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. What do we call the instruments of monetary policy which directly affect the quantity of money supply?
[A] Quantitative instruments
[B] Qualitative instruments
[C] Money instruments
[D] None of the above
Show Answer
Correct Answer: A [Quantitative instruments]
Notes:
The instruments of monetary policy which directly affect the quantity of money supply are called as Quantitative instruments. Example: Open Market Operations Liquidity Adjustment Facility (Repo and Reverse Repo) etc.
12. Which of the following is an economic system combining private and state enterprise?
[A] Private economy
[B] Market economy
[C] Mixed economy
[D] Centrally planned economy
Show Answer
Correct Answer: C [Mixed economy]
Notes:
A mixed economy is variously defined as an economic system blending elements of market economies with elements of planned economies, free markets with state interventionism, or private enterprise with public enterprise.
13. Which trade agreement has India finalized with the European Union recently?
[A] Rupee trade
[B] Free Trade Agreement (FTA)
[C] Barter trade
[D] Unilateral trade
Show Answer
Correct Answer: B [Free Trade Agreement (FTA)]
Notes:
India and the European Union concluded a Free Trade Agreement in 2024. The agreement includes gradual reduction of tariffs and covers approximately $33 billion of Indian exports. The FTA provides deeper access to 144 EU services sub-sectors. The EU is India’s largest trading partner, with bilateral trade reaching $136 billion in 2024-25. The EU represents around 25% of global GDP.
14. 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.
15. Which is NOT an advantage of genetically modified (GM) crops?
[A] Reduced pesticide use globally
[B] Enhanced nutritional value in crops
[C] Higher crop yields in major crops
[D] Increased food prices for consumers
Show Answer
Correct Answer: D [Increased food prices for consumers]
Notes:
Genetically modified crops have led to reduced production costs and increased yields since 2006. GM technology has decreased global pesticide use by 8.3% and improved crop resistance to drought and diseases. Enhanced nutritional value is demonstrated by Golden Rice, which contains vitamin A. Higher yields of soybean, cotton, and maize have been recorded. These factors contribute to lower, not increased, food prices for consumers.
16. Which state is the largest producer of Bajra in India?
[A] Telangana
[B] Rajasthan
[C] Maharashtra
[D] Gujarat
Show Answer
Correct Answer: B [Rajasthan]
Notes:
Rajasthan has been the largest producer of Bajra in India, contributing nearly 40% of the country’s total production. Bajra is mainly cultivated in western Rajasthan, including districts such as Jodhpur, Barmer, Bikaner, and Nagaur. The state’s climate and soil conditions are suitable for pearl millet cultivation. Annual statistics from the Ministry of Agriculture confirm Rajasthan’s leading position for decades.
17. Which country consumes the most fuelwood globally?
[A] India
[B] Indonesia
[C] Nigeria
[D] China
Show Answer
Correct Answer: A [India]
Notes:
India annually consumes approximately 349.97 million cubic meters of fuelwood. Indonesia follows at a distant second with around 149.48 million cubic meters. Large rural populations in India rely on fuelwood for cooking and heating. Household consumption constitutes the bulk of this usage. Both forest-sourced and non-forest wood resources contribute to India’s total fuelwood consumption. Agroforestry and trees outside forests provide a substantial part of supply.
18. Which crops are classified as Kharif crops in India?
[A] Groundnut
[B] Maize
[C] Paddy
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Paddy, maize, and groundnut are major Kharif crops in India. Kharif crops are sown during the southwest monsoon season from June to October. Other Kharif examples in India include jowar, bajra, cotton, sugarcane, soybean, and pulses like tur and moong. Kharif crops depend on rainfall and warm weather conditions for growth. Rice (paddy) is the main Kharif food grain in India.
19. Rythu Bazar is a direct Agri produce marketing place in which state?
[A] Andhra Pradesh
[B] Telangana
[C] Both
[D] None
Show Answer
Correct Answer: C [Both ]
Notes:
States have introduced direct marketing of farm produce, examples being the Uzhavar Sandhai (Tamil Nadu), the Rythu Bazaar (Andhra Pradesh and Telangana), the Raitha Santhe (Karnataka), the Apni Mandi (Punjab) and the Krushak Bazaar – (Odisha).
20. What does the Index of Industrial Production (IIP) primarily measure?
[A] Changes in consumer demand patterns
[B] Physical volume of industrial production output
[C] Inflation rates in the economy
[D] Turning points in economic development
Show Answer
Correct Answer: B [Physical volume of industrial production output]
Notes:
The Index of Industrial Production was introduced in India in 1937. It measures the physical output of the manufacturing, mining, and electricity sectors. The base year for IIP in India as of 2024 is 2011-12. IIP data is released monthly by the National Statistical Office under the Ministry of Statistics and Programme Implementation. IIP is expressed as an index number.
