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 is the longest irrigation canal in India?
[A] East Kosi Canal
[B] Sir hind Canal
[C] Yamuna Canal
[D] Indira Gandhi Canal
Show Answer
Correct Answer: D [Indira Gandhi Canal]
Notes:
The Indira Gandhi Canal is the longest irrigation canal of India. It starts from the Harike Barrage at Harike, a few kilometers below the confluence of the Satluj and Beas rivers in the Indian state of Punjab and terminates in irrigation facilities in the Thar Desert in the north west of Rajasthan state.
12. In a centrally planned economy, who among the following plans all the important activities in the economy?
[A] Industrialists
[B] Citizens
[C] Judiciary
[D] Government
Show Answer
Correct Answer: D [Government]
Notes:
A centrally planned economy is an economic system in which the state or government makes economic decisions rather than the these being made by the interaction between consumers and businesses.
13. NABARD, which is set up to provide loans for rural development, belongs to which of the following categories?
[A] Bank
[B] Board
[C] Block
[D] Department
Show Answer
Correct Answer: A [Bank]
Notes:
NABARD stands for National Bank for Agriculture and Rural Development. It is an apex development financial institution in India. It is an institution fully owned by Government of India, headquartered at Mumbai with regional offices all over India.
14. Who among the following are favoured by the Price rise?
[A] Debtors
[B] Pensioners
[C] Businessmen
[D] Government servants
Show Answer
Correct Answer: A [Debtors]
Notes:
When prices rise, the value of money falls. Though debtors return the same amount of money, but they pay less in terms of goods and services. This is because the value of money is less than when they borrowed the money. Thus the burden of the debt is reduced and debtors gain.
15. One of the important goals of the economic liberalisation policy is to achieve full convertibility of the Indian rupee. This is being advocated because?
[A] convertibility of the rupee will stabilize its exchange value against major currencies of the world
[B] it will attract more foreign capital inflow in India
[C] it will help promote exports
[D] it will help India secure loans from the world financial markets at attractive terms
Show Answer
Correct Answer: A [convertibility of the rupee will stabilize its exchange value against major currencies of the world]
Notes:
The full convertibility of the Indian currency means that the rupee is freely exchangeable into other international currencies and vice versa. Also, this would mean that international investors can buy and sell Indian assets at will.
After 1994, the rupee has been partially convertible which means that the currency is changed freely into foreign currency for business and trade expenses. But it cannot be converted freely for acquiring overseas assets. Experts feel full convertibility of rupee would facilitate growth and higher foreign investments.
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. When does a monopoly by a specific business entity occur in the market?
[A] When there are numerous buyers and sellers
[B] When homogeneous products flood the market
[C] When a distinctive product is exclusively sold by a single seller
[D] When firms are merely price takers
Show Answer
Correct Answer: C [When a distinctive product is exclusively sold by a single seller]
Notes:
A monopoly exists when a specific entity is the sole supplier of a particular commodity. This market condition can only occur if the unique product is exclusively sold by one seller, eliminating any form of direct competition. It is regulated by certain laws to prevent marketplace inefficiency. However, a monopoly can lead to innovation as other companies strive to create an alternative or similar product.
18. 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.
19. Which of the following months is called zaid season?
[A] Aug-November
[B] June-August
[C] March-June
[D] Decemeber-March
Show Answer
Correct Answer: C [March-June]
Notes:
Kharif – June to November
Rabi – November to March
Zaid – March to June
20. Which food crop production increased maximum in India after Independence?
[A] Rice
[B] Wheat
[C] Maize
[D] Pulses
Show Answer
Correct Answer: B [Wheat]
Notes:
Wheat cultivation has grown maximum after independence. It has grown more than 132% as compared to 23% rice and 11% cereals.
