Shaktimatha 369 Learning

 

Economics Mini Mock Test – UPSC Prelims

Weekly Special: UPSC Economics
Time: 30 Minutes | Questions: 20

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📝 Instructions

• ✔ Attempt all questions in one sitting
• ✔ Use elimination method
• ✔ Mark doubtful questions
• ✔ Analyse answers after completion

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📘 QUESTIONS

Q1. Which of the following best distinguishes economic growth from economic development?

A) Growth focuses on equity, development on output
B) Growth is quantitative, development is qualitative
C) Growth includes social indicators, development does not
D) Growth excludes income

Q2. Real GDP differs from nominal GDP because it:

A) Includes depreciation
B) Accounts for inflation
C) Excludes services
D) Uses factor cost

Q3. Which of the following policies directly controls money supply?

A) Fiscal policy
B) Trade policy
C) Monetary policy
D) Industrial policy

Q4. An increase in repo rate generally leads to:

A) Cheaper loans
B) Increased inflation
C) Reduced credit availability
D) Higher fiscal deficit

Q5. Which of the following is capital expenditure?

A) Salary payments
B) Interest payments
C) Infrastructure construction
D) Food subsidy

Q6. Which sector contributes the largest share to India’s GDP?

A) Agriculture
B) Industry
C) Services
D) Mining

Q7. MSMEs are important primarily because they:

A) Require large capital
B) Generate employment and exports
C) Increase imports
D) Reduce competition

Q8. Current Account Deficit indicates:

A) Export surplus
B) Net capital inflow
C) Imports exceed exports and net receipts
D) Rising foreign exchange reserves

Q9. Inclusive growth emphasises:

A) GDP growth alone
B) Growth with equity and opportunity
C) Only poverty reduction
D) Only welfare schemes

Q10. Which of the following best explains jobless growth?

A) High population growth
B) Capital-intensive economic expansion
C) High inflation
D) Declining GDP

Q11. CPI is preferred over WPI because it:

A) Tracks producer prices
B) Reflects cost of living
C) Excludes food prices
D) Is calculated weekly

Q12. Which of the following strengthens fiscal sustainability?

A) High revenue deficit
B) Rising public debt
C) Efficient capital expenditure
D) Persistent fiscal deficit

Q13. Which policy improves agricultural income stability?

A) Import liberalisation
B) MSP and crop insurance
C) Currency appreciation
D) Export restrictions

Q14. Services-led growth in India is criticised because it:

A) Reduces exports
B) Is capital intensive
C) Generates limited quality employment
D) Lowers productivity

Q15. Which of the following is NOT part of Balance of Payments?

A) Trade in goods
B) Foreign investment
C) Domestic taxation
D) Remittances

Q16. Human capital investment mainly improves:

A) Fiscal deficit
B) Productivity and growth
C) Inflation
D) Imports

Q17. Which of the following reduces income inequality?

A) Regressive taxation
B) Targeted welfare spending
C) Capital-intensive growth
D) Informalisation

Q18. Exchange rate depreciation may:

A) Reduce exports
B) Increase imports
C) Improve export competitiveness
D) Lower inflation immediately

Q19. Which reform improves Ease of Doing Business?

A) Higher compliance burden
B) Simplified regulations
C) Trade barriers
D) Import quotas

Q20. Green growth aims to:

A) Maximise short-term GDP
B) Balance growth with sustainability
C) Eliminate industrialisation
D) Focus only on environment

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✅ Answer Key

• 1 – B
• 2 – B
• 3 – C
• 4 – C
• 5 – C
• 6 – C
• 7 – B
• 8 – C
• 9 – B
• 10 – B
• 11 – B
• 12 – C
• 13 – B
• 14 – C
• 15 – C
• 16 – B
• 17 – B
• 18 – C
• 19 – B
• 20 – B

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🎯 Evaluation Guide

• 16–20 correct → Excellent (Prelims-ready)
• 12–15 correct → Good, revise weak areas
• Below 12 → Revisit Pages 1–9

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“Mock tests reveal gaps before the exam does.”

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