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 is the name given to the unemployment which occurs when workers move from one job to another job?
[A] Seasonal unemployment
[B] Frictional unemployment
[C] Technological unemployment
[D] Cyclical unemployment
Show Answer
Correct Answer: B [Frictional unemployment]
Notes:
Frictional unemployment is a type of unemployment. It is sometimes called search unemployment and can be based on the circumstances of the individual. It is time spent between jobs when a worker is searching for a job or transitioning from one job to another.
12. How are persons below the poverty line classified in India?
[A] Their daily wages fall below minimum wage
[B] They belong to scheduled caste or tribe groups
[C] They get work for a minimum number of days
[D] Their per capita consumption expenditure is below a set threshold
Show Answer
Correct Answer: D [Their per capita consumption expenditure is below a set threshold]
Notes:
India adopts the per capita consumption expenditure method to define poverty line status. The Rangarajan Committee in 2014 revised this threshold to ₹972 per person per month in rural areas and ₹1407 per person per month in urban areas. Estimation uses National Sample Survey Office data. Poverty line decisions now rest with NITI Aayog’s task force. Earlier, the Tendulkar Committee (2009) recommended changes from calorie intake norms.
13. 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.
14. During which Five-Year plan 14 major banks were nationalized?
[A] 5th
[B] 4th
[C] 6th
[D] During Rolling plan
Show Answer
Correct Answer: B [4th]
Notes:
The Fourth Five year plan was from 1969-74. At this time Indira Gandhi was the Prime Minister. The Indira Gandhi government nationalised 14 major Indian banks in July 1969.
15. Which sector is not directly affected by agricultural growth?
[A] Poverty eradication
[B] Inflation
[C] Employment
[D] Balance of Payments
Show Answer
Correct Answer: D [Balance of Payments]
Notes:
The balance of payments records a country’s international transactions including exports and imports. Agricultural growth primarily affects domestic employment, poverty, and inflation but does not have a direct impact on the balance of payments, which depends mainly on external trade and foreign currency flows. In India, the balance of payments is detailed by the Reserve Bank of India in the annual reports.
16. Which scheme offers direct income support to all Indian landholding farmers?
[A] PM-Kisan Samman Nidhi
[B] KUSUM
[C] PM Krishi Sanchayee
[D] None of the above
Show Answer
Correct Answer: A [PM-Kisan Samman Nidhi]
Notes:
PM-Kisan Samman Nidhi was launched in February 2019. It provides Rs 6,000 annually in three installments of Rs 2,000 each to all eligible landholding farmer families across India. The Central Government transfers funds directly to Aadhaar-seeded bank accounts of beneficiaries under this scheme via Direct Benefit Transfer. The scheme operates as a central sector initiative.
17. Which of the following is classified as a consumer industry?
[A] Copper
[B] Paper
[C] Iron
[D] Aluminium
Show Answer
Correct Answer: B [Paper]
Notes:
The paper industry produces products such as writing paper, packaging, and sanitary paper for direct consumer use. It is classified as a consumer industry. Paper manufacturing involves the processing of cellulose fibers from wood or recycled sources. India is one of the largest producers of paper with over 800 paper mills as of 2023. The industry is regulated by the Ministry of Commerce and Industry.
18. Which is the most used cement globally?
[A] White cement
[B] Specialized cement
[C] portland pozzolana cement
[D] Portland cement
Show Answer
Correct Answer: D [Portland cement]
Notes:
Portland cement is the most used cement globally. It accounts for about two-thirds of exported global cement supplies.
19. In which year the Engineering Exports Promotion Council set up?
[A] 1961
[B] 1951
[C] 1955
[D] 1950
Show Answer
Correct Answer: C [1955]
Notes:
EEPC India is the premier trade and investment promotion organization. It is sponsored by the Ministry of Commerce & Industry, Government of India and caters to the Indian engineering sector. It was set up in 1955.
20. What is the contribution of capital goods to Indian manufacturing output?
[A] 22%
[B] 12%
[C] 10%
[D] 25%
Show Answer
Correct Answer: B [12%]
Notes:
The capital goods sector contributes approximately 12% to India’s total manufacturing output and accounts for roughly 1.8% to 2% of the national GDP. As a critical, technology-intensive industry, it supports industrial growth, with production value rising from ₹2.3 lakh crore in 2014-15 to over ₹4.29 lakh crore by 2023-24.
