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. In which of the following market forms a firm does not exercise control over price?
[A] Monopoly
[B] Mixed Competition
[C] Perfect competition
[D] Oligopoly
Show Answer
Correct Answer: C [Perfect competition]
Notes:
In economics, specifically general equilibrium theory, a perfect market is defined by several idealizing conditions, collectively called perfect competition.
12. Which of the following is an alternative way of representing the production function?
[A] Average Product
[B] The Long Run
[C] Isoquant
[D] The Short Run
Show Answer
Correct Answer: C [Isoquant]
Notes:
An isoquant is a firm’s counterpart of the consumer’s indifference curve. An isoquant is a curve that shows all the combinations of inputs that yield the same level of output. ‘Iso’ means equal and ‘quant’ means quantity.
13. Which approach involves managing crises to impact brand reputation?
[A] Public Relations Issues Management
[B] Brand Advertising Management
[C] Private Equity Issues Management
[D] None of the above
Show Answer
Correct Answer: A [Public Relations Issues Management]
Notes:
Public Relations Issues Management is a PR strategy that addresses emerging issues and crises. It guides company communication and action during critical situations. This approach maintains brand reputation and public trust by controlling information and providing timely responses during incidents. The process follows established crisis management frameworks used by organizations worldwide.
14. What does structural change in exports mean? (UPSC Prelims 1989)
[A] Shifts in export composition over time
[B] Increase in exports and imports together
[C] Growth in imports over production
[D] Change in domestic consumption of imports
Show Answer
Correct Answer: A [Shifts in export composition over time]
Notes:
Structural change in exports refers to long-term changes in the types and categories of goods and services a country exports. It involves shifts in the relative share of sectors such as agriculture, manufacturing, and services in total exports. Such changes occur due to productivity growth, varying international prices, and evolving global demand.
15. What is the primary basis for defining a small-scale industry in India? (UPSC Prelims 1992)
[A] The market outreach of a unit
[B] The size of annual turnover
[C] Investment in plant and machinery
[D] Products listed by the Ministry of Industry
Show Answer
Correct Answer: C [Investment in plant and machinery]
Notes:
The MSME Development Act, 2006 defines small-scale industry based on investment in plant and machinery for manufacturing or equipment for services. The 2020 revision set the small enterprise limit at investment up to ₹10 crore and turnover up to ₹50 crore. Prior to this, only investment criteria were used in statutory definitions, excluding factors like sales or product lists.
16. 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.
17. Which country does Economist Dambisa Moyo belong to?
[A] Zambia
[B] Namibia
[C] Africa
[D] None of the above
Show Answer
Correct Answer: A [Zambia]
Notes:
Zambian-born economist Dambisa Moyo focuses on wealth and poverty in the global economy. A key critic on development aid for low-income economies, her work has earned her the Friedrich Hayek Institute’s lifetime achievement award.
18. Which of the following statements is true regarding a mixed economy?
[A] Private property is not encouraged
[B] Monopoly doesn’t exist in market
[C] The government play a role in the production and distribution of resources
[D] Consumers choice is limited
Show Answer
Correct Answer: C [The government play a role in the production and distribution of resources]
Notes:
In a mixed economic system, there is a cross between a market economy and the Socialist economy. In the most common types of mixed economies, the market is more or less free of government ownership except for a few key areas like transportation or sensitive industries like defense and railroad.
19. Which of the following activities comes under the tertiary sector?
[A] Agriculture, dairying,forestry
[B] Manufacturing of automobiles,construction of houses
[C] Communication and banking
[D] None of the above
Show Answer
Correct Answer: C [Communication and banking]
Notes:
The service sector is concerned with the intangible aspect of offering services to consumers and businesses. It involves the retail of manufactured goods. It also provides services, such as insurance and banking.
20. 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.
