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. These questions are part of GKToday’s 35000+ MCQs Bank Course in GKToday Android App
21. Which one of the following is not an instrument of selective credit control in India?
[A] Regulation of consumer credit
[B] Rationing of credit
[C] Margin requirements
[D] Variable cost reserve ratios
Show Answer
Correct Answer: D [Variable cost reserve ratios]
Notes:
The variable reserve ratio device springs from the fact that the central bank, in its capacity as Bankers Bank, must hold a part of the cash reserves of commercial banks. The customary minimum cash reserve ratio is an important limitation on the lending capacity of banks.
22. Which economist proved the impossibility theorem?
[A] Kenneth Rogoff
[B] Kenneth Arrow
[C] Gary Becker
[D] Mark Skousen
Show Answer
Correct Answer: B [Kenneth Arrow]
Notes:
Kenneth Arrow proved the impossibility theorem, which shows the limitations underlying predicting people’s preferences between options. His groundbreaking work in these fields as well as broader topics in general equilibrium theory and welfare theory led to him acquiring the Noble Prize in 1972.
23. Which of the following is not the advantage of the Socialist Economy?
[A] Equitable distribution of resources
[B] Social development is possible
[C] Government can take steps to focus on important sectors
[D] There is Lack of Innovation.
Show Answer
Correct Answer: D [There is Lack of Innovation.]
Notes:
There is a lack of innovation is the disadvantage of Socialist form of Economy. Since there is no need to take any risk as all the jobs are protected innovation doesn’t take place. Workers are also forced to pursue jobs the government deems fit.
24. What is the average farm size of Indians?
[A] 2.34 hectares
[B] 1.16 hectares
[C] 3.87 hectares
[D] 4.23 hectares
Show Answer
Correct Answer: B [1.16 hectares]
Notes:
55% of the Indian population is engaged in agriculture. As farms are divided among the family members average farm size of Indians is 1.16 hectares.
25. Genetic Engineering Appraisal Committee works under which ministry?
[A] Ministry of Agriculture
[B] Ministry of environment forst and climate change
[C] Ministry of Science and Technology
[D] Ministry of Rural developoment
Show Answer
Correct Answer: B [Ministry of environment forst and climate change]
Notes:
The Genetic Engineering appraisal committee is under the Ministry of environment forest and climate change. Its function is to appraise proposals relating to the release of genetically engineered organisms and products into the environment including experimental field trials.
26. What is the largest exporter of fruits and vegetables to India?
[A] China
[B] Afganisthan
[C] USA
[D] Bangladesh
Show Answer
Correct Answer: A [China]
Notes:
China contributes 16% to Indian imports. It is the larger contributor to Indian Horticulture imports.
27. Which state is the largest producer of eggs in India?
[A] Tamil Nadu
[B] Andhra Pradesh
[C] Karnataka
[D] Kerala
Show Answer
Correct Answer: B [Andhra Pradesh]
Notes:
Andhra Pradesh is the largest producer of eggs in India, contributing 20.13% of the country’s total egg production in 2023. The state is sometimes called the “Egg Bowl of Asia”. Here are the top three egg-producing states in India: Andhra Pradesh – 20.13% of the country’s total egg production. Tamil Nadu – 15.58% of the country’s total egg production. Telangana – 12.77% of the country’s total egg production
28. Which is the largest fish producing state in India?
[A] Kerala
[B] Tamil Nadu
[C] Karnataka
[D] West Bengal
Show Answer
Correct Answer: D [West Bengal]
Notes:
The top 4 fish producing states are:
1. West Bengal
2. Andhra Pradesh
3. Gujarat
4. Kerala
29. When was the first woollen textile mill established in India?
[A] 1876
[B] 1900
[C] 1899
[D] 1857
Show Answer
Correct Answer: A [1876]
Notes:
The first woollen textiles mill was set up in 1876 at Kanpur, because Kanpur was the principal depot for the British Indian Army. The industry did not flourish because of a short winter and long summer in India leading to inadequate demand. Also, the textiles produced were of poor quality. After independence, there was rapid development of the industry mainly as an export-oriented industry.
30. Which Index helps to understand the growth of various sectors of the Economy?
[A] IIP
[B] CPI
[C] WPI
[D] None of the above
Show Answer
Correct Answer: A [IIP]
Notes:
Index of Industrial Production (IIP) helps us to understand the growth of various sectors of the Economy. It is released monthly by CSO.
