Q731. A family of six is working on a 2-hectare agricultural farm. Even if two members migrate to the city for work, the total agricultural output of the farm remains unchanged. This scenario is a classic application of which economic concept?
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 731–740 of 848 questions
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Q732. In the context of the "Future of Work," the integration of Artificial Intelligence (AI) and robotic process automation in manufacturing is most likely to result in which of the following?
Explanation
The integration of advanced technologies like artificial intelligence and automation is reshaping the manufacturing landscape. These tools primarily automate routine, repetitive tasks that were previously performed by human workers. However, this shift simultaneously increases the demand for high-level cognitive skills, complex problem-solving abilities, and technical expertise required to manage, maintain, and innovate alongside these sophisticated robotic and digital systems.
Q733. Which skill domain is most commonly cited by employers as lacking among fresh technical graduates, leading to a demand-supply mismatch in the labor market?
Explanation
While many technical graduates possess strong theoretical knowledge, employers frequently report a significant deficit in essential soft skills and practical application abilities. Effective communication, teamwork, and the capacity to solve real-world problems are highly valued in the modern workplace. This gap between academic learning and industry requirements is a major factor contributing to the prevailing employability challenges among Indian graduates.
Q734. Consider the following statements regarding the institutional framework of the National Skill Development Mission (NSDM):
I. At the apex level, it has a Governing Council chaired by the Prime Minister.
II. It operates independently without any coordination with the State Skill Development Missions.
III. The implementation is driven by an Executive Committee chaired by the Minister of Skill Development and Entrepreneurship.
Which of the above statement(s) is/are incorrect?
I. At the apex level, it has a Governing Council chaired by the Prime Minister.
II. It operates independently without any coordination with the State Skill Development Missions.
III. The implementation is driven by an Executive Committee chaired by the Minister of Skill Development and Entrepreneurship.
Which of the above statement(s) is/are incorrect?
Explanation
The National Skill Development Mission features a structured three-tier framework for implementation. While the Governing Council is led by the Prime Minister, it maintains deep coordination with various State Skill Development Missions to ensure regional alignment. Furthermore, the day-to-day operations and executive functions are typically overseen by an Executive Committee chaired by the Secretary of the Ministry, rather than the Minister.
Q735. Match the iterations of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) in List I with their defining features in List II:
| PMKVY Iteration | Defining Features |
|---|---|
| A. PMKVY 1.0 (2015) | i. Introduced a decentralized model empowering District Skill Committees |
| B. PMKVY 2.0 (2016-2020) | ii. Emphasizes on-the-job training, Industry 4.0 courses, and skill hubs in schools |
| C. PMKVY 3.0 (2020-2021) | iii. The pilot launch focusing on rapid mass training and reward-based certification |
| D. PMKVY 4.0 (2023 onwards) | iv. Expanded scale with increased focus on placement and standardized curriculum across states |
Explanation
The Pradhan Mantri Kaushal Vikas Yojana has evolved through several iterations to refine its impact. The initial launch focused on mass training and rewards. The second version expanded scale and standardized curricula. The third iteration introduced a decentralized model empowering local committees to address regional needs. Currently, the fourth version emphasizes modern Industry 4.0 courses, on-the-job training, and integrated skill hubs.
Q736. Which of the following is NOT one of the primary pillars or sub-schemes of the overarching Skill India Mission?
Explanation
The Skill India Mission encompasses several strategic initiatives designed to enhance the vocational capabilities of the workforce. These include the flagship training scheme for youth, the apprenticeship promotion program, and efforts to modernize industrial training institutes. However, the direct income support scheme for farmers is focused on providing financial assistance to agricultural households and does not fall under the skill development mandate.
Q737. Which of the following features is the odd one out regarding the conventional training model of Industrial Training Institutes (ITIs) before recent reforms?
Explanation
Historically, traditional Industrial Training Institutes faced challenges such as outdated curricula, obsolete machinery, and a heavy reliance on theoretical classroom instruction. Weak linkages with local industries often resulted in a gap between training and employment. Integration with advanced technologies like artificial intelligence and robotics is a recent reform measure and was not a characteristic feature of the conventional vocational training model.
Q738. Consider the following steps in the candidate participation flow for the National Apprenticeship Promotion Scheme (NAPS):
Explanation
Candidates participating in the National Apprenticeship Promotion Scheme follow a systematic process to ensure effective skill development. The journey begins with registration on the official portal, followed by the formal generation of an apprenticeship contract. Students then receive basic theoretical training before moving into practical on-the-job training within an industry. The cycle concludes with a formal assessment to certify the candidate’s proficiency.
Q739. Given below are two statements, one labeled as
Assertion (A) and the other as Reason (R):
Assertion (A): Structural unemployment tends to be long-term in nature compared to frictional unemployment.
Reason (R): Structural unemployment arises from fundamental shifts in an economy, such as technological advancements, which make older skills obsolete. In the context of the above statements, which one of the following is correct?
Assertion (A) and the other as Reason (R):
Assertion (A): Structural unemployment tends to be long-term in nature compared to frictional unemployment.
Reason (R): Structural unemployment arises from fundamental shifts in an economy, such as technological advancements, which make older skills obsolete. In the context of the above statements, which one of the following is correct?
Explanation
Structural unemployment is distinct from frictional unemployment because it results from fundamental economic shifts that make certain skills irrelevant. While frictional unemployment is temporary and involves workers switching jobs, structural issues require extensive retraining and time to resolve. Technological advancements often automate older processes, creating long-term unemployment for individuals whose traditional expertise no longer aligns with the demands of the modern labor market.
Q740. Consider the following statements regarding the PM Rozgar Protsahan Yojana (PMRPY):
I. It is implemented by the Employees’ Provident Fund Organisation (EPFO).
II. It applies only to workers earning wages up to Rs 15,000 per month.
III. It aims to incentivize the formalization of the workforce.
IV. The government pays the full 12% of the employer’s contribution to the EPF and EPS for new employees.
Which of the above statement(s) is/are correct?
I. It is implemented by the Employees’ Provident Fund Organisation (EPFO).
II. It applies only to workers earning wages up to Rs 15,000 per month.
III. It aims to incentivize the formalization of the workforce.
IV. The government pays the full 12% of the employer’s contribution to the EPF and EPS for new employees.
Which of the above statement(s) is/are correct?
Explanation
The Pradhan Mantri Rozgar Protsahan Yojana is a comprehensive initiative managed by the Employees’ Provident Fund Organisation. It targets the formalization of workers earning up to fifteen thousand rupees monthly. By covering the entire twelve percent employer contribution to social security funds, the government incentivizes businesses to declare their workforce. This dual strategy boosts formal job creation while extending essential welfare.Answer key for these questions
| Q | Correct answer |
|---|---|
| 731 | (c) Disguised unemployment |
| 732 | (d) Substituting routine tasks while increasing demand for complex problem-solving |
| 733 | (c) Soft skills, communication, and the practical application of theoretical knowledge |
| 734 | (d) II and III only |
| 735 | (a) A-iii, B-iv, C-i, D-ii |
| 736 | (c) Pradhan Mantri Kisan Samman Nidhi (PM- KISAN) |
| 737 | (a) Integration with modern AI and robotics industry clusters |
| 738 | (b) Registration Contract Generation Basic Training On-the-Job Training Assessment |
| 739 | (a) Both A and R are true and R is the correct explanation of A. |
| 740 | (d) I, II, III, and IV |
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.