Indian Economy — UPSC Prelims practice questions

Question 1

The PM Surya Ghar Muft Bijli Yojana aims to:
1. Install rooftop solar panels on residential households.
2. Provide free electricity of up to 300 units per month to eligible households.
3. Create skilled manpower for the solar energy sector.
Which of the statements given above are correct? (A) 1 and 2 only (B) 2 and 3 only (C) 1 and 3 only (D) 1, 2 and 3

Accepted Answer

(D) 1, 2 and 3 — Correct. The scheme targets rooftop solar installation, provision of free electricity up to 300 units per month, and skilling and upskilling for the solar sector.

Question 2

Consider the following statements about SEBI:
1. SEBI was established by an Act of Parliament.
2. SEBI has the power to regulate mutual funds and collective investment schemes.
3. SEBI can impose penalties for insider trading.
Which of the statements given above are correct? (A) 1 and 2 only (B) 2 and 3 only (C) 1 and 3 only (D) 1, 2 and 3

Accepted Answer

(D) 1, 2 and 3 — Correct. SEBI was established by the SEBI Act 1992, regulates mutual funds and collective investment schemes, and can penalize insider trading.

Question 3

Which organization is responsible for the compilation of National Income in India? (A) Reserve Bank of India (B) National Statistical Office (NSO) (C) NITI Aayog (D) Ministry of Finance

Accepted Answer

(B) National Statistical Office (NSO) — Correct. The National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation, is responsible for compiling India's national income estimates. NSO was formed by merging the Central Statistical Office (CSO) and the National Sample Survey Office (NSSO).

Question 4

Consider the following statements about the GST Council:
1. It is chaired by the Union Finance Minister.
2. States have two-thirds of the total voting weightage in the Council.
3. Decisions require a three-fourths majority of weighted votes.
Which of the statements given above are correct? (A) 1 and 2 only (B) 1 and 3 only (C) 2 and 3 only (D) 1, 2 and 3

Accepted Answer

(D) 1, 2 and 3 — Correct. The GST Council is chaired by the Union Finance Minister, states collectively hold two-thirds of the weighted votes while the Centre has one-third, and decisions require a three-fourths supermajority.

Question 5

A rise in Sensex indicates: (A) An overall rise in the prices of the basket of BSE-listed companies represented by the index (B) That every company listed on BSE has risen in price (C) That all NSE-listed shares have risen (D) That all shares in India have risen

Accepted Answer

(A) An overall rise in the prices of the basket of BSE-listed companies represented by the index — Correct. An index rise reflects aggregate price movement of its constituent shares, not every listed share.

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