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.
21. Which of the economic system have the shortcoming of overproduction and over-exploitation of workers?
[A] Socialist system
[B] Mixed system
[C] Market system
[D] Traditional system
Show Answer
Correct Answer: C [Market system]
Notes:
In the market system or the capitalist system, there is always a risk of overexploitation of workers for the profits of the companies. A profit is the main motive of this type of economy. It also may lead to the overproduction of goods since there are no regulations. This can also be attributed to the fact that the workers have low wages and hence cannot afford to consume all the products that are being manufactured.
22. Which of the following measures are not for the protection of workers in the unorganized sector?
[A] Government fixing minimum wages and minimmum working hours
[B] Government providing cheap loans to self employed people
[C] Government providing subsidised food and education
[D] None of the above
Show Answer
Correct Answer: D [None of the above]
Notes:
All the given options are the measures taken by the government for the protection of workers in unorganized workers. Because of the conditions in the unorganized sector, there is a need for the government to give protection to these workers.
23. Who manages food grains distribution under India’s Public Distribution System?
[A] Central Government only
[B] State Government only
[C] Food Corporation of India only
[D] Central and State Governments jointly
Show Answer
Correct Answer: D [Central and State Governments jointly]
Notes:
The Central Government procures, stores, transports, and allocates food grains through the Food Corporation of India. State Governments are responsible for distribution, ration card issuance, allocation within the state, and supervision of Fair Price Shops. Both Central and State Governments have joint but distinct roles under the Public Distribution System. Division of responsibilities is notified by respective ministries and departments.
24. Where is the Indian Institute of Horticultural Research (IIHR) located?
[A] Dehradun
[B] Hyderabad
[C] Bengaluru
[D] Pune
Show Answer
Correct Answer: C [Bengaluru]
Notes:
The Indian Institute of Horticultural Research (IIHR) is an autonomous organization in Bengaluru. It is acting as a nodal agency for basic, strategic, anticipatory and applied research on various aspects of horticulture such as fruits, vegetable, ornamental, medicinal and aromatic plants and mushrooms in India.
25. What is the minimum area that called a cluster under the National Horticulture mission?
[A] 150 Hectares
[B] 100 Hectares
[C] 250 Hectares
[D] 140 Hectares
Show Answer
Correct Answer: B [100 Hectares]
Notes:
Under National Horticulture Mission, a Cluster comprises an area of not less than 100 hectares under a horticulture crop. The various components under the mission will be using the cluster approach.
26. Which wool grade has the highest production in India?
[A] Coarse grade
[B] Apparel grade
[C] Export grade
[D] Carpet grade
Show Answer
Correct Answer: D [Carpet grade]
Notes:
India produces over 90% of its wool in the carpet grade category. Carpet grade wool is coarser and used mainly for making carpets and blankets. Data from the Ministry of Textiles shows that carpet grade wool dominates total production, while apparel grade is a minor share. India ranks second globally in total raw wool production after China as of 2022.
27. Which state is the largest producer of eggs in India?
[A] Tamil Nadu
[B] Andhra Pradesh
[C] Telangana
[D] West Bengal
Show Answer
Correct Answer: B [Andhra Pradesh]
Notes:
Andhra Pradesh contributed 18.37% of India’s total egg production in 2024-25, according to the Basic Animal Husbandry Statistics 2025. Andhra Pradesh produced the highest number of eggs among all Indian states. Annual total egg production in India reached 149.11 billion during 2024-25. The next largest producers were Tamil Nadu at 15.63% and Telangana at 12.98%.
28. Which is the largest tobacco-producing state in India?
[A] Tamil Nadu
[B] Karnataka
[C] Andhra Pradesh
[D] Madhya Pradesh
Show Answer
Correct Answer: C [Andhra Pradesh]
Notes:
The top Tobacco producing states are Andhra Pradesh (45%), Karnataka (26%), Gujarat (14%), Uttar Pradesh (5%), Tamil Nadu (2%), Bihar (2%) and West Bengal (1%).
29. In which year was Small Farmers’ Agri-Business Consortium (SFAC) was established?
[A] 1991
[B] 1994
[C] 1995
[D] 1996
Show Answer
Correct Answer: B [1994]
Notes:
The Government established Small Farmers’ Agri-Business Consortium (SFAC) as a Society in January 1994 to facilitate agri-business ventures by catalyzing private investment through Venture Capital Assistance (VCA) Scheme in close association with financial institutions.
30. Where is the National fisheries development board located?
[A] Pune
[B] Hyderabad
[C] Delhi
[D] Kolkata
Show Answer
Correct Answer: B [Hyderabad]
Notes:
National Fisheries Development Board (NFDB) was set up in September 2006. Its headquarter is at Hyderabad to realize the untapped potential of fisheries sector, fish culture, processing & marketing of fish, application of modern tools of research & development` for optimizing production and productivity in fisheries.
