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.
11. What is the objective of the Central Government in creating the “Non-lapsable Central Pool of Resources”?
[A] To provide development funding in Naxalite affected areas
[B] To provide additional development grant to most backward 200 districts all over country
[C] To provide time to time fiscal stimulation to the economy
[D] To provide development funding to North East and Sikkim
Show Answer
Correct Answer: D [ To provide development funding to North East and Sikkim ]
Notes:
NLCPR The broad objective of the Non-Lapsable Central Pool of Resources (NLCPR) is to ensure speedy development of infrastructure in the North Eastern Region and Sikkim by increasing the flow of budgetary financing for specific viable infrastructure projects/schemes in the region. The provision is for funding these projects. The outlay includes a provision of Rs. 50 crore for funding special projects/schemes for the economic development of the Karbi Anglong Autonomous Territorial Council (KAATC) area in Assam.
12. The SPS Agreement under the WTO is most concerned with which among the following?
[A] Trade of plant genetic materials
[B] Phytosanitary Measures
[C] Technical Barriers to Trade
[D] Trade in Fertilizers
Show Answer
Correct Answer: B [ Phytosanitary Measures ]
Notes:
The Agreement on the Application of Sanitary and Phytosanitary Measures – also known as the SPS Agreement is an international treaty of the World Trade Organization. It was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade, and entered into force with the establishment of the WTO at the beginning of 1995. Under the SPS agreement, the WTO sets constraints on member-states’ policies relating to food safety (bacterial contaminants, pesticides, inspection and labeling) as well as animal and plant health (phytosanitation) with respect to imported pests and diseases. The SPS agreement is closely linked to the Agreement on Technical Barriers to Trade, which was signed in the same year and has similar goals.
13. Which organization classifies countries into IDA, IBRD, and Blend categories?
[A] International Monetary Fund
[B] Asian Development Bank
[C] World Bank
[D] New Development Bank
Show Answer
Correct Answer: C [World Bank]
Notes:
The World Bank groups economies into IBRD, IDA, and Blend categories for operational lending. IDA members have low GNI per capita below $1,325 for fiscal year 2026. IBRD includes creditworthy economies. Blend countries qualify for both IDA and IBRD support. Seventy-eight countries are currently eligible for IDA resources. The World Bank comprises the IBRD and IDA institutions.
14. Which of the following banks is also known as I.B.R.D.?
[A] International Bank
[B] Asian Development Bank
[C] Bank of America
[D] World Bank
Show Answer
Correct Answer: D [World Bank]
Notes:
The International Bank for Reconstruction and Development is an international financial institution that offers loans to middle-income developing countries. The IBRD is the first of five member institutions that compose the World Bank Group.
15. Which is the longest irrigation canal in India?
[A] East Kosi Canal
[B] Sir hind Canal
[C] Yamuna Canal
[D] Indira Gandhi Canal
Show Answer
Correct Answer: D [Indira Gandhi Canal]
Notes:
The Indira Gandhi Canal is the longest irrigation canal of India. It starts from the Harike Barrage at Harike, a few kilometers below the confluence of the Satluj and Beas rivers in the Indian state of Punjab and terminates in irrigation facilities in the Thar Desert in the north west of Rajasthan state.
16. What do we call the funds that the banks keep with RBI as a portion of their Net Demand and Time Liabilities?
[A] Statutory Liquidity Ratio
[B] Cash Reserve Ratio
[C] Bank Rate
[D] Reverse Repo Rate
Show Answer
Correct Answer: B [Cash Reserve Ratio]
Notes:
The Cash Reserve Ratio is the amount of funds that the banks are bound to keep with Reserve bank of India as a portion of their Net Demand and Time Liabilities (NDTL).
17. Which economic system does the “Socialistic Pattern” evolve from? (UPSC Prelims 1979).
[A] Free Economy
[B] Mixed Economy
[C] Public Sector
[D] None of the above
Show Answer
Correct Answer: B [Mixed Economy]
Notes:
The “Socialistic Pattern” is derived from the Mixed Economy system. In a mixed economic system, the features of both capitalism and socialism are amalgamated. It safeguards private property ownership and promotes certain economic liberty regarding capital usage. Yet, it also permits the government to meddle in economic activities to fulfill societal goals. This marriage of capitalism and socialism in a mixed economy paves the way for the emergence of the so-called “Socialistic Pattern”.
18. Where is the headquarters of the United Nations World Tourism Organization (UNWTO) located?
[A] Paris
[B] Madrid
[C] New York
[D] Geneva
Show Answer
Correct Answer: B [Madrid]
Notes:
The World Tourism Organization (UNWTO) is the United Nations agency responsible for the promotion of sustainable and universally accessible tourism. Its headquarters is located at Madrid, Spain.
19. What is a free good?
[A] Opportunity cost = Maximum
[B] Opportunity cost = Negative
[C] Opportunity cost = 0
[D] A good which is freely available to all
Show Answer
Correct Answer: C [Opportunity cost = 0]
Notes:
A free good is a good with zero opportunity cost. This means it can be consumed in as much quantity as needed without reducing its availability to others. For Example sunlight, ideas, music or air.
20. Which sector do the red collar workers belong to?
[A] Primary sector
[B] Secondary sector
[C] Tertiary sector
[D] None of the above
Show Answer
Correct Answer: A [Primary sector]
Notes:
The people involved in the
Primary sector – red collar,
Secondary sector – blue-collar and
Tertiary sector – white collar.
