Indian Economy MCQs

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Public goods are non-excludable and non-rivalrous commodities or services. They are made available to all members of society without direct payment. Examples include national defense, clean air, and street lighting. Governments usually fund public goods due to the free rider problem. Paul Samuelson formally defined public goods in 1954. Provision and maintenance typically rely on taxation and government administration.

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Disinflation refers to a reduction in the rate of inflation. In other words, prices may still rise, but they rise more slowly than before. This makes disinflation an anti-inflationary measure because it eases the pace of price increase without necessarily causing a fall in the overall price level. It is different from deflation, which means a persistent decline in the general price level.

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Targets for the first three plans were set with respect to National Income. Fourth Plan it was Net Domestic Product. In all Plans thereafter it has been Gross Domestic Product at factor cost.

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The BSE SENSEX consists of 30 large, actively traded stocks. As of January 2026, BSE’s total market capitalization was approximately $5,001.331 billion. Historically, SENSEX 30 stocks account for around 30% of the BSE’s total market capitalization. The SENSEX was established in 1986 and is the primary benchmark index of the Bombay Stock Exchange.

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The Laffer curve is a theoretical concept in economics that illustrates the relationship between tax rates and government revenue. The curve is named after economist Arthur Laffer, who popularized the concept in the 1970s. The basic idea behind the Laffer curve is that there is a certain tax rate that will maximize government revenue. At a 0% tax rate, the government will obviously not collect any revenue. At a 100% tax rate, the government will also not collect any revenue because people will have no incentive to work. The Laffer curve suggests that there is a point in between these two extremes where the government will collect the most revenue. The exact shape and location of the Laffer curve will vary depending on various factors, such as the state of the economy and the efficiency of the government’s tax collection system.

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In 2024–25, China led global tea exports by value with $1,739 million, holding nearly 45% share and surpassing Kenya and Sri Lanka. While Kenya leads in black tea by volume, China remains the largest exporter overall based on latest official data.

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James Tobin proposed the Tobin tax in 1972 as a tax on international foreign exchange transactions. The proposal followed the end of dollar convertibility to gold and adoption of floating exchange rates. Tobin suggested tax rates between 0.1% and 1% on currency conversions. The original focus was specifically on foreign exchange markets to curb currency speculation and exchange-rate volatility.

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The Tank irrigation is more in the rocky plateau area of the county, where the rainfall is uneven and highly seasonal. The Eastern Madhya Pradesh, Chhattisgarh, Orissa, Interiors of Tamil Nadu and some parts of Andhra Pradesh have more land under tank irrigation.

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Internal debt includes borrowings by the government within the country, such as Market Loans, Treasury Bills, and Compensation and other bonds. External loans from the World Bank are categorized as external debt since they are sourced from outside the country. Thus, only 1, 2 and 3 are components of India's internal debt.

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Kandla Special Economic Zone is associated with the port city of Kandla in Gujarat. It began in 1965 as Asia’s first Export Processing Zone and was later converted into a Special Economic Zone in 2000. This makes Kandla the correct choice among the given options. The zone has remained an important trade and export hub, supporting units engaged in manufacturing and export-oriented activities under India’s SEZ framework.