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 among the following is/are correct regarding Money Market?
[A] Money Market is a market for short-term funds
[B] Maturity in this market ranging from overnight to one year
[C] The basic function of money market is to provide efficient liquidity position
[D] All of the above
Show Answer
Correct Answer: D [ All of the above ]
Notes:
The money market is a key component of the financial system. It is a market for short-term funds with maturity ranging from overnight to one year. The basic function of money market is to provide efficient liquidity position for commercial banks, financial institution, Mutual funds, insurance companies, corporate etc
12. Which of the following are the specialized wings of NITI Aayog?
1. Research Wing
2. Consultancy Wing
3. Team India Wing
Select the correct option from the codes given below:
[A] Only 1
[B] Only 2
[C] Only 2 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: D [1, 2 & 3]
Notes:
NITI Aayog consists of a number of specialized wings such as the research wing, the consultancy wing, the team India wing. NITI Aayog functions in close cooperation, consultation and coordination with the Ministries of the Central Government, and State Governments of India.
13. What restricts the spending of a person in a market?
[A] Marginal Utility
[B] Purchasing power
[C] Demand curve
[D] None of the above
Show Answer
Correct Answer: B [Purchasing power]
Notes:
The purchasing power of a person is the reason for his limited spending. He has budget constraints which inturn affect the market as a whole. The budget constraint is used to analyze consumers choices.
14. Which of the following is the limitation of the Socialist Economic system?
[A] High Taxes
[B] Easy Mobilization of resources
[C] Concentration of wealth is prevented
[D] Market Monopoly doesn’t exist
Show Answer
Correct Answer: A [High Taxes]
Notes:
In a socialist economy, taxes are high on the people as the state has to provide all the goods and services to all. The other options given are the advantages of the system.
15. The unemployment in agriculture to Mechanization is called?
[A] Disguised Unemplyment
[B] Technical Unemployment
[C] Structural Unemployment
[D] Seasonal Unemployment
Show Answer
Correct Answer: C [Structural Unemployment]
Notes:
The unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.
16. Which five year plan gave emphasis on the removal of poverty for the first time?
[A] Fifth
[B] Sixth
[C] Seventh
[D] Eigth
Show Answer
Correct Answer: A [Fifth ]
Notes:
The Fifth Five-Year Plan from (1974-78) laid stress on employment, poverty alleviation (Garibi Hatao), and justice. It is the first time a plan had emphasis on poverty. The plan also focused on self-reliance in agricultural production and defense. In 1978 the newly elected Morarji Desai government rejected the plan.
17. Where is the Central Seed Testing and Referral Laboratory located?
[A] Dehradun
[B] Ladakh
[C] Varanasi
[D] Pune
Show Answer
Correct Answer: C [Varanasi]
Notes:
The Central Seed Testing and Referral Laboratory was established in 2005 at Varanasi, Uttar Pradesh. The laboratory serves as a reference institution for seed testing in India. It operates under the Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India.
18. Which state in India has the largest area under canal irrigation?
[A] Andhra Pradesh
[B] Punjab
[C] Uttar Pradesh
[D] Tamil Nadu
Show Answer
Correct Answer: C [Uttar Pradesh]
Notes:
Uttar Pradesh has the highest area under canal irrigation in India. As of 2026, Uttar Pradesh irrigates approximately 133 lakh hectares through canals. Western Uttar Pradesh has an extensive canal network fed mainly by the Ganges and its tributaries. The Upper Ganga Canal, constructed in the 19th century, is one of the largest canal systems in the country.
19. Who primarily implements the Essential Commodities Act, 1955?
[A] NABARD
[B] State Government
[C] Central Government
[D] SFAC
Show Answer
Correct Answer: B [State Government]
Notes:
The Essential Commodities Act, 1955 is implemented mainly by State Governments. State Governments are empowered to carry out enforcement, monitoring, and execution of orders issued under the Act. The Central Government issues general policy guidelines and notifications, but actual regulation, inspection, and legal proceedings are handled by state and local authorities.
20. Which category of the industries under the Industrial policy of 1956 allowed private along with the Public sector?
[A] Category A
[B] Category B
[C] Category C
[D] Category D
Show Answer
Correct Answer: B [Category B]
Notes:
In the category B of industries, the state i.e the Public sector can establish new units. But the private sector was not denied to set up or expand existing units e.g. chemical industries, fertilizer, synthetic, rubber, aluminum, etc.
