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Inflation, Subsidy, PDS MCQs for Rajasthan SI

Practice 20 free inflation, subsidy, pds multiple choice questions for Rajasthan SI exam. Instant answers, explanations in Hindi and English, and topic-wise targeted practice.

Master Inflation, Subsidy, PDS under Indian Economy for Rajasthan SI with our curated MCQ set. Every question is sourced from real Rajasthan exam patterns and updated regularly. Switch between Hindi and English anytime. Use this daily to strengthen weak areas before the exam.

Rajasthan SI — Indian Economy — Inflation, Subsidy, PDS

20 Questions • Instant results & explanations • Hindi & English

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Question 1 of 20

Which index is also known as the 'Headline Inflation' index in India currently?

Question 2 of 20

Which Ministry is responsible for publishing the Wholesale Price Index (WPI) in India?

Question 3 of 20

What is the primary function of the Food Corporation of India (FCI) established in 1965?

Question 4 of 20

Which of the following is an example of a cause for 'Cost-Push Inflation' related to government policy?

Question 5 of 20

Consider the following statements regarding 'Shrinkflation': 1. It occurs when the price of goods and services remains stable. 2. The quality or quantity of the product is reduced. Which of the above statements is/are correct?

Question 6 of 20

If the inflation rate changes from 10% in January to -10% in March (as per the example table), what phenomenon does the March figure represent?

Question 7 of 20

What happens to the credit capacity of banks during periods of high inflation?

Question 8 of 20

Which scheme was launched on 1 January, 2015 related to LPG subsidy?

Question 9 of 20

During the Great Depression of 1929, which economic phenomenon was most prevalent?

Question 10 of 20

Assertion (A): Excessive subsidies can hinder the country's infrastructure development. Reason (R): Subsidies divert funds away from public capital formation like roads and railways.

Question 11 of 20

What is the primary role of the Reserve Bank of India (RBI) in controlling inflation?

Question 12 of 20

The 'Food Security Allowance' is a right guaranteed under which Act?

Question 13 of 20

Why does the purchasing power of money decrease during inflation?

Question 14 of 20

Which scenario best represents 'Disinflation'?

Question 15 of 20

Which of the following factors are considered 'Other Factors' excluded from Headline Inflation to calculate Core Inflation? 1. Crude oil prices in the international market 2. Natural disasters 3. Transport disruptions Select the correct answer:

Question 16 of 20

Subsidies given for 'Interest Subvention' to farmers or businesses is a type of:

Question 17 of 20

Consider the following statements regarding the positive effects of mild inflation on an economy: 1. It can lead to an increase in economic growth. 2. It typically results in a decrease in investment opportunities. 3. It can boost employment opportunities. 4. It increases the government's tax revenue. Which of the statements given above are correct?

Question 18 of 20

Which of the following is NOT a consequence of Hyperinflation?

Question 19 of 20

Consider the following statements regarding Targeted Inflation: 1. For developed countries, the target is usually 1%-2%. 2. For developing countries, the target is typically around 4% (±2%). 3. This inflation is also known as 'Growth-flation'. Which of the statements given above are correct?

Question 20 of 20

Consider the following consequences of Deflation: 1. Prices of goods and services decrease. 2. Producers face losses leading to reduced production. 3. Unemployment increases. Which of the above statements represents the correct cycle of Deflation?

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