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. Why the Transfer incomes are not included in the national income accounts?
[A] They do not represent payment for economic activity
[B] There is now way of calculating them correctly
[C] They are already included in the total of personal income
[D] They are already included in company earnings

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2. Approval of which among the following authorities alone would be sufficient to draw funds from Consolidated Fund of India ?
[A] Only Parliament
[B] Only President
[C] Either Parliament or President
[D] Both Parliament and President

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3. Tea, Coffee, Spices, Coconut, Rubber, Cardamom, Tobacco all together can be kept in which of the following group or groups?
[A] Food Crop
[B] Cash Crops
[C] Food & Cash Crops
[D] Plantation Crops

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4. Which sector is the largest contributor to India’s GDP?
[A] Secondary sector
[B] Primary sector
[C] Tertiary sector
[D] Quaternary sector

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5. Which of the following actions of Central Bank can increase deposit component of the money supply?
[A] Increasing reserve requirements / decreasing the volume of reserves
[B] Lowering reserve requirements / increasing volume of reserves
[C] Lowering reserve requirements / decreasing the volume of reserves
[D] Increasing reserve requirements / increasing volume of reserves

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6. Which among the following has never been an agenda of Financial Sector Reforms in India?
[A] Providing easy credit to all citizens with subsidies guaranteed
[B] Deregulation of the interest rate regime
[C] Enabling regulatory framework for effective supervision
[D] Strengthening the Disclosure norms

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7. A monopolist will be able to maximize his profits when _________?
[A] His output is maximum
[B] He charges a Higher price
[C] His average cost is minimum
[D] His marginal cost is equal to the marginal revenue

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8. Economic Planning comes under which of the following lists ?
[A] Union List
[B] Concurrent list
[C] State List
[D] None of them

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9. Which among the following was not Stipulated in the Fiscal Responsibility And Budget Management Act 2003?
[A] Elimination of revenue deficit
[B] Elimination of primay deficit
[C] Non-borrowing by the central government from RBI except in certain situations
[D] Fixing government guarantees in any financial year as a percentage of GDP

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10. National Small Savings Fund is a part of which among the following?
[A] Consolidated Fund of India
[B] Public Account of India
[C] Contingency Fund of India
[D] Prime Minister’s Relief Fund

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