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 fertilizer is least likely to affect soil pH?
[A] Urea
[B] Muriate of potash
[C] Rock Phosphate
[D] Ammonia

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2. Agricultural Income Tax revenue goes to which of the following governments in India?
[A] State Governments
[B] Central Government
[C] Collected by State Governments , delivered to Central Government
[D] Collected by Central Government, delivered to State Governments

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3. 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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4. In finance, what do Fixed to Floating and Floating to Floating refer to?
[A] Interest rates
[B] Swaps
[C] Foreign exchange rates
[D] Derivative contracts

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5. Which group is most adversely affected by competitive currency devaluation?
[A] Exporters
[B] Importers
[C] Traders
[D] Service Providers

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6. Consider the following components related to the balance of payments (BoP):

  1. Balance of Trade
  2. Foreign Direct Investments
  3. Foreign Portfolio Investments
  4. Foreign Aid
  5. Foreign Tourist Expenditures
  6. Domestic Tourism Expenditures

Which of the above are included in the balance of payments?

[A] Only 1, 2 & 5
[B] Only 1, 2, 3, 4 & 5
[C] Only 2, 3, 4 & 5
[D] Only 1, 2, 3 & 5

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7. With reference to the terms Deflation and Disinflation, which among the following statements is / are correct?

  1. Deflation is negative inflation, Disinflation is negative inflation growth
  2. Deflation increases the real value of money, Disinflation has no impact on value of money

Select the correct option from the codes given below:

[A] Only 1 is correct
[B] Only 2 is correct
[C] Both 1 & 2 are correct
[D] Neither 1 nor 2 is correct

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8. What is a golden share in share market parlance?
[A] Share with highest profit from price rise
[B] Share with special voting and veto rights
[C] Share sold before market crash
[D] First share subscribed in an IPO

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9. Which city in Gujarat hosts the world’s largest ship-breaking yard?
[A] Jamnagar
[B] Alang
[C] Surat
[D] Kandla

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10. Which of the following is not included in the calculation of national income?
[A] Value of annual goods production
[B] Value of annual services
[C] Value of old goods sold
[D] Value of new technology

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