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 is a balanced fertilizer for plants? (UPSC Prelims 1979).
[A] Urea
[B] Ammonia sulphate
[C] Nitrates
[D] Compost
Show Answer
Correct Answer: D [Compost]
Notes:
Fertilizers are used by farmers for the better crop growth. Normally compost is considered as the balanced fertilizer as it does not harm plants and increase the productivity. But considering artificial fertilizers a balanced fertilizer is chosen which have balanced amount of NPK. Generally, nitrogen is used by plants to produce green growth and potassium for flower and fruit development. A balanced fertilizer such as 10-10-10 of NPK is a good choice for vegetables and other high-nutrient plants.
12. Which of the following correctly defines the Mixed economy? (UPSC Prelims 1980).
[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.
13. Which Asian country recently introduced a sustainable development fee for tourists?
[A] Thailand
[B] Bhutan
[C] Cambodia
[D] Sri Lanka
Show Answer
Correct Answer: B [Bhutan]
Notes:
Bhutan imposes a Sustainable Development Fee on international tourists, except those from India, Bangladesh, and the Maldives. The current rate is USD 100 per person per night, effective from September 1, 2023 to August 31, 2027, as a 50% discount from the earlier USD 200. Indian tourists pay INR 1,200 per person per night. The fee funds conservation and infrastructure.
14. Which of the following correctly defines the Economic profit?
[A] Total revenue – Total cost
[B] Total cost – Total sold
[C] Total cost- Total revenue
[D] None of the above
Show Answer
Correct Answer: A [Total revenue – Total cost]
Notes:
Profit for any firm is the surplus of revenue over the total cost of production. It is the extra money generated over the cost of production.
Profit = Total Revenue – Total cost
15. Which economist is credited for developing theories based on Gandhism?
[A] Jagadish Bhagwati
[B] P.C.Mehalonibis
[C] J.C.Kumarappa
[D] Kaushik Basu
Show Answer
Correct Answer: C [J.C.Kumarappa]
Notes:
J.C.Kumarappa was an Indian economist and a close associate of Gandhiji. A pioneer of rural economic development theories, Kumarappa is credited for developing economic theories based on Gandhism– a school of economic thought he coined “Gandhian Economics”.
16. Which of the following falls under the Unorganised sector?
[A] A farmer working irrigating his field
[B] A worker working in an giant manufacturing unit
[C] A doctor treating patient in a hospital
[D] A teacher teaching in a school
Show Answer
Correct Answer: A [A farmer working irrigating his field]
Notes:
An unorganized worker is a home-based worker or a self-employed worker or a wage worker in the unorganized sector. In this sector, labour is less paid and is largely non-unionised.
17. Which is the first organic state in India?
[A] Kerala
[B] Sikkim
[C] Assam
[D] Arunachal Pradesh
Show Answer
Correct Answer: B [Sikkim]
Notes:
Sikkim was recognized as the country’s first organic state in 2018. Uttarakhand is the second organic sate in India.
18. Which of the following is a genetically modified (GM) crop?
[A] Basmati Rice
[B] Sticky Rice
[C] All the above
[D] Golden Rice
Show Answer
Correct Answer: D [Golden Rice]
Notes:
Golden Rice is a genetically modified variety developed to biosynthesize beta-carotene, a precursor of vitamin A. It was developed in the late 1990s by Ingo Potrykus and Peter Beyer. Golden Rice was created to address vitamin A deficiency in developing countries. The rice grains contain provitamin A, giving them a golden-yellow color. It is not commercially released in most countries as of 2024.
19. Which farming method uses alternating strips of crops to prevent soil erosion?
[A] Row cropping
[B] Intercropping
[C] Strip cropping
[D] Relay cropping
Show Answer
Correct Answer: C [Strip cropping]
Notes:
Strip cropping involves planting crops in alternating strips along the contours of land. This method reduces soil erosion by establishing barriers that slow water flow and trap sediment. The practice is used on sloped land and with crops like wheat, hay, and corn. Strip cropping helps decrease soil loss by 65 to 75 percent compared to open field planting. It stabilizes soil and improves water infiltration.
20. Which is the leading chilli producing state in India?
[A] Madhya Pradesh
[B] Telangana
[C] Andhra Pradesh
[D] Karnataka
Show Answer
Correct Answer: C [Andhra Pradesh]
Notes:
Andhra Pradesh produced approximately 1.07 million metric tons of chillies in 2023-24. Guntur district is a major chilli trading hub. According to the Ministry of Agriculture third advance estimates 2023-24, Andhra Pradesh produces more chillies than Telangana, Madhya Pradesh, and Karnataka. The state’s share in national chilli production consistently exceeds 35% annually.
