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.  Who among the following is called father of Economics?
[A] David Hume
[B] Lamarck
[C] Adam Smith
[D] John Stuart Mill

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2. Who among the following Indian Economists played a crucial role in inception of MNREGA?
[A] Amartya Sen
[B] Jean Dreze
[C] Jagdish Natwarlal Bhagwati
[D] Dr. Vijay Kelkar

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3. Which among the following can be called a Balanced Budget ?
[A] Total Revenue of the Government Exceeding Total Expenditure
[B] Total Expenditure of the Government Exceeding Total Revenue
[C] Total Revenue of the Government exactly equal to total Expenditure
[D] Total Expenditure of the Government exceeding or equal to Total Revenue

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4. Pump priming mainly deals with which of the following?
[A] Increased government expenditure during recession
[B] Decreased government expenditure during recession
[C] Increased government income during recession
[D] Decreased government income during recession

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5. Which among the following is a correct impact of dear Money ?
[A] Borrowings become cheap
[B] Borrowings become expensive
[C] Borrowings become either cheap or expensive
[D] There is no impact of Dear Money on Borrowings

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6. Which among the following can not be called an antiinflationary measure?
[A] Raising the Bank Rates
[B] Raising the Reserve Ratio Requirements
[C] Purchase of securities in the Open Markets
[D] Rationing of the Credit

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7. While discussing the pros and cons of the Foreign Direct Investments, a situation called ‘Expropriation’ is discussed. What is ‘Expropriation’?
[A] Expropriation is a situation where government can take control of a firm’s property and assets, if it feels
[B] Expropriation is one of the fundamental means by which one can invest in property
[C] Expropriation is one of the aspects of FDI planning closely related to potential profits and return on
[D] Expropriation is a ban by the Government on firm’s repatriation of profits to its home country

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8. If the contribution of the agricultural sector is decreasing in a country’s economy, then what conclusion can be drawn?
[A] The country is growing in the direction of being a developed nation
[B] The country is moving towards becoming developing nation
[C] The country is moving towards becoming less developed nation
[D] The economic growth rate of the country has stopped

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9. What do we call the official interest rate at which RBI provides loans to the banking system?
[A] Reverse repo rate
[B] Bank rate
[C] SLR
[D] CRR

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10. The demand for heavy loans can lead to which of the following?
[A] excess funds for banks
[B] Deficiencies for banks
[C] Organized reservation
[D] Competitive reservations

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