Q1 | CPI Base Year Revision (Current — HIGH PROBABILITY)

With reference to the recent revision of the Consumer Price Index (CPI), consider the following statements:

1. The base year of CPI-Combined has been revised from 2012 to 2024.
2. The revision is based on the Household Consumption Expenditure Survey 2023-24.
3. The weight of food and beverages in the new CPI has increased compared to the earlier series.

Which of the statements given above is/are correct? (a) 1 and 2 only      (b) 2 and 3 only      (c) 1 only      (d) 1, 2 and 3

Q2 | CPI vs WPI (Repeated Theme)

Consider the following statements:

1. The Consumer Price Index (CPI) captures both goods and services, while the Wholesale Price Index (WPI) captures only goods.
2. CPI includes indirect taxes, while WPI excludes them.
3. The Wholesale Price Index is published by the National Statistics Office (NSO).

Which of the statements given above is/are correct? (a) 1 and 2 only      (b) 1 only      (c) 2 and 3 only      (d) 1, 2 and 3

Q3 | Demand-Pull Inflation (Repeated 2021)

Which of the following can cause "demand-pull inflation"?

1. Expansionary monetary policy by the central bank
2. Increase in fiscal stimulus by the government
3. Inflation-indexing of wages
4. Rising interest rates

Select the correct answer using the code given below: (a) 1, 2 and 3 only      (b) 1 and 2 only      (c) 2, 3 and 4      (d) 1, 2, 3 and 4

Q4 | GDP Measurement (Conceptual)

With reference to India's Gross Domestic Product, consider the following statements:

1. The current base year for calculating real GDP is 2011-12.
2. The BN Goldar Committee has been tasked with revising the base year to 2022-23.
3. India recently became the fourth largest economy in the world by nominal GDP, overtaking Japan.

Which of the statements given above is/are correct? (a) 1 and 2 only      (b) 1 and 3 only      (c) 2 and 3 only      (d) 1, 2 and 3

Q5 | Production Indices (Matching)

Consider the following pairs:

Which of the pairs given above is/are correctly matched? (a) 1 and 2 only      (b) 2 and 3 only      (c) 1 only      (d) 1, 2 and 3

Q6 | Impact of Inflation (Application)

Consider the following effects of sustained high inflation in an economy:

1. The real value of debt decreases, benefiting borrowers.
2. Bondholders with fixed coupon payments benefit as real returns increase.
3. Domestic exports become less competitive in international markets.

Which of the statements given above is/are correct? (a) 1 and 3 only      (b) 1 and 2 only      (c) 2 and 3 only      (d) 1, 2 and 3

Q7 | Stagflation (Definition)

"Stagflation" in economics refers to a situation where: (a) Economic growth is rapid but prices remain stable (b) Both unemployment and inflation are falling simultaneously (c) High inflation coexists with stagnant economic growth and high unemployment (d) Deflation is accompanied by declining GDP and rising exports

Q8 | GVA Composition (Current)

With reference to India's Gross Value Added (GVA), consider the following:

1. The tertiary sector contributes approximately 55% of GVA.
2. Private Final Consumption Expenditure (PFCE) is the largest component of GDP by expenditure method.
3. GDP data in India is released by the Central Statistics Office under the Ministry of Finance.

Which of the statements given above is/are correct? (a) 1 and 2 only      (b) 2 and 3 only      (c) 1 and 3 only      (d) 1, 2 and 3

Q9 | Economic Curves (Matching — HIGH PROBABILITY)

Consider the following pairs:

Which of the pairs given above is/are correctly matched? (a) 1, 2 and 4 only      (b) 1, 2 and 3 only      (c) 2, 3 and 4 only      (d) 1, 2, 3 and 4