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 721–730 of 848 questions
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RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q721. Consider the following statements regarding the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): I. It guarantees 100 days of wage employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work. II. At least one-third of the beneficiaries under the scheme must be women. III. If work is not provided within 15 days of demand, the applicant is entitled to an unemployment allowance. IV. Social audits of MGNREGA works are mandatorily conducted by the State Government officials only. Which of the above statement(s) is/are correct?
Explanation
The Mahatma Gandhi National Rural Employment Guarantee Act provides a legal guarantee for one hundred days of wage employment to rural households. It emphasizes gender equality by reserving one-third of jobs for women. Furthermore, the provision of an unemployment allowance ensures government accountability if work is not offered within fifteen days. Social audits are conducted by the Gram Sabha.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q722. Which of the following statements correctly describes the primary objective of the Pradhan Mantri Rozgar Protsahan Yojana (PMRPY)?
Explanation
The Pradhan Mantri Rozgar Protsahan Yojana was designed to encourage employers to hire more workers in the formal sector. By paying the full employer contribution towards the Employee Pension Scheme and Employee Provident Fund for new employees, the government significantly reduces recruitment costs. This initiative facilitates the formalization of the workforce while ensuring that more workers receive social security benefits.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q723. Which of the following is the most direct economic effect of the rapidly expanding start-up ecosystem in India’s metropolitan cities?
Explanation
India’s thriving start-up ecosystem has fundamentally transformed urban employment patterns by facilitating the rise of the gig economy. Digital platforms now offer numerous flexible, task-based roles across various services like delivery and consulting. While this provides immediate income opportunities, it also creates a shift toward non-traditional employment structures, moving away from the conventional long-term job security models previously found.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q724. Consider the following landmark government initiatives targeting employment and livelihood: I. Mahatma Gandhi National Rural Employment Guarantee Act II. Pradhan Mantri Kaushal Vikas Yojana III. PM SVANidhi IV. Startup India Action Plan Which of the following represents the correct chronological order of their launch?
Explanation
Landmark employment initiatives followed a specific timeline in India. The rural employment guarantee act was passed in two thousand five, followed by the skill development scheme in two thousand fifteen. The startup action plan was subsequently launched in early two thousand sixteen. Finally, the specialized scheme for street vendors was introduced in two thousand twenty to provide relief during the pandemic.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q725. India is currently experiencing a "demographic dividend." Which of the following is an exception to the conditions required for a country to reap the benefits of this demographic dividend?
Explanation
To capitalize on a demographic dividend, a country requires a high proportion of working-age individuals relative to dependents. A sudden surge in fertility rates would increase the child dependency ratio, diverting resources from productive investments into basic childcare. Successful realization of the dividend instead depends on improved healthcare, quality education, skill development, and the creation of ample employment opportunities.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q726. Consider the following statements regarding the recent Labour Reforms in India (the Four Labour Codes): I. The Code on Wages universally applies minimum wages across all sectors. II. The Industrial Relations Code increases the threshold for requiring government permission for retrenchment from 100 to 300 workers. III. The Occupational Safety, Health and Working Conditions Code mandates welfare facilities for inter-state migrant workers. IV. The Code on Social Security introduces a framework to provide social security to gig workers and platform workers. V. The Four Labour Codes were created by adding 29 entirely new laws to the Constitution without replacing any existing central labour acts. Which of the above statement(s) is/are incorrect?
Explanation
The recent labor reforms in India involved the consolidation of twenty-nine existing central labor laws into four simplified codes. These codes address wages, industrial relations, social security, and occupational safety. The claim that these codes were created without replacing any existing acts is incorrect, as the primary objective of this legislative overhaul was to modernize and streamline the historical legal framework.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q727. Which of the following characteristics is the odd one out when describing employment in the informal sector in India?
Explanation
The informal sector in India is primarily characterized by the absence of formal legal protections and social security benefits for workers. Employment in this segment typically lacks written contracts, paid leave, and job security, making individuals highly vulnerable to economic fluctuations. Mandatory enrollment in retirement funds like the provident fund organization is a hallmark of formal employment and does not apply here.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q728. Consider the following statements: Statement I: The Female Labour Force Participation Rate (FLFPR) in India has historically been significantly lower than the male participation rate. Statement II: The burden of unpaid domestic care work is one of the primary structural constraints limiting women’s participation in the formal workforce. Which of the following is correct in respect of the above statements?
Explanation
Female labor participation in India remains lower than male participation due to various deep-seated structural and social factors. One of the most significant barriers is the disproportionate burden of unpaid domestic care work placed on women. This responsibility often prevents them from seeking or maintaining formal employment, highlighting the need for policies that support child care and flexible working arrangements.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q729. Which of the following is the most appropriate description of the SVAMITVA scheme’s role in the rural economy?
Explanation
The SVAMITVA scheme utilizes advanced drone technology to accurately map land parcels in rural inhabited areas. By providing villagers with formal property cards, the initiative establishes clear ownership records for residential assets. These legal documents allow rural residents to use their property as financial collateral, thereby facilitating access to institutional credit and reducing land-related disputes within the village community.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q730. In the context of the PM SVANidhi scheme, identify the correct pair of loan tranches available to street vendors upon timely repayment:
Explanation
The PM SVANidhi scheme provides affordable working capital loans to street vendors to help them resume their livelihoods. Initially, vendors can access a first tranche of ten thousand rupees. Upon timely repayment of this initial loan, they become eligible for an enhanced second tranche of twenty thousand rupees. This graduated credit structure encourages financial discipline and helps vendors build credit history.
Answer key for these questions
Q
Correct answer
721
(b) I, II, and III only
722
(a) Incentivizing formal employment by paying the employer’s contribution to the Pension Scheme
723
(d) Growth of the gig economy and platform- based employment
724
(b) I, II, IV, III
725
(c) A sudden increase in total fertility and child dependency
726
(c) V only
727
(a) Mandatory enrollment in the Employees’ Provident Fund Organization (EPFO)
728
(a) Both Statement I and Statement II are correct.
729
(b) Mapping rural lands with drones to provide property records for securing credit
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.
