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.
41. Which country has an open sky agreement with India?
[A] Greece
[B] USA
[C] UAE
[D] Japan
Show Answer
Correct Answer: A [Greece]
Notes:
India and Greece signed an open sky agreement in September 2016. The agreement allows airlines from both countries to operate unlimited flights to each other’s destinations. The open sky agreement was the first after India’s civil aviation policy was finalized in 2016. This policy permits open sky arrangements with countries beyond a 5,000 km radius from India, including Greece. The USA also has such an agreement with India.
42. What is the FDI limit in India’s petroleum refining sector?
[A] 51%
[B] 49%
[C] 74%
[D] 100%
Show Answer
Correct Answer: D [100%]
Notes:
India allows 100% Foreign Direct Investment in petroleum refining by public sector undertakings approved for disinvestment since 2021. 100% FDI through the automatic route is also permitted for private sector petroleum refining projects. A 49% FDI cap applies to public sector refining projects without disinvestment. These rules were notified through Press Note No. 3 (2021 Series) on July 29, 2021.
43. Which company operates the world’s largest single-site petroleum refinery in India?
[A] BPCL
[B] HPCL
[C] IOCL
[D] Reliance Industries Limited (RIL)
Show Answer
Correct Answer: D [Reliance Industries Limited (RIL)]
Notes:
Reliance Industries Limited (RIL) operates the Jamnagar Refinery in Gujarat. The refinery was commissioned in 1999 and expanded in 2008. It has a refining capacity of 1.24 to 1.4 million barrels per day. It is recognized as the world’s largest single-location refinery. The site also features petrochemical complexes. Reliance’s refinery exports refined petroleum products globally.
44. In a perfectly competitive market, what happens to a firm?
[A] Average Revenue is always equal to Marginal Revenue
[B] Marginal Revenue is more than Average Revenue
[C] Average Revenue is more than Marginal Revenue
[D] Marginal Revenue and Average Revenue are never equal
Show Answer
Correct Answer: A [Average Revenue is always equal to Marginal Revenue]
Notes:
Average revenue is the amount that a firm receives per unit of output sold. Marginal revenue is the change in total revenue resulting from a small change in sales volume.
45. When will the equilibrium of a firm be determined under perfect competition?
[A] Marginal Revenue > Average Cost
[B] Marginal Revenue > Average Revenue
[C] Marginal Revenue = Marginal Cost
[D] Marginal Cost > Average Cost
Show Answer
Correct Answer: C [Marginal Revenue = Marginal Cost]
Notes:
When the marginal revenue productivity of a factor is equal to the factor’s marginal-cost (MR=MC), the firm will be in equilibrium and its profit will be maximum.
46. Devaluation is mainly done for which of the following?
[A] encourage export
[B] encourage import
[C] discourage import
[D] To encourage both export and import
Show Answer
Correct Answer: A [encourage export]
Notes:
Devaluation refers to the official lowering of the value of a country’s currency relative to another currency, by which the monetary authority formally sets a new fixed rate. It causes a country’s exports to become less expensive, making them more competitive in the global market.
47. Which scheme launched by the central government aims to improve rural livelihoods and promote rural development and strengthen Panchayati Raj across the country?
[A] Pradhan Mantri Fasal Bima Yojana
[B] Gram Uday Se Bharat Uday Abhiyan
[C] Stand up India scheme
[D] National RURBAN Mission
Show Answer
Correct Answer: B [Gram Uday Se Bharat Uday Abhiyan]
Notes:
Gram Uday Se Bharat Uday Abhiyan, launched by Prime Minister Narendra Modi in April 2016, aims to “generate efforts to increase social harmony across villages”, “promote rural development” and “foster farmers’ welfare and livelihood of the poor”. The scheme also involves development of panchayat raj, optimum utilization of funds of panchayat Raj, with focus on clean drinking water and sanitation, role of women and rural development and social inclusion of welfare of scheduled caste, scheduled tribes and also persons with disabilities.
48. A part of the national debt which is known as external debt is__
[A] borrowed by its citizens from abroad
[B] lent by its citizens to foreign governments
[C] borrowed by its government from abroad
[D] lent by its government to foreign government
Show Answer
Correct Answer: C [borrowed by its government from abroad]
Notes:
External debt (or foreign debt) is that portion of a country’s total debt that is owed to creditors outside the country. Debtors can be governments, corporations or private households. Debt includes money owed to private commercial banks, other governments, or international financial institutions such as the International Monetary Fund (IMF) and the World Bank.
49. Which sector receives the largest FDI inflows in India recently?
[A] Manufacturing
[B] Renewable Energy
[C] Services
[D] Infrastructure
Show Answer
Correct Answer: C [Services]
Notes:
The services sector is the largest recipient of FDI in India, accounting for over 80% of total inflows. Key areas include IT, finance, and telecom. Recent data consistently ranks services above manufacturing, infrastructure, or renewables in total FDI share according to RBI and DPIIT statistics.
50. ऑक्टोबर 2024 मध्ये महाराष्ट्रातील पहिला “Aquafest” जलपर्यटन महोत्सव कुठे आयोजित करण्यात आला होता?
[A] पुणे
[B] नाशिक
[C] जळगाव
[D] मुंबई
Show Answer
Correct Answer: C [जळगाव]
Notes:
महाराष्ट्रातील पहिला “Aquafest” जलपर्यटन महोत्सव जळगावच्या मेहरूण तलावात आयोजित करण्यात आला. राज्याचे पर्यटन मंत्री गिरीश महाजन यांच्या हस्ते उद्घाटन झाले. हा उपक्रम जलक्रीडा पर्यटनाला चालना देण्यासाठी आणि देशी-विदेशी पर्यटकांना आकर्षित करण्यासाठी राबवण्यात आला. तसेच, मंत्री महाजन यांनी या भागातील पर्यटन पायाभूत सुविधांच्या विकासासाठी आर्थिक गुंतवणुकीची घोषणा केली.