“HELLO” to ECONOMIC SURVEY

Dear Subcribers, GET Ready to Test Yourself

As per our commitment, we bring you MCQ’s from Part 1 of the SURVEY
Note: This is a deliberate attempt to sensitize you regarding your LEVEL OF PREPRATION.

Q1. Consider the following statements regarding Global Value Chains (GVCs) operated by
multi-national corporations.
1. Different stages of the production process are located across different countries.
2. The whole process, from raw materials to finished products carried out wherever
the necessary skills and materials are available at competitive cost and quality.
Which of the statements given above is/are correct?
A) 1 only
B) 2 only
C) Both 1 and 2
D) Neither 1 nor 2

Q2. Comprehensive Economic Partnership Agreement (CEPA) is an integrated trade package

between two nations comprising of:

1. Goods only.
2. Services and investment only.
3. Range of other areas including IPR, competition only.
4. Defense Procurement only

Chose the correct answer:

A) 1 and 2 only
B) 2 and 3 only
C) 1,2 and 3 only
D) 1,2,3 and 4 only

Q3. The Economic Survey examines the reasons for India’s under-performance in exports vis-à-
vis China.

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 1. China- India gap in world market share is almost fully driven by the effect of
manual labour.
2. India’s participation in GVCs has been low compared to the major exporting
nations in East and Southeast Asia.
Which of the statements given above is/are correct?
A) 1 only
B) 2 only
C) Both 1 and 2
D) Neither 1 nor 2

Q4. Consider the following statements about National Pharmaceutical Pricing Authority
(NPPA):

1. It is a statutory body under Ministry of Chemicals & Fertilizers

2. It is an independent Regulator for pricing of drugs which ensures
availability and accessibility of medicines at affordable prices.

Which of the statements given above is/are not correct?

A) 1 only
B) 2 only
C) 1 and 2 only
D) None of the above.

Q5. Consider the following statements regarding current ‘State of Indian Economy’

1. It constitutes high portion of formal sector employment

2. Agriculture contributes disproportionately to India’s employment
3. Services sector contributes disproportionately to GDP.

Which of the statements given above is/are correct?

A) 1and 2 only
B) 2 and 3 only
C) 1,2 and 3
D) None of the above

Q6. Consider the following statements about Informal Sector in India

1. It refers to companies that are engaged in legitimate business activities but don't
fully comply with tax, labor market obligations, or product market regulations.
2. Less than half of all employed persons in India make a living by working in the
informal sector.
3. NITI Aayog is mandated to measure the contribution of informal sector towards
growth of economy.
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 Which of the statements given above is/are correct?
A) 1 only
B) 2 only
C) Both 2 and 3
D) All of the above

Q7. The term ‘Coal Rents’ represents

A) Measure of natural resource contribution to GDP

B) Total income received by state by way of auction of coal mines.
C) Lump sum cost of imported coal brought into the country.
D) Profit earned by private companies through sale ‘Captive Coal Mines’

Q8. Consider the following statements with respect to Thalinomics: – an attempt to quantify
what a common person pays for a Thali across India.

1. Thalis were constructed using average monthly price data from Consumer Price Index
2. Thalis were constructed using dietary guidelines for Indians issued by (National Institute
of Nutrition)NIN,

Which of the statements given above is/are correct?

A) 1 only
B) 2 only
C) Both 1 and 2
D) None of the above

Q9. Consider the following statements about ‘Liquid Debt Mutual Funds’

1. They are an important segment of shadow banking system in India.

2. They predominantly invest in market instruments with long term maturities.

Which of the statements given above is/are correct?

A) 1 only
B) 2 only
C) Both 1 and 2
D) None of the above

Q10. Consider the following statements with respect to Strategic Disinvestment in India:

1. It implies sale of upto 50%, or less of the Government shareholding of a central public
sector enterprises (CPSE) along with transfer of management control
2. Unlike regular disinvestment, strategic disinvestment implies some sort of privatization.
3. NITI Aayog has been mandated to identify PSUs for strategic disinvestment.

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Which of the statements given above is/are correct?
A) 1and 2 only
B) 2 and 3 only
C) 1,2 and 3
D) None of the above

Q11. Consider the following statements regarding Priority Sector Lending Certificates (PSLCs)

1. It enable banks to achieve the priority sector lending target and sub-targets by purchase of
these instruments in the event of shortfall.
2. The buyer bank pays a fee to the seller of the PSLC which will be market determined,
thereby, incentivizing surplus banks to sell their excess achievement over targets.
Which of the statements given above is/are not correct?
A) 1 only
B) 2 only
C) Both 1 and 2
D) None of the above
Q12. Consider the following statements about PM Shram Yogi Mandhan Yojana:

1. It’s a scheme by central Government to provide labourers in informal sector a

form of social security.
2. It is administered by the Ministry of Labour and Employment
3. It functions on a 75:25 basis where prescribed age-specific contribution shall be
made by the beneficiary and the remaminingcontribution by the Central
Government.
Which of the statements given above is/are correct?
A) 1and 2 only
B) 2 and 3 only
C) 1,2 and 3
D) None of the above

Q13. Consider the following statements regarding Standing Committee on Economic Statistics
(SCES).
1. It will review and develop the country’s surveys on employment, industry and services
sector amid criticism of official statistics.
2. Ministry of Finance has set up this committee develop methodologies for surveys on
industry, services and employment in place of multiple panels on these issues.
Which of the statements given above is/are correct?
A) 1 only
B) 2 only

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 C) Both 1and 2
D) None of the above

Q14. Consider the following statements about Exchange traded funds (ETFs):

1. For the government, ETF route will help reaching disinvestment targets related to Central
Public Sector Enterprises(CPSE’s)
2. While a mutual fund is managed by a financial company/fund manager, ETF can be
managed by the investor/buyer on his own.

Which of the statements given above is/are not correct?

A) 1 only
B) 2 only
C) Both 1 and 2
D) None of the above
Q15. The term “INVISIBLE HAND” often used with respect to market economy indicates:

A) Role of the government is to influence market by way of subsidies

B) Role of the government is to guide economy by making laws.
C) Role of the government is to refrain from doing any intervention.
D) Role of the government is to ensure fair competition in the market.

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