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 correctly defines the Mixed economy?
[A] The coexistence of heavy, small scale and cottage industries
[B] The promotion of agriculture as well as cottage industries
[C] The coexistence of rich as well as poor
[D] Co-existence of public as well as private sector
Show Answer
Correct Answer: D [Co-existence of public as well as private sector]
Notes:
Mixed economy is an economic system in which both the private enterprise and a degree of state monopoly coexist. All modern economies are mixed where the means of production are shared between the private and public sectors. It is also called dual economy.
12. The share of village and small-scale industries in the total output of the manufacturing sector is nearly how much?
[A] 40%
[B] 35%
[C] 25%
[D] 15%
Show Answer
Correct Answer: A [40%]
Notes:
As per the published Report of the Development Commissioner, Small Scale Industries (DCSSI), the sector encompasses about 32 lakh units, during 1998-99 which produce over 7500 different items for domestic as well as foreign markets, contributing to about 40per cent of the value added to the manufacturing sector.
13. Which of the following is a major shift in the 8th Five-Year Plan from its preceding ones?
[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%.
14. In which one of the following crops international trade is low in the context of total produce?
[A] Rice
[B] Coffee
[C] Rubber
[D] Wheat
Show Answer
Correct Answer: A [Rice]
Notes:
Rice is mostly eaten in the same country where it is produced, so trade in rice is small, both in absolute terms and as a proportion of global production. With an average of 27 million tonnes, the size of the international rice market is only one quarter of that in wheat and little over one third of trade in maize.
15. What is subtracted from Gross Value Added to get Net Value Added?
[A] Depreciation
[B] Value added
[C] Production flow
[D] Investment
Show Answer
Correct Answer: A [Depreciation]
Notes:
Net Value Added is obtained by subtracting depreciation from Gross Value Added. Depreciation represents the wear and tear or consumption of fixed capital during the production process. It is a key measure in national income accounting.
16. Which element is overused because of fertilizers?
[A] Nitrogen
[B] Phosphorous
[C] Potassium
[D] None of the above
Show Answer
Correct Answer: A [Nitrogen]
Notes:
Nitrogen is the most overused fertilizer because of excess urea. Urea receives most subsidies and it is used heavily.
17. Where is the Indian Institute of oilseed research located?
[A] Delhi
[B] Hyderabad
[C] Mumbai
[D] Pune
Show Answer
Correct Answer: B [Hyderabad]
Notes:
Indian Institute of oilseed research located in Hyderabad. It is one of the premier Oilseeds Research Institute in India.
18. Which of the following Oil seeds doesn’t have MSP from the government?
[A] Groundnut
[B] Mustard
[C] Castor
[D] Sunflower
Show Answer
Correct Answer: C [Castor]
Notes:
CACP recommends MSPs of 23 commodities, which comprise 7 cereals (paddy, wheat, maize, sorghum, pearl millet, barley and ragi), 5 pulses (gram, tur, moong, urad, lentil), 7 oilseeds (groundnut, rapeseed-mustard, soyabean, seasmum, sunflower, safflower, nigerseed), and 4 commercial crops (copra, sugarcane, cotton and raw jute).
19. Which among the following type of coffee is grown in India?
1. Arabica
2. Robusta
3. Charrieriana
Choose the correct option from the choices given below:
[A] 1,2 and 3
[B] 1 and 3 only
[C] 1 and 2 only
[D] 2 only
Show Answer
Correct Answer: C [1 and 2 only]
Notes:
Arabica and Robusta are 2 varieties of coffee. Arabica accounts for 49% and robusta 51% of production.
20. Which country is the major importer of Indian cashew kernels?
[A] Netherlands
[B] USA
[C] UK
[D] Australia
Show Answer
Correct Answer: B [USA]
Notes:
India exports cashew kernels to over 60 countries. The top markets are the US, the Netherlands, Japan, Spain, France, Germany, the UK as well as Middle East countries such as the UAE and Saudi Arabia.
