Economy & Business MCQs

11.

A credible fiscal consolidation path primarily instills confidence among which group?

A Only domestic consumers

B Only small and medium enterprises

C Domestic and international investors

D Only government employees

12.

Increased public investment in infrastructure is expected to create which of the following effects?

A A negative multiplier effect

B A crowding out effect on private investment

C A multiplier effect, stimulating demand and employment

D Increased inflation without corresponding growth

13.

Robust revenue collections, particularly from which source, are providing the necessary fiscal space for government investments?

A Income Tax

B Corporate Tax

C Goods and Services Tax (GST)

D Customs Duty

14.

What is the projected fiscal deficit target for India by FY26, as mentioned in the current context?

A Below 3% of GDP

B Towards 4.5% of GDP

C Around 5.5% of GDP

D Above 6% of GDP

15.

What has been a key strategy within the government's fiscal consolidation roadmap to drive economic growth?

A Reducing capital expenditure to control spending

B Sustained increase in capital expenditure, particularly in infrastructure

C Increasing revenue expenditure on subsidies

D Privatizing all public sector undertakings immediately

16.

What is one of the key outcomes of the PLI schemes regarding India's role in global supply chains?

A Increased isolation from global supply chains

B Facilitating integration into global supply chains

C Shifting focus entirely to domestic consumption

D Promoting only raw material exports

17.

The PLI schemes are instrumental in driving which of the following government initiatives?

A Digital India

B Swachh Bharat Abhiyan

C Make in India

D Skill India Mission

18.

Which of the following sectors are specifically mentioned as demonstrating significant success under the PLI schemes by April 2026?

A 1. Electronics 2. Pharmaceuticals 3. Automotive 4. Textiles

B 1, 2 and 3 only

C 1, 3 and 4 only

D 2, 3 and 4 only

19.

How many key sectors were initially covered under the PLI schemes?

A 8

B 10

C 12

D 14

20.

What is the primary objective of the Production Linked Incentive (PLI) schemes?

A To promote agricultural exports

B To boost domestic manufacturing and reduce import dependence

C To provide subsidies for service sector companies

D To regulate foreign direct investment

Economy & Business MCQs - 2026-04-06