25 Economy questions from the official UPSC 2017 Prelims paper, each with the verified answer key and an explanation.
1–25 of 25
Q1·Economy·2017·Public Finance and Budgeting
Consider the following statements: 1. Tax revenue as a percent of GDP of India has steadily increased in the last decade. 2. Fiscal deficit as a percent of GDP of India has steadily increased in the last decade. Which of the statements given above is/are correct?
Correct: D
Neither tax revenue as a percentage of GDP nor fiscal deficit as a percentage of GDP steadily increased throughout the relevant decade; both fluctuated.
Q2·Economy·2017·Growth, Planning and Inclusive Development
What is the aim of the programme 'Unnat Bharat Abhiyan'?
Correct: B
Unnat Bharat Abhiyan connects higher education institutions with local communities/villages to address development challenges using appropriate technologies.
Q3·Economy·2017·Money, Banking and Financial Markets
What is the purpose of 'Vidyanjali Yojana'? 1. To enable the famous foreign educational institutions to open their campuses in India. 2. To increase the quality of education provided in government schools by taking help from the private sector and the community. 3. To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools. Select the correct answer using the code given below:
Correct: A
Vidyanjali aimed to improve quality of education in government schools by involving volunteers/private sector/community support, not by allowing foreign campuses or collecting monetary donations for infrastructure.
Q4·Economy·2017·External Sector and International Economy
What is the importance of developing Chabahar Port by India?
Correct: C
Chabahar Port gives India a route to Afghanistan and Central Asia bypassing Pakistan.
Q5·Economy·2017·Planning, Industry and Inclusive Growth
'Broad-based Trade and Investment Agreement (BTIA)' is sometimes seen in the news in the context of negotiations held between India and
Correct: A
BTIA refers to the proposed India-European Union Broad-based Trade and Investment Agreement.
Q6·Economy·2017·Planning, Industry and Inclusive Growth
What is/are the most likely advantages of implementing Goods and Services Tax (GST)? 1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 2. It will drastically reduce the Current Account Deficit of India and will enable it to increase its foreign exchange reserves. 3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below:
Correct: A
GST replaces multiple indirect taxes levied by different authorities and helps create a common national market. The claims about drastically reducing CAD or overtaking China are exaggerated and not necessary consequences.
Q7·Economy·2017·External Sector and International Economy
Which of the following has/have occurred in India after its liberalization of economic policies in 1991? 1. Share of agriculture in GDP increased enormously. 2. Share of India's exports in world trade increased. 3. FDI inflows increased. 4. India's foreign exchange reserves increased enormously. Select the correct answer using the codes given below:
Correct: B
After 1991, India's share in world exports, FDI inflows and foreign exchange reserves increased. Agriculture's share in GDP did not increase enormously; it declined in relative terms.
Q8·Economy·2017·Money, Banking and Financial Markets
Consider the following statements: The nation-wide 'Soil Health Card Scheme' aims at 1. expanding the cultivable area under irrigation. 2. enabling the banks to assess the quantum of loans to be granted to farmers on the basis of soil quality. 3. checking the overuse of fertilizers in farmlands. Which of the above statements is/are correct?
Correct: B
Soil Health Card Scheme gives soil nutrient status and recommendations to avoid imbalanced/overuse of fertilizers. It is not for expanding irrigation or bank loan assessment.
Q9·Economy·2017·Public Finance and Banking
Which of the following statements best describes the term 'Scheme for Sustainable Structuring of Stressed Assets (S4A)', recently seen in the news?
Correct: B
S4A was an RBI scheme for restructuring the debt/financial structure of large stressed corporate borrowers facing genuine difficulties.
Q10·Economy·2017·Growth, Planning and Inclusive Development
Consider the following in respect of 'National Career Service': 1. National Career Service is an initiative of the Department of Personnel and Training, Government of India. 2. National Career Service has been launched in a Mission Mode to improve the employment opportunities to uneducated youth of the country. Which of the above statements is/are correct?
Correct: D
National Career Service is under the Ministry of Labour and Employment, not DoPT. It serves job seekers and employers broadly, including educated youth, not only uneducated youth. Both statements are incorrect.
Q11·Economy·2017·Growth, Planning and Inclusive Development
With reference to 'National Skills Qualification Framework (NSQF)', which of the statements given below is/are correct? 1. Under NSQF, a learner can acquire the certification for competency only through formal learning. 2. An outcome expected from the implementation of NSQF is the mobility between vocational and general education. Select the correct answer using the code given below:
Correct: B
NSQF recognizes competencies acquired through formal, non-formal or informal learning, so statement 1 is wrong. It is intended to enable mobility between vocational and general education.
Q12·Economy·2017·Growth, Planning and Inclusive Development
With reference to the role of UN-Habitat in the United Nations programme working towards a better urban future, which of the statements is/are correct? 1. UN-Habitat has been mandated by the United Nations General Assembly to promote socially and environmentally sustainable towns and cities to provide adequate shelter for all. 2. Its partners are either governments or local urban authorities only. 3. UN-Habitat contributes to the overall objective of the United Nations system to reduce poverty and to promote access to safe drinking water and basic sanitation. Select the correct answer using the code below:
Correct: B
UN-Habitat is mandated to promote socially and environmentally sustainable towns/cities and adequate shelter, and contributes to poverty reduction and access to basic services. Its partners include more than only governments/local authorities.
Q13·Economy·2017·Planning, Industry and Inclusive Growth
The Global Infrastructure Facility is a/an
Correct: B
The Global Infrastructure Facility is a World Bank Group platform that helps prepare and structure complex infrastructure PPPs to attract private and institutional capital.
Q14·Economy·2017·Planning, Industry and Inclusive Growth
With reference to 'National Investment and Infrastructure Fund', which of the following statements is/are correct? 1. It is an organ of NITI Aayog. 2. It has a corpus of Rs. 4,00,000 crore at present. Select the correct answer using the code given below:
Correct: D
NIIF is not an organ of NITI Aayog, and its initial corpus was not Rs. 4,00,000 crore. Both statements are incorrect.
Q15·Economy·2017·External Sector and International Economy
Which one of the following was a very important seaport in the Kakatiya kingdom?
Correct: B
Motupalli was an important seaport of the Kakatiya kingdom, known from inscriptions and medieval trade history.
Q16·Economy·2017·External Sector and International Economy
In the context of India, which one of the following is the correct relationship between Rights and Duties?
Correct: A
Rights and duties are correlative: enjoyment of rights is linked with duties toward others, society and the constitutional order.
Q17·Economy·2017·Public Finance and Banking
The terms 'Event Horizon', 'Singularity', 'String Theory' and 'Standard Model' are sometimes seen in the news in the context of
Correct: A
Event horizon, singularity, string theory and the Standard Model are concepts used in physics/cosmology for understanding the universe, black holes and fundamental particles.
Q18·Economy·2017·Money, Banking and Financial Markets
Which of the following is a most likely consequence of implementing the Unified Payments Interface (UPI)?
Correct: A
UPI enables direct bank-account-to-bank-account digital payments through mobile apps, reducing dependence on separate prepaid mobile wallets for online payments.
Q19·Economy·2017·Money, Banking and Financial Markets
What is the purpose of setting up of Small Finance Banks (SFBs) in India? 1. To supply credit to small business units 2. To supply credit to small and marginal farmers 3. To encourage young entrepreneurs to set up business particularly in rural areas. Select the correct answer using the code given below:
Correct: A
Small Finance Banks are meant to provide savings and credit services to underserved groups including small business units and small/marginal farmers. Encouraging young entrepreneurs is not the specific statutory purpose in this option set.
Q20·Economy·2017·Agriculture Markets
What is/are the advantage/advantages of implementing the National Agriculture Market scheme? 1. It is a pan-India electronic trading portal for agricultural commodities. 2. It provides the farmers access to a nationwide market, with prices commensurate with the quality of their produce. Select the correct answer using the code given below:
Correct: C
National Agriculture Market/e-NAM is a pan-India electronic trading portal that helps farmers access wider markets and better price discovery linked to produce quality.
Q21·Economy·2017·External Sector and International Economy
The term 'Domestic Content Requirement' is sometimes seen in the news with reference to
Correct: A
Domestic Content Requirement was in the news mainly in relation to India's solar power programme and requirements to use domestically manufactured solar cells/modules.
Q22·Economy·2017·External Sector and International Economy
The term 'Digital Single Market Strategy' seen in the news refers to
Correct: C
Digital Single Market Strategy is an initiative of the European Union.
Q23·Economy·2017·Public Finance and Banking
The Trade Disputes Act of 1929 provided for
Correct: D
The Trade Disputes Act, 1929 provided machinery such as tribunals/courts for industrial disputes and imposed restrictions/bans on certain strikes.
Q24·Economy·2017·Public Finance and Banking
Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? 1. It decides the RBI's benchmark interest rates. 2. It is a 12-member body including the Governor of RBI and is reconstituted every year. 3. It functions under the chairmanship of the Union Finance Minister. Select the correct answer using the code given below:
Correct: A
The Monetary Policy Committee decides the policy/benchmark interest rate. It has six members, not twelve, and is chaired by the RBI Governor, not the Union Finance Minister.
Q25·Economy·2017·Growth, Planning and Inclusive Development
'Recognition of Prior Learning Scheme' is sometimes mentioned in the news with reference to
Correct: A
Recognition of Prior Learning under skill-development initiatives certifies skills already acquired informally or through traditional work channels, such as construction workers' skills.