Economy & Business MCQs - 2026-07-19

Strong output growth in the manufacturing sector implies increased production, which often requires more labor, thus leading to an increase in employment opportunities.

The 'Make in India' initiative, launched in 2014, aims to encourage companies to manufacture their products in India and boost the country's manufacturing sector.

The Index of Industrial Production (IIP) measures the growth rates in different industry groups of the economy over a specified period. It is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products, including manufacturing.

Repo Rate, CRR, and SLR are quantitative tools that directly affect the quantity of money and credit in the economy. Moral Suasion is a qualitative tool, where the RBI persuades banks to follow its directives without direct quantitative measures.

Maintaining the Repo Rate amidst stable inflationary trends typically signals a neutral or wait-and-watch stance by the RBI, indicating that current economic conditions do not warrant a change in policy rates.

The primary objective of the Monetary Policy Committee (MPC) is to maintain price stability while keeping in mind the objective of growth. It is mandated to keep inflation within a target band.

GDP is typically calculated using the expenditure approach: GDP = Consumption + Investment + Government Spending + (Exports - Imports). Therefore, private consumption, government expenditure, and net exports are all major components.

Sustained GDP growth momentum generally indicates economic expansion, increased production, higher income levels, and potentially improved living standards for the population.

The National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI), is primarily responsible for compiling and releasing India's GDP data.