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. A country has crude birth rate of 44 and a crude death rate of 11. The number of immigrants is more than emigrants. What would be the rate of natural increase of population?
[A] 0.75%
[B] 3.3%
[C] 2.9%
[D] Can not be determined
Show Answer
Correct Answer: B [ 3.3% ]
Notes:
• Crude Birth Rate : Number of Births per 1000 population in a given year.
• Crude Death Rate : Number of Deaths per 1000 population in a given year.
• Natural Increase Rate of Population = Crude Birth Rate- Crude Death rate
12. Which among the following is a nearest term to Pay Order?
[A] Bank Draft
[B] Banker’s Cheque
[C] Bill of Exchange
[D] Promissory Note
Show Answer
Correct Answer: B [ Banker’s Cheque ]
Notes:
A Pay Order is similar to a Banker’s Cheque, as both are instruments issued by banks guaranteeing payment to a specified payee. Unlike a Bank Draft, which can be issued by individuals, a Banker’s Cheque is always issued by the bank itself. Both are considered safer than cash and are used for transactions where the payee requires guaranteed funds.
13. What is the primary aim of enacting the SARFAESI Act?
[A] Recovering Loans
[B] Increasing Deposits
[C] Transparent appointment of Directors
[D] Reducing Corruptions and Scams
Show Answer
Correct Answer: A [Recovering Loans]
Notes:
The SARFAESI Act allowed the creation of asset reconstruction companies (ARC) and allowed banks to sell their non-performing assets to ARCs.
14. The Indian rupee’s exchange rate is managed against which of the following?
[A] US Dollar
[B] British Pound Sterling
[C] A basket of foreign currencies
[D] Japanese Yen
Show Answer
Correct Answer: C [A basket of foreign currencies]
Notes:
The Reserve Bank of India manages the rupee’s exchange rate against a basket of foreign currencies since 1975. Before 1975, the rupee was pegged to the British Pound Sterling. The currency basket includes the US Dollar, Euro, Japanese Yen, and British Pound. India shifted from single-currency pegs to mitigate external shocks and improve stability.
15. 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
16. What is referred to as the “invisible hand” in a market economy?
[A] Trade
[B] Money
[C] Demand and supply
[D] Competition
Show Answer
Correct Answer: D [Competition]
Notes:
Adam Smith’s “invisible hand” describes competition, which guides market resources efficiently and benefits society even if individuals act in self-interest. This concept is foundational in classical economic theory and emphasizes the self-regulating nature of competitive markets.
17. Who among the following is not part of the Quinary sector?
[A] Scientist
[B] Lawyer
[C] Financial consultant
[D] Florist
Show Answer
Correct Answer: D [Florist]
Notes:
The quinary sector is the part of the economy where the top-level decisions are made. This includes the government which passes legislation. It also comprises the top decision-makers in industry, commerce, and also the education sector. Floriculture comes under Primary Sector.
18. Which months constitute the zaid cropping season in India?
[A] August-November
[B] June-August
[C] March-June
[D] December-March
Show Answer
Correct Answer: C [March-June]
Notes:
Zaid season in India lasts from March to June. Major crops such as watermelon, cucumber, muskmelon, and various vegetables are grown during this period. The zaid crop season falls between the rabi and kharif seasons. Zaid crops typically require warm dry weather for growth and longer days for flowering.
19. Which is the most commonly used in India for preparation of toilet soap?
[A] Mustard seed
[B] Sunflower seed
[C] Coconut oil
[D] Groundnut oil
Show Answer
Correct Answer: C [Coconut oil]
Notes:
Coconut oil is the oil that is used for the preparation of soaps. The fats and oils are the most commonly used in soap preparation.
20. Which is the only country to produce all types of commercial silks?
[A] China
[B] India
[C] Australia
[D] USA
Show Answer
Correct Answer: B [India]
Notes:
India has the unique distinction of being the only country producing all the five known commercial silks, namely, mulberry, tropical tasar, oak tasar, eri and muga, of which muga with its golden yellow glitter is unique and prerogative of India.
