of GVA is the smallest of the three. This structure reflects India’s transition into a service-oriented developing economy over recent decades.
Q90. In NITI Aayog’s SDG India Index, states and union territories are classified into different categories based on their scores. A state with a score of 65 to 99 is classified as a:
Explanation
In the SDG India Index, NITI Aayog classifies states based on their performance scores. A state scoring between 65 and 99 is categorized as a "Front Runner," indicating significant progress toward achieving the Sustainable Development Goals. This classification helps identify regions that are performing well and provides a benchmark for others. The index uses a color-coded system to visualize these performance levels across the country.Answer key for these questions
| Q | Correct answer |
|---|---|
| 81 | (a) Recycling for new lifecycles. |
| 82 | (c) Raw material exploitation. |
| 83 | (b) I and III only |
| 84 | (a) A-ii, B-iv, C-i, D-iii |
| 85 | (b) Low stagnant growth (1950s-1980s). |
| 86 | (d) LPG model global integration. |
| 87 | (a) The services sector, particularly IT and ITES |
| 88 | (d) I, II, III and IV |
| 89 | (b) Services > Industry > Agriculture |
| 90 | (d) Front Runner |
Key facts from Economic Growth, Development and Sustainable Development
- Real GDP differs from nominal GDP because it is adjusted for price level changes (inflation).
- In the value-added method, the value of intermediate consumption is deducted from the value of output.
- GNP differs from GDP by the inclusion of net factor income from abroad.
- Net Domestic Product is obtained by deducting depreciation from Gross Domestic Product.
- National Income is equivalent to Net National Product at factor cost.
- Per capita income is national income divided by total population, and it masks welfare because it leaves out unpaid domestic work and leisure.
Frequently asked questions
How many RAS Prelims practice MCQs are there on Economic Growth, Development and Sustainable Development?
This page has 99 practice MCQs on Economic Growth, Development and Sustainable Development (Indian Economy). Each has the correct answer, and most have an explanation.
What is the difference between nominal and real GDP?
Nominal GDP is measured at current prices, and real GDP is adjusted for price level changes (inflation) by using the prices of a base year. Real GDP therefore shows the actual growth in the volume of output.
How does GNP differ from GDP?
GNP includes net factor income from abroad, that is income earned by a country’s residents abroad minus income earned by foreigners in the country. GDP counts only the output produced within the domestic territory.
What is National Income?
National Income is the Net National Product at factor cost. It is obtained from GDP by adding net factor income from abroad, deducting depreciation and subtracting indirect taxes net of subsidies.