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. The act of simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms is called _?
[A] Arbitrage
[B] Spot market
[C] Ambush marketing
[D] Futures market
Show Answer
Correct Answer: A [ Arbitrage ]
Notes:
Arbitrage is the process of simultaneous buying and selling of an asset from different platforms, exchanges or locations to cash in on the price difference. While getting into an arbitrage trade, the quantity of the underlying asset bought and sold should be the same. Only the price difference is captured as the net pay-off from the trade.
12. The Integrated Child Development Services (ICDS) Scheme aims to improve the nutritional and health status of children in the age-group of _?
[A] 0-6 years
[B] 0-10 years
[C] 0-14 years
[D] 6-14 years
Show Answer
Correct Answer: A [0-6 years]
Notes:
The ICDS Scheme offers a package of six services, viz. Supplementary Nutrition; Pre-school non-formal education; Nutrition & health education; Immunization; Health check-up and Referral services. This programme was launched on 2nd October, 1975, as one of the flagship programmes of the Government of India and represents one of the world’s largest and unique programmes for early childhood care and development. The Integrated Child Development Services (ICDS) Scheme is a centrally sponsored Scheme implemented by States/UTs across the country.
13. What is the resource curse in economic terms?
[A] A country with large resources but lack technology to exploit them
[B] Export from resource-rich countries increases currency value and hurts other sectors
[C] Countries with large reserves but only short-term market gains
[D] A paradox where resource-rich countries lack economic growth
Show Answer
Correct Answer: D [A paradox where resource-rich countries lack economic growth]
Notes:
Resource curse refers to the paradox where nations rich in natural resources tend to experience low economic growth, poor governance, and greater instability. Examples include Nigeria, where oil wealth has resulted in economic and political challenges. The term was first coined in 1993 by economist Richard Auty. The phenomenon is studied in the context of various minerals including oil, diamonds, and other extractive industries.
14. Which is India’s largest source of power generation as of 2025?
[A] Coal
[B] Solar
[C] Wind
[D] Hydropower
Show Answer
Correct Answer: A [Coal]
Notes:
Coal accounted for about 70% of India’s electricity generation in 2025. Coal-based power output was 1,247 TWh in 2025 after a 3.4% decline. Non-fossil sources contributed 25% collectively in FY 2024-25. India added 35 GW solar in 2025, but total renewable generation reached 270 TWh compared to coal’s 1,247 TWh.
15. Which of the following is called GDP Deflator?
[A] Ratio of nominal to real GNP
[B] Ratio of nominal to real CPI
[C] Ratio of real to nominal GNP
[D] Ratio of nominal to real GDP
Show Answer
Correct Answer: D [Ratio of nominal to real GDP]
Notes:
The GDP deflator is a measure of price inflation. It is calculated by dividing Nominal GDP by Real GDP and then multiplying by 100. Nominal GDP is the market value of goods and services produced in an economy, unadjusted for inflation
16. Which of the following is the highest milk producing breed of goat in India? (UPSC Prelims 1994)
[A] Barbari
[B] Jamnapari
[C] Black Bengal
[D] Beetal
Show Answer
Correct Answer: B [Jamnapari]
Notes:
Jamnapari is the most popular breed for commercial goat farming in India. It is also the highest milk producing breed of goat in India It is mostly found in Uttar Pradesh.
17. In which of the following circumstances, the total utility is maximum?
[A] Marginal utility is maximum
[B] Marginal utility = 0
[C] Marginal utility is minimum
[D] None of the above
Show Answer
Correct Answer: B [Marginal utility = 0]
Notes:
Total Utility is the sum of all the utilities derived from the consumption of all the units of a particular commodity. So when the marginal utility decreases total utility increases and is maximum when marginal utility is 0.
18. When was Tata Iron and Steel Company (TISCO) formally established and registered?
[A] 1906
[B] 1907
[C] 1908
[D] 1909
Show Answer
Correct Answer: B [1907]
Notes:
TISCO was officially established and registered on 26 August 1907 at Jamshedpur, Jharkhand by Jamsetji Tata. Renamed Tata Steel Limited in 2005, it was a pivotal venture in India’s industrialization. The first steel production started in 1912. Headquartered in Mumbai, it is part of the Tata Group.
19. Which among the following is caused by a lack of proper infrastructure?
[A] Low Export cost
[B] Less devlopment of interior region
[C] More imports
[D] High Cost of goods
Show Answer
Correct Answer: B [Less devlopment of interior region]
Notes:
The lack of infrastructure creates a lot of problems mainly regarding the development of interior regions. The two most vital sectors i.e. agriculture and industry could not make much headway in the absence of proper infrastructural facilities in the country. Moreover, due to the absence of proper infrastructural facilities, the development potential of different regions of the country largely remains under-utilized.
20. During which five-year plan the Private sector was given priority over the public sector?
[A] 5th
[B] 7th
[C] 6th
[D] 8th
Show Answer
Correct Answer: B [7th]
Notes:
Seventh Five Year Plan from 1985 to 1990 had the objective to establish a self-sufficient economy, opportunities for productive employment. For the first time, the private sector got priority over the public sector. Socialist India started moving away from it.
