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Question No. 258Interactive Test Mode
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Q258. Consider the following statements: 1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries. 2. In terms of PPP dollars, India is the sixth largest economy in the world. Which of the statements given above is/are correct?

Consider the following statements:

  1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries.
  2. In terms of PPP dollars, India is the sixth largest economy in the world.

Which of the statements given above is/are correct?

Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2019 • Indian Economy

Correct Answer: Option (A) — 1 only

Concept & Option Breakdown

Standard Reference Verified
  • Statement 1 is correct: Purchasing Power Parity (PPP) calculates exchange rates by comparing the relative price levels of a representative basket of identical goods and services across different nations (Law of One Price).
  • Statement 2 is incorrect: In PPP terms, India is the third-largest economy in the world (behind China and the United States), not the sixth largest (it is around 5th in nominal terms).
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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2019 (Q258)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (A) — 1 only

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Frequently Asked Questions — UPSC Prelims 2019 Q258

What is the official answer for UPSC Prelims 2019 GS Paper I Question 258 (Indian Economy)?

The official UPSC answer key for this 2019 Indian Economy (Indian Economic Planning & Growth) question is Option (A): "1 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2019 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

To solve Indian Economic Planning & Growth questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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