MCQs on India's Economy: GDP, Inflation, RBI Policy

471.

The government's focus on fiscal prudence indicates a commitment to:

A Increasing the national debt

B Sustainable levels of deficit and debt

C Uncontrolled government spending

D Reducing investment in infrastructure

472.

What does 'fiscal consolidation' refer to?

A Increasing government spending without limit

B Reducing the government's budget deficit and debt

C Increasing taxes significantly

D Borrowing excessively

473.

A reduced fiscal deficit can potentially lead to:

A A downgrade in sovereign credit rating

B A better sovereign credit rating

C Increased borrowing costs for the government

D Reduced fiscal space

474.

An improved fiscal position is expected to enhance:

A Government debt levels

B Macroeconomic stability

C Inflationary pressures

D Currency depreciation

475.

The government has exercised discipline in its spending, prioritizing:

A Revenue expenditure over capital expenditure

B Capital expenditure for infrastructure development

C Non-essential government projects

D Increased administrative costs

476.

What has played a crucial role in the stronger-than-expected revenue growth?

A Economic slowdown

B Buoyant performance of the economy and improved tax compliance

C Decreased foreign investment

D Reduced domestic consumption

477.

The reduction in fiscal deficit is attributed to:

A Increased government borrowing and reduced tax revenue

B Prudent fiscal management, robust tax revenue, and controlled expenditure

C Higher revenue expenditure and lower capital expenditure

D Economic slowdown and decreased tax compliance

478.

What was India's fiscal deficit as a percentage of GDP for the fiscal year 2025-26?

A 4.5%

B 5.1%

C 5.5%

D 6.0%

479.

The term 'clean energy transition' refers to:

A Shifting from renewable energy to fossil fuels

B Shifting from fossil fuels to renewable and low-carbon energy sources

C Maintaining the status quo of energy sources

D Focusing solely on nuclear energy

480.

Which of the following is NOT mentioned as a supportive policy for solar energy?

A Solar parks

B Production-linked incentives (PLI)

C Increased import duties on solar panels

D Ambitious solar targets

Economy & Business MCQs