A
To serve as a reference point against which prices and physical volumes of economic output are measured to remove inflation effects
B
To set the mandatory minimum wage floor for formal sector manufacturing workers
C
To calculate the total fiscal deficit of the central government over a ten-year cycle
D
To determine the exchange rate parity between the rupee and the US dollar
Correct answer: (a) To serve as a reference point against which prices and physical volumes of economic output are measured to remove inflation effects
Explanation
Option A is correct because a base year provides the reference point against which prices and physical volumes are measured to isolate real growth from inflation. Options B, C, and D are incorrect.
Same topic · past papers
UPSC has asked this before
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