Economy & Business MCQs - 2026-05-26

Increased investment in manufacturing often leads to the expansion of production facilities, which in turn creates more jobs and employment opportunities.

Production-Linked Incentive (PLI) schemes are a popular government strategy to boost domestic manufacturing by providing incentives based on incremental sales of manufactured goods.

Boosting domestic manufacturing and investment aims to make the country more self-reliant, create jobs, and improve its position in the global economy.

The RBI primarily uses the Consumer Price Index (CPI) for its monetary policy decisions and inflation targeting, as it reflects the prices of goods and services consumed by households.

The RBI's primary mandate includes maintaining price stability, which means closely monitoring inflation, especially during periods of economic recovery when demand can push prices up.

A strong PMI is usually driven by positive trends in new orders, production output, and employment within the manufacturing sector.

A PMI value above 50 indicates an expansion in manufacturing activity, while a value below 50 suggests a contraction. A reading of 50 indicates no change.

The Purchasing Managers' Index (PMI) is a key economic indicator that provides insights into the health of the manufacturing and services sectors. A strong PMI indicates expansion.