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
41. Consider the following pairs:
- Surajkund Crafts Mela – Ministries of Tourism, Textiles, Culture and External Affairs.
- India International Trade Fair – India Trade Promotion Organisation
- The Kala Ghoda Arts Festival – Ministry of Culture
Which of the pairs given above are correct?
[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 1 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: A [Only 1 & 2]
Notes:- Jammu & Kashmir has been chosen to be the Theme State and Uzbekistanis the partner nation for the 35th Surajkund International Crafts Mela-2022. The event is organized jointly by the Surajkund Mela Authority & Haryana Tourism in collaboration with Union Ministries of Tourism, Textiles, Culture and External Affairs.
- The India International Trade Fair, ever since its inception in 1980, has evolved as a major event for the business community. ‘Aatmanirbhar Bharat’ was the theme for 40th edition of the India International Trade Fair (IITF), 2021. It was organized by the India Trade Promotion Organisation, the nodal trade promotion agency of the Government of India. Bihar is the partner state for the 40th IITF and the focus states are Uttar Pradesh and Jharkhand.
- The Kala Ghoda Arts Festival is a cultural festival that is organised by the Kala Ghoda Association annually in Mumbai, Maharashtra.
42. 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.
43. Rent is a factor payment which is paid by which of the following?
[A] land
[B] restaurant
[C] building
[D] factory
Show Answer
Correct Answer: A [land]
Notes:
Factor payment refers to the payment made to the factors of production in exchange for scarce resources or productive services. Rent is services for the land.
44. In which economies, all productive resources are owned and controlled by the government?
[A] dual
[B] socialist
[C] mixed
[D] capitalist
Show Answer
Correct Answer: B [socialist]
Notes:
A socialist economy is a system of production where goods and services are directly controlled by the government. A capitalist economic system is one that is characterized by free markets and the absence of government intervention in the economy. A mixed economic system is a system that combines aspects of both capitalism and socialism.
45. What is the objective of the government’s Sangam scheme?
[A] To make Ganga water pollution free
[B] To ensure welfare of handicaps and disables
[C] To unite various Hindu groups
[D] To make Sangam region of Allahabad more attractive for tourists
Show Answer
Correct Answer: B [To ensure welfare of handicaps and disables]
Notes:
The Sangam Yojana, announced on 15 August 1996, is one of the various plans related to social welfare. Under it, those handicapped who are living in the rural areas are organized in a group named ‘Sangam’, and are given an assistance of Rs. 15,000 for performing their economic activities.
46. Which inflation is the result of price rise?
[A] Obstacle in development
[B] Increase in economic inequalities
[C] Adverse effect on the balance of payment
[D] All of these
Show Answer
Correct Answer: D [All of these]
Notes:
An increase in the price of inflation is detrimental to the economic performance of a country and the welfare of its citizens. This can create a random redistribution of income, worsen the balance of payments as domestic inflation encourages import spending, given that imports appear relatively cheap, and exports reduce sales. Sustained price increases can be a deterrent to growth.
47. ‘Gallop Inflation’ is also known as What?
[A] Walking Inflation
[B] Running Inflation
[C] Hyperinflation
[D] Creeping Inflation
Show Answer
Correct Answer: C [Hyperinflation]
Notes:
Gallop inflation (also jumping inflation) is one that develops rapidly (double or triple digit annual rates), perhaps only for a short period of time. For example: Prices move between 20% to 100% per year or even more, such a situation brings about a complete collapse of the monetary system due to a continuous decline in the purchasing power of the currency.
48. Money in India consists of ____.
[A] Paper currency
[B] Current deposits
[C] Metallic coins
[D] All options are correct
Show Answer
Correct Answer: D [All options are correct]
Notes:
For theoretical purposes money is defined as any asset which performs the functions of money. Money in India includes all coins and paper money issued by the government and the banks. It refers to the total amount of coins and paper currency that has ever been issued by the Reserve Bank of India.
49. Who was the first to estimate the national income in India?
[A] V.K. R. V. Rao
[B] Dadabhai Naoroji
[C] R.C. Dutt
[D] D.R. Gadgil
Show Answer
Correct Answer: B [Dadabhai Naoroji]
Notes:
Dadabhai Naoroji prepared the first estimate of national income in 1876. He estimated national income by first estimating the value of agricultural output and then adding a certain percentage of non-agricultural production. In 1931, Dr V.K.R.V. was the first person to adopt the scientific process in the estimation of national income.
50. Khadi and Village Industries Commission was established during which of the following five year plan?
[A] Second
[B] Third
[C] First
[D] Fifth
Show Answer
Correct Answer: A [Second]
Notes:
Khadi and Village Industries Commission (KVIC) is a statutory body constituted by the Government of India under an Act of Parliament, ‘Khadi and Village Industries Commission Act 1956’. It was formed during the Second Five Year Plan (1956-1961). In April 1957, it took over the erstwhile All India Khadi and Village Industries Board.
Advertisement