Indian Economy MCQs
Indian Economy Multiple Choice Questions (MCQs) for SSC, State and all One Day Examinations of India. Objective Questions on Indian Economy for competitive examinations.
1. Which among the following is a most suitable example of double counting in national income ?
[A] Wages of bus and train drivers
[B] Cotton output and cotton cloth output
[C] Electricity output and water output
[D] Tax receipts and earnings of inland revenue officials
Show Answer
Correct Answer: B [Cotton output and cotton cloth output]
Notes:
While estimating the national income, the problem of double counting occurs when the value of some goods and services are counted more than once. Cotton output and cotton cloth output both the raw material and the final result are counted.
2. Which is NOT an economic factor contributing to poverty in India?
[A] Caste-based social discrimination
[B] Low agricultural productivity
[C] Unemployment and underemployment
[D] Rapid population growth
Show Answer
Correct Answer: A [Caste-based social discrimination]
Notes:
Caste-based social discrimination in India is classified as a social, not economic, factor. The caste system leads to social exclusion and restricts access to education and jobs for marginalized groups such as Scheduled Castes and Scheduled Tribes. Social discrimination originates from traditional societal structures and legal history, rather than economic variables like production levels, employment rate, or population growth.
3. Which of the following bodies approves the Fair and Remunerative Price of Sugarcane?
[A] Cabinet Committee on Economic Affairs
[B] Commission for Agricultural Costs and Prices
[C] Directorate of Marketing and Inspection, Ministry of Agriculture
[D] Agricultural Produce Marketing Committee
Show Answer
Correct Answer: A [ Cabinet Committee on Economic Affairs ]
Notes:
Approval comes from Cabinet Committee on Economic Affairs (CCEA). The FRP is the minimum price that sugarcane farmers are legally guaranteed
4. World Economic Outlook is a survey conducted and published by the________?
[A] World Economic Forum
[B] World Bank
[C] World Trade Organization
[D] International Monetary Fund
Show Answer
Correct Answer: D [ International Monetary Fund ]
Notes:
World Economic Outlook is a survey conducted and published by the International Monetary Fund.
5. Rolling plan was designed for which of the following periods?
[A] 1974-79
[B] 1978-83
[C] 1980-85
[D] 1985-90
Show Answer
Correct Answer: B [1978-83]
Notes:
The Janta Government terminated the fifth five year plan in 1977-78 and launched its own sixth five year plan for period 1978-83 and called it a Rolling Plan. This second plan is kept changing as per the requirements of the economy (and politics).
6. Which of the following curves represents the demand of all consumers in the market taken together at different levels of the price of the good?
[A] Monotonic
[B] Indifferent
[C] Market demand
[D] Diminishing
Show Answer
Correct Answer: C [Market demand]
Notes:
The market demand curve is the summation of all the individual demand curves in a given market. It shows the quantity demanded of the good by all individuals at varying price points.
7. Which of the following is component of capital market?
[A] Equity market
[B] Debt market
[C] Derivative market
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
There are three component of capital market are:- EQUITY MARKET, DEBT MARKET and DERIVATIVE MARKET.
8. Which of the following targets at individuals and small businesses who lack access to conventional banking and related services?
[A] Asset Finance Company
[B] Investment Company
[C] NBFC Micro Finance Institution
[D] Infrastructure Finance Company
Show Answer
Correct Answer: C [NBFC Micro Finance Institution]
Notes:
A microfinance institution is an organization that offers financial services to low income populations. Almost all give loans to their members, and many offer insurance, deposit and other services. A great scale of organizations is regarded as microfinance institutes.
9. Which focus marked the Seventh Five-Year Plan’s long-term fiscal policy? (UPSC Prelims 1987)
[A] Capital formation by increasing money income
[B] Reforming the taxing system
[C] Making tax laws easily comprehensible
[D] Tackling deep-seated poverty and unemployment
Show Answer
Correct Answer: D [Tackling deep-seated poverty and unemployment]
Notes:
The Seventh Five-Year Plan emphasized reducing poverty and unemployment, aiming to improve quality of life and create productive rural employment opportunities. The policy focused on social objectives alongside economic growth, prioritizing poverty alleviation over tax reforms or comprehension.
10. Who is the author of the famous book “The social Framework”?
[A] James Tobin
[B] Amartya Sen
[C] Dean Baker
[D] J.R.Hicks
Show Answer
Correct Answer: D [J.R.Hicks]
Notes:
The Social Framework. Posted on May 23, 2015. is the title of a short book by John Hicks published in 1942. It’s an introduction, for the general reader, to the then-new fangled concept of national income accounting – beautifully clearly written and very straightforward.
