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 among the following happens when the interest rate goes up?
[A] Savings decrease
[B] Lending increases
[C] Cost of production decreases
[D] None of the above
Show Answer
Correct Answer: D [None of the above]
Notes:
When interest rates increase the savings in the economy increases. The lending decreases and the cost of production increase because of this as businesses don’t borrow at a high cost.
32. What is the FDI allowed in the Shipping sector?
[A] 100
[B] 51
[C] 75
[D] 49
Show Answer
Correct Answer: A [100]
Notes:
The FDI allowed in the Shipping sector in India is 100%.
33. Which is the largest exported item of India?
[A] Refined Petrol
[B] Diamond
[C] Rice
[D] Aluminium
Show Answer
Correct Answer: A [Refined Petrol]
Notes:
The top 5 exported items of India are refined petrol, diamond, rice, aluminium, sugar.
34. Which is the largest shale oil-producing country?
[A] Russia
[B] USA
[C] Argentina
[D] China
Show Answer
Correct Answer: A [Russia]
Notes:
The top 5 shale oil-producing countries are Russia, USA, China, Argentina, Libya.
35. Which among the following is best suited be used in a Fast Breeder Reactor?
[A] Thorium
[B] Uranium
[C] Plutonium
[D] None
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Correct Answer: A [Thorium]
Notes:
Thorium is best suited for Fast Breeder Reactor. India has one of the largest thorium reserves in the world.
36. Which institution has announced to set up ‘YUVA Tourism Clubs’?
[A] CBSE
[B] UGC
[C] ISRO
[D] NITI Aayog
Show Answer
Correct Answer: A [CBSE]
Notes:
The Central Board of Secondary Education (CBSE) has issued instructions to all CBSE affiliated schools regarding formation of Yuva Tourism Clubs.
The Ministry of Tourism has initiated ‘YUVA Tourism Clubs’ as part of the ‘Azadi ka Amrit Mahotsav’ celebrations. It aims to nurture and develop young ambassadors of Indian tourism who would become aware of tourism possibilities in India, understand our rich cultural heritage and develop passion for tourism.
37. What is the elasticity of demand with respect to price?
[A] elasticity = % change in demand % change in price
[B] elasticity = % change in price % change in demand
[C] elasticity = % change in demand % change in supply
[D] elasticity = % change in supply % change in price
Show Answer
Correct Answer: A [elasticity = % change in demand % change in price]
Notes:
Price elasticity of demand (PED or ED) is a measure used in economics to show the responsiveness, or elasticity, of quantity demanded of a good or service to changes in its price.
elasticity = % change in demand % change in price
38. The Keynesian consumption function shows a relationship between which of the following?
[A] aggregate consumption and total population
[B] aggregate consumption and general price level
[C] aggregate consumption and aggregate income
[D] aggregate consumption and interest rate
Show Answer
Correct Answer: C [aggregate consumption and aggregate income]
Notes:
According to Keynesian Theory of consumption, the current real disposable income is the most important determinant of consumption in the short run. It bases consumption on current income.
39. What is the demand curve facing a perfectly competitive firm?
[A] downward sloping
[B] perfectly inelastic
[C] a concave curve
[D] perfectly elastic
Show Answer
Correct Answer: D [perfectly elastic]
Notes:
A perfectly competitive industry consists of a large number of relatively small firms that sell similar products. Every perfectly competitive firm is so small relative to market size that it has no market control, no ability to control price.
40. For economists, which refers to the quantity of a product or service that people are both willing and able to buy?
[A] demand
[B] supply
[C] price
[D] income
Show Answer
Correct Answer: A [demand]
Notes:
Demand to refer to the amount of some goods or service that consumers are willing and able to purchase at each price. A rise in the price of a goods or service decreases the demand. Conversely, a fall in price will increase the demand.
