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. What is India’s rank in the Travel and Tourism Development Index 2024?
[A] 34th
[B] 54th
[C] 38th
[D] 39th
Show Answer
Correct Answer: D [39th]
Notes:
The World Economic Forum published the Travel and Tourism Development Index 2024. India was ranked 39th among 119 countries in this index. The index measures factors supporting tourism development globally. India’s position improved over previous years. The Travel and Tourism Development Index is released every two years.
2. The Core inflation is different from the general inflation because of the following?
[A] Core Inflation is caused by the supply Shock in certain essential commodities
[B] Core Inflation is the sudden increase in certain items of food grains
[C] Core Inflation is the inflation rate of a particular basket of commodities
[D] Core Inflation is just a misnomer
Show Answer
Correct Answer: C [Core Inflation is the inflation rate of a particular basket of commodities]
Notes:
Core Inflation is the rate of inflation calculated to exclude certain items that are subject to sudden and short-lived price movements, mainly food and energy. Core inflation is considered a better indicator of overall long-term than un-adjusted headline inflation.
3. Which state led sugarcane production in India in 2023–24?
[A] Uttar Pradesh
[B] Maharashtra
[C] Tamil Nadu
[D] Andhra Pradesh
Show Answer
Correct Answer: A [Uttar Pradesh]
Notes:
Uttar Pradesh contributed over 40% of India’s sugarcane output in the 2023–24 season, with an estimated 220–230 million tonnes. The state consistently leads sugarcane production due to fertile alluvial soil, reliable irrigation from the Ganga basin, and a favorable subtropical climate. Maharashtra ranked second with about 95–100 million tonnes. Data is consistent with figures up to 2024 estimates.
4. Which best defines Gross Budgetary Support in the Union Budget context?
[A] Value of gross revenue receipts by the government
[B] Budgetary support provided by the Union Government for development expenditure and schemes
[C] Value of total plan expenditure
[D] Fraction of expenditure on different Central sectors plans
Show Answer
Correct Answer: B [Budgetary support provided by the Union Government for development expenditure and schemes]
Notes:
Gross Budgetary Support refers to the budgetary support provided by the Union Government for development expenditure and schemes. It is a funding source used to finance public programmes and capital or developmental outlays in the budget. The term is used in government finance to denote support from budgetary resources rather than total receipts or a percentage share of expenditure. Hence, option 2 gives the correct definition.
5. Which combination can increase the deposit component of money supply?
[A] Increasing reserve requirements / decreasing volume of reserves
[B] Lowering reserve requirements / increasing volume of reserves
[C] Lowering reserve requirements / decreasing volume of reserves
[D] Increasing reserve requirements / increasing volume of reserves
Show Answer
Correct Answer: B [Lowering reserve requirements / increasing volume of reserves]
Notes:
The correct answer is “Lowering reserve requirements / increasing volume of reserves”, because lowering reserve requirements allows banks to lend a larger proportion of their deposits, thereby increasing the money multiplier, while increasing the volume of reserves gives banks more funds to create loans and deposits; together, these actions expand the deposit component of the money supply.
6. The secondary market deals in which of the following?
[A] Only newly issued securities
[B] Only government bonds and certificates of deposit
[C] Securities already issued and previously traded
[D] Only short-term trading instruments
Show Answer
Correct Answer: C [Securities already issued and previously traded]
Notes:
The secondary market is for trading securities that have already been issued. Transactions involve investors buying and selling among themselves. The issuing company does not receive any funds from these trades. Major examples include stock exchanges like NYSE and NASDAQ. The market provides liquidity and facilitates price discovery for already existing securities including shares, bonds, and debentures.
7. Which of the following statements best describes a progressive tax system?
[A] The tax rate decreases as the taxable amount increases
[B] The tax rate stays the same regardless of the taxable amount
[C] The tax rate increases as the taxable amount increases
[D] The tax rate is randomly determined
Show Answer
Correct Answer: C [The tax rate increases as the taxable amount increases]
Notes:
In a progressive tax system, higher income earners pay a higher tax rate compared to those who earn less. This is based on the assumption that individuals who earn more have the ability and the capacity to pay more taxes. Most income tax systems in the world are progressive, including the United States, Canada, and the United Kingdom.
8. 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
Show Answer
Correct Answer: D [His marginal cost is equal to the marginal revenue]
Notes:
A monopolist can maximize profits when the marginal cost is equivalent to the marginal revenue. This strategy is implemented because the greatest profit occurs at the output level where the difference between total revenue and total cost is the greatest. This ensures economic efficiency and profit gains for the monopolist.
9. Which committee is responsible for identifying out the criteria for the urban poor or urban BPL families?
[A] Hashim Committee
[B] Naresh Chandra Committee
[C] Sachar Committee
[D] Bhure Lal Committee
Show Answer
Correct Answer: A [ Hashim Committee ]
Notes:
Hashim Committee gave the criteria for identifying the urban poor or urban BPL families. The committee based its identification criteria on the parameters that were mapped by the Socio-Economic Caste Census (SECC).
10. 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
Show Answer
Correct Answer: D [Sri Lanka – Padmanabhaswamy Temple]
Notes:
Padmanabhaswamy Temple is located in Thiruvananthapuram, Kerala, India. The temple is built in an intricate fusion of the indigenous Kerala style and the Tamil style of architecture.
