APPSC Paper I · Assistant Statistical Officer Paper II · Topic 3
3 APPSC Paper I Indian Economics questions with answers
29 questions from APPSC ASO 2025 Paper II question paper with answers and APPSC ASO Paper II Mock 1 with answers. Try each one, then tap Show answer.
Previous-paper questions are as in the original paper. Medha AI wrote the answers and explanations.
3.1Population, poverty, unemployment & inequality
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Which occupational category includes laborers who directly depend on natural resources for their work?
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Answer C. Primary occupational structure
The primary sector covers activities that draw directly on natural resources, such as agriculture, fishing, forestry and mining.
Source: APPSC Assistant Statistical Officer 2025, Paper II (Notification 12/2024), Q2, final key
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Which one of the following is not a consequence of rural urban disparities prevailing in an economy?
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Answer D. More people will be moving to rural areas in order to work on agricultural sector
Rural-urban disparities push people from villages to towns, crowding cities and straining urban services; they do not draw people back to rural farm work.
Source: APPSC Assistant Statistical Officer 2025, Paper II (Notification 12/2024), Q5, final key
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Consider the following statements:
Statement A: The Poverty line is determined by the minimum income at which food and non food basic necessities can be met.
Statement B: The headcount index measures the percentage of population living above the poverty line
Which of the statements given above is/are correct?
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Answer A. Only Statement A is correct
The poverty line is the minimum income needed for basic food and non-food needs; the headcount ratio measures the share of people below, not above, that line.
Source: APPSC Assistant Statistical Officer 2025, Paper II (Notification 12/2024), Q7, final key
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Population density is generally expressed as:
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Answer A. Number of people per square kilometer
Population density is the number of persons living per square kilometre of area.
Source: APPSC Assistant Statistical Officer 2025, Paper II (Notification 12/2024), Q17, final key
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Match the List – I with List – II and select the correct answer from the options given below
List-I List-II A. Disguised unemployment i. Primary sector. B. In India, largest percentage of labour force is employed in ii. More people working in agriculture than required C. Informal sector iii. movement of labor from one place to another for work D. migration iv. no job security and unregulated work Show answerHide answer
Answer D. A-ii, B-i, C-iv, D-iii
Disguised unemployment is surplus labour on farms, the primary sector employs the largest share of India's workers, the informal sector lacks job security, and migration is movement for work.
Source: APPSC Assistant Statistical Officer 2025, Paper II (Notification 12/2024), Q18, final key
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Which one of the following is not the reason for increased regional imbalances?
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Answer D. Uniform education system across regions
Concentrated industry, low-productivity farming and uneven natural endowments widen regional gaps; a uniform education system would reduce, not widen, them.
Source: APPSC Assistant Statistical Officer 2025, Paper II (Notification 12/2024), Q23, final key
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With reference to inequality, consider the following statements:
• Initially, when a country starts growing, inequality can increase given the fact that more focus will be on industrial growth to achieve economic growth; therefore, less labor will be employed and more capital will be employed
• The Lorenz curve helps in evaluating the distribution of income in an economy and therefore tries to measure inequality prevailing in the market.
• The only type of inequality which is prevalent in India is regional inequality
How many of the above statements are correct?
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Answer B. Only two
Inequality tends to rise in early growth (Kuznets), and the Lorenz curve measures income distribution, so the first two are true; India has income, gender, social and regional inequality, so the third is false.
Source: APPSC Assistant Statistical Officer 2025, Paper II (Notification 12/2024), Q41, final key
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Which of the following is NOT a component of the physical quality of life index which is an indicator of economic development?
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Answer D. per capita real domestic product
Morris D. Morris's PQLI combines life expectancy (at age one), infant mortality and basic literacy; it deliberately leaves out income measures such as per capita GDP.
Source: APPSC Assistant Statistical Officer 2025, Paper II (Notification 12/2024), Q43, final key
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Match the measures with what they capture:
List I
a. Gini coefficient
b. Headcount ratio
c. Poverty gap index
d. Multidimensional Poverty Index
List II
I. Product of headcount and intensity of deprivation
II. Inequality on a scale from 0 to 1
III. Shortfall of the incomes of the poor from the poverty line
IV. Share of the population below the poverty line
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Answer C. a-II, b-IV, c-III, d-I
Gini - inequality from 0 to 1; headcount ratio - share below the line; poverty gap - shortfall from the line; MPI - H x A.
Source: PW Indian Economy
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Consider the following statements about measures of inequality:
I. A Gini coefficient of zero means perfect equality.
II. A Lorenz curve that coincides with the 45-degree line of equality means perfect inequality.
Which of the statements given above is/are correct?
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Answer A. I only
Only I is correct. A Lorenz curve on the line of equality means perfect equality; the more it bows away, the greater the inequality.
Source: PW Indian Economy (Human Capital, Unemployment and Poverty chapter)
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Consider the following statements about Multidimensional Poverty Indices:
I. The Global MPI was introduced in 2010 by UNDP and OPHI.
II. The Global MPI uses 10 indicators.
III. India's National MPI uses 14 indicators.
Which of the statements given above is/are correct?
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Answer B. I and II only
I and II are correct. India's National MPI uses 12 indicators.
Source: PW Indian Economy; NITI Aayog National MPI Baseline Report
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According to the Human Development Report 2025, India's HDI rank among 193 countries was
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Answer A. 130
HDR 2025 placed India at rank 130 of 193, with life expectancy of 72 years.
Source: NCERT Class 10 Understanding Economic Development, Table 1.6 (HDR 2025)
3.3Sectoral trends: agriculture & industry
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Which one of the following is the agricultural policy implemented for the benefit of farmers/ producers?
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Answer A. Minimum support price
The Minimum Support Price assures farmers a floor price for their crops; PDS mainly serves consumers.
Source: APPSC Assistant Statistical Officer 2025, Paper II (Notification 12/2024), Q20, final key
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A statement has been given below followed by two conclusions. Assuming given statement to be true, which of the following options will be correct for given conclusions.
Statement: The service sector in India has expanded rapidly, contributing significantly to national income, employment, and foreign investments.
Conclusions:
I. The service sector is a major driver of economic growth in India.
II. Manufacturing and agriculture have become irrelevant to economic growth.
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Answer A. Only Conclusion 1 follows
A large and growing contribution to income, jobs and investment makes services a major growth driver, but nothing in the statement says other sectors have become irrelevant.
Source: APPSC Assistant Statistical Officer 2025, Paper II (Notification 12/2024), Q36, final key
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Holders of mining leases granted on or after 12 January 2015 must pay to the District Mineral Foundation an amount equal to what share of the royalty?
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Answer A. 10 per cent
DMF contribution is 10 per cent of royalty for leases from 12 January 2015 and 30 per cent for earlier leases.
Source: PW Indian Economy, ch.9 Industry, Manufacturing and Infrastructure, p.134
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Consider the following statements about negotiable warehouse receipts in India:
I. The Warehousing Development and Regulatory Authority was set up under the Warehousing (Development and Regulation) Act, 2007.
II. These receipts are regulated by the Securities and Exchange Board of India.
III. Farmers can obtain bank loans against receipts issued by registered warehouses.
Which of the statements given above is/are correct?
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Answer B. I and III only
Statements I and III are correct. I is true; II is false (they are regulated by WDRA); III is true.
Source: PW Indian Economy, ch.8 Agriculture and Allied Sector, p.118
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Consider the following statements about organic farming in India:
I. Kerala was the first State in India to be declared fully organic.
II. Paramparagat Krishi Vikas Yojana promotes cluster-based organic farming.
III. MOVCDNER is meant only for the North-Eastern States.
Which of the statements given above is/are correct?
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Answer C. II and III only
Statements II and III are correct. I is false (Sikkim was first, in 2016); II is true; III is true.
Source: PW Indian Economy, ch.8 Agriculture and Allied Sector, p.115
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Consider the following statements about AGMARK:
I. It is issued under the Agricultural Produce (Grading and Marking) Act, 1937.
II. It is administered by the Bureau of Indian Standards.
III. It is a quality certification mark for agricultural products.
Which of the statements given above is/are NOT correct?
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Answer C. II only
Statement II is NOT correct. I is true; II is false (it is administered by the Directorate of Marketing and Inspection); III is true.
Source: PW Indian Economy, ch.8 Agriculture and Allied Sector, p.117
3.2Planning, NITI Aayog & economic policies
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Which one of the following is the problem associated with economic planning in India which leads to economic reforms in early 1990’s?
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Answer D. High inflation and fiscal deficit
The 1991 crisis came from high inflation, large fiscal deficits and a balance of payments crisis, which led to the LPG reforms.
Source: APPSC Assistant Statistical Officer 2025, Paper II (Notification 12/2024), Q22, final key
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The Public Distribution System is the program implemented to take care of poor people in India. Which one of the following is the key objective of PDS?
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Answer B. To provide food to the poor
PDS distributes food grains and essentials at subsidised prices through ration shops to ensure food security for the poor.
Source: APPSC Assistant Statistical Officer 2025, Paper II (Notification 12/2024), Q40, final key
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Consider the following statements about tax reforms after 1991:
Statement I: Income tax rates were reduced, since high rates were seen as a reason for tax evasion.
Statement II: GST was introduced in 1991 as part of the New Economic Policy.
Which of the statements given above is/are correct?
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Answer A. I only
Only Statement I is correct. GST came much later, after the 2016 constitutional amendment.
Source: NCERT Class 11 Indian Economic Development ch.3 (p.58)
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Consider the following statements about the Aspirational Districts Programme:
I. It was launched in January 2018.
II. NITI Aayog anchors the programme at the central level.
III. Districts are ranked only on the basis of their per capita income.
Which of the statements given above is/are correct?
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Answer C. I and II only
Statements I and II are correct. The programme, launched in January 2018 and anchored by NITI Aayog, ranks districts on many indicators such as health and nutrition, education, agriculture, financial inclusion and infrastructure.
Source: NITI Aayog, Aspirational Districts Programme
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Consider the following statements about the Indian rupee:
Statement I: It is fully convertible on the current account.
Statement II: It is fully convertible on the capital account.
Which of the statements given above is/are correct?
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Answer A. I only
Only Statement I is correct. Current account convertibility was achieved in 1994; capital account convertibility is still partial.
Source: PW Indian Economy (ref) p.143
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Consider the following statements about the National Manufacturing Policy, 2011:
Statement I: It aimed to raise the share of manufacturing in India's GDP to at least 35 per cent by 2022.
Statement II: It aimed to create 100 million additional jobs by 2022.
Which of the statements given above is/are correct?
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Answer B. II only
Only statement II is correct. The target share of manufacturing in GDP was 25 per cent, not 35 per cent. The National Manufacturing Policy, 2011 targeted 12-14 per cent manufacturing growth, a 25 per cent share of GDP and 100 million additional jobs by 2022; it also proposed National Investment and Manufacturing Zones.
Source: Indian Economy (reference) ch.9 p.133; National Manufacturing Policy 2011 (DIPP)
3.4Fiscal deficit, external debt & the budget
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Which of the following is one of the negative impact of External debt?
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Answer D. Dependency on foreign countries or institutions can lead to comprising political freedom
Heavy reliance on foreign lenders can bring conditions that limit a country's policy and political independence; the other options are benefits of external borrowing.
Source: APPSC Assistant Statistical Officer 2025, Paper II (Notification 12/2024), Q24, final key
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Which of the following is not the negative impact of parallel economy?
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Answer D. Some employment opportunities are created in the informal sector
Tax evasion, corruption and inflation from unaccounted money are harms of black money; creating some informal jobs is, if anything, a side benefit.
Source: APPSC Assistant Statistical Officer 2025, Paper II (Notification 12/2024), Q39, final key
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As per the Union Budget 2025-26, the Central Government's debt-to-GDP ratio in 2025-26 (Budget Estimates) is estimated at
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Answer B. 56.1%
The Budget estimated the Central Government debt-to-GDP ratio at 56.1% in 2025-26 (BE), down from 57.1% in 2024-25 (RE).
Source: Union Budget 2025-26, Fiscal Policy Strategy Statement; PW Indian Economy (p.52 printed)
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Consider the following statements about agriculture announcements in the Union Budget 2025-26:
I. A five-year Mission for Cotton Productivity was announced.
II. A National Mission on High Yielding Seeds was announced.
Which of the statements given above is/are correct?
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Answer C. Both I and II
The Budget announced a five-year Mission for Cotton Productivity and a National Mission on High Yielding Seeds, among other agriculture measures.
Source: Union Budget 2025-26, Budget Speech (1 Feb 2025)
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Consider the following statements about regulatory reform measures in the Union Budget 2025-26:
I. A High-Level Committee for Regulatory Reforms will review all non-financial sector regulations, certifications, licences and permissions.
II. The High-Level Committee is expected to give its recommendations within five years.
III. An Investment Friendliness Index of States will be launched in 2025.
Which of the statements given above is/are INCORRECT?
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Answer D. II only
Statement II is incorrect: the High-Level Committee for Regulatory Reforms is expected to make recommendations within a year. It covers non-financial sector regulations, and an Investment Friendliness Index of States was to be launched in 2025.
Source: Union Budget 2025-26, Budget Speech (1 Feb 2025)
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