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AP Economy and Budget Highlights · Chapter 44
Practice set 6

Try all ten questions before reading their answers.

51. A lower unemployment rate can coexist with low employment when:

A. Labour-force participation is low B. All workers have two jobs C. GSDP is constant D. Ports are inland

Answer A. People outside the measured labour force do not enter the unemployment denominator.

52. Why should an economy question date a district ranking?

A. District boundaries and data vintages change B. Rivers have no names C. Tax year has no dates D. GSDP is never revised

Answer A. The 26-to-28 change makes old and new district comparisons unsafe without recomputation.

53. Which pair compares like with like when measuring an established spending trend?

A. Actual versus actual B. BE versus a scheme target C. Debt stock versus GVA D. RE versus port cargo

Answer A. Actual accounts for different years are comparable after checking classifications.

54. The 2026-27 BE agriculture-and-allied sectoral total is about:

A. ₹14,303.20 crore B. ₹21,624.09 crore C. ₹18,223.67 crore D. ₹89,080.15 crore

Answer A. The sectoral table lists ₹14,303.20 crore.

55. The 2026-27 BE rural-development sectoral total is about:

A. ₹21,624.09 crore B. ₹14,303.20 crore C. ₹3,161.40 crore D. ₹11,027.25 crore

Answer A. The sectoral table lists ₹21,624.09 crore.

56. Which budget document best records programme outputs alongside provision?

A. Outcome budget B. A coastline map C. Port tariff only D. A census schedule

Answer A. Outcome budgets link spending to intended and reported results.

57. Why does a horticulture crop need cold-chain investment?

A. It removes the need for water B. It can reduce post-harvest loss and preserve quality C. It changes district borders D. It converts grants into debt

Answer B. Perishable output loses value quickly without handling, cooling and transport.

58. Which is a better explanation of regional inequality than a single district label?

A. Water, terrain, skills and market access B. Alphabetic order C. Only the district name D. The length of a politician's speech

Answer A. Economic outcomes arise from multiple physical and institutional factors.

59. If prices rise while nominal income stays fixed, purchasing power generally:

A. Rises B. Falls C. Becomes public debt D. Equals GSDP

Answer B. A fixed amount of money buys fewer goods when the relevant prices rise.

60. Which measure is a consumer-basket price index?

A. CPI B. GVA C. FRBM D. BE

Answer A. The Consumer Price Index tracks prices faced by a defined group of consumers.

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