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. Which of the following operations are undertaken by Small Finance Banks?
[A] Accepting Deposits
[B] Disbursing small loans
[C] Sell Insurance Products
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
The Small Finance Banks can accept deposits and lend to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities. It can also distribute mutual fund units, insurance products, pension products, etc. with the prior approval of the RBI.
12. What is the primary function of the Finance Commission? (UPSC Prelims 1982)
[A] Passing the money bills
[B] Approving money bills
[C] Drafting the budget
[D] Making recommendations on tax revenue distribution between Union and States
Show Answer
Correct Answer: D [Making recommendations on tax revenue distribution between Union and States]
Notes:
The Finance Commission, constituted under Article 280 of the Indian Constitution, recommends the distribution of net tax proceeds between the Centre and States and suggests principles for grants-in-aid. It is constituted every five years or earlier as deemed necessary by the President.
13. Which group in a trophic pyramid is most delicately balanced? (UPSC Prelims 1992)
[A] Herbivore
[B] Plant
[C] Top Carnivore
[D] Small Carnivore
Show Answer
Correct Answer: C [Top Carnivore]
Notes:
Top carnivores occupy the highest trophic level. Energy transfer efficiency between levels averages around 10%. Population and biomass decrease at higher trophic levels. Top carnivore survival relies on the stability of all lower levels. Population declines at any lower level affect top carnivores first. Examples include tigers and lions in terrestrial ecosystems.
14. Which of the following is a major shift in the 8th Five-Year Plan from its preceding ones? (UPSC Prelims 1994)
[A] the significant reduction in public sector outlays
[B] the concentration of pubic investment in infra-structural sectors
[C] major investment in agriculture with a view to promote exports
[D] major investment in sectors in which industrial sickness has been a chronic problem
Show Answer
Correct Answer: A [the significant reduction in public sector outlays]
Notes:
One of the major highlight was modernization of the industries. The plan was launched with twin objectives of alleviation of poverty and unemployment. This plan period saw launching of many flagship programmes and reduction of public sector outlays. In the 8th five year plan, growth rate achieved was 6.8% against the target of 5.6%.
15. When is the national Tourism day celebrated across the country?
[A] January 23
[B] January 24
[C] January 25
[D] January 26
Show Answer
Correct Answer: C [January 25]
Notes:
The national Tourism day is being celebrated in India on January 25 every year. The day is celebrated to raise awareness the global community about the importance of tourism for the country’s economy and its social, political, financial and cultural worth.
16. Which of the following is correct for economic efficiency?
[A] Increase in economic acitivty in an economy
[B] Use of resources to maximize the production of goods and services
[C] Distribution of economic resources in fair and equitable manner
[D] Maximum usage of resources for maximum production of goods
Show Answer
Correct Answer: B [Use of resources to maximize the production of goods and services]
Notes:
Economic Efficiency is the use of resources so as to maximize the production of goods and services. Resources are scarce and there are unlimited wants so economic efficiency is key in development.
17. Which type of Economy is Indian Economy?
[A] Mixed
[B] Market
[C] Capitalist
[D] Socialist
Show Answer
Correct Answer: A [Mixed]
Notes:
Indian Economy is a mixed economy where both state and market play a key role in the management of economy. In India both the Public sector as well as the private sector coexist.
18. Which is not an advantage of the organised sector?
[A] Job security
[B] Fixed working hours
[C] Absence of trade unions
[D] Better working conditions
Show Answer
Correct Answer: C [Absence of trade unions]
Notes:
Trade unions are a key feature of the organised sector, providing collective bargaining, better wages, and improved benefits. Their absence would be a disadvantage, not an advantage. Organised sector workers also enjoy fixed working hours, job security, and safer working conditions.
19. Which of the following is correct about drip irrigation?
- It is a micro-irrigation system
- water is directly applied to roots
- It reduces leaching
- Field levelling is not necessary
Choose the correct option from the code given below:
[A] 1 & 2 Only
[B] 1, 2 & 3 Only
[C] 1, 3 & 4 Only
[D] 1, 2, 3 & 4
Show Answer
Correct Answer: D [1, 2, 3 & 4]
Notes:
Drip irrigation is a micro-irrigation technique. It is applied near the roots directly and leaching is reduced. Fertilizer and nutrient loss is reduced.
20. What is re-harvesting known as?
[A] Ratooning
[B] Solid Planting
[C] Mulching
[D] None of the above
Show Answer
Correct Answer: A [Ratooning]
Notes:
Ratoon cropping is growing a fresh crop from the stubbles or suckers of the plant crop without replanting. It is also referred to as stubble cropping, re-harvesting. Sugarcane is cultivated by this method.
