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.
31. Which is Asia’s largest cloverleaf flyover?
[A] Kathipara Cloverleaf
[B] Bardarpur Cloverleaf
[C] Yamuna Cloverleaf
[D] BMIC Cloverleaf
Show Answer
Correct Answer: A [Kathipara Cloverleaf]
Notes:
Kathipara Junction or Kathipara flyover is the Asia’s largest cloverleaf. It is situated in Guindy, Chennai. The junction is one of the busiest roads in Chennai.
32. ‘Adopt a Heritage’ is a scheme implemented by Ministry of Tourism in association with which Union Ministry?
[A] Ministry of Culture
[B] Ministry of Home Affairs
[C] Ministry of Road Transport and Highways
[D] Ministry of Tribal Affairs
Show Answer
Correct Answer: A [Ministry of Culture]
Notes:
The Ministry of Tourism implements the “Adopt a Heritage: Apni Dharohar, Apni Pehchaan” project, in collaboration with Ministry of Culture, Archaeological Survey of India and State/ UTs.
It aims to develop tourism amenities at heritage sites located across India to make them tourist friendly. Under the project, 27 MoUs have been signed with several companies and NGOs, also called “Monument Mitras”, to develop the sites under CSR.
33. An increase in the consumer income leads to a decrease in demand of which type of good?
[A] normal good
[B] complementary good
[C] inferior good
[D] substitute good
Show Answer
Correct Answer: C [inferior good]
Notes:
An inferior good is a good whose demand decreases when consumer income rises, unlike normal goods, for which the opposite is observed. Normal goods are those goods for which the demand rises as consumer income rises.
34. Pandit Jawaharlal Nehru described which of the following multi-purpose project as temple of a resurgent India?
[A] Tehri Dam
[B] Bhakra multi-purpose project
[C] Nagarjuna Sagar Dam
[D] Srisailam multi-purpose project
Show Answer
Correct Answer: B [Bhakra multi-purpose project]
Notes:
According to Jawaharlal Nehru, power and steel are the key bases for planning. He described the 680 ft Bhakra multi-purpose project on the Sutlej river in Himachal Pradesh as the new temple of a resurgent India. The Indian Institutes of Technology and the Atomic Energy Commission were the other “modern temples”.
35. The government provides incentives on investments under the Animal Husbandry Infrastructure Development Fund (AHIDF) for which of the following activities?
- Setting up Dairy Processing Infrastructure
- Setting up Meat Processing Infrastructure
- Setting up Animal Feed Plan
Select the correct option from the codes given below:
[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 1 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: D [1, 2 & 3]
Notes:
As a part of the Atma Nirbhar Bharat Abhiyan stimulus package, a Rs. 15000 crores Animal Husbandry Infrastructure Development Fund (AHIDF) has been set up. The AHIDF will incentivize investments by individual entrepreneurs, private companies including MSME, farmers producers organizations (FPOs) and Section 8 companies to establish (i) dairy processing and value addition infrastructure (ii) meat processing and value addition infrastructure, and (iii) animal feed plant.
36. Maitree Express connects India and which country?
[A] Pakistan
[B] Bangladesh
[C] Myanmar
[D] Nepal
Show Answer
Correct Answer: B [Bangladesh]
Notes:
The Maitree Express also known as Dhaka-Kolkata Express is an International passenger train connecting the Bangladeshi capital of Dhaka and India’s Kolkata.
37. Which cost curve is never ‘U’ shaped?
[A] Marginal cost curve
[B] Average variable cost curve
[C] Average fixed cost curve
[D] Average cost curve
Show Answer
Correct Answer: C [Average fixed cost curve]
Notes:
Average fixed cost curve is never ‘U’ shaped. Since total fixed cost remains unchanged with increase in output, the average fixed cost curve continues to fall as output increases.
38. Perfectly inelastic demand is equal to:
[A] One
[B] Infinite
[C] Zero
[D] Greater than one
Show Answer
Correct Answer: C [Zero]
Notes:
Price elasticity of demand is a measure of the relationship between a change in the quantity demanded of a particular commodity and a change in its price. If the price elasticity of demand is equal to 0, then demand is perfectly inelastic.
39. To which units the subsidy is paid by the government?
[A] Consuming units
[B] Producing units
[C] Banking units
[D] Retired persons
Show Answer
Correct Answer: B [Producing units]
Notes:
Subsidy is essentially the payment by the government to the suppliers/producers which reduces their cost of production and encourages them to increase the production. An input subsidy that subsidizes the cost of inputs used in production etc. However, subsidies can also be given to consuming units. Either way, it benefits the end use or the consumer.
40. If exports equal imports, then which of the following relations will be true?
[A] GDP = GNP
[B] GDP > GNP
[C] GDP < GNP
[D] None of these
Show Answer
Correct Answer: A [GDP = GNP]
Notes:
The total final value of goods and services produced within the domestic territory of a country in a specified time period is called Gross Domestic Product. Gross national product (GNP) is an estimated value of the total worth of products and services, by citizens of a country, on its land or on foreign land, calculated over the course of one year. Hence, GNP = GDP + NR. So, if NR equals zero, which means when exports equal imports, then GDP = GNP
