Q121. Which of the following trends is NOT historically accurate regarding India’s HDI performance over the last three decades?
Indian Economy: RAS Prelims MCQs
848 RAS Prelims practice MCQs on the Indian economy are on this page, in 10 chapters. They cover economic growth and development, the Human Development Index, monetary and fiscal policy and the Union Budget, fiscal federalism, agricultural development, industrial reforms and LPG, the service sector, energy and transport, skill development and employment, and social justice. Each question has an answer and an explanation.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Showing 121–130 of 848 questions
Browse Indian Economy chapters
Q122. Among India’s immediate neighbors, which country has consistently placed in a higher HDI category than India in recent years?
Explanation
Within the South Asian region, comparative development assessments show varying levels of progress among neighbors. While several nearby nations share similar challenges and developmental tiers, Sri Lanka has historically maintained higher indicators in health and education. Consequently, it has consistently achieved a higher composite index value and a superior development category ranking compared to India and most other countries in the immediate vicinity.
Q123. Consider the following statements regarding India’s HDI ranking and trends:
I. India belongs to the High Human Development category.
II. Despite improvements, India’s HDI score temporarily declined during the COVID-19 pandemic years.
III. Life expectancy at birth in India is currently above 65 years.
Which of the above statement(s) is/are correct?
I. India belongs to the High Human Development category.
II. Despite improvements, India’s HDI score temporarily declined during the COVID-19 pandemic years.
III. Life expectancy at birth in India is currently above 65 years.
Which of the above statement(s) is/are correct?
Explanation
India is currently classified within the medium development tier, not the high tier. Recent data shows that life expectancy in the country has surpassed the sixty-five-year mark. However, like many nations, India experienced a temporary setback in its overall development score and ranking during the global pandemic years, reflecting the significant health and economic challenges faced during that specific period.
Q124. Match the items in List I with those in List II:
| Country | General HDI Performance Tier |
|---|---|
| A. Norway | i. Low human development |
| B. India | ii. Very high human development |
| C. Sri Lanka | iii. Medium human development |
| D. Niger | iv. High human development Options: |
Explanation
Countries are categorized into different development tiers based on their composite index scores. Norway consistently ranks in the top tier, while nations like Sri Lanka are situated in the high development group. India currently falls into the medium category, reflecting its ongoing progress. Meanwhile, countries like Niger are classified in the low development tier due to significant challenges in health and education.
Q125. The Gender Development Index measures gender gaps in human development achievements by:
Explanation
This index evaluates the disparity between genders by comparing their respective human development achievements. It is determined by dividing the score calculated specifically for women by the score calculated for men. A value closer to one indicates less disparity, providing a clear measure of how close a country is to achieving equality in health, education, and standard of living dimensions.
Q126. In which year was the Gender Development Index first introduced by the United Nations Development Programme?
Explanation
The United Nations Development Programme introduced a specific measure to assess gender-based differences in human progress during the mid-1990s. This metric was launched alongside another gender-focused index to highlight that development is often not neutral between sexes. It aimed to bring global attention to the need for policies that specifically address the gaps in health, knowledge, and economic resources for women.
Q127. Read the following statements carefully:
Statement I: The Gender Development Index utilizes the exact same three basic dimensions as the standard Human Development Index.
Statement II: The Gender Development Index estimates the estimated earned income for women and men separately to measure the standard of living dimension.
Which of the following is correct?
Statement I: The Gender Development Index utilizes the exact same three basic dimensions as the standard Human Development Index.
Statement II: The Gender Development Index estimates the estimated earned income for women and men separately to measure the standard of living dimension.
Which of the following is correct?
Explanation
To measure gender-based development gaps, the index uses the same core dimensions of health, education, and standard of living as the standard measure. It calculates separate scores for men and women by using sex-disaggregated data. For the economic dimension, it estimates earned income for each group separately, allowing for a direct comparison of the resources available to women and men.
Q128. Consider the following statements regarding the Gender Development Index:
I. A Gender Development Index value of 1.000 indicates absolute gender parity.
II. It directly assesses female political representation in the national parliament.
III. It groups countries into five groups based on the absolute deviation from gender parity.
IV. It uses sex-disaggregated data for life expectancy, expected years of schooling, and mean years of schooling.
Which of the above statements are correct?
I. A Gender Development Index value of 1.000 indicates absolute gender parity.
II. It directly assesses female political representation in the national parliament.
III. It groups countries into five groups based on the absolute deviation from gender parity.
IV. It uses sex-disaggregated data for life expectancy, expected years of schooling, and mean years of schooling.
Which of the above statements are correct?
Explanation
This metric uses sex-disaggregated data for health and education to compare achievements between men and women. A score of one signifies absolute parity between the genders. Countries are categorized into five distinct groups based on how much they deviate from this parity. It focuses on these basic development dimensions rather than directly measuring political representation in national parliaments or governments.
Q129. Arrange the following indices in the correct chronological sequence of their first publication by the United Nations Development Programme:
I. Human Poverty Index
II. Multidimensional Poverty Index
III. Human Development Index
IV. Gender Development Index
Choose the correct order from the options below:
I. Human Poverty Index
II. Multidimensional Poverty Index
III. Human Development Index
IV. Gender Development Index
Choose the correct order from the options below:
Explanation
The evolution of development metrics began with the primary index in 1990. This was followed by the introduction of gender-specific measures in 1995. Later, a focus on human poverty was established in 1997. Finally, the more comprehensive multidimensional approach to poverty, which identifies overlapping deprivations at the household level, was launched in 2010, marking the most recent shift in international assessment.
Q130. What are the three dimensions measured by the Gender Inequality Index?
Explanation
Gender-based disparities are evaluated through three specific lenses. Reproductive health is assessed via maternal mortality and adolescent birth rates, while empowerment is measured by parliamentary representation and educational attainment. Finally, labor market participation reflects economic engagement. This multidimensional approach highlights the lost potential in human development resulting from the inequalities existing between women and men in a modern society.Answer key for these questions
| Q | Correct answer |
|---|---|
| 121 | (b) India’s mean years of schooling have stagnated without any growth |
| 122 | (d) Sri Lanka |
| 123 | (b) II and III only |
| 124 | (a) A-ii, B-iii, C-iv, D-i |
| 125 | (a) Calculating the ratio of the female HDI to the male HDI |
| 126 | (b) 1995 |
| 127 | (a) Both Statement I and Statement II are correct |
| 128 | (c) I, III and IV only |
| 129 | (b) III, IV, I, II |
| 130 | (a) Health, Empowerment, and Labor Participation |
Key facts from Indian Economy
- The RPSC syllabus lists economic concepts and the Indian economy as the first part of the Economy paper, followed by the economy of Rajasthan.
- Concept questions test definitions: nominal and real GDP, GNP and NDP, per capita income and the value-added method.
- Policy questions pair a tool with its effect, for example a rise in CRR reduces the lendable resources of banks.
- Scheme questions ask for the target group, ministry or year of schemes such as PMKVY, NAPS, PM SVANidhi and PM-SYM.
- Questions on Finance Commission and GST link the body to its Article, such as Article 280.
Frequently asked questions
How many RAS Prelims practice MCQs are there on Indian Economy?
This page has 848 practice MCQs on Indian Economy. Each has the correct answer, and most have an explanation.
Which chapters does the Indian economy set cover?
Ten chapters: economic growth, development and sustainable development; measurement of development (HDI); monetary and fiscal policy and the Union Budget; fiscal federalism and the Finance Commission; agricultural development; industrial growth and LPG reforms; the service sector; energy, transport and communication; skill development and employment; and social justice and empowerment.
Is the Indian economy in the RAS Prelims syllabus?
Yes. RPSC lists Economic Concepts and the Indian Economy as the first part of the Economy paper. The second part covers the economy of Rajasthan, which is on its own page.
How should I revise economy for RAS Prelims?
Learn the definitions and the cause-and-effect chains first, then the schemes with their year, ministry and target group. Attempt each chapter, read every explanation and keep a one-line note for each scheme and body.