Q141. Which of the following is NOT an indicator used to assess the standard of living dimension in the global Multidimensional Poverty Index?
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.
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Q142. Which of the following statements incorrectly describes the weighting system of the global Multidimensional Poverty Index?
Explanation
The poverty index is structured with three equally weighted dimensions. Health and education each contain two indicators, which are weighted at one-sixth each. The standard of living dimension consists of six indicators. Because the total weight for this dimension is one-third, each of the six individual indicators is assigned a weight of one-eighteenth, ensuring they collectively contribute equally to the final score.
Q143. Consider the following statements about the deprivation cutoffs in the global Multidimensional Poverty Index:
I. A household is deprived in nutrition if any adult or child is found to be undernourished.
II. A household is deprived in child mortality if any child has died in the family in the five years preceding the survey.
III. A household is deprived in sanitation if the sanitation facility is shared with other households.
Which of the above statement(s) is/are correct?
I. A household is deprived in nutrition if any adult or child is found to be undernourished.
II. A household is deprived in child mortality if any child has died in the family in the five years preceding the survey.
III. A household is deprived in sanitation if the sanitation facility is shared with other households.
Which of the above statement(s) is/are correct?
Explanation
Households are identified as deprived based on specific criteria across various indicators. A lack of adequate nutrition for any member or the tragic loss of a child indicates a health deprivation. Additionally, living standards are considered poor if sanitation facilities are inadequate or shared with other families. These detailed cutoffs allow for a precise identification of the multifaceted hardships faced by individuals.
Q144. Match the items in List I with those in List II:
| MPI Dimension | Total Weight in the Index |
|---|---|
| A. Health | i. 1/3 |
| B. Education | ii. 1/3 |
| C. Standard of Living | iii. 1/3 |
| D. Individual Indicator in Standard of Living | iv. 1/18 Options: |
Explanation
The multidimensional poverty index is divided into three dimensions, each carrying one-third of the total weight. Health and education dimensions each have two indicators, while the standard of living dimension contains six. Consequently, each individual indicator within the standard of living dimension, such as electricity or housing, is assigned a weight of one-eighteenth to maintain the overall dimensional balance.
Q145. Under the National Multidimensional Poverty Index framework for India, improvements in which specific areas have been the primary drivers for lifting millions of people out of poverty in recent years?
Explanation
Recent data from India shows that millions have escaped multidimensional poverty due to significant improvements in several key areas. Enhanced nutritional programs, better access to education, the expansion of sanitation facilities, and the widespread provision of clean cooking fuel have been the primary drivers of this progress. These targeted interventions have directly addressed the core deprivations that previously kept many households in poverty.
Q146. The primary data source utilized by NITI Aayog to compute the baseline National Multidimensional Poverty Index is the:
Explanation
To calculate the national poverty index, the Indian government relies on a comprehensive survey that provides detailed data on health, education, and living standards. This survey is the primary source because it captures the necessary information at the household level across the entire country. It allows for a precise assessment of multiple deprivations and helps track progress in reducing poverty over time.
Q147. Read the following statements carefully:
Statement I: India’s National Multidimensional Poverty Index developed by NITI Aayog includes the exact same 10 indicators as the global MPI without any additions.
Statement II: NITI Aayog added "Maternal Health" and "Bank Account" to the National MPI framework to align it with national priorities.
Which of the following is correct?
Statement I: India’s National Multidimensional Poverty Index developed by NITI Aayog includes the exact same 10 indicators as the global MPI without any additions.
Statement II: NITI Aayog added "Maternal Health" and "Bank Account" to the National MPI framework to align it with national priorities.
Which of the following is correct?
Explanation
India’s national framework for measuring multidimensional poverty is based on the global model but has been customized to reflect local priorities. It includes the original ten indicators but adds two more: maternal health and possession of a bank account. This expanded list provides a more relevant assessment of poverty in the Indian context, ensuring that national policies are effectively targeted toward specific needs.
Q148. Consider the following statements regarding India’s progress in multidimensional poverty:
I. Rural areas have recorded a faster decline in poverty headcount ratio than urban areas.
II. Uttar Pradesh, Bihar, and Madhya Pradesh registered the largest absolute decline in the number of multidimensionally poor.
III. The incidence of poverty across India has dropped to a single-digit percentage according to recent national reports.
IV. Rajasthan was among the top ten states that recorded a significant decline in the proportion of multidimensionally poor.
Which of the above statements are correct?
I. Rural areas have recorded a faster decline in poverty headcount ratio than urban areas.
II. Uttar Pradesh, Bihar, and Madhya Pradesh registered the largest absolute decline in the number of multidimensionally poor.
III. The incidence of poverty across India has dropped to a single-digit percentage according to recent national reports.
IV. Rajasthan was among the top ten states that recorded a significant decline in the proportion of multidimensionally poor.
Which of the above statements are correct?
Explanation
India has seen a faster decline in poverty within rural regions compared to urban centers. States like Bihar, Uttar Pradesh, and Madhya Pradesh have witnessed the largest absolute reduction in the number of people living in poverty. While significant progress has been made, the national headcount ratio remains in double digits according to the most recent comprehensive baseline reports on multidimensional poverty.
Q149. Arrange the following states in descending order of their multidimensional poverty headcount ratio as per the initial baseline National MPI report:
I. Uttar Pradesh
II. Bihar
III. Kerala
IV. Jharkhand
Choose the correct order from the options below:
I. Uttar Pradesh
II. Bihar
III. Kerala
IV. Jharkhand
Choose the correct order from the options below:
Explanation
Regional reports indicate that Bihar has the highest percentage of population facing multiple deprivations, followed by Jharkhand and Uttar Pradesh. In contrast, Kerala maintains the lowest headcount ratio due to superior social indicators. Ranking states by their poverty levels helps policymakers identify which regions require the most urgent interventions and resources to improve living standards and reduce disparities across the nation.
Q150. The Global Hunger Index measures hunger on a 100-point scale where a score of zero represents:
Explanation
This metric utilizes a scale where the lowest possible numerical value represents the ideal scenario of zero nutritional deprivation. In this context, a score of zero implies that the population has adequate food intake and that child health indicators are optimal. Such a score signifies that no part of the population suffers from undernourishment, stunting, wasting, or premature child mortality in a country.Answer key for these questions
| Q | Correct answer |
|---|---|
| 141 | (a) Internet access |
| 142 | (d) The six standard of living indicators are each weighted at 1/12 |
| 143 | (d) I, II and III |
| 144 | (a) A-i, B-ii, C-iii, D-iv |
| 145 | (d) Nutrition, schooling, sanitation, and fuel access |
| 146 | (a) National Family Health Survey |
| 147 | (d) Statement I is incorrect but Statement II is correct |
| 148 | (b) I, II and IV only |
| 149 | (a) II, IV, I, III |
| 150 | (c) No hunger |
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.