Question 1

In the context of welfare schemes in India, the abbreviation STEP refers to a programme designed primarily to help which group?

Accepted Answer

Introduction / Context: This question comes from social welfare schemes in India and checks familiarity with important abbreviations. STEP is a government programme that aims to improve the economic status of women by providing training and employment support. Recognising the target group of such schemes is essential for exams on social issues and public policy. Given Data / Assumptions: STEP is the short form of a welfare programme. The full form of STEP is Support to Training and Employment Programme. The options list different groups of beneficiaries: children, women, farmers, senior citizens and unemployed youth. The question asks which group the programme is meant to help primarily. Concept / Approach: The Support to Training and Employment Programme is designed to provide skills, training and employment opportunities to women, particularly those from marginalised and weaker sections. It aims to make women economically independent through group based income generation activities. Therefore the correct approach is to link the abbreviation STEP with women empowerment and not with children, farmers or other groups. Step-by-Step Solution: Step 1: Expand the abbreviation STEP as Support to Training and Employment Programme.Step 2: Recall that this scheme is implemented by the Ministry dealing with women and child development, with a strong focus on women empowerment.Step 3: Understand that the primary objective is to provide training and employment support to women so that they can earn a livelihood.Step 4: Among the options, identify the group that matches this objective.Step 5: Select women as the main beneficiary group. Verification / Alternative check: Official scheme descriptions and exam guides describe STEP as a programme for women that assists them with skills and employment generation. It is regularly listed among schemes for women empowerment, not under schemes for farmers, children or senior citizens. This consistent classification verifies that women are the intended beneficiaries. Why Other Options Are Wrong: Children are beneficiaries of many other schemes such as midday meals and education programmes, but STEP focuses on economic participation of women rather than child welfare directly. Farmers receive support through schemes on agriculture credit, insurance and subsidies, not through the STEP programme. Senior citizens are covered by pension and social security schemes; they are not the core target of STEP. Urban unemployed youth are addressed through skill development missions and employment exchanges, which are distinct from this programme for women. Common Pitfalls: A common mistake is to guess based purely on the word training and to assume the programme is for youth in general. Another error is to mix up various acronyms of similar sounding schemes. Remembering that STEP appears in lists under women specific schemes and has the word employment in its full form helps keep the association clear. Final Answer: The STEP welfare programme is primarily designed to help women through training and employment support.

Question 2

The second round of nationalisation of major commercial banks in India took place in which year?

Accepted Answer

Introduction / Context: This question belongs to Indian banking history and asks about the year of the second nationalisation of commercial banks. Bank nationalisation was a landmark step that expanded public sector control over the banking system and helped channel credit to priority sectors. Given Data / Assumptions: India undertook nationalisation of banks in more than one phase. The first major nationalisation occurred earlier, and the question is specifically about the second one. Options provide several years, some of which are close to actual events in banking or economic policy. We assume the question refers to nationalisation of large private sector banks into public sector ownership. Concept / Approach: The first major bank nationalisation took place in 1969, when fourteen commercial banks were nationalised. Later, a second phase of nationalisation followed. In this second phase, six more banks were brought under government control in 1980. The approach is to remember that 1969 and 1980 are the key years for first and second bank nationalisation respectively, and then identify which one corresponds to the second round. Step-by-Step Solution: Step 1: Recall that fourteen large banks were nationalised in 1969.Step 2: Remember that a second batch of six banks was nationalised later.Step 3: This second nationalisation occurred in 1980, expanding public sector control further.Step 4: Compare this remembered year with the options.Step 5: Choose 1980 as the correct year for the second nationalisation of commercial banks. Verification / Alternative check: Standard banking awareness material and economic history notes consistently mention two major dates: 1969 for the nationalisation of fourteen banks and 1980 for the nationalisation of six more banks. Since 1969 is identified as the first phase, the second phase must correspond to 1980, confirming the answer. Why Other Options Are Wrong: 1890 is much earlier than the era of Indian nationalisation and relates to colonial period developments, not post independence policy. 1969 is the year of the first bank nationalisation, not the second. 1972 does not correspond to a major nationalisation of commercial banks, and is included as a distractor. 1991 is associated with economic reforms and liberalisation, which in fact moved away from greater nationalisation. Common Pitfalls: The usual confusion is between 1969 and 1980. Some candidates remember both years but forget which one is first and which one is second. A simple way to remember is that 1969 equals first phase and 1980 equals second phase. Another pitfall is assuming that reforms in 1991 were about nationalising banks, when in reality they were about liberalisation and structural adjustment. Final Answer: The second nationalisation of major commercial banks in India took place in the year 1980.

Question 3

According to the World Bank Ease of Doing Business index for the relevant period, India achieved which overall global rank?

Accepted Answer

Introduction / Context: This question is based on a widely discussed improvement in India position in the World Bank Ease of Doing Business index. Such rankings indicate how conducive a country regulatory environment is to starting and operating a business, and they feature frequently in economic current affairs questions. Given Data / Assumptions: The index referred to is the World Bank Ease of Doing Business ranking. India made a notable jump in rank in the year in question. The question asks for the rank India achieved after this improvement. Options list ranks around one hundred, making recall of the exact number important. Concept / Approach: In the relevant report India was highlighted for making a major leap in its ranking, which attracted substantial media coverage. India moved into the top one hundred for the first time and secured exactly the hundredth position. The key idea is to remember that crossing into the top hundred was important, and that the precise rank was 100, not 99 or 101. Step-by-Step Solution: Step 1: Recall that India made a significant improvement in the Ease of Doing Business ranking during that period.Step 2: Remember that the major headline was that India entered the top one hundred.Step 3: Note that India rank was exactly 100 in that report.Step 4: Compare this figure with the given options.Step 5: Choose 100 as the correct answer. Verification / Alternative check: Newspaper articles, government press releases and exam oriented current affairs compilations from that time all emphasised that India had moved up to rank 100 in the Ease of Doing Business index. They did not state 99 or 101, which confirms that 100 is the precise figure intended in such questions. Why Other Options Are Wrong: Ranks 101 and 102 are close but do not match the widely reported milestone of entering the top hundred. Rank 99 would also indicate top hundred but was not the actual position assigned to India in that particular report. Rank 125 is a distractor and may recall earlier years when India had a lower ranking, but it is not the rank mentioned in the question. Common Pitfalls: Candidates sometimes remember only that India entered the top hundred and then guess 99 or 101, thinking that these look more typical. Another problem is mixing up ranks from different years, since the index is updated annually. A good way to remember is to connect the phrase century in cricket with rank 100 as the celebrated milestone in ease of doing business for India. Final Answer: In the cited World Bank Ease of Doing Business index, India achieved the global rank of 100.

Question 4

What is the position of India in the World Business Optimism ranking compiled for the referenced period?

Accepted Answer

Introduction / Context: This question refers to India standing in a global survey known as the World Business Optimism ranking. Such rankings measure how confident business leaders are about economic conditions and future prospects, and they form an important part of economic current affairs for competitive exams. Given Data / Assumptions: The specific index is the World Business Optimism ranking. India achieved a high position among all surveyed countries. The question asks for the exact rank occupied by India. Options provide several close ranks within the top ten. Concept / Approach: According to the survey, India featured among the most optimistic economies in the world with respect to business conditions. For the period referenced in exam material, India ranked sixth in this index. The approach is to recall that India was in the top ten but not in the top three, and specifically placed sixth, which stands out from commonly confused numbers like fourth or fifth. Step-by-Step Solution: Step 1: Understand that the question is about a specific optimism ranking, not about GDP size or ease of doing business.Step 2: Recall that India was reported among the top ten countries in terms of business optimism.Step 3: Remember from current affairs notes that India position was sixth in that particular survey.Step 4: Look at the options and identify the one that matches this memory.Step 5: Select sixth as the correct rank. Verification / Alternative check: Many competitive exam guides and online question banks mention that India was ranked sixth in the World Business Optimism ranking. This figure is repeated consistently when the survey is discussed, which confirms that sixth is the intended correct answer for objective questions on this topic. Why Other Options Are Wrong: Fourth and fifth are sometimes guessed by candidates who only vaguely remember that India was high in the list, but they do not match the actual reported rank. Seventh is another close distractor but is one place lower than the true position. Third would place India among the top three, which was not the case in the referenced survey. Common Pitfalls: A common error is to mix up this optimism ranking with the ease of doing business ranking or with GDP rankings, which have different values. Another pitfall is to misremember and assume that any top ten ranking means India was either third or fifth, which leads to incorrect guesses. Keeping a small chart of different rankings and India positions helps prevent such confusion. Final Answer: In the World Business Optimism ranking for the referenced period, India was placed at the 6th position.

Question 5

In classical economics, the statement that supply creates its own demand is popularly known as the law of which economist?

Accepted Answer

Introduction / Context: This conceptual question from economics asks about a famous proposition known as Say law. Recognising which economist is associated with the idea that supply creates its own demand is essential for understanding classical macroeconomic theory and its contrast with later Keynesian ideas. Given Data / Assumptions: The key statement is that supply creates its own demand. The options list well known economists from different schools of thought. The question is about the law name, not about who criticised it. We assume the context of classical economic theory. Concept / Approach: Say law, named after French economist Jean Baptiste Say, asserts that the act of production generates income that is sufficient to purchase the output produced, so that general overproduction is unlikely in the long run. This idea underpinned classical belief in self adjusting markets. The approach is to recall that this law carries the name of J. B. Say, not of Adam Smith, Marshall or Keynes. Step-by-Step Solution: Step 1: Read the statement supply creates its own demand and recognise it as a well known slogan.Step 2: Recall that this phrase is commonly linked with Say law in macroeconomics.Step 3: Identify that Say refers to Jean Baptiste Say, usually written as J. B. Say in short form.Step 4: Look at the options and find the name J. B. Say.Step 5: Choose J. B. Say as the correct answer. Verification / Alternative check: Textbooks on macroeconomics and history of economic thought explicitly name this proposition as Say law. They attribute it to J. B. Say and describe how it implies that aggregate supply will generally equal aggregate demand. The same textbooks also discuss how Keynes later challenged this law, which further confirms the association with J. B. Say rather than with Keynes or other economists. Why Other Options Are Wrong: Alfred Marshall made major contributions to microeconomics and partial equilibrium analysis but is not credited with this particular law. David Ricardo worked on theories of rent, comparative advantage and distribution, not on the principle that supply creates its own demand. Adam Smith is regarded as the father of modern economics and wrote about the invisible hand, but Say law is not named after him. John Maynard Keynes criticised the idea that supply automatically creates its own demand; he did not propose this law but argued that demand can be insufficient, leading to unemployment. Common Pitfalls: Some candidates see the word law and immediately think of well known names like Adam Smith or Keynes without recalling the specific phrase. Others mistakenly attribute the concept to Keynes because he discussed it extensively, but in fact he opposed it. Remembering the label Say law alongside the name J. B. Say is a simple way to answer correctly. Final Answer: The statement that supply creates its own demand is known as the law of J. B. Say.

Question 6

Which public sector company overtook Oil and Natural Gas Corporation (ONGC) to become India most profitable state owned enterprise in the referenced financial year?

Accepted Answer

Introduction / Context: This question refers to a development in the performance of Indian public sector undertakings where a different company overtook Oil and Natural Gas Corporation in terms of net profit. Such changes among large state owned enterprises are important for economic and business awareness. Given Data / Assumptions: ONGC had long been considered one of the most profitable public sector enterprises. In a particular financial year, another public sector company recorded higher profits than ONGC. The question asks which company achieved this distinction. Options list several well known central public sector enterprises. Concept / Approach: Among the listed companies, Indian Oil Corporation is a major integrated oil refining and marketing company. In the referenced year it reported higher net profit than ONGC, thus becoming the most profitable state owned firm. The approach is to recall this news item and match it with the correct company name, while not confusing it with other oil and gas entities that did not surpass ONGC at that time. Step-by-Step Solution: Step 1: Note that the question is about profit ranking among public sector enterprises, not market capitalisation or production.Step 2: Recall that Indian Oil Corporation reported very strong profits in the relevant financial year.Step 3: Remember reading that Indian Oil Corporation overtook ONGC in net profit and was described as the most profitable public sector company.Step 4: Compare this recollection with the options.Step 5: Choose Indian Oil Corporation as the correct answer. Verification / Alternative check: Business news reports and public enterprise surveys for that year indicate that Indian Oil Corporation posted higher net profit than ONGC. This was highlighted as the first time ONGC had lost the top spot to another public sector undertaking. No similar claim was made for the other companies in the options, which confirms that Indian Oil Corporation is the intended answer. Why Other Options Are Wrong: Steel Authority of India Limited is a major steel producer but its profitability has fluctuated and it did not surpass ONGC in that year. Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited are important oil marketing companies but their profit figures were lower than those of Indian Oil Corporation and ONGC at that time. GAIL India Limited is a gas transmission and marketing company and did not become the most profitable public sector enterprise in that period. Common Pitfalls: Because several oil and gas public sector enterprises operate in related segments, candidates sometimes confuse their relative rankings. There can also be confusion between profit and market capitalisation. Another error is to assume that ONGC continued to lead without noticing the reported change. Following business pages regularly and noting such rankings improves accuracy in these questions. Final Answer: The company that overtook ONGC to become the most profitable state owned enterprise was Indian Oil Corporation.

Question 7

In the banking system, the IFSC code is an 11 character alphanumeric code used for electronic fund transfers. In this abbreviation IFSC, what does the letter F represent?

Accepted Answer

Introduction / Context: This banking awareness question asks about the full form of a commonly used abbreviation, IFSC, which appears on cheques and bank documents. Knowing what each letter stands for is important for understanding electronic fund transfer systems such as NEFT and RTGS. Given Data / Assumptions: IFSC is an alphanumeric code with 11 characters. It is used to identify bank branches in electronic fund transfers. The question asks specifically what the letter F stands for. Options provide several words that start with F and are related to finance or speed. Concept / Approach: IFSC stands for Indian Financial System Code. The code uniquely identifies each branch participating in electronic payment systems. Therefore, F in IFSC must stand for Financial rather than Fund, Fast, First or Foreign. The approach is to recall the complete expansion of the abbreviation and then extract the meaning of the specific letter. Step-by-Step Solution: Step 1: Expand IFSC in your mind as Indian Financial System Code.Step 2: Identify the component words in this expansion.Step 3: Note that the second word, which begins with F, is Financial.Step 4: Compare this with the options provided.Step 5: Choose Financial as the correct meaning of the letter F. Verification / Alternative check: Any bank website, cheque book, or introductory material on NEFT and RTGS explains that IFSC means Indian Financial System Code. This expansion is standard across the Indian banking sector and is reproduced exactly in exam guides. This uniform usage confirms that Financial is the correct word represented by F. Why Other Options Are Wrong: Fund may appear relevant to money transfers but is not part of the official expansion of IFSC. Fast is a distractor that plays on the idea of quick electronic payments but does not appear in the full form. First has no connection with the phrase Indian Financial System Code. Foreign might suggest cross border transactions, but IFSC is used for domestic payments within India, making this word inappropriate. Common Pitfalls: A frequent mistake is to guess based on intuition and choose Fund because fund transfer is a related term. Another issue is that many people use the abbreviation without ever reading its full form. To avoid confusion, it is helpful to memorise the complete expansion, which automatically fixes the meaning of each letter in mind. Final Answer: In the abbreviation IFSC, the letter F stands for Financial as part of the phrase Indian Financial System Code.

Question 8

In economic theory, a mixed economy refers to a system characterised by which of the following features?

Accepted Answer

Introduction / Context: This conceptual question from economics tests understanding of the term mixed economy. Many countries, including India, describe their economic system as a mixed economy, so it is important to know what mixture the term refers to. Given Data / Assumptions: The subject is an economic system, not regional geography or social structure. The question asks what a mixed economy denotes. Options describe different kinds of coexistence between sectors or regions. We assume the standard textbook meaning of mixed economy. Concept / Approach: A mixed economy combines elements of both capitalism and socialism. In practical terms, this means a coexistence of private enterprise and public or state owned enterprise in the production and distribution of goods and services. The state regulates markets and directly participates in key sectors, while private businesses operate in other areas. Therefore the correct answer is the coexistence of private and public sectors. Step-by-Step Solution: Step 1: Recall the basic definition of a mixed economy as a blend of market and planning elements.Step 2: Identify that this blend usually takes the form of both private sector and public sector participation.Step 3: Examine the options for the one that reflects this coexistence.Step 4: Option B explicitly describes coexistence of private and public sectors.Step 5: Select this option as the correct answer. Verification / Alternative check: Economic textbooks define mixed economy as an economic system in which both private and public sectors coexist and interact. They often cite countries like India, the United Kingdom and others as examples, where government owned enterprises operate alongside private firms. This consistent definition confirms that the key feature is the coexistence of these two types of ownership, not merely rural and urban areas or different regions. Why Other Options Are Wrong: Coexistence of rural and urban sectors is present in almost all economies, whether capitalist, socialist or mixed, so it does not uniquely define a mixed economy. Coexistence of only heavy and small industries describes industrial structure, not the nature of ownership or control. Coexistence of developed and underdeveloped regions refers to regional imbalance and again is not unique to mixed economies. Complete absence of state intervention would describe a pure free market economy, which is the opposite of the mixed economy idea. Common Pitfalls: Candidates sometimes confuse mixed economy with structural diversity, such as having both agriculture and industry. Others may focus on regional disparities or think that mixed refers to a mix of rich and poor areas. The vital point is that mixed relates to the mix of ownership and control between public and private sectors. Keeping this in mind makes the concept easy to recall. Final Answer: A mixed economy is characterised by the coexistence of private and public sectors within the same economic system.

Question 9

Macroeconomic policy known as fiscal policy is primarily concerned with which of the following instruments?

Accepted Answer

Introduction / Context: This question tests understanding of the basic tools of macroeconomic policy. Recognising the difference between fiscal policy and monetary policy is fundamental for exams in economics, banking and general studies. Given Data / Assumptions: The focus is on fiscal policy, not monetary or exchange rate policy. Options combine different instruments such as spending, taxation, money supply and exchange rates. We assume standard textbook definitions followed by central banks and finance ministries. The question asks which instruments fiscal policy is concerned with. Concept / Approach: Fiscal policy refers to decisions of the government regarding its expenditure and its revenue, mainly through taxes and non tax receipts. It influences aggregate demand, growth and distribution. In contrast, monetary policy is conducted by the central bank and uses instruments like money supply and interest rates. Therefore fiscal policy is primarily about government spending and taxation, not about direct control of money supply or exchange rates. Step-by-Step Solution: Step 1: Recall that the budget of the government summarises its fiscal policy choices.Step 2: Identify the two main components of a budget, namely expenditure and revenue through taxes.Step 3: Recognise that changes in these items, such as increasing spending or cutting taxes, constitute fiscal policy actions.Step 4: Review the options to find the one that mentions both government spending and taxation together.Step 5: Select government spending and taxation as the correct combination. Verification / Alternative check: Standard macroeconomics textbooks and policy documents from ministries of finance define fiscal policy as the use of government spending and taxation to influence the economy. They treat money supply and interest rates as instruments of monetary policy managed by the central bank, and exchange rate management as part of external sector policy. This clear separation verifies that option A is correct. Why Other Options Are Wrong: Money supply only is the central bank domain and is associated with monetary policy, not fiscal policy. Combining government spending, money supply and taxation into one policy set ignores the institutional distinction between the finance ministry and the central bank. Taxation only is incomplete, because changes in government expenditure are also crucial parts of fiscal policy. Exchange rate management falls under external sector or currency policy and is influenced by central bank operations and trade conditions, not just by fiscal decisions. Common Pitfalls: Students sometimes confuse fiscal and monetary policy because both affect aggregate demand. Another common error is to think that any macroeconomic policy that deals with money or banks is fiscal, when in fact most of that work belongs to monetary policy. A simple memory aid is that fiscal comes from words related to the treasury and budget, which focus on government spending and taxes. Final Answer: Fiscal policy is primarily concerned with government spending and taxation.

Question 10

According to the Economic Survey of India 2016 to 2017, what range of GDP growth was projected for India during financial year 2017 to 2018?

Accepted Answer

Introduction / Context: This question relates to official economic projections presented in the Economic Survey of India, a key document released each year by the government before the Union Budget. It tests knowledge of the projected GDP growth band for financial year 2017 to 2018 as stated in the 2016 to 2017 survey. Given Data / Assumptions: The source is the Economic Survey of India 2016 to 2017. The projection concerns India GDP growth for financial year 2017 to 2018. The forecast is expressed as a range rather than a single point estimate. Options offer several close numerical ranges, so precise recall is needed. Concept / Approach: The Economic Survey often gives a band of possible growth outcomes to reflect uncertainty. For the period in question, after considering factors like global conditions and domestic policy moves, the survey projected GDP growth in a range that started from 6.75% and went up to 7.5%. The best approach is to remember this band and then select the option that matches it exactly. Step-by-Step Solution: Step 1: Recall that the Economic Survey gave a growth range rather than a single number.Step 2: Remember that the lower bound of the range was 6.75%.Step 3: Remember that the upper bound of the range was 7.5%.Step 4: Compare the options to find the one that matches 6.75% to 7.5% exactly.Step 5: Select 6.75% to 7.5% as the correct answer. Verification / Alternative check: Economic Survey summaries and exam oriented current affairs notes reproduce the projection as 6.75% to 7.5%. This range is widely quoted in competitive exam questions dealing with that year growth outlook. The absence of 6.25% or 6.55% in the official range further confirms that option D is correct. Why Other Options Are Wrong: The range 6.25% to 7.5% lowers the starting point too far compared to the official survey band. The ranges 6.55% to 7.25% and 6.55% to 7.5% use 6.55% as the lower bound, which does not appear in the Economic Survey projection. The range 7.0% to 7.75% starts higher than the survey lower bound and extends beyond the upper bound, making it inaccurate. Common Pitfalls: Because several institutions release slightly different growth forecasts, candidates may mix up numbers from rating agencies, international organisations and the Economic Survey. Another issue is rounding; some students only remember that growth was expected around seven percent and then guess the range. To avoid such mistakes, it is helpful to memorise a few key official ranges exactly as given in the survey, especially when they are commonly asked in exams. Final Answer: The Economic Survey of India 2016 to 2017 projected India GDP growth for financial year 2017 to 2018 in the range of 6.75% to 7.5%.

Question 11

In macroeconomics, the term stagflation refers to which combination of economic growth and inflation?

Accepted Answer

Introduction / Context: This question checks understanding of the macroeconomic term stagflation. The word combines stagnation and inflation and describes an undesirable situation that challenges standard policy tools. Recognising the correct combination of growth and inflation is essential for analysing such scenarios. Given Data / Assumptions: The term in question is stagflation. The options relate growth rates and price increases in different ways. We assume that inflation means a sustained increase in the general price level. Stagnation indicates very low or negative growth. Concept / Approach: Stagflation is a situation where the economy experiences stagnant or very slow growth along with high inflation. In other words, the rate of price increase is high while output and employment do not grow adequately. Therefore the option that states that the rate of growth is slower than the rate of price increase best captures the concept in the list provided. Step-by-Step Solution: Step 1: Break the word stagflation into stagnation plus inflation.Step 2: Interpret stagnation as very low or zero growth in output and employment.Step 3: Interpret inflation as a continuous rise in prices.Step 4: Combine these ideas to conclude that growth is weak while prices rise quickly.Step 5: Choose the option that says the rate of growth is slower than the rate of price increase. Verification / Alternative check: Macroeconomics textbooks describe stagflation as simultaneous stagnation and inflation, often citing the experience of many economies in the nineteen seventies. They point out that output growth is sluggish or negative while inflation remains high. This confirms that the correct option is the one where price rises outpace growth rather than one where both are falling or unrelated. Why Other Options Are Wrong: Option A, which says growth has no relation with change in prices, does not capture the simultaneous presence of slow growth and high inflation. Option B, where growth is faster than price increase, describes a healthy situation with real growth, not stagflation. Option D, where both growth and prices decrease, would correspond to deflationary recession, not stagflation. Option E, with both growth and inflation at zero, describes a stable but stagnant situation without the inflation component. Common Pitfalls: Candidates may confuse stagflation with simple inflation or with recession alone. Some think any economic difficulty with inflation must be stagflation, ignoring the growth component. Others mix it up with deflationary periods, where prices fall rather than rise. Remembering that stagflation requires both stagnation and inflation occurring together helps avoid these errors. Final Answer: Stagflation refers to a situation where the rate of growth is slower than the rate of price increase, combining weak growth with high inflation.

Question 12

India has been ranked at which position in terms of competitiveness in the annual global rankings compiled by the Institute for Management Development (IMD)?

Accepted Answer

Introduction / Context: This question relates to India position in the IMD World Competitiveness rankings. These rankings assess how well countries create and maintain conditions for businesses to compete, and they are part of important economic current affairs. Given Data / Assumptions: The ranking body is the Institute for Management Development. The index measures national competitiveness. The question asks for India position in a particular edition of the rankings. Options show various ordinal numbers, some of which are close to one another. Concept / Approach: In the relevant IMD competitiveness report, India was placed at the forty fifth position among the countries evaluated. The approach to answering is to recall that India was in the mid range of the rankings, not near the bottom, and that the specific position widely quoted in exam material was forty fifth. Step-by-Step Solution: Step 1: Note that the index is about overall competitiveness, not about ease of doing business or GDP size.Step 2: Recall from current affairs that India ranking was within the top fifty, specifically at forty fifth place.Step 3: Check the given options and identify forty fifth among them.Step 4: Recognise that ranks like 145th or 107th are much lower than India reported position.Step 5: Select 45th as the correct answer. Verification / Alternative check: Economic news summaries, government press notes and exam oriented compilations mention that in the referenced year, India was ranked forty fifth in the IMD World Competitiveness rankings. This value appears consistently and is not confused with much lower ranks, providing confirmation that 45th is the correct figure to mark in objective questions. Why Other Options Are Wrong: Rank 145th would imply extremely low competitiveness and is inconsistent with the report. Rank 107th is also much lower than India observed position in these rankings. Rank 56th places India outside the top fifty and does not match the widely quoted figure. Rank 75th is included as a distractor but does not correspond to the actual IMD ranking for India. Common Pitfalls: Students sometimes mix up multiple rankings released in a year, such as ease of doing business, global competitiveness reports by other institutions and innovation indices. This can lead them to select numbers like 75th or 56th, which belong to different lists or years. Keeping separate notes for each major ranking and its source helps clarify these differences. Final Answer: In the IMD World Competitiveness rankings, India was placed at the 45th position.

Question 13

In economics, which of the following describes the basic market structure characteristic of an oligopoly?

Accepted Answer

Introduction / Context: This question checks your understanding of the oligopoly market structure in microeconomics. Knowing how many buyers and sellers typically operate in different market forms is essential for exams on Indian economy, general studies, and competitive examinations. Oligopoly is one of the four classic market structures alongside perfect competition, monopoly, and monopolistic competition, and it has its own distinctive features regarding the number of firms, interdependence, and pricing power. Given Data / Assumptions: The question is about the basic characteristic of an oligopoly market. The focus is on the typical number of sellers and buyers. Standard textbook definitions of market structures are assumed. Concept / Approach: An oligopoly is defined as a market structure with a small number of relatively large firms dominating the market. Each firm has significant market share and is interdependent with the others, meaning that one firm's decision on price or output affects the others. On the buyer side, in most oligopolistic markets, there are many buyers. The core feature we need is therefore "few sellers" with a usually large buyer base, not the other way around. Step-by-Step Solution: Step 1: Recall that perfect competition has many sellers and many buyers with no individual market power.Step 2: Recall that monopoly has one seller and many buyers, so it cannot be oligopoly.Step 3: In an oligopoly, a small group of firms controls most of the market supply.Step 4: Buyers are normally numerous and do not have much individual bargaining power.Step 5: Therefore, the suitable phrase is "a few sellers, many buyers". Verification / Alternative Check: To verify, think of real world examples such as the telecom industry in many countries, the soft drink market, or the passenger airline industry on certain routes. In such cases, a few big firms dominate supply, but the number of consumers is very large. This validates that the defining characteristic of oligopoly is a limited number of sellers facing a large number of buyers. Why Other Options Are Wrong: Many sellers, a few buyers describes oligopsony, where buying power is concentrated in a few hands. A few sellers, a few buyers describes bilateral oligopoly, which is a more specialised case. A few sellers, one buyer describes a situation close to a monopsony on the demand side. Many sellers, many buyers is more like perfect competition, not oligopoly. Common Pitfalls: A common mistake is to focus only on the word oligopoly and confuse it with oligopsony because both involve the idea of "few". Another pitfall is assuming that any market with a limited number of buyers or sellers is automatically an oligopoly, without checking which side of the market has the concentration. Remember that in exam oriented definitions, oligopoly always emphasises a few dominant sellers facing many buyers. Final Answer: The correct basic characteristic of an oligopoly is a few sellers, many buyers, which captures the idea of seller concentration with a large, dispersed group of consumers.

Question 14

In the Top 10 Influential Brands of India ranking, Patanjali and Reliance Jio were placed at which positions respectively?

Accepted Answer

Introduction / Context: This question relates to brand influence rankings in India and checks awareness of recent economic and marketing current affairs. Several surveys have listed the Top 10 Influential Brands in India, and in one such survey Patanjali and Reliance Jio both featured prominently. Remembering relative positions for key Indian brands is a common theme in competitive examinations where business and economy current affairs are tested. Given Data / Assumptions: We are dealing with a ranking of Top 10 Influential Brands in India. The question asks specifically for the positions of Patanjali and Reliance Jio. The answer must be a pair of ranks given in order as "Patanjali and Jio". Concept / Approach: Brand influence rankings measure how strongly a brand impacts consumers and markets, often using indicators like trust, usage, innovation, and social impact. Patanjali, an Indian FMCG and ayurveda based company, saw a rapid rise due to its aggressive expansion and Indian origin positioning. Reliance Jio shook the telecom industry with disruptive data pricing. In the relevant survey, Patanjali was placed slightly higher than Jio, reflecting its strong consumer impact across categories such as food, personal care, and health products. Step-by-Step Solution: Step 1: Recall that both Patanjali and Reliance Jio entered the Top 10 list of influential brands in India.Step 2: Among them, Patanjali ranked ahead of Reliance Jio in the same list.Step 3: From the reported result, Patanjali was ranked fourth in the country.Step 4: Reliance Jio, as a relatively newer telecom brand at that time, was ranked ninth.Step 5: Therefore, the correct pair of positions is "4 and 9". Verification / Alternative Check: If you remember even one of the two ranks, you can often eliminate options. For example, if you recall that Jio was ninth, only those options where the second rank is 9 remain valid. Among the options given, only "4 and 9" matches this pattern, providing a quick verification method during an exam even if exact recall is partial. Why Other Options Are Wrong: "3 and 10" and "5 and 6" do not match the reported survey positions and also change the relative standing between the two brands. "2 and 1" would unrealistically place both brands at the very top, which is not supported by the survey data. "6 and 7" again misplaces both brands and does not align with published rankings, hence all these alternatives are incorrect. Common Pitfalls: Candidates often confuse different brand rankings such as most trusted brands, most valuable brands, and most influential brands. Each ranking uses different criteria and may be published by different agencies, so the positions can vary. Another pitfall is reversing the order of ranks and reading the options as "Jio and Patanjali", but the question clearly states "Patanjali and Reliance Jio", so the first rank always belongs to Patanjali in the answer pair. Final Answer: The correct pair of ranks in the Top 10 Influential Brands of India list is 4 and 9 for Patanjali and Reliance Jio respectively.

Question 15

In the Union Budget 2017 to 2018 of India, what was the fund allocation for the Deen Dayal Upadhyaya Gram Jyoti Yojana rural electrification scheme?

Accepted Answer

Introduction / Context: This question belongs to Indian economy and budget based current affairs. It focuses on the Deen Dayal Upadhyaya Gram Jyoti Yojana, often abbreviated as DDUGJY, which is a key rural electrification scheme. Examinations frequently ask about budget allocations to flagship schemes in particular years, so knowing approximate figures and the names of schemes is important. Given Data / Assumptions: The time frame is the Union Budget for the financial year 2017 to 2018. The scheme mentioned is Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY). The options are different amounts of allocation in crore rupees. Concept / Approach: DDUGJY aims at strengthening rural power distribution, ensuring feeder separation and improving sub transmission and distribution infrastructure. In the Budget, different flagship programmes like DDUGJY, UJALA, and others receive specific outlays. For static current affairs type questions, we simply need to recall or recognise the announced figure. If you remember that rural electrification had a significant but not the largest share, you can mentally compare the options and eliminate values that are too high or too low. Step-by-Step Solution: Step 1: Read the scheme name carefully to avoid confusing it with other power sector programmes.Step 2: Recall from budget highlights that DDUGJY was allocated a little below five thousand crore rupees in 2017 to 2018.Step 3: Among the options, Rs. 4,814 crore is closest to this remembered figure.Step 4: Cross check that other options like Rs. 6,815 crore or Rs. 7,500 crore are significantly higher and were not quoted for this particular scheme.Step 5: Conclude that Rs. 4,814 crore is the correct allocation for DDUGJY in that budget year. Verification / Alternative Check: Even if the exact number is not fully memorised, a candidate can use elimination. Rs. 2,115 crore appears too small for a nationwide rural electrification programme. Numbers above six thousand crore may remind you of other schemes. When you know that the allocation was around four thousand to five thousand crore, Rs. 4,814 crore becomes the only credible choice among the given options. Why Other Options Are Wrong: Rs. 6,815 crore and Rs. 7,500 crore do not match the announced allocation for DDUGJY and are more likely to belong to other schemes or sectors. Rs. 5,550 crore is closer but still not accurate. Rs. 2,115 crore is far below the planned requirement and does not correspond to the figure highlighted in the 2017 to 2018 Budget documents for this scheme. Common Pitfalls: One frequent pitfall is confusing DDUGJY with other programmes like Deen Dayal Upadhyaya Antyodaya Yojana or schemes related to urban power reforms. Another mistake is mixing up allocations from different years, because flagship programmes often receive increased funding over time. To avoid this, candidates should revise year wise budget highlights, focusing on one budget at a time and linking schemes to approximate figures instead of trying to memorise every detail blindly. Final Answer: The amount allocated to Deen Dayal Upadhyaya Gram Jyoti Yojana in the Union Budget 2017 to 2018 was Rs. 4,814 crore.

Question 16

In the structure of the Indian economy, which sector contributes the largest share to the Gross National Product?

Accepted Answer

Introduction / Context: This question tests your knowledge of the changing structure of the Indian economy and its contribution to national income. Over time, economies typically move from agriculture dominated structures to industry driven and finally to service dominated structures. For India, understanding which sector currently contributes the most to Gross National Product is a common topic in general studies and economic awareness sections. Given Data / Assumptions: Gross National Product is taken as a broad measure of national income. The economy is divided into primary, secondary, and tertiary sectors, plus other classifications. We are concerned with the largest share in the present structure, not historically at independence. Concept / Approach: The primary sector includes agriculture and allied activities. The secondary sector consists of manufacturing and industry. The tertiary sector covers services such as trade, transport, banking, communication, education, health, and information technology. In modern India, the service sector has grown rapidly and now accounts for well over half of national income, even though a large portion of the workforce is still engaged in agriculture. The question therefore expects you to know that services, or the tertiary sector, lead in contribution to GNP. Step-by-Step Solution: Step 1: Recall that at the time of independence, the primary sector dominated national income.Step 2: Note that with industrialisation, the secondary sector increased its share, but did not become the largest in India.Step 3: In the last few decades, services such as IT, finance, tourism, and communication have expanded strongly.Step 4: Official data show that the tertiary sector contributes the highest proportion to GDP and GNP.Step 5: Therefore, the correct choice is the tertiary sector. Verification / Alternative Check: Think of the sectors that are most visible in urban India, such as software services, banking, telecom, retail, and hospitality. These activities contribute heavily to income generation and tax collections. Agriculture, although still important for employment and food security, has a much smaller share in national income compared to services. This mental cross check supports the answer that services dominate GNP contribution. Why Other Options Are Wrong: The primary sector has a large share of employment but not of income. The secondary sector has grown but has not overtaken services in India. The public sector is not a separate production sector; it is an ownership category and cuts across all sectors. The quaternary sector term is sometimes used in advanced economics to describe knowledge based services, but it is not commonly used as a main sector in official national accounts, and in any case forms part of the tertiary sector overall. Common Pitfalls: Candidates often assume that because most people work in agriculture, the primary sector must dominate national income. This is not correct. Productivity per worker is much higher in services and industry than in agriculture. Another pitfall is confusing shares in employment with shares in income. Exam questions are very particular about whether they ask about output, GNP, GDP, or employment, so always read the wording carefully. Final Answer: The sector that contributes the largest share to India's Gross National Product is the tertiary sector, that is, the service sector.

Question 17

In the history of India's population growth, which decade is commonly referred to as the period of a \"great leap forward\"?

Accepted Answer

Introduction / Context: This question belongs to Indian demographic history. Different periods in the growth of India's population have been given descriptive names such as the stationary phase, the period of steady growth, and the period of a great leap forward. Understanding which decade corresponds to which phase is important in economic geography and population studies. Given Data / Assumptions: The question uses the phrase \"great leap forward\" for Indian population growth. We need to identify the correct decade from the options given. The answer is based on census wise analysis of population growth rates. Concept / Approach: Indian demographic history is often divided using census data. Up to 1921, population growth was slow and unstable, called a period of stationary or fluctuating growth. From 1921 to 1951, growth became more regular but still moderate. The decade 1951 to 1961 is termed the period of a great leap forward, when population growth accelerated sharply due to a fall in death rates, improvement in health facilities, and continued high birth rates. Later decades are associated with the population explosion and then a gradual decline in growth rates. Step-by-Step Solution: Step 1: Remember that 1921 is known as the demographic divide, marking a shift from fluctuating to more consistent growth.Step 2: The period 1921 to 1951 shows steady growth but not the sharpest increase.Step 3: The decade 1951 to 1961 is characterised by significant improvement in medical care and control of epidemics, reducing mortality.Step 4: Birth rates remained high in this decade, so natural increase accelerated strongly.Step 5: For this reason, 1951 to 1961 is described as the period of a great leap forward in population growth. Verification / Alternative Check: You can verify by recalling labels used in standard geography textbooks. 1901 to 1921 is the period of stagnant growth. 1921 to 1951 is the period of steady growth. 1951 to 1981 is generally considered the population explosion phase, within which 1951 to 1961 stands out as a leap forward. Therefore, among the options given, 1951 to 1961 fits the description most closely. Why Other Options Are Wrong: The decade 1921 to 1931 still falls early in the steady growth phase and is not identified as the great leap forward. The decade 1941 to 1951 includes the Second World War period and partition related disturbances and is not labelled this way. The decades 1961 to 1971 and 1971 to 1981 had high growth but are more often associated with the broader population explosion term rather than the specific phrase used in the question. Common Pitfalls: A frequent mistake is to confuse the population explosion overall with the specific decade called a great leap forward. Students also sometimes mix up the labels of demographic phases, especially when they do not revise the census wise classification just before the exam. Making a small timeline of key census years and associated names is a simple but powerful revision tool. Final Answer: The decade commonly described as a period of a great leap forward in India's population growth is 1951 - 1961.

Question 18

In the Indian federal tax system, which of the following taxes traditionally fell under the exclusive jurisdiction of the State Governments?

Accepted Answer

Introduction / Context: This question is from Indian public finance and focuses on the division of taxation powers between the Union and the States. Before the introduction of the Goods and Services Tax, different taxes were clearly assigned either to the Union List or to the State List in the Constitution. Knowing which taxes belonged exclusively to the States is a frequent multiple choice topic in polity and economy sections. Given Data / Assumptions: The question refers to the traditional constitutional allocation of taxes, not the post GST framework. We are asked about exclusive jurisdiction of State Governments. The options include sales tax, customs duty, income tax, and corporation tax, plus another plausible tax. Concept / Approach: The Constitution of India divides taxation powers. Customs duty, income tax on non agricultural income, and corporation tax are in the Union List and are levied by the Central Government. State Governments historically levied sales tax on the sale of goods within the state, along with state excise on alcohol and certain other items. Therefore, sales tax was an exclusive State subject before the move to value added tax and later GST. Step-by-Step Solution: Step 1: Recall which taxes are clearly Union List items. Customs duty on imports and exports is a central subject.Step 2: Income tax on non agricultural income is also imposed and collected by the Centre, though some share is distributed to States.Step 3: Corporation tax on company profits is likewise a central levy.Step 4: Sales tax on the sale of goods within a state used to be imposed by State Governments and was their important revenue source.Step 5: Therefore, among the options, sales tax is the tax under exclusive jurisdiction of the States. Verification / Alternative Check: Think of how states used to compete by changing value added tax rates on items like petrol, diesel, and consumer goods. These variations existed because sales tax or VAT was a state subject. In contrast, customs duty rates, corporation tax rates, and most income tax slabs are decided only by the Union, which confirms the central nature of these taxes. Why Other Options Are Wrong: Custom duty is a central subject as part of trade and commerce with foreign countries. Income tax (except for agricultural income) is levied and collected by the Union Government, with a portion later distributed to the States. Corporation tax is also a Union List tax. Service tax was similarly introduced and administered by the Centre before GST replaced it, so it was not a state exclusive levy either. Common Pitfalls: Candidates may confuse \"assigned\" or \"shared\" taxes with exclusive powers. Some central taxes are shared with States through the Finance Commission recommendations, which may give the impression that States levy them. The exam, however, focuses on who has the constitutional power to impose the tax. Another mistake is to answer with the present GST based system instead of the classical arrangement described in many standard textbooks. Always pay attention to the context of the question and the time frame implied. Final Answer: The tax that traditionally fell under the exclusive jurisdiction of the State Governments is sales tax on the sale of goods within the state.

Question 19

Which of the following is generally regarded as the highest and most serious form of unemployment in the context of the Indian economy?

Accepted Answer

Introduction / Context: This question examines your understanding of different types of unemployment and which of them is considered most serious in a developing country like India. While all unemployment is undesirable, some forms are temporary or short term, whereas others reflect deep problems in the structure of the economy and are therefore more harmful over the long run. Given Data / Assumptions: The focus is on the Indian context, a developing mixed economy. Types of unemployment considered include seasonal, structural, cyclical, casual, and frictional. We must identify the form that is most serious or highest in impact. Concept / Approach: Seasonal unemployment arises when work is available only in certain seasons, for example, in agriculture or tourism. Frictional unemployment is short term unemployment while people change jobs. Casual unemployment is irregular work in unorganised sectors. Cyclical unemployment is linked to economic cycles in advanced industrial economies. Structural unemployment arises when there is a mismatch between workers skills and the needs of the economy, or when certain sectors become obsolete. This form of unemployment is long lasting and difficult to remove without major changes, which is why it is considered the most serious. Step-by-Step Solution: Step 1: Identify which forms of unemployment are relatively temporary. Seasonal, casual, and frictional unemployment often fall in this category.Step 2: Recognise that cyclical unemployment is more typical of advanced economies facing recessions.Step 3: Understand that structural unemployment reflects fundamental issues such as outdated skills, technological change, or wrong sectoral composition.Step 4: In India, large sections of the labour force face structural issues such as lack of industrial jobs and low skill levels.Step 5: Therefore, structural unemployment is regarded as the highest and most serious form. Verification / Alternative Check: You can verify by looking at standard economics textbooks, which emphasise that structural unemployment cannot be easily solved by minor policy changes or short term measures. It requires large scale reforms in education, training, and industrial development. This long term and deep rooted nature is what makes structural unemployment so harmful compared with seasonal or frictional unemployment. Why Other Options Are Wrong: Seasonal unemployment affects agricultural and seasonal industries but can be reduced by irrigation, crop diversification, and rural non farm employment. Frictional unemployment is simply the time taken to move between jobs. Casual unemployment is linked to casualisation in unorganised sectors but is not always permanent. Cyclical unemployment is more relevant in developed economies and does not fully describe India's main unemployment problem. None of these types reflect the deep structural mismatch that structural unemployment does. Common Pitfalls: Students often confuse disguised unemployment, which is also serious in India, with structural unemployment. Disguised unemployment, however, is generally considered a form of hidden or underemployment and is not directly listed in this question's options. Another pitfall is to pick seasonal unemployment simply because it is very visible in rural areas, but visibility does not mean it is the highest form in severity or in long term impact. Final Answer: The unemployment type generally regarded as the most serious in the Indian context is structural unemployment.

Question 20

The centrally sponsored Mid Day Meal Scheme providing cooked meals to school children was launched by the Union Ministry of which department?

Accepted Answer

Introduction / Context: This question is from social sector schemes in India and tests your knowledge about the Mid Day Meal Scheme. The scheme is a major intervention for improving school attendance, nutritional status, and learning outcomes of children. Knowing which ministry launched and implemented such flagship programmes is important for general studies and government scheme related questions. Given Data / Assumptions: The scheme in focus is the Mid Day Meal Scheme for school children. We are asked about the Union Ministry that launched the scheme. Options include ministries dealing with home affairs, social welfare, human resources, rural development, and women and child development. Concept / Approach: The Mid Day Meal Scheme aims to provide cooked meals to children in primary and upper primary schools to encourage enrolment, retention, and to address classroom hunger. Education is the primary channel through which the scheme operates, even though nutrition is a major component. Therefore, the main nodal ministry is the one dealing with school education, which was earlier known as the Ministry of Human Resource Development at the Union level. Step-by-Step Solution: Step 1: Note that the scheme operates through government and government aided schools.Step 2: Recognise that school education comes under the Ministry of Human Resource Development at the central level, now known as the Ministry of Education.Step 3: Although nutrition and child development are related to the Ministry of Women and Child Development, this particular scheme is routed through the education system.Step 4: Therefore, the launching and nodal authority is the Ministry of Human Resource Development.Step 5: Select the option mentioning the Ministry of Human Resource Development. Verification / Alternative Check: You can cross check by remembering that Mid Day Meal Scheme guidelines are usually discussed along with Sarva Shiksha Abhiyan and the Right to Education framework. Both are clearly linked to the education ministry. Also, budgets for mid day meals are often shown under education related demands for grants, which confirms that the scheme is handled by the education ministry rather than home affairs or rural development. Why Other Options Are Wrong: The Ministry of Home Affairs mainly deals with internal security, law and order, and administration of union territories. The Ministry of Social Welfare and the Ministry of Women and Child Development handle welfare schemes but not this particular school meal programme. The Ministry of Rural Development focuses on livelihoods and infrastructure in rural areas, not school based nutrition schemes. Hence none of these are the primary nodal ministry for the Mid Day Meal Scheme. Common Pitfalls: Many candidates mistakenly associate the scheme with the Ministry of Women and Child Development because it has a strong nutrition component and uses terms like malnutrition and child welfare. However, the operational base of the programme is schools, not anganwadi centres, which are under ICDS. Always differentiate between school based schemes (education ministry) and early childhood or anganwadi based schemes (women and child development ministry). Final Answer: The Mid Day Meal Scheme for school children was launched and is implemented by the Ministry of Human Resource Development at the Union level.

Indian Economy Questions