Q611. The rapid growth of higher educational institutions without stringent quality controls often leads to which of the following effects?
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 611–620 of 848 questions
Browse Indian Economy chapters
Q612. Read the following features of India’s services exports:
I. Software services constitute the largest component.
II. Export of travel and tourism services is highly vulnerable to global pandemics.
III. India holds a higher share in global services exports compared to its share in global merchandise exports.
IV. Professional and management consulting services are rapidly growing components.
V. India imports more software services than it exports.
Which of the above statements are correct?
I. Software services constitute the largest component.
II. Export of travel and tourism services is highly vulnerable to global pandemics.
III. India holds a higher share in global services exports compared to its share in global merchandise exports.
IV. Professional and management consulting services are rapidly growing components.
V. India imports more software services than it exports.
Which of the above statements are correct?
Explanation
India’s services exports are characterized by the dominance of software services and the growth of professional consulting. These exports are vulnerable to global shocks, as seen with travel during the pandemic. Notably, India holds a larger share in global services exports compared to its merchandise share.
Q613. Which of the following represents the best strategy to improve the quality of employment in the service sector?
Explanation
Improving the quality of employment in the service sector requires modernizing the approach to labor protection. A key strategy involves formalizing gig and informal work by providing portable social security benefits and focusing on continuous skill up-gradation. This ensures that workers in flexible roles have financial safety nets and the necessary training to transition into more stable, higher-value positions over time.
Q614. The concept of ‘Green Services’ in the context of future opportunities primarily involves:
Explanation
Green services represent a growing opportunity in the transition toward a sustainable economy. This field primarily involves services that support environmental sustainability, such as energy auditing, ESG consulting, and green finance. These professional services help organizations measure their environmental impact, comply with new green regulations, and secure funding for sustainable projects. This shift reflects a global commitment to addressing climate change.
Q615. Which of the following is the odd one out as it pertains to traditional non-platform services rather than digital platform economy models?
Explanation
Digital platform economy models, such as food delivery aggregators and ride-sharing services, coordinate transactions through internet networks. In contrast, India Post is a traditional non-platform service provider that operates a physical network for mail and financial services. While it has modernized its operations, its core business model remains a traditional service delivery system rather than a digital platform that aggregates providers.
Q616. Which sub-sector within the broader service sector witnessed the highest contraction during the initial lockdown phase of the COVID-19 pandemic in India?
Explanation
During the initial phase of the COVID-19 pandemic, the sub-sector comprising trade, hotels, transport, and communication experienced the most severe contraction. These activities rely heavily on physical proximity and mobility, which were strictly restricted during lockdowns. While information technology services remained resilient due to remote work, contact-intensive services suffered a sharp decline in revenue and activity due to necessary public health measures.
Q617. A foreign software company opening a subsidiary in Bangalore to provide IT support to its global clients is an example of which GATS mode of supply?
Explanation
Under the GATS framework, when a foreign company establishes a subsidiary or a physical branch in another country to provide services locally, it is classified as commercial presence. This is known as Mode 3 of service supply. By opening an office in Bangalore, the foreign software firm creates a permanent physical presence in India, allowing it to deliver IT support directly.
Q618. Identify the correct pair representing the financial service and its primary function:
Explanation
Different financial services serve distinct roles within the economy. Insurance is fundamentally about risk pooling and the mitigation of potential financial losses for individuals and businesses. This function provides a safety net against unforeseen events. Other entities, like commercial banks, handle daily transactions and lending, while mutual funds manage investments. Each contributing to a stable and diverse financial system for consumers.
Q619. The term ‘FDI in Retail’ often differentiates between single-brand and multi-brand retail. Which of the following best defines single-brand retail?
Explanation
Single-brand retail refers to a retail format where a store exclusively sells products branded under one specific label. This model allows international brands to maintain a consistent global image and control their entire customer experience. In contrast, multi-brand retail outlets carry products from multiple different manufacturers. Regulations for foreign investment often differ between these two models to balance brand expansion with local interests.
Q620. Identify the correct statement about the media and entertainment industry’s digital shift:
Explanation
The digital shift in the entertainment industry has democratized content creation, allowing independent creators and niche content to reach global audiences through online platforms. While traditional cinemas face competition, they have not ceased operations. The transition to digital has transformed how content is consumed and monetized, creating new opportunities for diverse voices to be heard on a worldwide scale for audiences.Answer key for these questions
| Q | Correct answer |
|---|---|
| 611 | (b) A surplus of graduates lacking industry- relevant skills |
| 612 | (b) I, II, III and IV |
| 613 | (c) Formalizing gig work through portable social security and skill up-gradation |
| 614 | (d) Services supporting sustainability, such as energy auditing, ESG consulting, and green finance |
| 615 | (c) India Post |
| 616 | (b) Trade, Hotels, Transport, and Communication |
| 617 | (c) Mode 3 |
| 618 | (c) Insurance - Risk pooling and mitigation of financial losses |
| 619 | (a) A retail outlet that exclusively sells goods branded under one specific label globally |
| 620 | (d) Transition to digital has democratized content creation, allowing niche content to find global audiences |
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.