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.
1. Planning Commission of India was established by which among the following means?
[A] Act of Parliament
[B] Presidential Order
[C] Presidential Ordinance
[D] Cabinet Resolution
Show Answer
Correct Answer: D [Cabinet Resolution]
Notes:
The Planning Commission was set up by a Cabinet Resolution of the Government of India in March 1950. Jawaharlal Nehru was the first Chairman of the Planning Commission. It had the responsibility to formulate plans to utilize the available resources.
2. Which among the following is the highest credit risk rating that can be awarded to any company by CRISIL?
[A] AAA
[B] AAA+
[C] AA+
[D] A++
Show Answer
Correct Answer: A [AAA]
Notes:
CRISIL was the first credit rating agency in India, formed in the year1988. In 2005, it became a subsidiary of American company S&P Global. The highest credit risk rating awarded to any company is ‘AAA’ and the lowest is ‘D’.
3. The goods which are collectively consumed by the community are called which kind of goods?
[A] Public Goods
[B] Consumer Goods
[C] Non-durable Goods
[D] Durable Goods
Show Answer
Correct Answer: A [Public Goods]
Notes:
A public good may be defined as the commodity or service that is made available to all members of a society. They are collectively consumed by the community and are usually administered by governments. Examples are Drinking water, Clean Air etc.
4. Who among the following scholars is associated with Law of Rent?
[A] Richard Jones
[B] Thomas Robert Malthus
[C] David Ricardo
[D] Adam Smith
Show Answer
Correct Answer: C [David Ricardo]
Notes:
David Ricardo, an English classical economist, developed the law of rent in 1809. He presented the law in his book On the Principles of Political Economy and Taxation in 1821.
Ricardo’s theory defined rent as the portion of the earth’s produce that is paid to the landlord for the original and indestructible powers of the soil. In other words, rent is the price paid for the use of land.
Ricardo developed his theory to explain the origin and nature of economic rent. He used the economy and rent to analyze the large rise in corn and land prices during the Napoleonic wars (1805-1815).
The term “Ricardian rent” comes from Ricardo’s theory.
5. Which among the following defines ‘currency depreciation” of a currency?
[A] Fall in the exchange rate of one currency in terms of other currencies
[B] Fall in the exchange rate of other currencies in terms of one currencies
[C] Decrease in the volume of a particular currency
[D] Increase in the exchange rate of a currency
Show Answer
Correct Answer: A [Fall in the exchange rate of one currency in terms of other currencies]
Notes:
Currency depreciation is the loss of value of a country’s currency with respect to one or more foreign reference currencies. This is a term used in floating exchange rate system, where the exchange rates of a currency are market driven and not fixed by the country’s central bank.
6. Trombay, Nangal & Sindri are famous for which of the following?
[A] Iron
[B] Coal
[C] Fertillizers
[D] seeds
Show Answer
Correct Answer: C [Fertillizers]
Notes:
Trombay, Nangal, and Sindri are famous for fertilizers. The first fertilizer plant was established in Sindri, Jharkhand. Fertilizers are materials that are applied to soil or plant tissue to provide nutrients for plant growth. They can be natural or synthetic in origin. Trombay is located in Maharashtra. Nangal is a town in Punjab, India. Sindri is a neighborhood in Dhanbad, Jharkhand.
7. With which of the following WIPO is related to ?
[A] Investment
[B] Intellectual property
[C] International trade
[D] Indigenous people
Show Answer
Correct Answer: B [Intellectual property]
Notes:
WIPO-World Intellectual Property Organization
8. In context with the currency management in India the responsibility for coinage vests with which of the following?
[A] Government of India
[B] Reserve Bank of India
[C] Currency Chests
[D] Commercial Banks
Show Answer
Correct Answer: A [Government of India]
Notes:
Government of India on the basis of the Coinage Act, 1906
9. Approximately what fraction of the world’s oil exports is pumped by the 12-member Organization of the Petroleum Exporting Countries OPEC?
[A] 25%
[B] 45%
[C] 50%
[D] 75%
Show Answer
Correct Answer: B [45%]
Notes:
Organization of the Petroleum Exporting Countries (OPEC) is estimated to account for around 40-45% of total global oil exports currently. In 2021, OPEC’s share of global oil exports was around 43%. As of 2022, it was around 40% of global oil exports.
10. Bombay Plan was presented in which year?
[A] 1934
[B] 1940
[C] 1942
[D] 1944
Show Answer
Correct Answer: D [1944]
Notes:
In 1944 Eight Industrialists of Bombay including Mr. JRD Tata, GD Birla, Purshottamdas Thakurdas , Lala Shriram, kasturbhai lalbhai, AD Shroff , Ardeshir Dalal, & John Mathai working together prepared “A Brief Memorandum Outlining a Plan of Economic Development for India” which was popularly known as Bombay Plan. This plan envisaged doubling the per capita income in 15 years and tripling the national income during this period.
