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Question No. 286Interactive Test Mode
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Q286. The growth rate of per capita income at current prices is higher than that of per capita income at constant prices, because the latter takes into account the rate of:

The growth rate of per capita income at current prices is higher than that of per capita income at constant prices, because the latter takes into account the rate of:

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

Official Answer Key & Detailed Solution

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

Official UPSC Answer KeyUPSC Prelims 2000 • Indian Economy

Correct Answer: Option (B) — increase in price level

Concept & Option Breakdown

Standard Reference Verified

Nominal per capita income (at current prices) reflects both volume growth and general price rises (inflation). Real per capita income (at constant prices) is deflated using base-year prices to strip away the effect of the increase in the price level (inflation), making real growth lower than nominal growth in an inflationary environment.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2000 (Q286)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (B) — increase in price level

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Frequently Asked Questions — UPSC Prelims 2000 Q286

What is the official answer for UPSC Prelims 2000 GS Paper I Question 286 (Indian Economy)?

The official UPSC answer key for this 2000 Indian Economy (Indian Economic Planning & Growth) question is Option (B): "increase in price level". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2000 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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