MCQ
Economy MCQ - Practice Questions with Answers
Solve 63 Economy questions for RAS/RPSC preparation.
Practice questions
Q1In order to control inflation, government should
Inflation is controlled through contractionary fiscal policy when demand is excessive. Increasing direct taxes reduces disposable income and consumption demand, helping cool demand-pull inflation. Increasing public expenditure or reducing direct taxes would expand demand, so option B is correct.
Q2Read the following statements and select the correct answer using the codes given below : (i) The contribution of Service Sector in Gross State Value Added (at current prices) of Rajasthan during 2024-25 was the highest. (ii) The contribution of Livestock in Gross State Value Added originating in Agricultural Sector (at current prices) of Rajasthan during 2024-25 was the highest. (iii) The contribution of Mining and Quarrying in Gross State Value Added originating in Industrial Sector (at current prices) of Rajasthan during 2024-25 was the lowest. (iv) The contribution of Trade and Hotels & Restaurants in Gross State Value Added originating in Service Sector (at current prices) of Rajasthan during 2024-25 was the highest. Codes :
Rajasthan Economic Review 2024-25 shows services as the largest broad sector in GSVA at current prices. Within agriculture, livestock has the highest share, and within services, Trade, Hotels & Restaurants has the highest share; however, mining and quarrying is not the lowest industrial sub-sector. Thus only (i), (ii) and (iv) are correct, so B is the answer.
Q3National Mission for Sustainable Agriculture consists of which of the following sub-mission?
The National Mission for Sustainable Agriculture (NMSA) has Soil Health Management (SHM) as one of its key sub-missions. SHM aims to promote integrated nutrient management, judicious fertiliser use, and soil testing to improve soil fertility and agricultural productivity. 'Health Management' generically (option B) is not a recognised sub-mission of NMSA.
Q4Which one is not the cause of inflation under cost-push factors ?
Cost-push inflation arises when production costs rise or supply conditions worsen, such as higher oil prices, higher indirect taxes, or output and supply disruptions. Deficit financing works mainly through higher aggregate demand and money creation, not through a rise in production cost. Therefore, option C is not a cost-push factor.
Q5As per Budget estimate for 2020- 21, the expenditure on urea subsidy is expected to be
As per the 2020-21 Budget Estimates, the urea subsidy allocation was Rs 47,805 crore, which is approximately Rs 0.48 lakh crore. Therefore, option C is correct.
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