Consider the following statements about the Composite Water Management Index (CWMI):
1. The CWMI represents a major initiative to promote a culture of objective, data-based water management among Indian states.
2. The compilation and publication of this index is solely the responsibility of the Ministry of Jal Shakti.
3. It ranks states comprehensively on parameters including source augmentation, watershed development, and rural drinking water provision.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 2 is incorrect as the CWMI was developed and published by NITI Aayog in association with the Ministry of Jal Shakti and the Ministry of Rural Development. Statements 1 and 3 are correct.
With reference to the Consumer Price Index for Agricultural Labourers (CPI-AL), consider the following statements:
1. CPI-AL is primarily compiled and published by the National Statistical Office (NSO) under MoSPI.
2. It is widely utilized by various state governments to fix and revise minimum wages for agricultural labour.
3. The 'food group' carries a significantly higher weight in the CPI-AL basket compared to its weight in the CPI-Combined index.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 1 is incorrect because the CPI-AL is compiled by the Labour Bureau (Ministry of Labour and Employment), not the NSO. Statements 2 and 3 are correct.
With reference to the Gini Coefficient, an index often used in economic reports, consider the following statements:
1. It is a statistical measure of distribution intended to represent the income or wealth inequality within a nation.
2. A Gini coefficient of 'zero' expresses perfect equality, where everyone has the same income.
3. A Gini coefficient of 'one' (or 100%) expresses maximal inequality among values.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: All statements are correct. The Gini Coefficient is the standard international metric for inequality, ranging from 0 (perfect equality) to 1 (maximal inequality).
Regarding the Global Innovation Index (GII) and India's position, consider the following statements:
1. GII is published annually by the World Bank in collaboration with the International Monetary Fund.
2. India has shown a consistent upward trend in the GII rankings over the last few years.
3. The index ranks countries based on innovation input and innovation output sub-indices.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 1 is incorrect; GII is published by WIPO (World Intellectual Property Organization) in partnership with other institutions. Statements 2 and 3 are correct.
Consider the following statements regarding the Global Hunger Index (GHI) and India:
1. The GHI is calculated globally based on four indicators: undernourishment, child wasting, child stunting, and child mortality.
2. The Government of India has often criticized the methodology of the GHI, citing concerns over the sample sizes and the use of opinion-based assessments for undernourishment.
3. Despite criticisms, India has consistently managed to rank within the top 50 nations globally on this index over the past five years.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 3 is incorrect; India typically ranks quite low on the Global Hunger Index (often beyond the 100th rank in recent editions). Statements 1 and 2 are correct.
With reference to the Purchasing Managers' Index (PMI) for Manufacturing in India, consider the following statements:
1. It is a composite indicator designed to provide a single-figure snapshot of the operating conditions in the manufacturing economy.
2. The index is calculated based on five major indicators: new orders, inventory levels, production, supplier deliveries, and the employment environment.
3. The PMI surveys are restricted exclusively to public sector manufacturing enterprises to gauge government industrial output.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 3 is incorrect as the PMI surveys purchasing managers in private sector manufacturing companies, not just the public sector. Statements 1 and 2 are correct.
Regarding the Labour Force Participation Rate (LFPR) and related indices, consider the following statements:
1. LFPR is defined as the percentage of persons in the labour force in the total population.
2. The Periodic Labour Force Survey (PLFS) is the primary source for these indices in India, conducted by the NSO.
3. The 'Worker Population Ratio' (WPR) measures the percentage of employed persons in the total population.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: All statements are correct. These are the standard official definitions used in the PLFS reports published by the NSO.
Regarding the Index of Industrial Production (IIP), consider the following statements:
1. It is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products.
2. It is compiled and published monthly by the National Statistical Office (NSO).
3. The current base year for IIP calculation is 2011-12.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: All three statements are correct. IIP is a vital indicator of industrial growth, managed by the NSO (Ministry of Statistics and Programme Implementation) with 2011-12 as the base year.
Regarding the Consumer Confidence Index (CCI) in India, consider the following statements:
1. The Reserve Bank of India (RBI) conducts a quarterly Consumer Confidence Survey to compile this index.
2. It measures consumer perceptions on the general economic situation, employment, and price levels.
3. A CCI value above 200 indicates extreme optimism among consumers.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 3 is incorrect; the index is centered around 100. A value above 100 indicates optimism, while below 100 indicates pessimism. It does not scale to 200. Statements 1 and 2 are correct.
With reference to the 'Ease of Doing Business' index, consider the following statements:
1. It was historically published on an annual basis by the World Bank Group.
2. India continuously held a position in the top 50 ranks for the last five years of the index's publication.
3. The publication of the index was permanently discontinued following irregularities in data reporting.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statements 1 and 3 are correct. Statement 2 is incorrect because while India improved its ranking significantly (reaching rank 63), it never reached the top 50 before the index was discontinued.
With reference to the 'Terms of Trade' (ToT) index for a country, consider the following statements:
1. The Net Barter Terms of Trade is mathematically defined as the ratio of the export price index to the import price index.
2. An improvement or rise in the terms of trade implies that a country can purchase more imports for a given quantity of its exports.
3. Due to its dominant IT services exports, India's overall goods terms of trade index is always persistently favorable (above 100).
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 3 is incorrect. India's goods terms of trade is heavily influenced by crude oil imports and is often unfavorable; services are usually calculated separately from merchandise ToT. Statements 1 and 2 are correct.
Consider the following statements about the Services Sector Indices in India:
1. India has a single, comprehensive monthly official index equivalent to the IIP for the entire services sector.
2. The Ministry of Statistics and Programme Implementation (MoSPI) has been working on developing Experimental Service Sector Indices.
3. Services like 'Trade, Hotels and Restaurants' and 'Transport, Storage and Communication' are key areas targeted for index development.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 1 is incorrect because India currently lacks a comprehensive, official monthly index for services like the IIP for industry. Statements 2 and 3 are correct regarding MoSPI's experimental efforts.
With reference to the Digital Payments Index (RBI-DPI), consider the following statements:
1. It was launched by the RBI to capture the extent of digitisation of payments across the country.
2. The base period for the RBI-DPI is March 2021.
3. It comprises five broad parameters including Payment Enablers and Payment Infrastructure.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 2 is incorrect; the base period is March 2018. Statements 1 and 3 are correct.
Consider the following statements about the 'Financial Inclusion Index' (FI-Index) in India:
1. It was introduced by the Reserve Bank of India to capture the extent of financial inclusion across the country.
2. The index completely ignores the quality of financial services, focusing solely on access and usage.
3. The FI-Index has been constructed without any fixed base year to reflect cumulative efforts.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statements 1 and 3 are correct. Statement 2 is incorrect because the FI-Index comprises three broad parameters: Access, Usage, and Quality, meaning quality is a key component.
Regarding the National Multidimensional Poverty Index (NMPI) released by NITI Aayog, consider the following statements:
1. The NMPI includes 'Per Capita Income' as one of its three equally weighted dimensions.
2. Maternal health and bank account ownership are distinct indicators included under the Health and Standard of Living dimensions, respectively.
3. A household is classified as multi-dimensionally poor if it is deprived in one-third or more of the weighted indicators.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 1 is incorrect because the NMPI does not include an 'Income' dimension; its three dimensions are Health, Education, and Standard of Living. Statements 2 and 3 are correct.
With reference to the 'Public Affairs Index' (PAI), consider the following statements:
1. It is an annual assessment of the adequacy and quality of governance in Indian states published by a non-profit think tank.
2. The index is officially sanctioned and funded by the NITI Aayog to completely replace the SDG Index.
3. It ranks states based on the three pillars of Equity, Efficiency, and Sustainability.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 2 is incorrect; it is published by the Public Affairs Centre (PAC), a private think tank, and does not replace the official NITI Aayog indices. Statements 1 and 3 are correct.
With reference to the Sensex and Nifty 50 stock market indices, consider the following statements:
1. Both indices are calculated using the free-float market-capitalization-weighted methodology.
2. They serve as critical barometers for the Indian equity markets, reflecting the overall sentiments of the broader corporate economy.
3. Foreign Portfolio Investors (FPIs) heavily rely on these indices to benchmark their performance and allocate capital to Indian markets.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: All three statements are correct. Sensex (BSE) and Nifty 50 (NSE) are free-float weighted indices that act as the primary indicators of Indian stock market health and are widely used by FPIs.
Consider the following statements regarding the Housing Price Index (HPI) compiled by the Reserve Bank of India:
1. The RBI compiles a quarterly HPI based on official data of property registration collected from state registration authorities.
2. The index covers major metropolitan and tier-1 cities across India to capture variations in real estate price movements.
3. Monitoring movements in the HPI is crucial for the central bank to assess asset price inflation and potential financial stability risks.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: All three statements are correct. The RBI uses the HPI to monitor the real estate sector, tracking property registration data across major cities to assess systemic risks.
With reference to the State Health Index, consider the following statements:
1. It is an annual index developed and published solely by the Ministry of Health and Family Welfare without involvement from other think tanks.
2. It evaluates states using a weighted composite index encompassing indicators like health outcomes, governance, and key healthcare processes.
3. The index places significant emphasis on both the historical baseline performance and the incremental year-on-year progress of the states.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 1 is incorrect because the State Health Index is developed by NITI Aayog in collaboration with the Ministry of Health and Family Welfare and the World Bank. Statements 2 and 3 are correct.
Regarding the concepts of 'Headline Inflation' and 'Core Inflation' in the Indian context, consider the following statements:
1. Core inflation provides a better picture of the underlying long-term trend of inflation compared to headline inflation.
2. Core inflation is calculated by excluding highly volatile components, specifically food and energy prices, from the overall consumer price basket.
3. Core inflation is the official statutory target for the RBI's Monetary Policy Committee under the flexible inflation targeting framework.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 3 is incorrect because the RBI's mandated inflation target is based on Headline CPI-Combined, not Core inflation. Statements 1 and 2 are correct.
With reference to the Consumer Price Index (CPI) in India, consider the following statements:
1. The Reserve Bank of India (RBI) has adopted CPI-Combined as the key measure of inflation for its monetary policy framework.
2. In the CPI-Combined basket, the 'Housing' component has a higher weight than the 'Food and Beverages' group.
3. The base year for the current series of CPI (Rural, Urban, Combined) is 2012.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 2 is incorrect because 'Food and Beverages' is the largest group in the CPI basket (weight approx 45.86%), whereas Housing only has a weight of approx 10.07%. Statements 1 and 3 are correct as per the NSO standards.
Consider the following statements regarding the 'School Education Quality Index' (SEQI):
1. It was developed by the Ministry of Education to rank states based on their physical school infrastructure alone.
2. It aims to provide states and UTs with a platform to identify their strengths and weaknesses and undertake policy interventions.
3. The index includes categories like 'Learning Outcomes' and 'Equity' as part of its governance and outcomes framework.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 1 is incorrect; SEQI was developed by NITI Aayog (with World Bank/MoE) and heavily focuses on learning outcomes, not just physical infrastructure. Statements 2 and 3 are correct.
Consider the following statements regarding the Sustainable Development Goals (SDG) India Index:
1. It is developed by NITI Aayog to track the progress of States and UTs towards the 2030 SDGs.
2. States are classified into four categories: Aspirant, Performer, Front Runner, and Achiever.
3. It helps in identifying the gaps in social, economic, and environmental targets at the sub-national level.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: All statements are correct. NITI Aayog's SDG India Index is the primary tool for monitoring SDG progress in India with a clear categorization of states.
Regarding the 'India Innovation Index', consider the following statements:
1. It is published by the Ministry of Science and Technology in collaboration with the World Intellectual Property Organization (WIPO).
2. It examines the innovation performance of Indian states and UTs across two broad dimensions: 'Enablers' and 'Performance'.
3. A primary goal of the index is to foster competitive federalism among states to continuously improve their innovation ecosystems.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 1 is incorrect because the India Innovation Index is published by NITI Aayog in collaboration with the Institute for Competitiveness. Statements 2 and 3 are correct.
Regarding the Composite Water Management Index (CWMI), consider the following statements:
1. The index is compiled and released solely by the Ministry of Jal Shakti.
2. It aims to create a benchmark for states to manage their water resources effectively.
3. The index covers themes like groundwater restoration, irrigation management, and policy governance.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 1 is incorrect; the index is released by NITI Aayog. Statements 2 and 3 are correct.
Consider the following statements regarding the Index of Economic Freedom:
1. It is an influential annual index published by the United Nations Development Programme (UNDP) to measure market openness.
2. It evaluates jurisdictions across parameters such as the rule of law, government size, regulatory efficiency, and open markets.
3. India's overall score in this index is frequently constrained by lower scores in parameters relating to regulatory hurdles and investment freedom.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 1 is incorrect as the Index of Economic Freedom is created by The Heritage Foundation and The Wall Street Journal, not the UNDP. Statements 2 and 3 are correct.
Consider the following statements about the 'State Energy Efficiency Index':
1. It is released by the Bureau of Energy Efficiency (BEE) in association with the Alliance for an Energy-Efficient Economy (AEEE).
2. It tracks the progress of states in energy efficiency implementation across sectors like Buildings and Industry.
3. Rajasthan has been the only state to achieve the 'Achiever' category in every edition since its inception.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 3 is incorrect; rankings vary each year and multiple states like Karnataka and Telangana have also performed well in the index. Statements 1 and 2 are correct.
With reference to Systemic Risk Indicators used by financial regulators, consider the following statements:
1. These indicators are designed to assess the overall stability and vulnerability of the entire financial system, rather than individual entities.
2. They monitor variables such as the interconnectedness of large financial institutions, credit growth, and market volatility.
3. The Reserve Bank of India publishes assessments derived from systemic risk indicators bi-annually in its Financial Stability Report (FSR).
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: All three statements are correct. Systemic risk indicators are vital for macroprudential regulation, measuring sector-wide interconnectedness and stress, which the RBI reports in the FSR.
Regarding the Financial Inclusion Index (FI-Index) constructed by the RBI, consider the following statements:
1. The FI-Index has a designated base year of 2011-12 to ensure alignment with standard macroeconomic indices like the IIP.
2. The 'Quality' parameter of the FI-Index evaluates aspects such as financial literacy, consumer protection, and inequalities in service delivery.
3. The index is published annually and operates on a scale ranging from 0 (complete exclusion) to 100 (complete inclusion).
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 1 is incorrect because the RBI specifically designed the FI-Index without any base year to reflect cumulative efforts toward financial inclusion over time. Statements 2 and 3 are correct.
Consider the following statements regarding the revision of base years for economic indices in India:
1. The Ministry of Statistics and Programme Implementation proposes periodic revisions of the base year for indices like IIP to align with new macroeconomic realities.
2. Base year revisions are essential for capturing structural changes in the economy, such as the growing prominence of the services sector or new manufactured products.
3. Statistical working groups often recommend using a common, synchronized base year for major national indices to ensure data comparability across sectors.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: All three statements are correct. Periodic revisions of the base year are necessary to reflect contemporary economic structures, and aligning base years across indices (like IIP, CPI, GDP) improves statistical coherence.
Regarding the 'Export Preparedness Index' (EPI), consider the following statements:
1. It is released by NITI Aayog to evaluate the export performance and readiness of Indian states.
2. The index is based on four pillars: Policy, Business Ecosystem, Export Ecosystem, and Export Performance.
3. Landlocked states are entirely excluded from this index to ensure a fair comparison with coastal states.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 3 is incorrect; landlocked states are included and often categorized separately (like 'Landlocked States' or 'Himalayan States') for better comparative analysis. Statements 1 and 2 are correct.
Regarding the Services Trade Restrictiveness Index (STRI), consider the following statements:
1. The STRI is an index published annually by the World Trade Organization (WTO).
2. It provides information on regulations and policies that restrict trade in services across several major economic sectors.
3. India has historically expressed concerns regarding the methodology of the STRI, arguing that it exhibits a developed-country bias.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 1 is incorrect because the STRI is published by the Organization for Economic Co-operation and Development (OECD), not the WTO. Statements 2 and 3 are correct.
With reference to the Consumer Price Index for Industrial Workers (CPI-IW), consider the following statements:
1. The Labour Bureau, an attached office of the Ministry of Labour & Employment, is the compiling agency for this index.
2. The current base year for CPI-IW was revised from 2001 to 2016.
3. It is primarily used to track price changes of intermediate goods in the manufacturing sector.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statements 1 and 2 are correct. Statement 3 is incorrect because CPI-IW tracks the retail prices of a basket of goods and services consumed by industrial workers, not intermediate goods. It is primarily used for the determination of Dearness Allowance (DA).
Consider the following statements regarding the divergence between WPI and CPI in India:
1. A major reason for divergence is that WPI assigns a higher weight to manufactured products, whereas CPI assigns the highest weight to food.
2. WPI generally reflects global commodity price shocks, such as crude oil fluctuations, much faster than the CPI.
3. Both the WPI and CPI strictly include the prices of imported services in their respective basket calculations.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 3 is incorrect because the WPI tracks only the prices of goods at the wholesale level and completely excludes services. Statements 1 and 2 are correct.
Regarding the calculation of inflation in India, consider the following statements:
1. 'Headline Inflation' refers to the total inflation within an economy, including commodities such as food and energy prices.
2. 'Core Inflation' is calculated by focusing specifically on the volatile price movements of food and fuel.
3. Base effect refers to the impact of the price levels of the previous year on the calculation of the current inflation rate.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 2 is incorrect; Core Inflation *excludes* food and fuel because they are highly volatile, providing a clearer view of underlying inflation trends. Statements 1 and 3 are correct.
Regarding the Logistics Performance Index (LPI), consider the following statements:
1. The LPI is a benchmarking tool created by the World Bank to help countries identify challenges and opportunities in trade logistics.
2. It evaluates countries based on parameters such as the efficiency of customs clearance, quality of trade infrastructure, and timeliness of shipments.
3. India's ranking in recent editions of the LPI has shown improvement, driven by infrastructure upgrades and initiatives like PM Gati Shakti.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: All three statements are correct. The World Bank's LPI is the global standard for assessing logistics efficiency, and India has indeed seen improvements in its rankings recently.
Consider the following statements regarding the WPI Food Index:
1. It is compiled by the National Statistical Office (NSO) by combining the food components of CPI-Rural and CPI-Urban.
2. It is calculated as a weighted average of the 'Food Articles' from the Primary Articles group and 'Food Products' from the Manufactured Products group.
3. It provides a comprehensive picture of inflation in food items at the wholesale level.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 1 is incorrect because the WPI Food Index is released by the Office of the Economic Adviser (Ministry of Commerce), not NSO. Statements 2 and 3 are correct.
With reference to the 'Use-based classification' of the Index of Industrial Production (IIP), consider the following statements:
1. Primary goods, encompassing mining and electricity generation, form the largest component by weight in this classification.
2. Consumer non-durables currently hold a lower weight than consumer durables in the IIP series.
3. The production trend of capital goods within this index is often utilized as a proxy indicator for the investment climate in the economy.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 2 is incorrect; Consumer non-durables (like FMCG products) have a higher weight than consumer durables in the IIP. Statements 1 and 3 are correct.
Consider the following statements regarding the Purchasing Managers' Index (PMI):
1. It is a survey-based measure that provides information about current and future business conditions to company decision-makers and analysts.
2. A PMI reading above 50 indicates an expansion of the sector compared to the previous month.
3. In India, the PMI is officially released by the Office of the Economic Adviser, Ministry of Commerce and Industry.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 3 is incorrect because PMI is a private sector indicator (compiled by agencies like S&P Global), not an official government release. Statements 1 and 2 accurately describe its survey nature and the '50' threshold logic.
With reference to the Purchasing Power Parity (PPP) conversion factor, consider the following statements:
1. The PPP conversion factor indicates the number of units of a local currency required to buy the same basket of goods in the domestic market as a US dollar would buy in the US.
2. Because domestic prices for non-tradable goods are lower, India's GDP measured in PPP terms is substantially higher than its nominal GDP.
3. The complex International Comparison Program (ICP), which estimates global PPPs, is managed by the World Economic Forum.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 3 is incorrect because the International Comparison Program (ICP) is hosted and managed by the World Bank, not the World Economic Forum. Statements 1 and 2 are correct.
With reference to the Misery Index, consider the following statements:
1. In India, this index is officially calculated and published by the Ministry of Finance every month.
2. It is typically calculated by adding the unemployment rate to the inflation rate of an economy.
3. A higher value on the index indicates greater economic distress for the average citizen.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statements 2 and 3 are correct. Statement 1 is incorrect because the Misery Index is an informal macroeconomic concept popularized by economists, not an official government statistic published by the Ministry of Finance.
With reference to the Periodic Labour Force Survey (PLFS) initiated by the NSO, consider the following statements:
1. The PLFS provides quarterly estimates of key employment and unemployment indicators exclusively for urban areas.
2. It also generates comprehensive annual estimates of labour force indicators covering both rural and urban areas.
3. A primary objective of the PLFS is to measure the dynamics and shifts in the labour force participation rate across different demographics.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: All three statements are correct. The PLFS was designed to yield annual data for both rural and urban areas, while specifically tracking urban employment trends on a more frequent quarterly basis.
Consider the following statements comparing the Producer Price Index (PPI) and Wholesale Price Index (WPI):
1. A key difference is that PPI measures prices received by producers and generally excludes indirect taxes, which are included in WPI.
2. The RBI officially relies exclusively on the PPI rather than CPI-Combined for anchoring its bi-monthly inflation targeting policy.
3. The PPI is often viewed as a leading indicator for consumer inflation, as rising producer costs typically pass through to retail prices over time.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 2 is incorrect; the RBI's mandate requires it to target the Consumer Price Index (CPI-Combined), not the PPI. Statements 1 and 3 are correct.
With reference to the Producer Price Index (PPI), consider the following statements:
1. PPI measures the average change over time in the selling prices received by domestic producers for their output.
2. India is currently in the process of transitioning from WPI to PPI as recommended by several working groups.
3. Unlike WPI, PPI typically includes the impact of indirect taxes and trade margins to show what the consumer pays.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 3 is incorrect; PPI specifically excludes taxes, transport, and trade margins to reflect the actual basic price received by the producer. Statements 1 and 2 are correct.
Regarding the Wholesale Price Index (WPI) components, consider the following statements:
1. The 'Fuel and Power' major group in the WPI basket tracks the prices of essential commodities like coal, mineral oils, and electricity.
2. Fluctuations in international crude oil prices significantly and directly impact this specific component of the WPI.
3. To reflect India's energy dependence, the 'Fuel and Power' group holds a much larger weight in the WPI than the 'Manufactured Products' group.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 3 is incorrect. The 'Manufactured Products' group carries the highest weight in the WPI (over 64%), significantly larger than the 'Fuel and Power' group (around 13%). Statements 1 and 2 are correct.
Regarding the Logistics Ease Across Different States (LEADS) index, consider the following statements:
1. It is released by the Ministry of Commerce and Industry.
2. It ranks states on the efficiency of their logistical ecosystem for promoting trade.
3. The ranking is based on indicators like infrastructure, services, and the regulatory environment.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: All three statements are correct. LEADS is a indigenous data-driven index to assess logistics performance across Indian states.
With reference to the NHB RESIDEX, consider the following statements:
1. It is India's first official housing price index, launched by the National Housing Bank.
2. It tracks the movement in prices of residential properties only in the metropolitan cities of Delhi and Mumbai.
3. The index has been updated to include a Housing Rental Index and a Land Price Index.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 2 is incorrect because the RESIDEX covers 50 cities across India, not just Delhi and Mumbai. Statements 1 and 3 are correct regarding its origin and expanded scope.
Regarding the Good Governance Index (GGI) launched by the Government of India, consider the following statements:
1. The GGI assessment framework incorporates diverse sectors such as Agriculture & Allied Sectors, Commerce & Industries, and Human Resource Development.
2. It aims to provide quantifiable data to rank and compare the quality of governance across all Indian states and Union Territories.
3. To ensure a level playing field, states are categorized into distinct groups, such as North-East and Hill States, to account for geographical constraints.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: All three statements are correct. The GGI, developed by DARPG, assesses governance comprehensively across several sectors and groups states logically for fair comparison.
With reference to the Index of Eight Core Industries (ICI), consider the following statements:
1. Due to India's heavy reliance on thermal power, coal production holds the maximum weight among the eight core sectors.
2. Both Natural Gas and Crude Oil extraction are critical components measured within this index.
3. The monthly performance of the core sector provides advanced macroeconomic indications regarding the broader industrial performance tracked in the IIP.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 1 is incorrect; 'Refinery Products' holds the highest weight in the Index of Eight Core Industries (approx 28%), not coal. Statements 2 and 3 are correct.
With reference to the 'Good Governance Index' (GGI), consider the following statements:
1. It is launched by the Department of Administrative Reforms and Public Grievances (DARPG).
2. The index aims to provide quantifiable data to compare the state of governance in all states and UTs.
3. It covers multiple sectors including Agriculture, Commerce & Industry, and Public Health.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: All statements are correct. GGI is a comprehensive framework by DARPG to assess the governance landscape and sector performance across India.
Consider the following statements regarding the Human Development Index (HDI):
1. The HDI is officially compiled and released annually by the World Economic Forum.
2. The index evaluates key dimensions of development using indicators like Life Expectancy at birth and GNI per capita.
3. India currently falls into the 'Medium Human Development' category based on recent reports.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statements 2 and 3 are correct. Statement 1 is incorrect because the Human Development Index is published by the United Nations Development Programme (UNDP), not the World Economic Forum.
Consider the following statements regarding the Retail Inflation indices for Labourers (CPI-AL and CPI-RL):
1. These indices are constructed and published by the Labour Bureau using price data collected by the National Sample Survey Office (NSSO).
2. The base year for both CPI-Agricultural Labourers and CPI-Rural Labourers was recently updated to 2011-12.
3. These indices are legally utilized to determine the minimum wage revisions for workers in the agriculture sector across states.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 2 is incorrect; the base year for CPI-AL and CPI-RL currently remains 1986-87 (though updates are often debated). Statements 1 and 3 are correct.
Regarding the concept of the 'Base Effect' in calculating inflation indices, consider the following statements:
1. The base effect relates to the statistical impact of the corresponding period's price level in the previous year on the current year's inflation rate.
2. A severely depressed inflation rate in the previous year can mathematically result in a high current inflation print, even if month-on-month price increases are modest.
3. Due to its distorting nature, the Reserve Bank of India completely removes the base effect from its headline inflation projections.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 3 is incorrect. The RBI does not remove the base effect; instead, it accounts for it and explicitly explains how much of the current inflation trajectory is driven by favorable/unfavorable base effects. Statements 1 and 2 are correct.
Consider the following statements regarding the Baltic Dry Index and its relevance:
1. It is a leading economic indicator that measures the global cost of shipping raw materials like coal and steel by sea.
2. The index is published daily by the Bombay Stock Exchange to specifically track Indian maritime trade volumes.
3. A rising Baltic Dry Index generally signals an increase in global industrial demand, which can indirectly impact Indian manufacturing input costs.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 2 is incorrect. The Baltic Dry Index is issued daily by the London-based Baltic Exchange, not the BSE, and tracks global, not just Indian, shipping. Statements 1 and 3 are correct.
Consider the following statements regarding the Consumer Food Price Index (CFPI) in India:
1. The CFPI is compiled and released on a monthly basis by the National Statistical Office (NSO).
2. To provide a holistic view of food consumption, the CFPI incorporates both raw food articles and prepared meals/snacks under its basket.
3. The index is used by policymakers to closely track inflation specifically in essential dietary staples like cereals, pulses, and vegetables.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 2 is incorrect. The CFPI tracks only the 'Food and Beverages' sub-group, excluding 'Prepared meals, snacks, sweets etc.' and 'Non-alcoholic beverages'. Statements 1 and 3 are correct.
Consider the following statements regarding the experimental Index of Service Production (ISP) in India:
1. The Ministry of Statistics and Programme Implementation (MoSPI) has initiated efforts to develop an ISP to track service sector growth.
2. Due to data availability, the ISP is designed to exclusively track the IT and IT-enabled Services (ITES) sectors, ignoring traditional services.
3. Constructing a comprehensive ISP is methodologically challenging due to the immense heterogeneity and highly unorganized nature of many service sectors in India.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 2 is incorrect because the goal of the ISP is to be comprehensive, covering various sectors like transport, communication, and hospitality, not just IT. Statements 1 and 3 are correct.
With reference to the Agriculture Marketing and Farmer Friendly Reforms Index (AMFFRI), consider the following statements:
1. It was launched by NITI Aayog to rank states and UTs based on their implementation of agricultural reforms.
2. The index specifically focuses on reforms in the APMC Act and land leasing.
3. High rankings in this index legally guarantee a state additional funding under the MGNREGA scheme.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 3 is incorrect as there is no such direct legal guarantee for MGNREGA funding based on this index. Statements 1 and 2 are correct.
Consider the following statements about the Multi-dimensional Poverty Index (MPI) - National:
1. It is released by NITI Aayog as the nodal agency in India.
2. It uses the same methodology as the Global MPI, focusing on Health, Education, and Standard of Living.
3. The national MPI is used to calculate the annual per capita income of rural households.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 3 is incorrect; MPI measures poverty through specific deprivations across health, education, and living standards, not through monetary per capita income calculations. Statements 1 and 2 are correct.
Consider the following statements regarding the Wholesale Price Index (WPI) in India:
1. WPI captures the price changes of both goods and services at the wholesale level.
2. It excludes indirect taxes in order to remove the fiscal impact on prices, bringing it closer to 'Producer Prices'.
3. The 'Manufactured Products' group carries the highest weight in the WPI basket.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: Statement 1 is incorrect because WPI does not capture the price of services; it only measures the price of goods. Statements 2 and 3 are correct; Manufactured Products account for about 64.23% of the weight.
Regarding the Index of Eight Core Industries, consider the following statements:
1. These eight industries comprise more than 40% of the weight of items included in the Index of Industrial Production (IIP).
2. Electricity generation and Steel production are two of the components included in this index.
3. The 'Refinery Products' industry currently holds the highest weight among the eight core industries.
Which of the statements given above are correct?
- 1 and 2
- 2 and 3
- 1 and 3
- All three
Explanation: All statements are correct. The core industries (Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity) have a combined weight of 40.27% in IIP, with Refinery Products being the heaviest (28.04%).