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 curves represents the demand of all consumers in the market taken together at different levels of the price of the good?
[A] Monotonic
[B] Indifferent
[C] Market demand
[D] Diminishing
Show Answer
Correct Answer: C [Market demand]
Notes:
The market demand curve is the summation of all the individual demand curves in a given market. It shows the quantity demanded of the good by all individuals at varying price points.
12. Which approach involves managing crises to impact brand reputation?
[A] Public Relations Issues Management
[B] Brand Advertising Management
[C] Private Equity Issues Management
[D] None of the above
Show Answer
Correct Answer: A [Public Relations Issues Management]
Notes:
Public Relations Issues Management is a PR strategy that addresses emerging issues and crises. It guides company communication and action during critical situations. This approach maintains brand reputation and public trust by controlling information and providing timely responses during incidents. The process follows established crisis management frameworks used by organizations worldwide.
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. Which one of the following schemes was intended to tap the black money? (UPSC Prelims 1992)
[A] UTI Bonds
[B] India Development Bonds
[C] Long term operations scheme
[D] SBI Deposit scheme
Show Answer
Correct Answer: B [India Development Bonds]
Notes:
India Development Bonds schemes was intended to tap the black money.
15. Which among the following is correct regarding the supply curve?
[A] It is relation between price of good and quantity produced
[B] It is a negatively sloped curve
[C] It is relation between price and quantity supplied
[D] None of the above
Show Answer
Correct Answer: C [It is relation between price and quantity supplied ]
Notes:
The supply curve reflects the relationship between the price and quantity supplied graphically. It is a positively sloped curve. It becomes flatter in the long run as price becomes constant after a certain time.
16. What is Market equilibrium?
[A] Quantity demanded greater than quantity supplied
[B] Quantity demanded less than quantity supplied
[C] Quantity demanded equal to quantity supplied
[D] Quantity demanded is same as quantity produced
Show Answer
Correct Answer: C [Quantity demanded equal to quantity supplied]
Notes:
Market equilibrium is defined by equality between quantity demanded and quantity supplied in the market. The equilibrium price is the price of a good or service when the supply of it is equal to the demand for it in the market.
17. Which economist publicly opposed Keynes and supported private spending during a recession?
[A] Thomas Malthus
[B] Friedrich Hayek
[C] Arthur Pigou
[D] Gary Becker
Show Answer
Correct Answer: B [Friedrich Hayek]
Notes:
Friedrich Hayek might be considered the poster boy for the Austrian School of Economics. Influenced and mentored by Ludwig von Mises, a prominent figure in the Libertarian movement, Hayek was awarded the Nobel Prize for Economics in 1974. While working at the London School of Economics he publicly opposed Keynes and his theories of government spending as the solution to the Great Depression, arguing instead that private investment was the path to prosperity and development.
18. Which of the following is not an example of the secondary sector?
[A] Artisan production
[B] Textile Mills
[C] Food production
[D] Nurse
Show Answer
Correct Answer: D [Nurse]
Notes:
The secondary sector includes industries where finished products are made from natural materials produced in the primary sector. Industrial production, cotton fabric, sugar cane production artisan production, Mills producing textiles, Factories producing steel, chemicals, plastic, car activities come under this sector.
19. In which year, the Mid-day meal scheme was launched in India?
[A] 1996
[B] 1994
[C] 1995
[D] 1997
Show Answer
Correct Answer: C [1995]
Notes:
Mid-Day Meal Scheme was launched with a view to enhancing enrolment, retention and attendance and simultaneously improving nutritional levels among children, the National Programme of Nutritional Support to Primary Education (NP-NSPE) was launched as a Centrally Sponsored Scheme on 15th August 1995.
20. Which months constitute the zaid cropping season in India?
[A] August-November
[B] June-August
[C] March-June
[D] December-March
Show Answer
Correct Answer: C [March-June]
Notes:
Zaid season in India lasts from March to June. Major crops such as watermelon, cucumber, muskmelon, and various vegetables are grown during this period. The zaid crop season falls between the rabi and kharif seasons. Zaid crops typically require warm dry weather for growth and longer days for flowering.
