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.
11. Reserve Tranche Position (RTP) is a term used in context with ____?
[A] Reserve Bank of India
[B] Federal Reserve Bank (of America)
[C] World Bank
[D] International Monetary Fund
Show Answer
Correct Answer: D [International Monetary Fund]
Notes:
Reserve Tranche Position (RTP) refers to a member country’s access to its quota in the International Monetary Fund (IMF). Each member can withdraw a portion of its quota without stringent conditions, known as the reserve tranche. This mechanism allows countries to access funds quickly during balance of payments crises. The RTP is crucial for maintaining liquidity in the global economy.
12. Consider the following economic activities:
- Outsourcing of goods production to foreign countries
- Outsourcing of services to foreign countries
- Increase in domestic tourism spending
- Increase in foreign tourist arrivals
Which of the above activities would contribute to increasing the deficit in a country's current account?
[A] Only 1
[B] Only 1 and 2
[C] 1, 2 and 3
[D] 1, 2 and 4
Show Answer
Correct Answer: B [Only 1 and 2]
Notes:
Outsourcing goods and services to foreign countries (statements 1 and 2) increases payments made abroad, thereby worsening the current account deficit. Domestic tourism spending (3) does not affect the current account, as funds remain within the economy. Increase in foreign tourist arrivals (4) actually improves the current account by bringing foreign currency into the country.
13. A rise in SENSEX in India indicates which of the following?
[A] There is a rise in the prices of shares of all companies registered with Bombay Stock exchange
[B] There is a rise in the prices of shares of all companies registered with National Stock Exchange
[C] There is an overall rise in the prices of a group of shares in BSE
[D] There is an overall rise in the prices of a group of shares in NSE
Show Answer
Correct Answer: C [ There is an overall rise in the prices of a group of shares in BSE ]
Notes:
A share market Index shows how a specified portfolio of share prices is moving in order to give an indication of market trends. The BSE SENSEX is a free-float market capitalization-weighted stock market index of 30 well-established and financially sound companies listed on Bombay Stock Exchange.
14. Which among the following is the primary difference between a free trade area and a customs union?
[A] members of a free trade area adopt a common set of barriers for trade between the members
[B] a free trade area is considered a trade bloc and a customs union is not
[C] members of a customs union adopt a common set of external trade barriers
[D] a free trade area can include parts of a country and a customs union includes entire countries
Show Answer
Correct Answer: C [ members of a customs union adopt a common set of external trade barriers ]
Notes:
The primary difference between a free trade area and a customs union is that members of a customs union adopt a common set of external trade barriers. In a free trade area, member countries eliminate tariffs among themselves but maintain their own external tariffs. Examples include NAFTA (now USMCA) as a free trade area and the European Union as a customs union, which has a unified external tariff policy.
15. What is the resource curse in economic terms?
[A] A country with large resources but lack technology to exploit them
[B] Export from resource-rich countries increases currency value and hurts other sectors
[C] Countries with large reserves but only short-term market gains
[D] A paradox where resource-rich countries lack economic growth
Show Answer
Correct Answer: D [A paradox where resource-rich countries lack economic growth]
Notes:
Resource curse refers to the paradox where nations rich in natural resources tend to experience low economic growth, poor governance, and greater instability. Examples include Nigeria, where oil wealth has resulted in economic and political challenges. The term was first coined in 1993 by economist Richard Auty. The phenomenon is studied in the context of various minerals including oil, diamonds, and other extractive industries.
16. Who is the autor of the book “Utilitarianism”?
[A] Jermy bentham
[B] Immanuel Kant
[C] J S Mill
[D] David Ricardo
Show Answer
Correct Answer: C [J S Mill]
Notes:
JS mill’s book utilitarianism is a series of articles published in Frazer’s magazine. Mill’s aim in the book is to explain what utilitarianism is, to show why it is the best theory of ethics, and to defend it against a wide range of criticisms and misunderstandings.
17. How many digits does the Universal Account Number (UAN) have on the e-Shram portal?
[A] 10 digits
[B] 12 digits
[C] 14 digits
[D] 16 digits
Show Answer
Correct Answer: B [12 digits]
Notes:
The e-Shram portal was launched by the Ministry of Labour and Employment on August 26, 2021, to register unorganized workers. Each registered worker is issued a unique Universal Account Number (UAN) consisting of 12 digits. This UAN helps track various workers such as gig, platform, migrant, and agricultural laborers to ensure delivery of social security and insurance benefits under schemes like PM Suraksha Bima Yojana.
18. Which Scientist coined the term Evergreen revolution?
[A] Vergese Kurien
[B] M.S.Swaminathan
[C] H.M.Dalaya
[D] None of the above
Show Answer
Correct Answer: B [M.S.Swaminathan]
Notes:
M.S.Swaminathan coined the term Evergreen revolution. Evergreen revolution refers to productivity improvement in perpetuity without ecological and social harm. The evergreen revolution involves the integration of ecological principles in technology development and dissemination.
19. Which of the following certificate is given for a breeder seed?
[A] A golden yellow certificate
[B] A green certificate
[C] A blood red certificate
[D] A pink certificate
Show Answer
Correct Answer: A [A golden yellow certificate]
Notes:
A breeder seed is a progeny of nucleus seed multiplied in large area under supervision of plant breeder / institute / SAUs and monitored by a committee consisting of the representatives of state seed certification agency. A golden yellow colour certificateis issued for this category of seed by producing breeder.
20. Which among the following is the main feedstock of Urea?
[A] Petrol
[B] Natural gas
[C] Coal
[D] Diesel
Show Answer
Correct Answer: B [Natural gas]
Notes:
Urea is produced from natural gas. In a first step, nitrogen is bound as ammonia, and at the same time carbon dioxide is produced from the natural gas, while in a second method step the ammonia and the carbon dioxide are converted to urea
