UPSC Static Quiz – Economy : 15 November 2025 We will post 5 questions daily on static topics mentioned in the UPSC civil services preliminary examination syllabus. Each week will focus on a specific topic from the syllabus, such as History of India and Indian National Movement, Indian and World Geography, and more. We are excited to bring you our daily UPSC Static Quiz, designed to help you prepare for the UPSC Civil Services Preliminary Examination. Each day, we will post 5 questions on static topics mentioned in the UPSC syllabus. This week, we are focusing on Indian and World Geography.
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Participating in daily quizzes helps reinforce your knowledge and identify areas that need improvement. Regular practice will enhance your recall abilities and boost your confidence for the examination. By covering various topics throughout the week, you ensure a comprehensive revision of the syllabus.
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Question 1 of 5
1. Question
The Ramesh Chand Committee was formed primarily to:
Correct
Solution: C
The Ramesh Chand Committee was established to revise the WPI and explore the feasibility of transitioning to the PPI, a system more aligned with international standards.
About Wholesale Price Index (WPI):
- What it is:WPI measures changes in the prices of goods sold and traded in bulk at the wholesale level. It is a key indicator of inflationary trends in the economy.
- Released by:The Office of Economic Advisor, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.
Aim:
- Track supply and demand dynamics in industries.
- Provide a measure of wholesale inflationin the economy.
- Align with other economic indicators like GDP.
Key Features:
- Base Year:Updated to 2011-12 in the current series, under revision to 2022-23.
- Number of Items:Tracks prices of 697 items, including 117 primary items, 16 fuel and power items, and 564 manufactured products.
- Excludes:Services sector (unlike CPI, which includes both goods and services).
Incorrect
Solution: C
The Ramesh Chand Committee was established to revise the WPI and explore the feasibility of transitioning to the PPI, a system more aligned with international standards.
About Wholesale Price Index (WPI):
- What it is:WPI measures changes in the prices of goods sold and traded in bulk at the wholesale level. It is a key indicator of inflationary trends in the economy.
- Released by:The Office of Economic Advisor, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.
Aim:
- Track supply and demand dynamics in industries.
- Provide a measure of wholesale inflationin the economy.
- Align with other economic indicators like GDP.
Key Features:
- Base Year:Updated to 2011-12 in the current series, under revision to 2022-23.
- Number of Items:Tracks prices of 697 items, including 117 primary items, 16 fuel and power items, and 564 manufactured products.
- Excludes:Services sector (unlike CPI, which includes both goods and services).
-
Question 2 of 5
2. Question
Which of the following is not a feature of the Producer Price Index (PPI)?
Correct
Solution: D
PPI measures price changes at the producer level and does not focus on consumer purchasing power, which is covered by the Consumer Price Index (CPI).
About Producer Price Index (PPI):
- What it is:The Producer Price Index (PPI) measures the average change in prices received by producers for goods and services, either sold domestically or exported.
Types:
- Output PPI:Tracks prices of goods and services as they leave production sites.
- Input PPI:Monitors prices of goods and services entering production processes.
Advantages of PPI Over WPI:
- Industry-Centric Inflation Measurement:Captures price changes from the perspective of producers, providing an early signal of inflation trends.
- Focus on Production Stages:Reflects price shifts before goods and services reach consumers, aiding better policy decisions.
- International Alignment:Adheres to the System of National Accounts (SNA), making it more suitable for global economic comparisons.
- Broader Scope:Includes services, unlike WPI, which is restricted to goods.
- Global Adoption:Has replaced WPI in many countries as a more precise tool for measuring economic activity.
Incorrect
Solution: D
PPI measures price changes at the producer level and does not focus on consumer purchasing power, which is covered by the Consumer Price Index (CPI).
About Producer Price Index (PPI):
- What it is:The Producer Price Index (PPI) measures the average change in prices received by producers for goods and services, either sold domestically or exported.
Types:
- Output PPI:Tracks prices of goods and services as they leave production sites.
- Input PPI:Monitors prices of goods and services entering production processes.
Advantages of PPI Over WPI:
- Industry-Centric Inflation Measurement:Captures price changes from the perspective of producers, providing an early signal of inflation trends.
- Focus on Production Stages:Reflects price shifts before goods and services reach consumers, aiding better policy decisions.
- International Alignment:Adheres to the System of National Accounts (SNA), making it more suitable for global economic comparisons.
- Broader Scope:Includes services, unlike WPI, which is restricted to goods.
- Global Adoption:Has replaced WPI in many countries as a more precise tool for measuring economic activity.
-
Question 3 of 5
3. Question
Consider the following statements regarding White Goods:
- White goods, by definition, include large domestic appliances used for household tasks.
- Air conditioners under the PLI scheme focus on developing components like compressors and heat exchangers.
- The inclusion of LED lights in white goods is due to their use in essential household functions.
How many of the above statements are correct?
Correct
Solution: C
White goods primarily include large appliances used for household chores, and the PLI scheme promotes manufacturing of critical components like compressors. LED lights are categorized as white goods because of their utility in households.
About White Goods:
- What it is: White goods are large home appliances used for routine domestic chores, such as cleaning, cooking, and climate control. These products are durable and designed to last for years.
- Appliances Under White Goods:
- Kitchen Appliances: Refrigerators, ovens, microwaves, dishwashers.
- Laundry Room Appliances: Washing machines, dryers.
- Climate Control Devices: Air conditioners, heaters, dehumidifiers, fans.
- LED lights: Cover core component and components too.
- Features of White Goods:
- Durability: Long-lasting and designed for heavy daily use.
- Versatility: Available in various sizes, finishes, and technologies to cater to diverse needs.
- Energy Efficiency: Modern appliances come with energy-saving features to reduce electricity consumption.
- Technological Integration: Smart appliances with IoT connectivity for remote control and monitoring.
- Aesthetic Appeal: Wide range of designs and colors to suit modern interiors.
Incorrect
Solution: C
White goods primarily include large appliances used for household chores, and the PLI scheme promotes manufacturing of critical components like compressors. LED lights are categorized as white goods because of their utility in households.
About White Goods:
- What it is: White goods are large home appliances used for routine domestic chores, such as cleaning, cooking, and climate control. These products are durable and designed to last for years.
- Appliances Under White Goods:
- Kitchen Appliances: Refrigerators, ovens, microwaves, dishwashers.
- Laundry Room Appliances: Washing machines, dryers.
- Climate Control Devices: Air conditioners, heaters, dehumidifiers, fans.
- LED lights: Cover core component and components too.
- Features of White Goods:
- Durability: Long-lasting and designed for heavy daily use.
- Versatility: Available in various sizes, finishes, and technologies to cater to diverse needs.
- Energy Efficiency: Modern appliances come with energy-saving features to reduce electricity consumption.
- Technological Integration: Smart appliances with IoT connectivity for remote control and monitoring.
- Aesthetic Appeal: Wide range of designs and colors to suit modern interiors.
-
Question 4 of 5
4. Question
Consider the following statements regarding Differential pricing
Statement-I: Differential pricing helps businesses cater to different consumer segments and maximize profits.
Statement-II: Differential pricing is considered unethical in India and is prohibited under the Consumer Protection Act, 2019.Which one of the following is correct in respect of the above statements?
Correct
Solution: C
Statement-I is correct: Differential pricing allows businesses to target specific segments based on their willingness to pay, maximizing profitability.
Statement-II is incorrect: Differential pricing is not unethical or prohibited in India; it is regulated to ensure fairness. For example, dynamic pricing by ride-hailing services like Ola and Uber is allowed but monitored by authorities to prevent abuse.- What Is Differential Pricing?
Differential Pricing is a strategy where businesses set varying prices for the same product or service based on factors like location, demand, customer demographics, or purchasing behavior. This dynamic approach allows businesses to optimize revenues while catering to different market segments.
- Types of Differential Pricing:
-
- Price Localization: Adapting prices to reflect local purchasing power or competition.
- Real-Time Pricing: Adjusting prices based on demand, competition, and availability.
- Subscription-Based Pricing: Offering discounts for long-term commitments.
- Seasonal Discounts: Reducing prices during specific periods, like holidays.
- Volume Discounts: Incentivizing bulk purchases with lower per-unit costs.
- Factors Leading to Differential Pricing:
-
- Consumer Demographics: Age, income level, and purchasing behavior influence pricing strategies.
- Geographic Location: Local competition and cost structures dictate regional pricing.
- Market Demand: High demand allows businesses to increase prices (e.g., festive seasons).
- Technology Integration: AI-driven dynamic pricing tailors costs to individual customers.
- Economic Conditions: Inflation, currency exchange rates, and tariffs impact pricing.
Incorrect
Solution: C
Statement-I is correct: Differential pricing allows businesses to target specific segments based on their willingness to pay, maximizing profitability.
Statement-II is incorrect: Differential pricing is not unethical or prohibited in India; it is regulated to ensure fairness. For example, dynamic pricing by ride-hailing services like Ola and Uber is allowed but monitored by authorities to prevent abuse.- What Is Differential Pricing?
Differential Pricing is a strategy where businesses set varying prices for the same product or service based on factors like location, demand, customer demographics, or purchasing behavior. This dynamic approach allows businesses to optimize revenues while catering to different market segments.
- Types of Differential Pricing:
-
- Price Localization: Adapting prices to reflect local purchasing power or competition.
- Real-Time Pricing: Adjusting prices based on demand, competition, and availability.
- Subscription-Based Pricing: Offering discounts for long-term commitments.
- Seasonal Discounts: Reducing prices during specific periods, like holidays.
- Volume Discounts: Incentivizing bulk purchases with lower per-unit costs.
- Factors Leading to Differential Pricing:
-
- Consumer Demographics: Age, income level, and purchasing behavior influence pricing strategies.
- Geographic Location: Local competition and cost structures dictate regional pricing.
- Market Demand: High demand allows businesses to increase prices (e.g., festive seasons).
- Technology Integration: AI-driven dynamic pricing tailors costs to individual customers.
- Economic Conditions: Inflation, currency exchange rates, and tariffs impact pricing.
-
Question 5 of 5
5. Question
The “Sachetisation Plan,” as introduced by SEBI, primarily targets:
Correct
Solution: A
The Sachetisation Plan aims to enable low-income groups to access mutual funds through affordable small-ticket investments, democratizing financial inclusion.
About Sachetisation of Mutual Fund Investments:
- What is Sachetisation?
-
- A strategy inspired by FMCG products offering small, affordable units (e.g., shampoo sachets) to penetrate price-sensitive markets.
- Applied to financial services, it allows low-income investors to enter mutual funds through smaller, affordable investments.
- Need for Sachetisation:
-
- Financial Inclusion: Targets underserved, low-income groups to enable investment in mutual funds.
- Addressing Barriers: Overcomes the high entry costs of traditional mutual fund SIPs.
- Market Deepening: Expands the retail investor base in equity markets, stabilizing market flows against foreign investor volatility.
- Aim of Sachetisation:
-
- Encourage small-ticket SIP investments to democratize access to financial products.
- Foster long-term savings and wealth creation, particularly for low-income investors.
- How it works:
-
- Minimum SIP Amount: ₹250/month (targeted at new mutual fund investors).
- Eligibility Criteria:
- Available for new investors only.
- Maximum of three ₹250 SIPs per investor across asset management companies (AMCs).
- Schemes Excluded: Debt schemes, sectoral, thematic, small-cap, and mid-cap equity funds due to their volatility.
- Commitment Period: Investors encouraged to commit to 5 years (60 instalments), but premature withdrawal is allowed.
- Technology-Driven Process: Investments through UPI auto pay or NACH to minimize costs.
Incorrect
Solution: A
The Sachetisation Plan aims to enable low-income groups to access mutual funds through affordable small-ticket investments, democratizing financial inclusion.
About Sachetisation of Mutual Fund Investments:
- What is Sachetisation?
-
- A strategy inspired by FMCG products offering small, affordable units (e.g., shampoo sachets) to penetrate price-sensitive markets.
- Applied to financial services, it allows low-income investors to enter mutual funds through smaller, affordable investments.
- Need for Sachetisation:
-
- Financial Inclusion: Targets underserved, low-income groups to enable investment in mutual funds.
- Addressing Barriers: Overcomes the high entry costs of traditional mutual fund SIPs.
- Market Deepening: Expands the retail investor base in equity markets, stabilizing market flows against foreign investor volatility.
- Aim of Sachetisation:
-
- Encourage small-ticket SIP investments to democratize access to financial products.
- Foster long-term savings and wealth creation, particularly for low-income investors.
- How it works:
-
- Minimum SIP Amount: ₹250/month (targeted at new mutual fund investors).
- Eligibility Criteria:
- Available for new investors only.
- Maximum of three ₹250 SIPs per investor across asset management companies (AMCs).
- Schemes Excluded: Debt schemes, sectoral, thematic, small-cap, and mid-cap equity funds due to their volatility.
- Commitment Period: Investors encouraged to commit to 5 years (60 instalments), but premature withdrawal is allowed.
- Technology-Driven Process: Investments through UPI auto pay or NACH to minimize costs.
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