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.
Q461. Match the Corporate Sponsors listed in List I with their Associated Contract Farming Crops in India in List II and select the correct answer using the options given below:
Corporate Sponsors
Crops
A. PepsiCo
i. Poultry
B. SABMiller
ii. Extra Long Staple Cotton
C. Appachi Cotton
iii. Barley
D. Suguna Foods
iv. Potato
Explanation
Several corporate entities in India use contract farming for their supply chains. PepsiCo is well-known for its work with potato farmers. SABMiller has engaged in barley procurement for its brewing operations. Appachi Cotton has focused on extra-long-staple varieties, while Suguna Foods is a major player in the integrated poultry sector, working closely with rural farmers.
Q462. What is the primary reason that small and marginal farmers are often excluded from contract farming arrangements by corporate sponsors?
Explanation
Small and marginal farmers often face exclusion from contract farming because managing a large number of individual smallholders involves high transaction costs for corporate sponsors. Companies often find it more efficient to deal with a few large farmers or organized groups rather than numerous individuals, making it difficult for the smallest cultivators to access these commercial opportunities.
Q463. Consider the following potential advantages of contract farming for the sponsor (buying company): I. Assured supply of raw materials at an agreed time. II. Guaranteed consistency and quality of agricultural produce. III. Protection from sudden fluctuations in open market prices. IV. Relief from the physical labor and direct supervision of farming operations. V. Elimination of the need to maintain their own large agricultural estates. Which of the above statement(s) is/are correct?
Explanation
Sponsors benefit from contract farming through an assured supply of raw materials and consistent quality of produce. It protects them from open market price volatility and removes the need to directly manage large agricultural estates. By shifting the physical labor and daily supervision to the farmers, companies can focus on processing and marketing while maintaining a reliable supply chain.
Q464. Under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, eligible farmer families are provided an income support of how much amount per year?
Explanation
The Pradhan Mantri Kisan Samman Nidhi scheme provides direct financial assistance to eligible farmer families across India. Under this central sector scheme, beneficiaries receive an annual income support of six thousand rupees. This amount is transferred directly into their bank accounts in three equal installments of two thousand rupees each, helping them meet various agricultural and domestic expenses.
Q465. Read the following steps involved in the implementation and transfer of funds under the PM-KISAN scheme and select the correct logical order from the options given below: I. Aadhaar authentication of the beneficiary data. II. Identification and registration of eligible farmers by State/UT governments. III. Direct Benefit Transfer (DBT) of installments into the bank accounts by the Central Government. IV. Uploading of verified beneficiary data on the PM-KISAN portal.
Explanation
Implementation of the PM-KISAN scheme follows a systematic process starting with the identification and registration of eligible farmers by state governments. The verified data is then uploaded onto the central PM-KISAN portal. After this, Aadhaar authentication is performed to ensure the accuracy of the beneficiary records. Finally, the central government transfers the funds directly into the bank accounts.
Q466. Which of the following statements is correct regarding the scope of beneficiaries under the PM-KISAN scheme?
Explanation
The PM-KISAN scheme is designed to cover all landholding farmer families in the country, regardless of the size of their holdings or the types of crops they cultivate. While the scheme is broad in scope, it does include specific exclusion criteria for certain categories of individuals, such as higher-income professionals and holders of constitutional posts, to ensure targeting.
Q467. Which of the following categories of individuals is not excluded from receiving benefits under the PM-KISAN scheme?
Explanation
PM-KISAN has several exclusion categories, including institutional landholders, individuals holding constitutional posts, and those who pay income tax. However, marginal farmers owning less than one hectare of cultivable land are a primary target group for the scheme. They are not excluded and are among the most significant beneficiaries of this direct income support program.
Q468. The following question consists of two statements, one labeled as Assertion (A) and the other as Reason (R). Examine these two statements carefully and select the correct answer from the options given below: Assertion (A): PM-KISAN is essentially a price support mechanism similar to the Minimum Support Price (MSP). Reason (R): PM-KISAN provides direct, untied income support to farmers regardless of the crops they grow or the market prices.
Explanation
PM-KISAN is not a price support mechanism like the Minimum Support Price; rather, it is a direct income support scheme. Unlike MSP, which is tied to the sale of specific crops, PM- KISAN provides a fixed amount of untied cash to farmers. This support is given regardless of the market prices or the specific crops grown, providing a stable financial cushion.
Q469. What is the maximum premium payable by farmers for Kharif, Rabi, and Annual Commercial/Horticultural crops respectively under the Pradhan Mantri Fasal Bima Yojana (PMFBY)?
Explanation
The Pradhan Mantri Fasal Bima Yojana offers crop insurance with low premium rates for farmers. For all Kharif crops, the maximum premium payable by the farmer is two percent of the sum insured. For Rabi crops, the rate is one and a half percent. For annual commercial and horticultural crops, the premium is capped at five percent.
Q470. The Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched by merging and replacing which two pre-existing crop insurance schemes?
Explanation
The Pradhan Mantri Fasal Bima Yojana was launched in 2016 to provide a more comprehensive and affordable insurance solution for farmers. It was created by merging and replacing two older schemes: the National Agricultural Insurance Scheme and the Modified National Agricultural Insurance Scheme. This consolidation aimed to remove inconsistencies and improve the overall efficiency of crop insurance in India.
Answer key for these questions
Q
Correct answer
461
(a) A-iv, B-iii, C-ii, D-i
462
(a) High transaction costs associated with managing numerous small individual landholders.
463
(d) I, II, III, IV and V
464
(b) 6,000 in three equal installments
465
(a) II, IV, I, III
466
(c) All landholding farmers, subject to specific exclusion criteria.
467
(d) Marginal farmers owning less than 1 hectare of cultivable land.
468
(d) A is false but R is true.
469
(b) 2%, 1.5%, and 5%
470
(d) National Agricultural Insurance Scheme (NAIS) and Modified NAIS (MNAIS)
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.
