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 741–750 of 848 questions
Browse Indian Economy chapters
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q741. Match the start-up ecosystem terms in List I with their correct descriptions in List II:
Terms
Descriptions
A. Incubator
i. A start-up company valued at over $1 billion
B. Angel Investor
ii. Building a business using only personal savings and initial revenue
C. Unicorn
iii. An organization that helps early-stage start-ups grow by providing workspace and mentorship
D. Bootstrapping
iv. A high-net-worth individual who provides financial backing for small start-ups
Explanation
The start-up ecosystem utilizes several specialized terms to describe growth and funding stages. Incubators provide essential mentorship and workspace for early ventures. Angel investors are individuals who offer critical initial capital. A unicorn refers to a private company reaching a valuation of one billion dollars. Finally, bootstrapping involves entrepreneurs growing their business using only personal savings and revenue without external funding.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q742. Under the Atmanirbhar Bharat package, the definition of Micro, Small and Medium Enterprises (MSMEs) was revised. According to the revised criteria, what is the investment and turnover limit for an enterprise to be classified as a "Small" enterprise?
Explanation
Under the Atmanirbhar Bharat initiative, the government introduced a revised definition for micro, small, and medium enterprises based on combined criteria of investment and turnover. To be classified as a small enterprise, a unit must have an investment in plant and machinery or equipment not exceeding ten crore rupees and an annual turnover not exceeding fifty crore rupees. This reclassification supports business growth.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q743. Consider the following factors: I. Improving access to quality healthcare II. Modernizing the education system III. Encouraging early marriages IV. Promoting skill development programs V. Implementing business-friendly labor reforms Which of the above combinations represents the correct factors required for India to maximize its demographic dividend?
Explanation
Maximizing the benefits of a demographic dividend requires a healthy and well-educated workforce. Key factors include providing quality healthcare, modernizing the education system, and implementing robust skill development programs. Additionally, business-friendly labor reforms are essential to create productive jobs for the growing population. Encouraging early marriages is counterproductive as it often leads to higher dependency ratios and limits the economic potential of women.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q744. Which of the following statements about the Occupational Safety, Health and Working Conditions Code, 2020 is incorrect?
Explanation
The Occupational Safety, Health and Working Conditions Code modernizes the legal framework by consolidating thirteen existing labor laws. It introduces mandatory appointment letters and provides comprehensive welfare provisions for inter-state migrant workers. Notably, it does not prohibit women from night shifts; instead, it allows them to work during the night in all establishments with their consent, provided that adequate safety measures are ensured.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Mission Shakti serves as a comprehensive umbrella initiative designed to strengthen interventions for women’s safety and empowerment. It integrates various schemes to provide a holistic support system throughout their life cycle. Other initiatives, like the amended maternity act, actually increased paid leave to twenty-six weeks. Such policies are vital for encouraging higher female labor force participation by addressing safety, healthcare, and work-life balance requirements.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q746. What is the most common cause and effect relationship associated with chronic rural unemployment and distress in India?
Explanation
Chronic rural unemployment in India is often exacerbated by a lack of diverse, non-agricultural job opportunities in villages. When agricultural productivity stagnates or becomes seasonal, rural residents face severe economic distress. This situation frequently forces individuals to migrate to urban centers in search of livelihoods, often resulting in the expansion of urban slums and increased pressure on city infrastructure and basic services.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q747. Consider the following statements regarding the PM SVANidhi scheme: I. It is a Central Sector Scheme funded fully by the Ministry of Housing and Urban Affairs. II. The Small Industries Development Bank of India (SIDBI) is the implementation partner for the scheme. III. It penalizes street vendors for conducting digital transactions to promote a cash economy. Which of the above statement(s) is/are correct?
Explanation
The PM SVANidhi scheme is a central sector initiative fully funded by the Ministry of Housing and Urban Affairs to support street vendors. The Small Industries Development Bank of India serves as the technical implementation partner. Rather than penalizing digital usage, the scheme actively promotes a digital economy by offering monthly cashback incentives to vendors who conduct transactions electronically, fostering greater financial inclusion.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q748. The phenomenon where rural surplus labor is drawn from agriculture to the growing urban industrial sector at constant subsistence wages is famously described by which economic model?
Explanation
The Lewis model explains how developing economies grow by shifting surplus labor from a traditional subsistence sector, like agriculture, to a modern industrial sector. This transition occurs at a constant wage rate as long as there is an unlimited supply of labor in the rural areas. This movement of workers facilitates capital accumulation and industrial expansion, driving the overall structural transformation of the economy.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q749. Which of the following is the most appropriate strategy to prepare the Indian workforce for the "Future of Work" driven by Industry 4.0?
Explanation
To prepare for Industry 4.0, the workforce needs lifelong learning and upskilling in digital technologies. Banning automation or restricting the internet would not help.
RAS PrelimsIndian Economy · Skill Development and Employment Generation
Q750. Match the types of skills in List I with their corresponding examples in List II:
Types of Skills
Examples
A. Cognitive Skills
i. Welding, carpentry, and plumbing
B. Technical Skills
ii. Communication, teamwork, and adaptability
C. Soft Skills
iii. Coding in Python and operating CNC machines
D. Vocational Skills
iv. Critical thinking, problem-solving, and analytical reasoning
Explanation
Cognitive skills are critical thinking and problem-solving, technical skills include coding and operating CNC machines, soft skills include communication and teamwork and vocational skills include welding, carpentry and plumbing. This gives A-iv, B-iii, C-ii, D-i.
Answer key for these questions
Q
Correct answer
741
(a) A-iii, B-iv, C-i, D-ii
742
(b) Investment up to Rs 10 crore and Turnover up to Rs 50 crore
743
(b) I, II, IV, and V only
744
(a) Prohibiting women from working night shifts in any establishment
745
(d) Mission Shakti : An umbrella scheme for the safety, security, and empowerment of women
746
(c) Lack of non-farm jobs causing distress migration to urban slums
747
(a) I and II only
748
(d) The Lewis Model of Unlimited Supplies of Labor
749
(a) Fostering a culture of lifelong learning and upskilling in digital technologies
750
(a) A-iv, B-iii, C-ii, D-i
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.
