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. National Housing Bank is wholly owned by which of the following institutions?
[A] RBI
[B] SEBI
[C] SBI
[D] None of the Above
Show Answer
Correct Answer: A [RBI]
Notes:
NHB is wholly owned by Reserve Bank of India, which contributed the entire paid-up capital. The Head Office of NHB is at New Delhi. NHB was set up on July 9, 1988 under the National Housing Bank Act, 1987.
12. In terms of cotton production, what is India’s current global ranking?
[A] First
[B] Fourth
[C] Second
[D] Fifth
Show Answer
Correct Answer: A [First]
Notes:
India is projected to remain the global leader in cotton production until 2030, accounting for 25% of the total output. Other key players include China (22%), USA (15%), and Brazil (10%). The OECD-FAO Agricultural Outlook 2021-2030 also forecasted that five Asian nations – China, India, Pakistan, Bangladesh, and Vietnam – will constitute 75% of total mill consumption.
13. Which one out of the following is least liquid among the measures of money supply?
[A] M1
[B] M2
[C] M3
[D] M4
Show Answer
Correct Answer: D [M4]
Notes:
Liquidity order is M1>M2>M3>M4 i.e. M1 is most liquid and M4 is least liquid.
14. Which of the following problems is needed to be resolved under issue management?
[A] Problems with staff
[B] Technical failures
[C] Material shortages
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Issue management is the process of identifying and resolving issues. Problems with staff or suppliers, technical failures, material shortages – these might all have a negative impact on your project
15. What is the purpose of Finance Commission?
[A] Passing the money bills
[B] Approving money bills
[C] Drafting the budget
[D] Making recommendations to the President regarding the distribution between the Union and the States of the net proceeds of the taxes
Show Answer
Correct Answer: D [Making recommendations to the President regarding the distribution between the Union and the States of the net proceeds of the taxes]
Notes:
The key role Finance Commission in India is to act as an instrument to divide proceeds of divisible taxes between the states and the Union government or in cases of taxes that are collected by the centre but the proceeds of which are allocated between the states, to determine the principles of such allocation.
16. What is the name given to the unemployment which occurs when workers move from one job to another job?
[A] Seasonal unemployment
[B] Frictional unemployment
[C] Technological unemployment
[D] Cyclical unemployment
Show Answer
Correct Answer: B [Frictional unemployment]
Notes:
Frictional unemployment is a type of unemployment. It is sometimes called search unemployment and can be based on the circumstances of the individual. It is time spent between jobs when a worker is searching for a job or transitioning from one job to another.
17. Persons below the poverty line in India are classified as such based on whether?
[A] they are entitled to a minimum prescribed food basket
[B] they get work for a prescribed minimum number of days in a year
[C] they belong to agricultural labourer household and the scheduled caste/tribe social group
[D] their daily wages fall below the prescribed minimum wages
Show Answer
Correct Answer: A [they are entitled to a minimum prescribed food basket]
Notes:
Poverty line in India is classified on the basis of calories per day available to a person. It is a simple average and does not show the actual availability to a person or a household.
18. Which of the below is a correct statement regarding inferior goods?
[A] Demand of a good decreases with increases in peoples income
[B] Demand of a good increases with increases in peoples income
[C] Demand of a good decreases with decrease in peoples income
[D] Demand of a good increase with decrease in peoples income
Show Answer
Correct Answer: A [Demand of a good decreases with increases in peoples income]
Notes:
An inferior good is an economic term that describes a good whose demand drops when people’s incomes rise. This occurs when a good has more costly substitutes that see an increase in demand as incomes and the economy improve. Inferior goods are the opposite of normal goods where in normal goods, a consumer would demand less of if they had a higher level of real income.
19. Which economist is the brainchild behind the 1991 LPG reforms in India?
[A] P.C.Mehalonibis
[B] Manmohan Singh
[C] Amartya Sen
[D] None of the above
Show Answer
Correct Answer: B [Manmohan Singh]
Notes:
Former Prime Minister Dr. Manmohan Singh is one of India’s leading economists and is known to have been the brain behind India’s socio-economic reforms and economic liberalization.
20. Which among the following is a guiding force for the capitalist economy?
[A] Social service
[B] Private property
[C] Competition
[D] Profit motive
Show Answer
Correct Answer: D [Profit motive]
Notes:
Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.
