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 clearly define Stagflation? (UPSC Prelims 1984)
[A] Constant rate of inflation
[B] Low inflation with high recession
[C] High inflation with low recession
[D] Stagnation and inflation
Show Answer
Correct Answer: D [Stagnation and inflation]
Notes:
Stagflation is a condition of slow economic growth and relatively high unemployment, or economic stagnation, accompanied by rising prices, or inflation. It can also be defined as inflation and a decline in gross domestic product (GDP).
12. Which crop has the highest production in India? (UPSC Prelims 1988)
[A] Rice
[B] Wheat
[C] Tobacco
[D] Gram
Show Answer
Correct Answer: A [Rice]
Notes:
India’s rice production is projected at 152 million tonnes for the 2025-26 crop season. Wheat output is estimated at 117.9 million tonnes in the same period. India accounts for 30.3% of global rice exports. Rice production in India consistently surpasses other major crops, making it the leading agricultural commodity in the country by volume.
13. Who is the autor of the book “Utilitarianism”?
[A] Jermy bentham
[B] Immanuel Kant
[C] J S Mill
[D] David Ricardo
Show Answer
Correct Answer: C [J S Mill]
Notes:
JS mill’s book utilitarianism is a series of articles published in Frazer’s magazine. Mill’s aim in the book is to explain what utilitarianism is, to show why it is the best theory of ethics, and to defend it against a wide range of criticisms and misunderstandings.
14. Who among the following created the Human development index?
- Amartya Sen
- Mehboob Ul Haq
- Paul Krugman
- Walter Gillies
Choose the correct option from the code given below:
[A] 1 and 2 only
[B] 2 and 3 only
[C] 1 and 4 only
[D] 3 and 4 only
Show Answer
Correct Answer: A [1 and 2 only]
Notes:
Amartya sen and Mehboob Ul Haq created the Human Development Index which captures the development of human beings of a country as development is not only about economic indicators.
15. Which five year plan highlighted the modernization of Industries?
[A] 5th
[B] 8th
[C] 7th
[D] 6th
Show Answer
Correct Answer: B [8th]
Notes:
Modernization of industries was a major highlight of the Eighth Plan. It is also known as Rao-Manmohan plan as economic liberalization was the highlight of this plan. Under this plan, the gradual opening of the Indian economy was undertaken to correct the burgeoning deficit and foreign debt. The plan was launched with twin objectives of alleviation of poverty and unemployment.
16. When does the state government declare agricultural drought in an area?
[A] Rainfall less than normal by 10%
[B] Rainfall less than normal by 5%
[C] More than 20% state facing drought
[D] None of the above
Show Answer
Correct Answer: C [More than 20% state facing drought]
Notes:
Declaration of droughts is done by the States. Meteorological drought and agricultural drought are 2 kinds.
Meteorological drought is when rainfall is 10% or more, less than normal. Agricultural drought is when 20% or more area of a state is facing drought.
17. Where is the Global seed vault located?
[A] Switzerland
[B] Norway
[C] Finaland
[D] Denmark
Show Answer
Correct Answer: B [Norway]
Notes:
The Global seed vault is located at Svalbard, Norway. The seeds are stored here from across the globe to make sure seeds of plants are there in case of an emergency.
18. Which crop is grown using a direct seeding technique?
[A] Rice
[B] Pulses
[C] Groundnuts
[D] Sunflower
Show Answer
Correct Answer: A [Rice]
Notes:
Direct seeding is used to grow rice. Farmers prepare nurseries where the paddy seeds are first grown and raised into young plants. These seedlings are then uprooted and replanted 25-35 days later in the main field.
19. Which Indian law bans the usage of GM seeds without approval?
[A] Seeds Act, 1966
[B] Seeds Rules, 1968
[C] Environmental Protection Act, 1986
[D] Environmental Protection Act, 2000
Show Answer
Correct Answer: C [Environmental Protection Act, 1986]
Notes:
Under the Environmental Protection Act,1986 GM seeds cannot be used without approval. Violation of this can result in a 5-year jail term or fine up to 1 lakh rupees.
20. Which country is the largest producer of sugarcane globally?
[A] India
[B] China
[C] Brazil
[D] USA
Show Answer
Correct Answer: C [Brazil]
Notes:
Brazil is the world’s largest producer of sugarcane. In the 2022-23 season, Brazil produced over 715 million metric tons of sugarcane. The main cultivation areas in Brazil include São Paulo and the Central-South region. Brazil leads global sugar and ethanol exports due to its sugarcane industry size and production capacity. India ranks as the second largest sugarcane producer worldwide after Brazil.
