Shaktimatha 369 Learning

 

Economics – Advanced Prelims MCQs

Weekly Special: UPSC Economics
Prelims Focus | Concept + Current Affairs

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📝 Instructions

• ✔ Attempt without referring notes
• ✔ Apply elimination logic
• ✔ Mark questions for revision
• ✔ Analyse mistakes carefully

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📘 QUESTIONS

Q1. Which of the following best explains the concept of inclusive growth?

A) Growth led by services sector
B) Growth with redistribution after taxation
C) Broad-based growth with equity and opportunity
D) High GDP growth irrespective of employment

Q2. Consider the following statements about CPI:

1. CPI is the primary inflation measure for RBI
2. CPI excludes food and fuel prices
3. CPI reflects cost of living

Which of the above is/are correct?
A) 1 and 3 only
B) 1 only
C) 2 and 3 only
D) 1, 2 and 3

Q3. Which of the following increases fiscal deficit?

A) Increase in capital expenditure
B) Increase in tax revenue
C) Disinvestment receipts
D) Reduction in subsidies

Q4. Which sector has the highest employment elasticity?

A) Capital-intensive manufacturing
B) Services sector
C) Agriculture
D) Mining

Q5. Balance of Payments deficit in current account indicates:

A) Export surplus
B) Capital inflow exceeds outflow
C) Imports exceed exports and net income receipts
D) Forex reserves are increasing

Q6. Which of the following is NOT a tool of monetary policy?

A) Repo Rate
B) Open Market Operations
C) Cash Reserve Ratio
D) Fiscal Deficit

Q7. Jobless growth in India is mainly due to:

A) Labour laws only
B) Capital-intensive growth pattern
C) High population growth
D) Declining services sector

Q8. Which of the following improves India’s external sector resilience?

A) High current account deficit
B) Low foreign exchange reserves
C) Diversified export basket
D) Fixed exchange rate regime

Q9. Which of the following best explains MSP?

A) Market-determined floor price
B) Guaranteed procurement price for all crops
C) Administrative price support to farmers
D) International trade price

Q10. Which of the following is a limitation of GDP?

A) Measures economic output
B) Includes market transactions
C) Ignores income distribution
D) Used for growth comparison

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✅ Answer Key

• Q1 – C
• Q2 – A
• Q3 – A
• Q4 – B
• Q5 – C
• Q6 – D
• Q7 – B
• Q8 – C
• Q9 – C
• Q10 – C

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🎯 Prelims Strategy Tip

• ✔ Revise concepts before memorising facts
• ✔ Focus on WHY, not just WHAT
• ✔ Practice elimination daily

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“Prelims is won by clarity, not by cramming.”

— Shaktimatha 369 Learning