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 among the following is First Indian Special Economic Zone(SEZ)?
[A] Visakhapatnam SEZ
[B] Kandla SEZ
[C] Noida Special Economic Zone
[D] Cochin SEZ
Show Answer
Correct Answer: B [Kandla SEZ]
Notes:
The Kandla Special Economic Zone (KASEZ) was established in the year 1965 as the first Export Processing Zone in India. It is also the first special economic zone in India and in Asia. It is located in Kutch District of Gujarat.
2. If the demand and supply of a commodity increase by an equal absolute amount, what will be the effect on market price?
[A] Increase
[B] Decrease
[C] Remain Stable
[D] First decrease then increase
Show Answer
Correct Answer: C [Remain Stable]
Notes:
When the market is in equilibrium, and when the demand and supply of a commodity increase by an equal absolute amount, the market price will not increase, rather it will remain stable.
3. Expenditures of the central government on flagship development programmes comes under which of the following?
[A] Plan expenditures
[B] Non Plan expenditures
[C] Revenue expenditures
[D] Capital expenditures
Show Answer
Correct Answer: A [Plan expenditures]
Notes:
Plan expenditures refer to the money that is spent by a government or other organization on specific plans or projects. These plans or projects are typically designed to achieve specific goals or objectives, and the plan expenditures are used to fund the activities and operations associated with implementing those plans.
4. Who among the following works as head of the “Board for Financial Supervision” in India?
[A] Finance Minister
[B] RBI Governor
[C] Minister of State for Finance
[D] Independent head appointed by President
Show Answer
Correct Answer: B [RBI Governor]
Notes:
The head of the “Board for Financial Supervision” (BFS) in India is the RBI Governor. Established in 1994, the BFS is responsible for overseeing the financial system, ensuring its stability and soundness. The Reserve Bank of India (RBI) plays a crucial role in regulating the banking sector, and the Governor, as the chief executive, leads this board.
5. Ad valorem tax is levied on which of the following?
[A] The price of a commodity
[B] The value added to a product
[C] The assessed value of property or transaction
[D] The unit of the commodity
Show Answer
Correct Answer: C [The assessed value of property or transaction]
Notes:
Ad valorem tax is calculated as a percentage of the assessed value of property or transaction. Sales tax, property tax, and import duties are common examples. This tax is proportional to the value, not a fixed amount per unit. The term originates from Latin meaning “according to value.” The assessed value is used to determine the actual tax liability.
6. Which statement about White Label ATMs is correct?
[A] ATMs owned by foreign companies
[B] ATMs owned by private ATM service providers, not banks
[C] ATMs outsourced by banks with sponsor branding
[D] ATMs owned by the government
Show Answer
Correct Answer: B [ATMs owned by private ATM service providers, not banks]
Notes:
White Label ATMs in India are owned and operated by non-banking entities authorized by the Reserve Bank of India since 2012. These ATMs do not display any bank logo and can be used by customers of any bank for basic transactions. Tata Communications Payment Solutions was the first company to set up White Label ATMs under the ‘Indicash’ brand in India.
7. What is the short name of India’s top authority for Indirect Taxes?
[A] CBDT
[B] CBEC
[C] CBIT
[D] CBIC
Show Answer
Correct Answer: D [CBIC]
Notes:
The Central Board of Indirect Taxes and Customs (CBIC) was renamed in 2018 from CBEC. CBIC is a statutory body under the Department of Revenue, Ministry of Finance. It is responsible for administration of GST, customs, excise and service tax in India. The board was originally established in 1964 by the Central Boards of Revenue Act, 1963.
8. Which port exports the highest value of seafood from India?
[A] Visakhapatnam
[B] Tuticorin
[C] Kochi
[D] Jawaharlal Nehru Port Authority (JNPT)
Show Answer
Correct Answer: A [Visakhapatnam]
Notes:
Visakhapatnam Port handled $2.19 billion or 29.72% of India’s seafood exports in FY24. In FY25, Visakhapatnam’s seafood export value exceeded $2 billion out of India’s total $7.45 billion. The port exported 314,199 tonnes, while JNPT exported 240,253 tonnes valued at $779.49 million. Andhra Pradesh’s aquaculture, mainly Vanammei shrimp, supports Visakhapatnam’s status as the top exporter.
9. Which body maintains the International Harmonized System (HS) of goods?
[A] World Trade Organization (WTO)
[B] United Nations Conference on Trade and Development (UNCTAD)
[C] World Customs Organization (WCO)
[D] United Nations Statistics Division (UNSD)
Show Answer
Correct Answer: C [World Customs Organization (WCO)]
Notes:
The World Customs Organization (WCO), established in 1952 and headquartered in Brussels, Belgium, maintains and updates the Harmonized System (HS) of goods. The WCO has 185 member countries as of 2024. The Harmonized System Committee under WCO carries out revisions, usually every five years, to reflect changes in world trade, technology, and goods classification.
10. Which Fundamental Right in the Indian Constitution prohibits trafficking, forced labour, and children working under 14 years of age?
[A] Right to Equality
[B] Right to Freedom
[C] Right against Exploitation
[D] Right to Freedom of Religion
Show Answer
Correct Answer: C [Right against Exploitation]
Notes:
The right against exploitation prohibits all forms of forced labour, child labour and trafficking of human beings. The Right against Exploitation enshrined in the Indian Constitution guarantees dignity of the individual.
