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. How many times in a year does RBI release Monetary policy?
[A] 3
[B] 6
[C] 4
[D] 2
Show Answer
Correct Answer: B [6]
Notes:
RBI releases monetary policy once in 2 months. So the Monetary policy is a bi-monthly policy so it is released 6 times in a year.
42. Which is the largest coal-producing company in the world?
[A] Coal India Limited
[B] Central Coalfield Limited
[C] BHP Group
[D] China Shenhua Energy Company
Show Answer
Correct Answer: A [Coal India Limited]
Notes:
Coal India Limited is the largest coal-producing company in the world. It is a Maharatna company.
43. How many oil refineries are present in India?
[A] 20
[B] 23
[C] 18
[D] 15
Show Answer
Correct Answer: B [23]
Notes:
India’s has a petroleum refining capacity of 249 MMTPA. It comprises of 23 refineries—18 under public sector, 3 under private sector and 2 in a joint venture.
44. What is meant by the law of increasing returns?
[A] increasing cost
[B] Decreasing cost
[C] increasing production
[D] increasing income
Show Answer
Correct Answer: B [Decreasing cost]
Notes:
Increasing returns mean lower costs per unit, just as decreasing returns mean higher costs. Similarly, the law of increasing returns suggests that the cost per unit of marginal or additional output falls with the expansion of an industry. As more and more units of the commodity are produced, the cost per unit falls continuously. Furthermore, the returns remain more than proportionate.
45. What are the nonrecurring costs that arise when the producing firm itself owns and supplies some of the factors of production?
[A] Explicit costs
[B] Original costs
[C] Implicit costs
[D] Replacement costs
Show Answer
Correct Answer: C [Implicit costs]
Notes:
Equal to an implicit opportunity cost that a firm must spare to use factors that it neither buys nor hires. This is in contrast to an explicit cost, which is incurred directly.
46. Who has benefited the most from inflation?
[A] Creditor
[B] Business Man
[C] Debtor
[D] None of these
Show Answer
Correct Answer: C [Debtor]
Notes:
Inflation is good for borrowers and bad for lenders because it reduces the value of the money paid back to the lenders. Debtors find themselves paying a lower real interest rate than expected, and stocks tend to rise in value to reflect the inflation level.
47. Tax on import is an example of__
[A] Foreign trade
[B] Trade Barrier
[C] Economic growth
[D] Globalisation
Show Answer
Correct Answer: B [Trade Barrier]
Notes:
Trade barriers are government-induced restrictions on international trade. The most common barrier to trade is a tariff-a tax on imports. Tariffs raise the price of imported goods relative to domestic goods.
48. What are the reserves maintained by commercial banks with the Reserve Bank of India over and above the statutory minimum called?
[A] Cash reserves
[B] Deposit reserves
[C] Excess reserves
[D] Momentary reserves
Show Answer
Correct Answer: C [Excess reserves
]
Notes:
In banking, excess reserves are bank reserves in excess of the reserve requirement set by a central bank. They are reserves of cash more than the required amounts.
49. Which of the following Five Year Plans recognized human development as the core of all developmental endeavours?
[A] First Five Year Plan
[B] Second Five Year Plan
[C] Eighth Five Year Plan
[D] Ninth Five Year Plan
Show Answer
Correct Answer: C [Eighth Five Year Plan]
Notes:
The Eighth Five Year Plan (1992-1997) recognized “human development” as the core of all developmental efforts. The sectors that contribute to the realization of this goal are health, literacy and basic needs including drinking water, housing and welfare programmes for the weaker sections.
50. Which is a wrong pair of economic sectors?
[A] Fishing — Primary sector
[B] Transport — Secondary sector
[C] Banking — Tertiary sector
[D] Software Company — Tertiary sector
Show Answer
Correct Answer: B [Transport — Secondary sector]
Notes:
Transport comes under the tertiary sector or service sector of the three-sector theory. This sector consists of the production of services instead of end products and involves the provision of services to other businesses as well as final consumers.
