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. Which of the following is the distribution of the burden of paying a tax?
[A] Sharing of tax burden
[B] Shifting of the tax
[C] Incidence of a tax
[D] Tax capitalization
Show Answer
Correct Answer: C [Incidence of a tax]
Notes:
In economics, tax incidence or tax burden is the effect of a particular tax on the distribution of economic welfare. The introduction of a tax drives a wedge between the price consumers pay and the price producers receive for a product, which typically imposes an economic burden on both producers and consumers.
12. In which type of remittances, money is transferred from one country to another?
[A] Foreign Remittance
[B] Digital Remittance
[C] Blockchain Remittance
[D] None of the above
Show Answer
Correct Answer: A [Foreign Remittance]
Notes:
In banking terminology, remittance means transfer of fund one place to another. When money transferred from one country to another, this is called Foreign Remittance.
13. The demand for heavy loans can lead to which of the following?
[A] excess funds for banks
[B] Deficiencies for banks
[C] Organized reservation
[D] Competitive reservations
Show Answer
Correct Answer: B [ Deficiencies for banks ]
Notes:
Daily and hourly loans are in heavy demand and will incur heavy fines if they are returned late. Fines will apply almost as soon as the item is overdue.
14. Reduction of which of the following was the prime concern of the Uruguay round of negotiations?
[A] The debt burden of developing countries.
[B] Restrictions on the operation of a flexible exchange rate system.
[C] Restrictions on trade in agriculture and services.
[D] Restrictions on fishing rights on the high seas.
Show Answer
Correct Answer: C [Restrictions on trade in agriculture and services.]
Notes:
The treatment of trade in services and intellectual property had not in fact been covered by GATT prior to the Uruguay Round. The key features of the Uruguay Round Final Settlement are: An agreement on agriculture to increase market access, reduce export subsidies and tariffs and eliminate non-tariff barriers.
15. Which among the following economic systems doesn’t have profit-making as motive?
- Socialist
- Market
- Mixed
- Traditional
Choose the correct option from the choices given below:
[A] 1 and 2
[B] 2 and 3
[C] 3 and 4
[D] 1 and 4
Show Answer
Correct Answer: D [1 and 4]
Notes:
Profit making is not the motto of the Socialist as well as the Traditional economic system. In mixed as it has a capitalist element in it, profit-making becomes one of its motives like that of market/capitalist economy.
16. Which is the largest Sesame producing country in the world?
[A] Nepal
[B] India
[C] Myanmar
[D] Tanzania
Show Answer
Correct Answer: C [Myanmar]
Notes:
The top 3 Sesame producing countries in the world are:
1. Myanmar
2. India
3. Tanzania
17. Which state is the largest Banana producing state?
[A] Tamil Nadu
[B] Gujarat
[C] Maharashtra
[D] Andhra Pradesh
Show Answer
Correct Answer: A [Tamil Nadu]
Notes:
The top Banana producing states are Tamil Nadu, Gujarat and Maharashtra. Bananas are the fifth largest agricultural commodity in world trade after cereals, sugar, coffee and cocoa. India’s Banana productivity per hectare is over twice as compared to the rest of the world. India exports the fruit to UAE, Saudi Arabia and other Gulf countries.
18. Which country is the largest producer of buffalo meat?
[A] India
[B] Bangladesh
[C] Australia
[D] None of the above
Show Answer
Correct Answer: A [India]
Notes:
India is the largest producer of buffalo meat and 2nd largest producer of goat meat.
19. How many major Fishing harbors are there in India?
[A] 4
[B] 6
[C] 7
[D] 9
Show Answer
Correct Answer: C [7]
Notes:
India has 7 major fishing harbours and 70 minor fishing harbours. Vizag, Kochi, Calcutta, Mangalore, Pipavav, Krishnapatanam and JNP are the major ports.
20. Where is the headquarters of Central Wool Development Board located?
[A] Jodhpur
[B] Pune
[C] Hyderabad
[D] Ludhiana
Show Answer
Correct Answer: A [Jodhpur]
Notes:
Central Wool Development Board is located at Jodhpur. It was formed by the Ministry of Textiles, Government of India, in 1987, with the primary objective of developing the domestic wool textiles industry by undertaking support programmes.
