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 was the period of India’s First Five Year Plan?
[A] 1951-56
[B] 1961-66
[C] 1969-1974
[D] 1979-1984
Show Answer
Correct Answer: A [1951-56]
Notes:
India’s First Five-year Plan was implemented from the year 1951 till 1956. It mainly focused on the development of primary sector. The Plan was based on the Harrod–Domar model implemented with some modifications.
2. Which among the following are called “Breton Wood Twins”?
[A] IBRD & IMF
[B] IDA & IFC
[C] IDA & MIGA
[D] IMF & IDA
Show Answer
Correct Answer: A [IBRD & IMF]
Notes:
The planners at Breton Woods established the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), which today is part of the World Bank Group
3. What is the relationship between ‘Dear money’ & ‘Cheap money’ in Economics Terminology?
[A] Both of the terms are synonyms
[B] Both of them are antonyms
[C] They are unrelated in terms of their meaning
[D] Dear Money is white Money , cheap money is black money
Show Answer
Correct Answer: B [Both of them are antonyms]
Notes:
Dear money is available at exceptionally high rate of interest and cheap money is available at very low rates
4. Which body recommends Minimum Support Prices for major crops annually?
[A] Planning Commission of India
[B] Finance Commission of India
[C] Commission for Agricultural Costs and Prices
[D] Farmer’s Commission of India
Show Answer
Correct Answer: C [Commission for Agricultural Costs and Prices]
Notes:
The Commission for Agricultural Costs and Prices (CACP) was established in 1965. CACP is an attached office of the Ministry of Agriculture and Farmers Welfare, Government of India. CACP annually recommends Minimum Support Prices for 23 agricultural commodities. The recommendations consider cost of production, market price trends, and inter-crop price parity. Government decides final MSPs based on CACP’s advice.
5. 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
6. Which body recommends Minimum Support Prices to the Government of India?
[A] Ministry of Agriculture and Farmers Welfare
[B] Cabinet Committee on Economic Affairs
[C] State Governments
[D] Commission for Agricultural Costs and Prices (CACP)
Show Answer
Correct Answer: D [Commission for Agricultural Costs and Prices (CACP)]
Notes:
The Commission for Agricultural Costs and Prices (CACP) was established in January 1965 as the Agricultural Prices Commission and renamed CACP in 1985. CACP functions as an attached office under the Ministry of Agriculture and Farmers Welfare. CACP annually recommends MSPs for 22-23 crops to the government. Its recommendations consider factors such as production costs, market prices, and inter-crop price parity.
7. Where can popular tourist attractions such as Chatham Saw Mill, Wandoor Beach, Mount Harriet and Limestone Caves be found?
[A] Goa
[B] Andaman and Nicobar Islands
[C] Lakshadweep
[D] Tamil Nadu
Show Answer
Correct Answer: B [Andaman and Nicobar Islands]
Notes:
The tourist attractions mentioned, including the Chatham Saw Mill, which is one of the oldest and largest saw mills in Asia, and the scenic Wandoor Beach, along with Mount Harriet, the third highest peak in the Andamans offering stunning views, and the intrigue-filled Limestone Caves are all located in the beautiful Andaman and Nicobar Islands. This Indian Union Territory in the Bay of Bengal is rich in natural beauty and historical significance.
8. Which among the following coal producer of India is outside the Coal India Ltd?
[A] Southern Eastern Coalfields (Bilaspur)
[B] Bharat Coking Coal (Dhanbad)
[C] Mahanandi Coalfields (Sambalpur)
[D] Singerani Collieries Company (Telangana)
Show Answer
Correct Answer: D [Singerani Collieries Company (Telangana)]
Notes:
Singareni Collieries Company Limited (SCCL) is jointly owned by the Government of Telangana and Government of India on a 51:49 equity basis.
9. Who among the following heads the Trade and Economic Relations Committee (TERC) in India?
[A] Prime Minister
[B] Minister of Commerce
[C] Finance Minister
[D] Finance Secretary
Show Answer
Correct Answer: A [Prime Minister]
Notes:
The Trade and Economic Relations Committee (TERC) in India is headed by the Prime Minister. This committee was established to enhance India’s trade relations and economic policies, reflecting the government’s focus on international trade as a key driver of economic growth. The Prime Minister’s leadership underscores the importance of trade in India’s economic strategy.
10. What is the investment limit for a micro enterprise under MSME classification in India?
[A] Rs. 1 crore
[B] Rs. 5 crore
[C] Rs. 10 crore
[D] Rs. 25 crore
Show Answer
Correct Answer: A [Rs. 1 crore]
Notes:
Government notification S.O.1702(E) dated June 1, 2020 defines a micro enterprise as one with investment in plant and machinery or equipment not exceeding Rs. 1 crore and annual turnover not exceeding Rs. 5 crore under the current MSME classification. This threshold replaced the previous limit for tiny enterprises, which was below Rs. 25 lakh, as per MSME Development Act, 2006 amendments.
