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 bodies procures, distributes, exports and imports agricultural commodities?
[A] FCI
[B] NAFED
[C] NABARD
[D] All of them
Show Answer
Correct Answer: B [ NAFED ]
Notes:
NAFED is the apex body in cooperative sector and deals in procurement , distribution, export and import of selected agricultural commodities.
12. Custom duty is mainly an instrument of which policy?
[A] Monetary Policy
[B] Industrial Policy
[C] Foreign Trade Policy
[D] Fiscal Policy
Show Answer
Correct Answer: C [Foreign Trade Policy]
Notes:
Customs duty is governed by the Customs Act, 1962. It is imposed to regulate import and export of goods. The Directorate General of Foreign Trade (DGFT) administers India’s foreign trade policies. The Foreign Trade Policy of India is updated every five years. Customs duties are revised to align with international agreements and World Trade Organization guidelines.
13. Which of the following is the highest milk producing breed of goat in India? (UPSC Prelims 1994)
[A] Barbari
[B] Jamnapari
[C] Black Bengal
[D] Beetal
Show Answer
Correct Answer: B [Jamnapari]
Notes:
Jamnapari is the most popular breed for commercial goat farming in India. It is also the highest milk producing breed of goat in India It is mostly found in Uttar Pradesh.
14. Which among the following is related to utility?
[A] Satisfaction and wants
[B] Necessity and wants
[C] Usefulness and need
[D] None of the above
Show Answer
Correct Answer: A [Satisfaction and wants]
Notes:
Utility is the power or capacity of a commodity to satisfy a human want or it is the amount of satisfaction that a person gets from the consumption of a good or service. It is measured in utils.
15. 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.
16. What is the aggregate of the gross balances of primary income of all resident institutional units knows as?
[A] Gross domestic Product
[B] Gross national product
[C] Gross National income
[D] Net national product
Show Answer
Correct Answer: C [Gross National income]
Notes:
Gross National Income is the aggregate value of the gross balances of the primary income of all resident institutional units.
17. Which economist is infamous for the series of economic earthquakes that rocked America and the world during his tenure as chairman of the Federal Reserve?
[A] Allen Greenspan
[B] Jerome powell
[C] Paul Volcker
[D] Roy A Young
Show Answer
Correct Answer: A [Allen Greenspan]
Notes:
Alan Greenspan instituted monetary policies during his nineteen years as head of the Federal Reserve that played a significant role in the economic crisis of 2008 and following.
18. Who is the first CEO of the New Development Bank?
[A] Arundhati Bhattacharya
[B] K V Kamath
[C] Arvind Subramaian
[D] Kaushik Basu
Show Answer
Correct Answer: B [K V Kamath]
Notes:
K.V. Kamath, was the first chief of the New Development Bank of BRICS countries, he has served as the Chairman of Infosys Limited, the second-largest Indian IT services company, and as the Non-Executive Chairman of ICICI Bank. He has been replaced by Marcos Prado Troyjo from Brazil since 7 July 2020. Marcos Troyjo was elected president of the New Development Bank on 27 May 2020.
19. Which of these is not a plantation crop?
[A] Tea
[B] Rubber
[C] Coffee
[D] Wheat
Show Answer
Correct Answer: D [Wheat]
Notes:
Wheat is an annual cereal crop mainly cultivated in temperate regions. Wheat is grown in rabi season in India and harvested during March–April. Wheat requires well-drained loamy soil and a cool growing season. India is the second-largest producer of wheat globally. Wheat is not considered a plantation crop, which typically includes tea, rubber, and coffee.
20. Which country is the largest producer of sesame seeds in the world?
[A] India
[B] Myanmar
[C] Sudan
[D] Nigeria
Show Answer
Correct Answer: C [Sudan]
Notes:
Sudan produced approximately 1.37 million tonnes of sesame seeds in 2025. Major sesame producing regions in Sudan include the Nile and Blue Nile areas. Sudan surpassed India and Myanmar in annual sesame seed production. FAO and other global agricultural databases confirm Sudan as the top sesame producing country as of 2025.
