UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Attempt today’s subject quiz on the Economy to check your progress.

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With reference to the Worker Population Ratio (WPR), consider the following statements:

1. It is the proportion of the labour force that does not have employment and is seeking and/or available for work.

2. An increasing WPR is a key indicator of how many people are actually working and not unemployed.

3. The overall WPR for persons aged 15 & above declined in November 2025 from June 2025.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Relevance: Labour market indicators like WPR are key to understanding employment trends and economic health, a frequent UPSC Prelims area. Questions often test conceptual clarity between WPR, LFPR, and Unemployment Rate based on data from the National Statistical Office.

Explanation:

— Unemployment rate (UR) is the proportion of the labour force that does not have employment and is seeking and/or available for work.

— LFPR is the percentage of persons in the labour force (i.e. working or seeking or available for work) in the population. A rising LFPR signals improving labour market engagement, as more people are entering the workforce. The overall LFPR for persons aged 15 & above rose to a seven-month high of 55.8% in November 2025 (54.2% in June 2025).

— WPR is the percentage of employed persons in the population. An increasing WPR is a key indicator of how many people are actually working and not unemployed. The overall WPR for persons aged 15 & above improved to 53.2% in November 2025, up from 52.5% in October and 51.2% in June 2025. Hence, statements 1 and 3 are not correct and statement 2 is correct.

Therefore, option (a) is the correct answer.

(Source: http://www.pib.gov.in)

Murban, West Texas Intermediate and Kikeh are associated with:

(a) Natural Gas benchmarks

(b) Gold refining standards

(c) Types of coal reserves

(d) Crude oil grades

Relevance: Mapping such terms to their regions builds clarity in world geography and resource distribution. It helps in eliminating options in questions linking energy resources, economy, and international markets.

Explanation:

— India-flagged crude oil tanker Jag Laadki, which was loading oil at the UAE’s Fujairah port on Saturday when the oil terminal there came under attack, safely set sail for India from the port on Sunday morning, the government said Sunday. Jag Laadki is carrying around 80,800 tonnes of Murban crude — a crude grade produced by the UAE — and the tanker as well as all Indian seafarers on board are safe. According to ship databases, Jag Laadki was built in 2010 and is currently owned and operated by Mumbai-based Great Eastern Shipping Company.

— The war in West Asia has heavily disrupted vessel movements in the region from where a sizable chunk of global energy supplies originate. While the Fujairah port is in the Gulf of Oman and ships coming from there to India don’t need to cross the perilous waters of the Strait of Hormuz, the incident highlights the threat to merchant vessel safety in other parts of the region as well.

— West Texas Intermediate (WTI Midland) is a key US shale crude that is light and sweet, often competing with Murban for Asian demand.

— Kikeh is a high-value, light-sweet crude traded in the Singapore region.

Therefore, option (d) is the correct answer.

With reference to the Coffee, consider the following statements:

1. In Ethiopia and Uganda, coffee export revenues exceeded the food import bills.

2. In 2024, Peru and Columbia were the leading coffee exporters.

3. The UN General Assembly (UNGA) declared October 31 as International Coffee Day.

Which of the statements given above is/are correct?

(a) 1 only

(b) 1 and 3 only

(c) 2 only

(d) 2 and 3 only

Relevance: Coffee is a major plantation crop, making it important under agriculture and economic geography for UPSC Prelims. Questions often link crops with global trade patterns, leading producers/exporters, and developing country economies.

Explanation:

— The Food and Agriculture Organisation of the United Nations (FAO) welcomes the UN General Assembly’s passage of a resolution designating October 1 as International Coffee Day. Hence, statement 3 is not correct.

— Coffee remains one of the world’s most traded commodities. In 2024, global production will exceed 11 million tonnes, with around 8 million tonnes of coffee beans traded internationally. That year, global coffee production was valued at about $25 billion, with global trade in coffee beans reaching $34 billion.

— For many low-income countries, coffee exports are an important source of foreign exchange. In 2024, coffee contributed for 27.9 percent of total merchandise exports in Ethiopia, 20.1 percent in Uganda, and 19.5 percent in Burundi. Coffee export income in Ethiopia and Uganda topped food import expenses, while in Burundi they accounted for over 20% of the country’s food import bill. Hence, statement 1 is correct.

— In 2024, Brazil and Vietnam were the top coffee exporters, while the European Union and the United States of America were the top buyers. Hence, statement 2 is not correct.

Therefore, option (a) is the correct answer.

(Source: http://www.fao.org)

The polysilicon refining, ingot and wafer manufacturing is related to:

(a) Lithium-ion battery production

(b) solar module and cell manufacturing capacity

(c) Wind turbine blade fabrication

(d) Hydrogen fuel cell technology

Relevance: Questions test awareness of critical technology supply chains and India’s dependence on countries like China. It is important for linking energy security, climate goals, and domestic manufacturing capacity in Prelims.

Explanation:

— The government extended its domestic sourcing mandate for solar equipment to include wafers and ingots, with implementation beginning from June 2028. The requirement to use domestically manufactured ingots and wafers will primarily apply to government-backed and utility-scale projects, commercial and industrial projects, as well as schemes such as PM Surya Ghar.

— At present, the domestic sourcing mandate largely covers solar PV modules while components like cells, wafers, ingots and polysilicon could be imported. However, the mandate to use domestically manufactured solar cells in clean energy projects will come into force from June this year. India has witnessed considerable growth in solar module and cell manufacturing capacity, upstream segments such as polysilicon refining as well as ingot and wafer manufacturing continue to face challenges.

Therefore, option (b) is the correct answer.

With reference to the rebasing (updating the base year), consider the following statements:

1. The base year is revised to reflect structural shifts in the economy and to improve the accuracy of economic estimates.

2. Rebasing enables GDP and related indices to better capture the contribution of emerging sectors.

3. The rebasing supports alignment with international best practices recommended by the UN Statistical Commission.

Which of the statements given above are correct?

(a) 1 and 3 only

(b) 1 and 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Relevance: Rebasing of GDP is a core concept in national income accounting, frequently tested in UPSC Prelims. It is also linked with current affairs when countries (including India) update base years as per global norms set by bodies like the United Nations Statistical Commission.

Explanation:

— Rebasing is the process of updating the base year using revised and improved data to reflect the current structure of the economy.

— The year 2022-23 was chosen as the new base year because it reflects the most recent “normal” year following the disruptions in 2019-2021. The COVID-19 pandemic had a significant impact on 2019-20 and 2020-21, causing temporary distortions in consumer trends and industrial output.

— The base year is revised on a regular basis to account for fundamental changes in the economy and to improve the accuracy of economic forecasts. Such updates enable methodological modifications and the incorporation of more comprehensive and dependable data sources. Hence, statement 1 is correct.

— India’s economy has changed dramatically, with the rise of renewable energy and digital services, as well as shifts in consumption patterns and investment activity. Rebasing allows GDP and associated indexes to better reflect the impact of developing sectors, price movements, and technological and productivity gains. Hence, statement 2 is correct.

— Furthermore, periodic revisions help to align with international best practices recommended by the UN Statistical Commission, ensuring that India’s statistical framework remains methodologically sound and globally comparable, particularly in areas like digital economy measurement and supply-use tables. Hence, statement 3 is correct.

Therefore, option (d) is the correct answer.

(Source: http://www.pib.gov.in)

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