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. Click Here to read the UPSC Essentials magazine for August 2026. Share your views and suggestions in the comment box or at manas.srivastava@indianexpress.com2. In the double deflation method, real value added is measured as the difference between real gross output and real intermediate inputs.Which of the statements given above is/are correct?(a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2Relevance: Double deflation is important for understanding how real GVA/value added is estimated by separating changes in output prices from changes in input prices. The topic tests the distinction between nominal and real measures and the role of appropriate price deflators in measuring economic growth.Explanation— Prior to the new GDP series, which has 2022-23 as the base year, that was released earlier this year in February, one of the biggest criticisms of Indian data was MoSPI used double deflation only for agriculture and mining and quarrying sectors. For the others, input and output values were ‘deflated’ by the same number, with the Wholesale Price Index and Consumer Price Index being used. This can be problematic when input and output prices change at different rates.Story continues below this ad— With the new GDP series using the double-deflation method for all sectors, there have been revisions to past estimates of GDP and growth. These revisions have also been accentuated by the use of the new Producer Price Index numbers for inputs and outputs, which is used internationally. According to MoSPI’s Garg, the PPI has more than 300 deflators for different parts of the GDP to compute real values from nominal ones, up from around 180 under the old series. This makes the new series’ estimates more accurate.— Double deflation is the technique used to estimate real value added to an industry. In the double deflation method, real value added is measured as the difference between real gross output and real intermediate inputs. Double deflation is the conceptually preferred method of computing real value added because it requires fewer assumptions about the relationships among gross output and intermediate inputs. Hence, statements 1 and 2 are correct.Therefore, option (c) is the correct answer.(Other Source: http://www.bea.gov)To read more: GDP debate: Centre rebuffs criticism of methods, says 7.8% growth correctQUESTION 2Consider the following statements:1. Ukrainian attacks on Russia’s oil and gas infrastructure is a key reason for the pressure on Russian oil exports.Story continues below this ad2. Attacks on export infrastructure in the Arctic region have become a tangible threat to the navigation of energy tankers in the region.Which one of the following is correct in respect of the above statements?(a) Both Statement 1 and Statement 2 are correct and Statement 2 is the correct explanation for Statement 1.(b) Both Statement 1 and Statement 2 are correct and Statement 2 is not the correct explanation for Statement 1.(c) Statement 1 is correct but Statement 2 is incorrect.(d) Statement 1 is incorrect but Statement 2 is correct.Story continues below this adRelevance: This topic is relevant for UPSC Prelims as it links geopolitics with global energy security and oil supply chains. It is important for understanding how attacks on energy infrastructure can reshape Russia’s export routes, tanker movement and relations with major energy-importing countries such as India and China.Explanation— India’s oil imports from Russia in August declined 26% from their historic highs in the previous month amid tighter Russian export availability as well as stronger competition from Chinese refiners, according to provisional tanker data. Maintenance shutdowns at a few Indian refineries also likely contributed to lower crude intake.— The fall in Russian volumes was the primary reason for the over 8% decline in India’s overall oil imports in August. Notably, though, oil imports from Venezuela touched their highest monthly levels since 2020. With the US allowing Caracas’s oil to flow into the global market, India restarted imports of Venezuelan oil a few months ago after nearly a year of zero imports.— Ukrainian attacks on Russia’s oil and gas infrastructure is a key reason for the pressure on Russian oil exports. Attacks on export infrastructure in the Black Sea have become a tangible threat to navigation of energy tankers in the region. Freight economics are incentivising avoiding the Black Sea routes altogether. Hence, statement 1 is correct.Story continues below this ad— Attacks and disruptions to energy-export facilities and shipping routes in Russia’s Arctic area can endanger the transit and navigation of energy tankers. Arctic oil exports, notably those from Murmansk, have also been disrupted due to pressure on Russian vessels. Hence, statement 2 is correct.— Why Statement 2 does not explain Statement 1: The strain on Russian oil exports stems mostly from the wider disruption of Russian oil infrastructure and shipping, particularly attacks on major western export ports and facilities in the Black Sea. The Arctic-related threat is only one component and does not serve as the direct explanation for Statement 1.Therefore, option (b) is the correct answer.QUESTION 3With reference to BharatNet, consider the following statements:1. It is the government’s flagship rural broadband initiative.2. It seeks to provide broadband connectivity only to villages located in border areas.3. It is primarily a cybersecurity programme aimed at protecting rural digital infrastructure from cyberattacks.How many of the statements given above are correct?(a) Only one(b) Only two(c) All three(d) NoneStory continues below this adRelevance: The question connects with e-governance, delivery of public services, digital education, healthcare and financial inclusion in rural areas. The topic is linked to Digital India, optical-fibre networks, broadband access and the digital transformation of rural economies.Explanation— Less than half the number of connections targeted until March 2026 by the government as part of BharatNet —its ambitious rural broadband connectivity programme — were actively using the service, with new customer additions seeing a steady decline over the last three years, data obtained by The Indian Express under the Right to Information (RTI) Act showed. Hence, statement 1 is correct.— As of March this year, a total of 13.23 lakh (13,22,842 to be precise) fixed connections were commissioned under BharatNet, as opposed to a target of 18 lakh. However, only about 8.01 lakh connections were actively being used, the RTI data showed.— BharatNet is essential to deliver high-capacity, uninterrupted fixed-line broadband to rural areas. It could serve as the digital backbone necessary to support heavy data usage, rural e-governance, and seamless digital healthcare, while avoiding network congestion. Mobile internet is typically not well suited for such high-data use cases.Story continues below this ad— BharatNet is not limited to villages in border areas. Its objective is to provide broadband connectivity across rural India. Hence, statement 2 is not correct.— BharatNet is a digital connectivity/infrastructure initiative, not primarily a cybersecurity programme. Hence, statement 3 is not correct.Therefore, option (a) is the correct answer.QUESTION 4With reference to agrivoltaic farming, consider the following statements:1. It increases land-use efficiency.2. It allows solar panels to be installed only on rooftops of farmhouses.Story continues below this ad3. It requires all agricultural operations to be suspended during the period of electricity generation.Which one of the following conclusions based on the above statements is correct?(a) All three statements are correct.(b) There are two correct statements, that include statement 1.(c) There is only one correct statement.(d) There is no correct statement.Relevance: It connects with India’s efforts to expand solar power, decentralised energy generation and clean-energy infrastructure without necessarily competing entirely with agriculture for land. The topic is important for Prelims and GS Paper III, particularly Agriculture, renewable energy, sustainable development, environmental conservation and emerging agricultural technologies.Explanation— Agrivoltaic farming is the practice of growing crops underneath solar panels. Doubling up on land use in this way could help feed the world’s growing population while also providing sustainable energy. Hence, statement 1 is correct.— Agrivoltaic farming could be a solution to not just one but both of these problems. It uses the shaded space underneath solar panels to grow crops.— Agrivoltaics is not limited to rooftops. Solar panels can be installed over or between agricultural crops, generally using elevated structures. Hence, statement 2 is not correct. Crops growing alongside vertical solar panels. (Express Photo)— Agricultural activities continue alongside solar power generation; the basic principle is the dual use of land for farming and electricity generation. Hence, statement 3 is not correct.Therefore, option (c) is the correct answer.(Other Source: http://www.weforum.org)QUESTION 5The term ‘chipflation’ was recently in the news. It refers to:(a) A rise in the prices of semiconductor chips due to increased demand and supply constraints.(b) A decline in semiconductor prices caused by excess production and weak consumer demand.(c) A situation in which countries impose higher tariffs on imported semiconductor chips.(d) A shift by semiconductor manufacturers from conventional chips to advanced AI-based chips.Relevance: The question helps understand how semiconductor shortages can affect electronics, automobiles, consumer goods, inflation and manufacturing costs. The topic connects with semiconductor manufacturing, advanced chips, AI demand and India’s semiconductor ecosystem.Explanation— The global artificial intelligence (AI) investment boom has created an acute shortage of the memory chips used in the manufacture of everyday consumer electronics. This has led to manufacturers raising rates they charge to such an extent that years of price hikes that occurred in the past for products such as smartphones and TVs have taken place in just six months in 2026.— According to Consumer Price Index (CPI) data from the Ministry of Statistics and Programme Implementation (MoSPI), prices of a variety of consumer electronics goods in July were up 3-5% compared to January.— The increase in price indices over 2026 of the aforementioned six consumer electronics is calculated as per the new CPI series which has 2024 as the base year. For the period prior to 2026, price index changes are computed using the old CPI series which had 2012 as the base year. Only consumer electronic items present in both the old and new CPI baskets have been compared.— Back in June, analysts at American investment bank Morgan Stanley had coined the term ‘chipflation’ to describe how “AI’s appetite for memory chips is boosting the cost of everything from data centers to smartphones, with consequences that may reach far beyond the tech industry.”— The global AI boom has led to key chipmakers such as TSMC, Samsung, and SK Hynix making the more in-demand and advanced chips used in data centres sprouting up all over the world.Therefore, option (a) is the correct answer.Previous Daily Subject-Wise-QuizDaily Subject-wise quiz — History, Culture, and Social Issues (Week 162)Daily subject-wise quiz — Polity and Governance (Week 178)Daily subject-wise quiz — Science and Technology (Week 178)Daily subject-wise quiz — Economy (Week 177)Daily subject-wise quiz — Environment and Geography (Week 177)Daily subject-wise quiz – International Relations (Week 177)Subscribe to our UPSC newsletter and stay updated with the news cues from the past week.Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X