SSC CGL (Prelims) General: Economy questions with solutions

Q1. IMD World Competitiveness Ranking 2025 shows Switzerland topping which dimension in both 2024 and 2025?

1. Business Efficiency
2. Infrastructure
3. Economic Performance
4. Employment

Answer: Infrastructure

In the IMD World Competitiveness Ranking, Switzerland topped the Infrastructure dimension in both 2024 and 2025. The question asks specifically about the dimension, not the overall ranking.

Q2. What is the primary objective of the PLI (Production Linked Incentive) Scheme?

1. Promote domestic manufacturing and exports
2. Provide crop insurance to farmers
3. Regulate prices of essential medicines
4. Improve cold storage infrastructure

Answer: Promote domestic manufacturing and exports

The Production Linked Incentive (PLI) Scheme is designed to encourage domestic manufacturing by offering incentives linked to production. It also aims to improve competitiveness and support exports.

Q3. What is the primary objective of the PM Gati Shakti National Master Plan?

1. Integrated development of multimodal infrastructure
2. Providing minimum support price to farmers
3. Regulating drug prices
4. Expanding cold storage facilities

Answer: Integrated development of multimodal infrastructure

PM Gati Shakti is a national master plan for integrated planning and execution of infrastructure projects. Its main goal is multimodal connectivity and coordinated development across sectors.

Q4. Read the following Assertion (A) and Reason (R) carefully and choose the correct option: Assertion (A): India adopted economic liberalisation in 1991. Reason (R): This was done to integrate the Indian economy with the global market.

1. Both A and R are true and R is the correct explanation of A
2. Both A and R are true but R is not the correct explanation of A
3. A is true but R is false
4. A is false but R is true

Answer: Both A and R are true and R is the correct explanation of A

India did adopt economic liberalisation in 1991, and the objective was to open the economy and integrate it with the global market. Since the reason explains the assertion, the correct option is the first one.

Q5. Read the following statements marked as Assertion (A) and Reason (R). Mark the correct option: Assertion (A): The Human Development Index (HDI) includes indicators of health, education, and income. Reason (R): The HDI is published by the United Nations Development Programme (UNDP).

1. Both A and R are true, and R is the correct explanation of A
2. Both A and R are true, but R is not the correct explanation of A
3. A is true, but R is false
4. A is false, but R is true

Answer: Both A and R are true, but R is not the correct explanation of A

HDI does include health, education, and income indicators, and it is published by UNDP. However, the fact that UNDP publishes it does not explain why those indicators are included, so the reason is not the correct explanation.

Q6. The latest LPI reports include:

1. Only shipping data
2. Survey-based perception only
3. Big-data tracking indicators
4. Tourism metrics

Answer: Big-data tracking indicators

Recent LPI reports have expanded beyond only survey-based perception and include big-data tracking indicators. This makes the index more comprehensive.

Q7. Who was appointed as the Chairperson of the State Bank of India (SBI) in early 2025?

1. Dinesh Khara
2. CS Setty
3. Rajnish Kumar
4. Arundhati Bhattacharya

Answer: CS Setty

CS Setty was appointed as the Chairperson of SBI in early 2025. The other names are former SBI chairpersons or do not match the 2025 appointment. This is a current affairs-based banking question.

Q8. What does ASSOCHAM stand for?

1. Associated Chambers of Commerce and Industry of India
2. Association of Small Scale Chambers of Commerce and Management
3. All State Society of Commerce and Human Management
4. Association of Scientific and Social Chambers of India

Answer: Associated Chambers of Commerce and Industry of India

ASSOCHAM stands for Associated Chambers of Commerce and Industry of India. It is a prominent industry association in India. The other options are incorrect expansions.

Q9. The term 'Maharatna' in the context of Indian Central Public Sector Enterprises (CPSEs) refers to:

1. Companies that are being prepared for total privatization
2. Companies granted maximum financial and operational autonomy
3. Small-scale industries in the textile sector
4. Firms that operate exclusively in rural welfare

Answer: Companies granted maximum financial and operational autonomy

Maharatna is a status granted to eligible CPSEs to give them greater financial and operational autonomy. It is meant for large, high-performing public sector companies.

Q10. The World Competitiveness Index primarily assesses a country's ability to:

1. Attract tourists
2. Create and maintain an environment for enterprises to compete
3. Innovation in cultural heritage
4. Conserve natural resources

Answer: Create and maintain an environment for enterprises to compete

The World Competitiveness Index evaluates how well a country creates conditions that help enterprises operate and compete effectively. It focuses on economic performance, government efficiency, business efficiency, and infrastructure.

Q11. Why is revenue deficit a concern for the economy?

1. It increases productive investment
2. It improves trade surplus
3. It indicates borrowing for current spending
4. It boosts capital creation

Answer: It indicates borrowing for current spending

Revenue deficit shows that the government’s revenue receipts are insufficient to meet its revenue expenditure. This is a concern because it implies borrowing is being used for current consumption rather than productive investment.

Q12. The Logistics Performance Index (LPI) is published by which international organization?

1. World Bank
2. IMF
3. WTO
4. UNCTAD

Answer: World Bank

The Logistics Performance Index is published by the World Bank. It assesses countries on logistics-related indicators such as customs, infrastructure, and shipment tracking.

Q13. Read the following statements carefully and choose the correct option regarding Assertion (A) and Reason (R): Assertion (A): Globalization has led to increased outsourcing of services to India. Reason (R): India offers high-cost, low-skill services to foreign companies.

1. Both A and R are true and R is the correct explanation of A
2. Both A and R are true but R is not the correct explanation of A
3. A is true but R is false
4. A is false but R is true

Answer: A is true but R is false

Globalization has indeed increased outsourcing of services to India, so Assertion (A) is true. However, India is known for relatively low-cost, skilled services, not high-cost, low-skill services, so Reason (R) is false.

Q14. What was the aim of the Sixth Five-Year Plan (1980–85)?

1. Defense expansion
2. Faster industrialization
3. Poverty reduction and modernization
4. Export-led growth

Answer: Poverty reduction and modernization

The Sixth Five-Year Plan focused on poverty alleviation, employment generation, and modernization of the economy. It also aimed at improving productivity and reducing regional imbalances.

Q15. Consider the following statements and choose the correct option: Statement 1: Income tax and dividends from PSUs are classified as revenue receipts in the government budget. Statement 2: Disinvestment in PSUs is also a revenue receipt as it brings income to the government.

1. Only Statement 1 is correct
2. Only Statement 2 is correct
3. Both Statement 1 and Statement 2 are correct
4. Neither Statement 1 nor Statement 2 is correct

Answer: Only Statement 1 is correct

Income tax and dividends from PSUs are revenue receipts because they are regular income for the government. Disinvestment is a capital receipt since it involves sale of government assets, not ordinary revenue.