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. Who among the following is the first woman to head a public sector bank?
[A] Shikha Sharma
[B] Chanda Kochar
[C] Arundhati Bhattacharya
[D] Usha Ananthasubramanyan
Show Answer
Correct Answer: C [Arundhati Bhattacharya]
Notes:
Arundhati Bhattacharya is a retired Indian banker and former Chairman of the State Bank of India. She was the first woman to be the Chairman of State Bank of India.
12. Which of the following Five-Year Plans was terminated one year before its completion? (UPSC Prelims 1985)
[A] Second
[B] Third
[C] Fourth
[D] Fifth
Show Answer
Correct Answer: D [Fifth]
Notes:
The fifth plan was terminated by the Janta Government in 1977-78 and they launched their own sixth plan for the period 1978-83 and called it ” rolling plan” later the Janta government came down and Indira Gandhi again became prime minister of India who immediately discarded the sixth plan by the Janta government and launched her own plan for year 1980-85. The year 1978-79 was restored back to fifth plan of 1974-79.
13. 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.
14. 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.
15. Which among the following best describes scarcity in economics?
[A] Low demand for good
[B] High demand and less supply of good
[C] Low demand as people don’t want to consume it
[D] Goods available are not free
Show Answer
Correct Answer: D [Goods available are not free]
Notes:
Scarcity means limited goods are for more number of people. In an Economy the resources are scarce and the wants are unlimited.
16. Who wrote “The Theory of Interest as Determined by Impatience to Spend Income and Opportunity to Invest It”?
[A] Alfred Marshall
[B] Milton Friedman
[C] J S Mill
[D] Irving Fisher
Show Answer
Correct Answer: D [Irving Fisher]
Notes:
Irving Fisher, a leading American neoclassical economist, published “The Theory of Interest as Determined by Impatience to Spend Income and Opportunity to Invest It” in 1930. His pioneering work analyzed interest rates, relating them to savings impatience and investment opportunities, influencing modern interest theory and macroeconomics.
17. Which of the following measures are not for the protection of workers in the unorganized sector?
[A] Government fixing minimum wages and minimmum working hours
[B] Government providing cheap loans to self employed people
[C] Government providing subsidised food and education
[D] None of the above
Show Answer
Correct Answer: D [None of the above]
Notes:
All the given options are the measures taken by the government for the protection of workers in unorganized workers. Because of the conditions in the unorganized sector, there is a need for the government to give protection to these workers.
18. Which is not a cause for underutilization of natural resources in India?
[A] Primitive techniques
[B] Shortage of capital
[C] Lack of manpower
[D] Underutilization due to price sensitivities and demand barriers
Show Answer
Correct Answer: D [Underutilization due to price sensitivities and demand barriers]
Notes:
India faces underutilization of resources due to primitive techniques, capital shortage, and infrastructure issues. Manpower is generally adequate, but price sensitivities and demand barriers more directly impact utilization, especially in sectors like LNG and renewables. Manpower is not a primary limiting factor for resource utilization.
19. Which of the following is not the function of NITI Aayog?
[A] Competitve Federalism
[B] Cooperative Federalism
[C] Allocate central sector funds
[D] Promote Innvoation
Show Answer
Correct Answer: C [Allocate central sector funds]
Notes:
The allocation of funds is the work done by planning commission which is the main reason for criticism against it. NITI Aayog doesn’t have any fund allocation power.
20. From which species can a transgene introduced into the parent gene for a GM crop?
[A] Plant to plant
[B] Animal to plant
[C] Micro organism to plant
[D] All the above
Show Answer
Correct Answer: D [All the above]
Notes:
In a GM crop during genetic modification of a plant, a foreign gene called “transgene” is inserted in the plant’s own genes. This could be introduced from one plant to another plant, from a plant to an animal, or from a microorganism to a plant.
