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. Which statement about Giffen goods is correct?
[A] They follow the standard law of demand
[B] They are luxury goods with increasing demand
[C] They violate the law of demand with an upward-sloping demand curve
[D] They have many close substitutes

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2. What is Collateralized Borrowing and Lending Obligation (CBLO) in banking?
[A] An export financing scheme requiring specific borrower obligations
[B] A central bank facility for state government short-term lending
[C] A CCIL-developed, RBI-approved money market instrument for collateralized borrowing and lending
[D] A derivative instrument for trading in currency and commodity futures

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3. Which among the following curve defines the principle that zero tax rate would produce zero revenue for the government and a 100% tax rate would also generate zero revenue for the taxing Government?
[A] Laffer curve
[B] Lorenz curve
[C] Engel curve
[D] Kuznets curve

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4. The minimum interest rate of a bank below which it is not viable to lend, is known as ____:
[A] Reserved Rate
[B] Base Rate
[C] Marginal Rate
[D] Prime Lending Rate

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5. What does the labour force participation rate measure?
[A] The persons who are either employed or actively seeking work
[B] The persons who are employed only
[C] The persons capable to work but not seeking employment
[D] None of them

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6. In what form do banks maintain the Cash Reserve Ratio (CRR)?
[A] Government Securities
[B] Physical Cash in Hand
[C] Deposits with the Reserve Bank of India
[D] A Combination of Cash and Government Securities

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7. Which of these is considered a sunset industry?
[A] Hydrogen fuel technology
[B] Traditional film photography
[C] Renewable energy development
[D] Artificial intelligence

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8. Which state is the largest silk producer in India?
[A] Karnataka
[B] Assam
[C] Kerala
[D] Andhra Pradesh

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9. Which of the following countries doesn’t matches to its famous tourist place?
[A] China – Great Wall of China
[B] Bhutan – Paro Taktsang
[C] Nepal – Pashupatinath Temple
[D] Sri Lanka – Padmanabhaswamy Temple

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10. When does a monopoly by a specific business entity occur in the market?
[A] When there are numerous buyers and sellers
[B] When homogeneous products flood the market
[C] When a distinctive product is exclusively sold by a single seller
[D] When firms are merely price takers

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