Economy (UPSC)

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Economy (UPSC)

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Economy (UPSC) MCQ & Objective Questions

The "Economy (UPSC)" section is crucial for students preparing for various competitive exams in India. Understanding economic concepts not only helps in scoring better but also builds a solid foundation for future studies. Practicing MCQs and objective questions is an effective way to enhance your exam preparation, allowing you to tackle important questions with confidence.

What You Will Practise Here

Fundamentals of Indian Economy
Economic Planning and Policies
Fiscal and Monetary Policies
International Trade and Finance
Current Economic Issues and Trends
Economic Reforms and Liberalization
Key Economic Indicators and Their Significance

Exam Relevance

The "Economy (UPSC)" topic is frequently featured in CBSE, State Boards, and various competitive exams like NEET and JEE. Students can expect questions that assess their understanding of economic principles, current affairs, and application of theories. Common question patterns include multiple-choice questions that require analytical thinking and application of concepts learned.

Common Mistakes Students Make

Confusing terms like GDP and GNP, leading to incorrect answers.
Overlooking the impact of government policies on the economy.
Neglecting current economic events that are often linked to exam questions.
Misunderstanding the relationship between inflation and interest rates.

FAQs

Question: What are the best resources for practicing Economy (UPSC) MCQ questions?
Answer: Online platforms like SoulShift offer a variety of practice questions tailored for UPSC preparation.

Question: How can I improve my understanding of economic concepts for exams?
Answer: Regular practice of objective questions and reviewing key concepts can significantly enhance your grasp of the subject.

Start solving practice MCQs today to test your understanding and boost your confidence in tackling the Economy (UPSC) section in your exams. Remember, consistent practice is the key to success!

Agriculture Inclusive Growth Planning

Q. A city plans to reduce its unemployment rate from 8% to 4% in 4 years. What is the average annual reduction in unemployment rate?

A. 1%
B. 1.5%
C. 2%
D. 2.5%

Solution

The average annual reduction is (8% - 4%) / 4 = 1%.

Correct Answer: C — 2%

Q. A company plans to produce 5000 units of a product in 10 days. If they have produced 3000 units in the first 5 days, how many units do they need to produce in the next 5 days to meet their target?

A. 2000
B. 1500
C. 2500
D. 3000

Solution

They need to produce 5000 - 3000 = 2000 units in the next 5 days.

Correct Answer: A — 2000

Q. A construction project is planned to be completed in 60 days. If 3 workers are assigned and they complete 1/4 of the work in 15 days, how many more workers are needed to finish the project in time?

A. 3
B. 4
C. 2
D. 1

Solution

In 15 days, 3 workers complete 1/4 of the work. The remaining work is 3/4, which needs to be completed in 45 days. The total work is 3 * 15 = 45 worker-days. To finish 3/4 of the work (which is 45 worker-days), we need 45 / 45 = 1 worker. So, 3 more workers are needed.

Correct Answer: B — 4

Q. A country has a budget deficit of $50 billion and total government expenditure of $500 billion. What is the percentage of the budget deficit to total expenditure?

A. 5%
B. 10%
C. 15%
D. 20%

Solution

Percentage of budget deficit = (Budget Deficit / Total Expenditure) * 100 = ($50 billion / $500 billion) * 100 = 10%.

Correct Answer: B — 10%

Q. A country has a labor force of 50 million and an unemployment rate of 8%. How many people are unemployed?

A. 4 million
B. 3 million
C. 5 million
D. 6 million

Solution

Unemployed = Labor Force * Unemployment Rate = 50 million * 0.08 = 4 million.

Correct Answer: A — 4 million

Q. A country has a poverty rate of 25%. If the population is 50 million, how many people are living in poverty?

A. 10 million
B. 12.5 million
C. 15 million
D. 20 million

Solution

Number of people in poverty = 25% of 50 million = 0.25 * 50,000,000 = 12.5 million.

Correct Answer: B — 12.5 million

Q. A country’s total exports are $300 billion and total imports are $350 billion. What is the trade balance?

A. -$50 billion
B. $50 billion
C. $100 billion
D. $150 billion

Solution

Trade Balance = Exports - Imports = $300 billion - $350 billion = -$50 billion.

Correct Answer: A — -$50 billion

Q. A delivery truck can carry 200 kg of goods. If it makes 4 trips in a day, how much total weight can it deliver in a day?

A. 600 kg
B. 800 kg
C. 1000 kg
D. 1200 kg

Solution

In one trip, it can carry 200 kg. In 4 trips, it can deliver 200 * 4 = 800 kg.

Correct Answer: B — 800 kg

Q. A factory produces 1200 units of a product in 8 hours. How many units can it produce in 5 hours at the same rate?

A. 750
B. 600
C. 900
D. 800

Solution

The rate of production is 1200 units / 8 hours = 150 units/hour. In 5 hours, it can produce 150 * 5 = 750 units.

Correct Answer: D — 800

Q. A factory produces 300 units of a product in 2 hours. How many units can it produce in 10 hours?

A. 1200
B. 1500
C. 1800
D. 2000

Solution

The rate of production is 300 units / 2 hours = 150 units/hour. In 10 hours, it can produce 150 * 10 = 1500 units.

Correct Answer: C — 1800

Q. A farmer harvested 2400 kg of rice from 8 acres. What is the average yield per acre?

A. 250 kg
B. 300 kg
C. 350 kg
D. 400 kg

Solution

2400 kg / 8 acres = 300 kg per acre

Correct Answer: B — 300 kg

Q. A farmer has 120 acres of land. If he plants corn on 3/5 of his land, how many acres does he plant corn on?

A. 60 acres
B. 72 acres
C. 48 acres
D. 90 acres

Solution

120 acres * (3/5) = 72 acres

Correct Answer: B — 72 acres

Q. A farmer wants to increase his crop yield by 25%. If his current yield is 800 kg, what will be his target yield?

A. 900 kg
B. 1000 kg
C. 1100 kg
D. 1200 kg

Solution

800 kg * 1.25 = 1000 kg

Correct Answer: B — 1000 kg

Q. A field has a length of 200 meters and a width of 150 meters. What is the area of the field in square meters?

A. 25000 m²
B. 30000 m²
C. 35000 m²
D. 40000 m²

Solution

200 m * 150 m = 30000 m²

Correct Answer: B — 30000 m²

Q. A gardener can plant 100 trees in 5 hours. How many trees can he plant in 3 hours?

A. 50
B. 60
C. 70
D. 80

Solution

The rate is 100 trees / 5 hours = 20 trees/hour. In 3 hours, he can plant 20 * 3 = 60 trees.

Correct Answer: A — 50

Q. A government allocates $1 billion for inclusive growth initiatives. If 40% is spent on education, how much is allocated to education?

A. $300 million
B. $400 million
C. $500 million
D. $600 million

Solution

Amount allocated to education = 40% of $1 billion = 0.40 * 1,000,000,000 = $400 million.

Correct Answer: B — $400 million

Q. A government increases its spending by $100 million, which leads to an increase in GDP by $400 million. What is the multiplier effect?

A. 2
B. 3
C. 4
D. 5

Solution

Multiplier = Change in GDP / Change in Spending = $400 million / $100 million = 4.

Correct Answer: C — 4

Q. A government program aims to increase the literacy rate from 70% to 85% over 10 years. What is the required annual increase in literacy rate?

A. 1.5%
B. 1.6%
C. 1.7%
D. 1.8%

Solution

The required increase is (85% - 70%) / 10 = 1.5% per year.

Correct Answer: B — 1.6%

Q. A rural development program costs $500,000 and is expected to benefit 10,000 families. What is the cost per family?

A. $40
B. $50
C. $60
D. $70

Solution

The cost per family is $500,000 / 10,000 = $50.

Correct Answer: B — $50

Q. A team of 5 people can complete a task in 15 days. How many days will it take for 10 people to complete the same task?

A. 7.5
B. 10
C. 12
D. 15

Solution

The total work is 5 * 15 = 75 person-days. With 10 people, it will take 75 / 10 = 7.5 days.

Correct Answer: A — 7.5

Q. A tractor can plow a field in 4 hours. How many fields can it plow in 12 hours?

A. 2 fields
B. 3 fields
C. 4 fields
D. 5 fields

Solution

12 hours / 4 hours per field = 3 fields

Correct Answer: C — 4 fields

Q. If a community's average household income is $60,000 and the goal is to increase it by 20% over 5 years, what will be the target average income?

A. $66,000
B. $70,000
C. $72,000
D. $75,000

Solution

Target income = $60,000 * 1.20 = $72,000.

Correct Answer: C — $72,000

Q. If a country has a GDP of $1 trillion and aims for a 6% growth rate, what will be its GDP after one year?

A. $1.06 trillion
B. $1.1 trillion
C. $1.12 trillion
D. $1.15 trillion

Solution

The GDP after one year will be $1 trillion * 1.06 = $1.06 trillion.

Correct Answer: A — $1.06 trillion

Q. If a farmer has 300 chickens and 20% of them are laying eggs, how many chickens are laying eggs?

A. 50
B. 60
C. 70
D. 80

Solution

300 * 0.20 = 60 chickens

Correct Answer: B — 60

Q. If a farmer needs 15 liters of water for 1 kg of crop, how much water is needed for 200 kg of crop?

A. 250 liters
B. 300 liters
C. 350 liters
D. 400 liters

Solution

15 liters * 200 kg = 3000 liters

Correct Answer: D — 400 liters

Q. If a farmer produces 1500 kg of wheat from 5 acres of land, what is the yield per acre?

A. 250 kg
B. 300 kg
C. 350 kg
D. 400 kg

Solution

1500 kg / 5 acres = 300 kg per acre

Correct Answer: B — 300 kg

Q. If a farmer sells 200 kg of apples for $800, what is the price per kg?

A. $2
B. $3
C. $4
D. $5

Solution

$800 / 200 kg = $4 per kg

Correct Answer: C — $4

Q. If a farmer uses 50 kg of fertilizer for every 1000 kg of crop, how much fertilizer is needed for 5000 kg of crop?

A. 200 kg
B. 250 kg
C. 300 kg
D. 350 kg

Solution

50 kg * (5000 kg / 1000 kg) = 250 kg

Correct Answer: B — 250 kg

Q. If a government collects $200 billion in taxes and spends $250 billion, what is the budget deficit?

A. $50 billion
B. $100 billion
C. $150 billion
D. $200 billion

Solution

Budget Deficit = Government Spending - Tax Revenue = $250 billion - $200 billion = $50 billion.

Correct Answer: A — $50 billion

Q. If a product's price increases from $20 to $25, what is the percentage increase in price?

A. 20%
B. 25%
C. 30%
D. 35%

Solution

Percentage Increase = ((New Price - Old Price) / Old Price) * 100 = (($25 - $20) / $20) * 100 = 25%.

Correct Answer: B — 25%

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