BPSC 2023 — Economy Questions with Answers
All 34 Economy previous-year questions from BPSC 2023, each with the correct answer and a full explanation. Practise them as a free, timed mock test with instant scoring.
Practice Economy as a timed test →- Q1.International Reports
Answer the following: Describe the parameters and impacts of the Global Wage Report, 2022-23.
- Q2.Trade Policy
Answer the following: What are the basic provisions of the Foreign Trade Policy, 2023 regarding export promotion initiatives in India?
- Q3.Development Theory
Explain 'trickle-down' theory of economics, its major elements, benefits, limitations and criticisms in context to Indian planning.
- Q4.Government Schemes
Which of the following Union Ministries recently launched the Yuva 2.0 scheme in 2022?
- a)Ministry of Health and Family Welfare
- b)Ministry of Education
- c)Ministry of AYUSH
- d)More than one of the above
- Q5.Infrastructure
At which of the following places did the Prime Minister inaugurate the first Greenfield airport 'Donyi Polo Airport'?
- a)Dholka
- b)Itanagar
- c)Dibrugarh
- d)More than one of the above
- Q6.Banking and Finance
India's first floating financial literacy camp was recently organized by India Post Payments Bank at which of the following places?
- a)Srinagar
- b)Andaman Islands
- c)Kerala
- d)More than one of the above
- Q7.Standards and Quality
For the first time in India, the embassy of which country applied for a GI tag for 'Nihonshu'?
- a)China
- b)Japan
- c)South Korea
- d)More than one of the above
- e)None of the above
- Q8.Indices and Reports
According to the economic survey of 2019-2020, which district has the lowest per capita income?
- a)Sheohar
- b)Araria
- c)Sitamarhi
- d)More than one of the above
- e)None of the above
- Q9.Indices and Reports
According to the NITI Aayog SDG Report for the year 2020-2021, what was the score of Bihar state?
- a)22 out of 100
- b)35 out of 100
- c)52 out of 100
- d)More than one of the above
- e)None of the above
- Q10.Industry
Which of the following statements about the sugar industry in India is correct?
- a)It is a weight-losing industry.
- b)Maharashtra has emerged as a leading sugar producer in the country.
- c)Uttar Pradesh is the second largest producer of sugar.
- d)More than one of the above
- e)None of the above
- Q11.Industry
In which district is the industry with the highest tax contribution located?
- a)Darbhanga
- b)Purnia
- c)Kishanganj
- d)More than one of the above
- e)None of the above
- Q12.Industry
What are the objectives of the SEZ Act, 2005? 1. Production of additional economic activities 2. Promotion of export of goods and services 3. Employment generation
- a)1, 2 and 3
- b)Only 2 and 3
- c)Only 1 and 3
- d)More than one of the above
- e)None of the above
- Q13.Agriculture
What policy measure has been adopted by the Government of India to improve the agricultural marketing system?
- a)Minimum Support Price (MSP)
- b)Maintenance of buffer stock
- c)Public Distribution System (PDS)
- d)More than one of the above
- e)None of the above
- Q14.Government Schemes
Which committee suggested enacting the Competition Act, 2002?
- a)Rangarajan Committee
- b)S. V. S. Raghavan Committee
- c)Vijay Kelkar Committee
- d)More than one of the above
- e)None of the above
- Q15.Agriculture
Match List-I with List-II: List-I: a. Grey Revolution b. Pink Revolution c. Silver Revolution d. Red Revolution List-II: 1. Onion production 2. Tomato and meat production 3. Egg production 4. Fertilizer (Fertilizer)
- a)a-4, b-1, c-3, d-2
- b)a-3, b-1, c-4, d-2
- c)a-1, b-4, c-2, d-3
- d)More than one of the above
- e)None of the above
- Q16.Government Schemes
Which of the following Five Year Plans focused on human resource development?
- a)First
- b)Third
- c)Fifth
- d)More than one of the above
- e)None of the above
- Q17.External Sector
Which of the following states in India received the highest Foreign Direct Investment (FDI) as equity during April to September 2022?
- a)Karnataka
- b)Tripura
- c)Gujarat
- d)More than one of the above
- e)None of the above
- Q18.Monetary Policy
In which budget did the Finance Minister announce the Liberalized Exchange Rate Management System (LERMS)?
- a)Union Budget, 1991-1992
- b)Union Budget, 1992-1993
- c)Union Budget, 1993-1994
- d)More than one of the above
- e)None of the above
- Q19.Government Schemes
Which of the following were the objectives of the Five Year Plans? 1. Development 2. Modernization 3. Self-reliance 4. Literature
- a)Only 1, 3 and 4
- b)Only 2, 3 and 4
- c)Only 1, 2 and 4
- d)More than one of the above
- e)None of the above
- Q20.Indices and Reports
Which organization conducts the survey to determine the poverty line?
- a)N.S.S.O.
- b)NITI Aayog
- c)R.B.I.
- d)More than one of the above
- e)None of the above
- Q21.International Trade
India's trade balance (goods and services) for December 2022 (provisional) is:
- a)(-) 10.50 billion US dollars
- b)(+) 11.98 billion US dollars
- c)(-) 11.98 billion US dollars
- d)More than one of the above
- e)None of the above
- Q22.Currencies
Which among the following currencies is the costliest?
- a)Euro
- b)Pound Sterling
- c)US Dollar
- d)None of the above
- Q23.External Sector
The Foreign Exchange Reserves (FER) of RBI include which of the following? 1. Foreign Currency Assets (FCA) 2. Gold 3. Special Drawing Rights (SDR) 4. Reserve Tranche Position. Select the correct answer using the codes given below.
- a)Only 1 and 2
- b)Only 2, 3 and 4
- c)Only 1, 2 and 3
- d)All of the above
- Q24.International Trade
Consider the following statements about 'Rules of Origin': 1. Rules of Origin are the criteria needed to determine the national source of a product. 2. Rules of Origin help the custom agencies to know what regulations and fees apply to a given product. 3. These are used for the purpose of trade statistics. 4. Their importance is derived from the fact that duties and restrictions in several cases depend upon the sources of imports. Which of the above statements are correct?
- a)Only 1 and 2
- b)Only 3 and 4
- c)Only 1, 3 and 4
- d)All of the above
- Q25.Demography
Consider the following statements about infant mortality rate: 1. It is the probability of dying between birth and exactly 1 year of age, expressed per 10000 live births. 2. The infant mortality rate in the year 1950 was 189.6. 3. In the year 2019, the infant mortality rate was 30. 4. As per the Sample Registration System (SRS) Bulletin of Registrar General of India (RGI), the State with the highest infant mortality rate in the year 2019 was Uttar Pradesh. Which of the above statements are correct?
- a)1, 2 and 3
- b)2, 3 and 4
- c)Only 2 and 3
- d)1 and 4
- Q26.Macroeconomics
Human capital formation as a concept is better explained in terms of a process, which enables 1. individuals of a country to accumulate more capital 2. increasing the knowledge 3. increasing the skill levels 4. increasing the knowledge, skill levels and capacities of the people of the country. Select the correct answer using the codes given below.
- a)Only 1
- b)1 and 2
- c)3 and 4
- d)Only 4
- Q27.Banking & Finance
Consider the following statements regarding insolvency and bankruptcy: 1. Bankruptcy refers to a financial state in which an individual or entity is unable to pay off their debts as they become due. 2. Insolvency refers to a legal process, where the assets of the debtor are liquidated or reorganized for the benefit of creditors. 3. Bankruptcy is a state whereas insolvency is the conclusion. 4. The Insolvency and Bankruptcy Board of India (IBBI) is the regulatory body responsible for overseeing insolvency and bankruptcy proceedings. Which of the above statements is/are correct?
- a)1, 2 and 3
- b)2, 3 and 4
- c)Only 4
- d)Only 1 and 2
- Q28.Industrial Policy
In which year was the Industrial Policy Resolution adopted?
- a)1956
- b)1954
- c)1952
- d)1950
- Q29.Government Schemes
Consider the following statements about the Production-Linked Incentive (PLI) scheme: 1. The scheme offers a production-linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components. 2. The scheme has two categories of applicants, namely, global companies and domestic companies. 3. The scheme shall extend an average incentive of around 8% on net incremental sales (over base year) of goods manufactured in India and covered under the target segment, to eligible companies, for a period of six years. 4. The target segment under PLI shall include (i) laptops, (ii) tablets, (iii) all-in-one PCs, (iv) servers and (v) Ultra-Small Form Factor (USFF). Which of the above statements are incorrect?
- a)1 and 4
- b)2 and 4
- c)1 and 3
- d)2 and 3
- Q30.Macroeconomics
Which of the following factors could potentially contribute to stagflation in the Indian economy? 1. High inflationary pressures due to increased Government spending. 2. Decline in industrial production and sluggish economic growth. 3. Decrease in aggregate demand and consumer spending. 4. Appreciation of the domestic currency leading to reduction of export competitiveness. Select the correct answer using the codes given below.
- a)Only 1 and 2
- b)Only 2 and 3
- c)Only 1, 3 and 4
- d)1, 2, 3 and 4
- Q31.Foreign Investment
As per the Economic Survey, 2023, which of the following statements describe(s) the trend of Foreign Direct Investment in India? 1. It has decreased due to the less participation of the private sector. 2. It has increased compared to the prepandemic levels. 3. It has increased rapidly without decreasing in any Financial Year after the telecom sector was entirely reformed. 4. It has decreased due to a weak global economic situation. Select the correct answer using the codes given below.
- a)Only 1 and 3
- b)2 and 4
- c)1, 2 and 3
- d)Only 4
- Q32.Public Finance
Which of the following statements about non-plan expenditures of the Central Government is correct?
- a)The expenditure is on interest payments.
- b)The expenditure is on science and technology.
- c)The expenditure is on agriculture.
- d)None of the above
- Q33.Globalization
Which of the following is not true about globalization and its impact on India?
- a)It has expanded trade in goods and services.
- b)It has led to greater flow of Foreign Direct Investment.
- c)Increase in exports is greater than increase in imports.
- d)None of the above
- Q34.Public Finance
Consider the following statements about the latest developments in the Union Government finances: 1. The fiscal deficit of the Union Government had reached 9.2 percent of GDP during the pandemic FY21. 2. The fiscal deficit has moderated to 7.7 percent of GDP in FY22. 3. The revenue collection over the last two years has gone down. Which of the above statements is/are correct?
- a)Only 1
- b)1 and 2
- c)2 and 3
- d)None of the above
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Economy — other years
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