Q601. Which pair correctly matches the future opportunity in the service sector with its corresponding domain?
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 601–610 of 848 questions
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Q602. Read the following statements regarding the General Agreement on Trade in Services (GATS):
Statement I: GATS is a treaty of the World Trade Organization (WTO) that extends the multilateral trading system to the service sector.
Statement II: GATS forces all member countries to privatize their public healthcare and education sectors.
Select the correct response:
Statement I: GATS is a treaty of the World Trade Organization (WTO) that extends the multilateral trading system to the service sector.
Statement II: GATS forces all member countries to privatize their public healthcare and education sectors.
Select the correct response:
Explanation
The General Agreement on Trade in Services is a multilateral treaty under the World Trade Organization designed to liberalize global trade in services. While it establishes a framework for reducing trade barriers, it does not force member countries to privatize essential public sectors like healthcare and education. Governments retain the policy space to provide public services according to their national priorities.
Q603. The term ‘platform economy’ is best described as an economic system based on:
Explanation
The platform economy represents a modern economic system where digital networks play the central role in coordinating transactions. These platforms act as intermediaries, connecting buyers, sellers, and service providers in a highly efficient manner. This model differs from traditional linear businesses by leveraging technology to reduce transaction costs and create large-scale networks, as seen in sectors like transport, retail, and finance.
Q604. Read the following statements regarding the role of AI in future services:
I. Generative AI is expected to significantly augment customer support services.
II. AI implementation will completely resolve the issue of low-quality jobs by transforming all informal jobs into formal tech jobs.
III. AI models require massive cloud computing infrastructure, thereby boosting the data center industry.
Which of the above statements is/are correct?
I. Generative AI is expected to significantly augment customer support services.
II. AI implementation will completely resolve the issue of low-quality jobs by transforming all informal jobs into formal tech jobs.
III. AI models require massive cloud computing infrastructure, thereby boosting the data center industry.
Which of the above statements is/are correct?
Explanation
Artificial Intelligence is set to augment several service functions, particularly in customer support through generative models. These advanced AI models require massive cloud computing resources, which directly boosts the growth of the data center industry. However, it is unrealistic to expect that AI will completely resolve all employment quality issues or automatically formalize all informal jobs within the tech sector soon.
Q605. Match the transport sub-sectors in List I with the recent initiatives in List II and select the correct answer:
| Transport Sub-sector | Recent Initiative/Concept |
|---|---|
| A. Railways | i. FASTag for electronic toll collection |
| B. Aviation | ii. Jal Marg Vikas Project |
| C. Roadways | iii. Krishi UDAN |
| D. Inland Waterways | iv. Dedicated Freight Corridors |
Explanation
Dedicated Freight Corridors belong to railways, Krishi UDAN to aviation, FASTag to roadways and the Jal Marg Vikas Project to inland waterways. This gives A-iv, B-iii, C-i, D-ii.
Q606. If a foreign tourist visits Rajasthan to witness the Pushkar Fair and purchases local handicrafts, how is this transaction classified under GATS modes of supply?
Explanation
Under the GATS framework, trade in services is categorized by how the service is delivered. When a foreign tourist travels to another country, such as India, to experience a festival and purchase local goods, it is classified as consumption abroad. This is known as Mode 2 of service supply, where the consumer moves to the location of the service provider to receive it.
Q607. Identify the correct statement regarding India’s telecom sector’s contribution to digital services:
Explanation
India’s telecommunications network serves as the backbone for delivering essential public goods through digital interfaces. By integrating with digital identity and payment systems, the sector enables millions of citizens to access government services and financial products remotely. While the digital divide still exists, the use of mobile-based platforms has significantly enhanced social inclusion and provided a foundation for the growing digital economy.
Q608. In the context of the service sector, what does ‘BPO’ stand for?
Explanation
BPO stands for Business Process Outsourcing, which involves contracting specific business tasks to a third-party service provider. This sector is a major part of India’s service-led growth, covering functions like customer support, technical assistance, and back-office operations. By specializing in these tasks, BPO firms help global companies reduce costs and improve efficiency while providing large-scale employment opportunities for the domestic workforce.
Q609. Read the following statements regarding the tourism sector’s economic impact:
Statement I: Tourism provides significant indirect employment in sectors like transport, handicrafts, and agriculture.
Statement II: The tourism sector requires extremely high capital investment per job created compared to heavy manufacturing.
Select the correct response:
Statement I: Tourism provides significant indirect employment in sectors like transport, handicrafts, and agriculture.
Statement II: The tourism sector requires extremely high capital investment per job created compared to heavy manufacturing.
Select the correct response:
Explanation
Tourism is a vital economic driver that provides significant indirect employment across various sectors, including handicrafts, transport, and agriculture. Unlike heavy manufacturing, which requires massive capital investment for every job created, tourism is a labor-intensive sector that can generate high employment with relatively lower capital. This makes it an ideal industry for supporting inclusive growth and providing diverse livelihoods.
Q610. Which financial entity acts as the primary regulator for the capital markets in India?
Explanation
The Securities and Exchange Board of India serves as the primary regulatory authority for the country’s capital markets. Its main responsibilities include protecting the interests of investors, promoting the development of the securities market, and regulating the activities of various market intermediaries. By ensuring transparency and fair play, it helps maintain investor confidence and facilitates the efficient flow of capital.Answer key for these questions
| Q | Correct answer |
|---|---|
| 601 | (c) Green services (Carbon auditing) - Environmental Consulting |
| 602 | (c) Statement I is correct, but Statement II is incorrect. |
| 603 | (d) Digital networks that coordinate transactions between buyers, sellers, and service providers |
| 604 | (b) I and III only |
| 605 | (a) A-iv, B-iii, C-i, D-ii |
| 606 | (b) Consumption abroad (Mode 2) |
| 607 | (b) Use of the telecom network to deliver public goods via digital identity and payment interfaces |
| 608 | (c) Business Process Outsourcing |
| 609 | (c) Statement I is correct, but Statement II is incorrect. |
| 610 | (a) Securities and Exchange Board of India (SEBI) |
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.