Q171. Which of the following indicators is NOT a component of the Physical Quality of Life 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.
Showing 171–180 of 848 questions
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Q172. Why did the creator of the Physical Quality of Life Index intentionally exclude Gross National Product from its calculation?
Explanation
The creator of this social index intentionally omitted national income figures because he believed that economic expansion does not always improve the actual lives of people. He argued that total production can increase while health and literacy remain poor. Therefore, he focused on non-monetary indicators to provide a clearer picture of societal progress and the actual fulfillment of essential human requirements.
Q173. Consider the following statements regarding the Physical Quality of Life Index:
I. It was developed by Morris D. Morris in the 1970s.
II. It is calculated by taking an unweighted average of its three components.
III. It utilizes life expectancy at age one rather than life expectancy at birth.
IV. The index components are scaled from 1 to 100, where 100 represents the best outcome.
V. It has completely replaced the Human Development Index in modern economic assessments.
Which of the above combinations of statements is incorrect?
I. It was developed by Morris D. Morris in the 1970s.
II. It is calculated by taking an unweighted average of its three components.
III. It utilizes life expectancy at age one rather than life expectancy at birth.
IV. The index components are scaled from 1 to 100, where 100 represents the best outcome.
V. It has completely replaced the Human Development Index in modern economic assessments.
Which of the above combinations of statements is incorrect?
Explanation
This social index, developed in the 1970s, uses an unweighted average of its three scaled components. It is unique for utilizing life expectancy at age one. While it was an important step in development thinking, it has not replaced modern metrics like the Human Development Index. Instead, it serves as a historical predecessor that paved the way for more comprehensive multidimensional assessments.
Q174. Match the items in List I with those in List II:
| Scholar/Institution | Associated Development Index |
|---|---|
| A. Morris D. Morris | i. Human Development Index |
| B. Mahbub ul Haq | ii. Global Hunger Index |
| C. OPHI and UNDP | iii. Physical Quality of Life Index |
| D. Concern Worldwide and Welthungerhilfe | iv. Multidimensional Poverty Index Options: |
Explanation
Different scholars and institutions are responsible for various development metrics. Morris D. Morris pioneered the physical quality of life index, while Mahbub ul Haq created the human development index. Collaborative efforts between Oxford and the UNDP led to the multidimensional poverty index. Finally, the global hunger index is published annually through a partnership of NGOs dedicated to monitoring nutritional well-being.
Q175. The Ease of Doing Business Index, which measured regulations directly affecting businesses, was published by which international organization before its discontinuation?
Explanation
This influential index was published for nearly two decades to rank countries based on the regulatory environment for private firms. It aimed to show how easily businesses could operate and grow under national laws. However, the report was eventually discontinued after internal reviews found significant issues with data integrity. It remains a notable example of how international organizations track and promote economic reforms.
Q176. The Ease of Doing Business Index aggregated scores across how many primary parameters or topics regulating the life cycle of a business?
Explanation
To evaluate the business environment, the index analyzed ten specific areas that cover the life cycle of a company. These parameters included processes like starting a firm, obtaining electricity, and paying taxes. By aggregating data across these diverse topics, the report provided a single score that allowed for the comparison of regulatory efficiency and business friendliness across different global economies.
Q177. Which of the following was NOT one of the parameters measured in the Ease of Doing Business Index?
Explanation
The parameters used in this business-focused index were designed to measure the ease of administrative and legal processes for companies. While it covered things like enforcing contracts and dealing with construction permits, it did not include measures of environmental sustainability or compliance. The focus was strictly on the regulatory burden and the efficiency of government services related to the commercial life of a firm.
Q178. Given below are two statements, one is labelled as Assertion (A) and the other is labelled as
Reason (R).
Assertion (A): The publication of the Ease of Doing Business report was officially discontinued in 2021.
Reason (R): Internal audits revealed data irregularities and ethical concerns regarding the manipulation of data for specific countries in previous reports.
Reason (R).
Assertion (A): The publication of the Ease of Doing Business report was officially discontinued in 2021.
Reason (R): Internal audits revealed data irregularities and ethical concerns regarding the manipulation of data for specific countries in previous reports.
Explanation
The decision to stop publishing this major business report in 2021 was driven by serious internal investigations. These audits uncovered that data had been manipulated in previous years to change the rankings of certain countries. This ethical crisis undermined the credibility of the index, leading the institution to discontinue it and begin developing a more transparent and reliable replacement framework.
Q179. Read the following statements carefully:
Statement I: India’s ranking in the Ease of Doing Business index deteriorated significantly between 2014 and 2019.
Statement II: Reforms such as the introduction of the Insolvency and Bankruptcy Code played a crucial role in altering India’s business environment metrics.
Which of the following is correct?
Statement I: India’s ranking in the Ease of Doing Business index deteriorated significantly between 2014 and 2019.
Statement II: Reforms such as the introduction of the Insolvency and Bankruptcy Code played a crucial role in altering India’s business environment metrics.
Which of the following is correct?
Explanation
India saw a dramatic improvement in its business environment rankings during the late twenty-teens. This rapid rise was fueled by significant legal and administrative reforms, such as the implementation of a new insolvency framework and a simplified tax system. These changes directly addressed several parameters measured by international organizations, making the country a much more attractive and efficient place for private investment.
Q180. The Global Innovation Index is co-published annually by Cornell University, INSEAD, and which international organization?
Explanation
The annual assessment of global innovation is a collaborative effort between major academic institutions and a specialized international agency focused on intellectual property. This partnership ensures a comprehensive look at how different countries foster and implement new ideas. By combining expertise from various fields, the report provides detailed insights into the strengths and weaknesses of national innovation ecosystems.Answer key for these questions
| Q | Correct answer |
|---|---|
| 171 | (a) Per capita income |
| 172 | (c) Growth not reflecting social outcome changes |
| 173 | (c) V only |
| 174 | (a) A-iii, B-i, C-iv, D-ii |
| 175 | (b) World Bank Group |
| 176 | (b) 10 |
| 177 | (d) Environmental sustainability compliance |
| 178 | (a) Both A and R are true and R is the correct explanation of A. |
| 179 | (d) Statement I is incorrect but Statement II is correct |
| 180 | (b) World Intellectual Property Organization |
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.