RPSC 2018 — Economy Questions with Answers
All 11 Economy previous-year questions from RPSC 2018, 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.Infrastructure
In India, the largest share of total installed power generation capacity is contributed by which source?
- a)Hydro-electric power
- b)Thermal power
- c)Nuclear power
- d)Renewable energy
Explanation: Thermal power (primarily coal-based) has historically contributed and continues to account for the highest share of both installed capacity and actual electricity generation in India.
- Q2.Human Development
Which of the following parameters is NOT used to calculate the Human Development Index (HDI) by UNDP?
- a)Infant Mortality Rate
- b)Life Expectancy at Birth
- c)Mean Years of Schooling
- d)Gross National Income per Capita
Explanation: The HDI tracks three core dimensions: long & healthy life (life expectancy), knowledge (mean & expected years of schooling), and decent standard of living (GNI per capita). Infant Mortality Rate is not a direct calculation indicator.
- Q3.Monetary Policy
When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what does it mean?
- a)Aurobindo Ghosh
- b)Bipin Chandra Pal
- c)Lala Lajpat Rai
- d)Motilal Nehru
Explanation: An increase in the Cash Reserve Ratio requires commercial banks to keep a larger fraction of deposits with the RBI, reducing the funds available with them for lending.
- Q4.Money and Banking
Which one of the following statements correctly describes the meaning of legal tender money?
- a)Angola and Zambia
- b)Morocco and Tunisia
- c)Venezuela and Colombia
- d)Yemen and South Sudan
Explanation: Legal tender money is currency that cannot be legally refused by a creditor when offered in settlement of a debt; in India, banknotes and coins issued under the RBI Act are legal tender.
- Q5.Government Initiatives
Consider the following statements about the 'Atal Innovation Mission': 1. It is set up under the NITI Aayog. 2. It aims to promote a culture of innovation and entrepreneurship.
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Explanation: Both statements are correct: the Atal Innovation Mission operates under NITI Aayog and works to foster innovation and entrepreneurship through Atal Tinkering Labs and Atal Incubation Centres.
- Q6.Money & Banking
Consider the following statements: 1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. 2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments. 3. Treasury bills offer are issued at a discount from the par value. Which of the statements given above is/are correct?
- a)1 and 2 only
- b)3 only
- c)2 and 3 only
- d)1, 2 and 3
- Q7.Energy
With reference to solar power production in India, consider the following statements: 1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units. 2. The solar power tariffs are determined by the Solar Energy Corporation of India. 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
- Q8.Agriculture
Consider the following: 1. Areca nut 2. Barley 3. Coffee 4. Finger millet 5. Groundnut 6. Sesamum 7. Turmeric The Cabinet Committee on Economic Affairs has announced the Minimum Support Price for which of the above?
- a)1, 2, 3 and 7 only
- b)2, 4, 5 and 6 only
- c)1, 3, 4, 5 and 6 only
- d)1, 2, 3, 4, 5, 6 and 7
- Q9.Banking
With reference to the governance of public sector banking in India, consider the following statements: 1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade. 2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected. 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
- Q10.Taxation
Consider the following items: 1. Cereal grains hulled 2. Chicken eggs cooked 3. Fish processed and canned 4. Newspapers containing advertising material Which of the above items is/are exempted under GST (Goods and Services Tax)?
- a)1 only
- b)2 and 3 only
- c)1, 2 and 4 only
- d)1, 2, 3 and 4
- Q11.Agriculture
With reference to organic farming in India, consider the following statements: 1. 'The National Programme for Organic Production' (NPOP) is operated under the guidelines and directions of the Union Ministry of Rural Development. 2. 'The Agricultural and Processed Food Products Export Development Authority' (APEDA) functions as the Secretariat for the implementation of NPOP. 3. Sikkim has become India's first fully organic State. Which of the statements given above is/are correct?
- a)1 and 2 only
- b)2 and 3 only
- c)3 only
- d)1, 2 and 3
RPSC 2018 — other subjects
Ready to test yourself on RPSC 2018?
Start the timed mock free →