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. For a healthy growth of service sector, what should government do?
[A] Increase minimum wages
[B] Provide broadband services in rural areas
[C] Provide tax sops to infrastructure companies
[D] Revive growth in farm and industrial sectors
Show Answer
Correct Answer: D [ Revive growth in farm and industrial sectors ]
Notes:
This question is based upon last year’s Economic Survey documents. It is based on the premise that the growth in tertiary sector cannot thrive if there is no growth in primary and secondary sector. Due to inter-sectoral linkages; revival of growth in services depends on growth revival in commodity producing sectors.
12. Which Ministry has adopted the goal of "Haat to Hypermarket" as the overarching objective of the Rural Business Hubs (RBH)?
[A] Ministry of Panchayati Raj
[B] Ministry of Corporate Affairs
[C] Ministry of Skill Development and Entrepreneurship
[D] Ministry of Rural Development
Show Answer
Correct Answer: A [ Ministry of Panchayati Raj ]
Notes:
Ministry of Panchayati Raj has adopted the goal of "Haat to Hypermarket" as the overarching objective of the Rural Business Hubs (RBH)
13. Rolling plan was designed for which of the following periods?
[A] 1974-79
[B] 1978-83
[C] 1980-85
[D] 1985-90
Show Answer
Correct Answer: B [1978-83]
Notes:
The Janta Government terminated the fifth five year plan in 1977-78 and launched its own sixth five year plan for period 1978-83 and called it a Rolling Plan. This second plan is kept changing as per the requirements of the economy (and politics).
14. World Tourism Day is celebrated on which of the following days?
[A] September 12
[B] September 25
[C] September 29
[D] September 27
Show Answer
Correct Answer: D [September 27]
Notes:
Since 1980, the United Nations World Tourism Organization has celebrated World Tourism Day as international observances on September 27. This date was chosen as on that day in 1970, the Statutes of the UNWTO were adopted.
15. Which among the following clearly defines the aim of the trade policy of India?
[A] Exports promotion and Import substitution
[B] Export oriented
[C] Import oriented
[D] None of the above
Show Answer
Correct Answer: A [Exports promotion and Import substitution]
Notes:
Trade in India includes all imports and exports to and from India. At the level of Central Government it is administered by the Ministry of Commerce and Industry. The objective of any country’s trade policy must be economic growth. The overall trade policy of India is to maintain a healthy balance between developing export avenues and generating imports.
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. What does free market in an economy imply?
[A] Minimum government intervention in trade and maximum regulations
[B] Maximum government intervention in trade and maximum regulations
[C] Minimum government intervention in trade and minimum regulations
[D] Maximum government intervention in trade and maximum regulations
Show Answer
Correct Answer: C [Minimum government intervention in trade and minimum regulations]
Notes:
In a free market economy, the law of supply and demand, rather than a central government, regulates production and labor. Companies sell goods and services at the highest price consumers are willing to pay while workers earn the highest wages companies are willing to pay for their services
18. Who is the author of “Commodities and Capabilities”?
[A] Amartya Sen
[B] Dr. Raja Chelliah
[C] Dr. P.C.Mehalonibis
[D] Dr. C. Rangarajan
Show Answer
Correct Answer: A [Amartya Sen]
Notes:
Noble Laureate Amartya Sen Published the book Commodities and Capabilities in 1985.
19. Which among the following is a feature of Socialist form of Economy?
[A] It is based on the demand and supply of market
[B] Competition exist in the market
[C] Private property is encouraged
[D] None of the above
Show Answer
Correct Answer: D [None of the above]
Notes:
The socialist form of economy is not based on market forces and competition doesn’t exist in the market. The state owns the factors of production and private property is not encouraged.
20. Which of the following conditions are expected in an Unorganised sector?
- Paid Holidays
- Lack of proper working conditions
- Social security from employers
- Lack of protection from legislations
Choose the correct option from the codes given below:
[A] 1 and 2 only
[B] 3 and 4 only
[C] 1, 2 and 4 only
[D] 2 and 4 only
Show Answer
Correct Answer: D [2 and 4 only]
Notes:
The Unorganised sector is marked by low incomes, unstable and irregular employment, and lack of protection either from legislation or trade unions. They use mainly labor-intensive technology. The workers in the unorganized sector, are so scattered that the implementation of the Legislation is very inadequate and ineffective.
