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. Rolling plan was designed for which of the following periods?
[A] 1974-79
[B] 1978-83
[C] 1980-85
[D] 1985-90
Show Answer
Correct Answer: B [1978-83]
Notes:
The Janta Government terminated the fifth five year plan in 1977-78 and launched its own sixth five year plan for period 1978-83 and called it a Rolling Plan. This second plan is kept changing as per the requirements of the economy (and politics).
12. What happens to corporate bond with a fixed interest rate, if interest rates in nation increase?
[A] decrease in value
[B] Be returned to corporation
[C] remain unchanged
[D] increase in value
Show Answer
Correct Answer: A [decrease in value]
Notes:
If interest rates in nation increase, a corporate bond with a fixed interest rate will decrease in value.
13. Economic Survey in India is published officially, every year by which of the following authorities? (UPSC Prelims 1998)
[A] Reserve Bank of India
[B] Planning Commission of India
[C] Ministry of Finance, Government of India
[D] Ministry of Industries, Government of India
Show Answer
Correct Answer: C [Ministry of Finance, Government of India]
Notes:
The Department of Economic Affairs, Finance Ministry of India presents the Economic Survey in the parliament every year, just before the Union Budget. It is prepared under the guidance of the Chief Economic Adviser, Finance Ministry. It is the ministry’s view on the annual economic development of the country.
14. What does free market in an economy imply?
[A] Minimum government intervention in trade and maximum regulations
[B] Maximum government intervention in trade and maximum regulations
[C] Minimum government intervention in trade and minimum regulations
[D] Maximum government intervention in trade and maximum regulations
Show Answer
Correct Answer: C [Minimum government intervention in trade and minimum regulations]
Notes:
In a free market economy, the law of supply and demand, rather than a central government, regulates production and labor. Companies sell goods and services at the highest price consumers are willing to pay while workers earn the highest wages companies are willing to pay for their services
15. Which of the following statements are correct regarding the organized sector?
- They are regulated by the government.
- The employment terms are fixed.
- It provides low wages.
- The sector is registered with the government.
Choose the correct option from the choices given below:
[A] 1 and 2 only
[B] 2 and 3 only
[C] 1, 2 and 4 only
[D] All of the above
Show Answer
Correct Answer: C [1, 2 and 4 only]
Notes:
The organized sector consists of enterprises that are registered with the government and operate under labour laws and official regulation. Employment conditions are generally fixed and regular, with prescribed wages and benefits. Low wages are not a feature of the organized sector; that is more typical of the unorganized sector.
16. Where is the Central Seed Testing and Referral Laboratory located?
[A] Dehradun
[B] Ladakh
[C] Varanasi
[D] Pune
Show Answer
Correct Answer: C [Varanasi]
Notes:
The Central Seed Testing and Referral Laboratory was established in 2005 at Varanasi, Uttar Pradesh. The laboratory serves as a reference institution for seed testing in India. It operates under the Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India.
17. Which fertilizer is also known as carbamide?
[A] Potash
[B] Ammonium Phosphate
[C] Urea
[D] Ammonium Nitrate
Show Answer
Correct Answer: C [Urea]
Notes:
Urea is also called carbamide. Its chemical formula is CO(NH₂)₂. Urea was first synthesized in 1828 by Friedrich Wöhler. Urea contains about 46% nitrogen by weight. It is widely used as a nitrogen-release fertilizer globally. In India, urea is the most commonly used fertilizer for agriculture.
18. Under which list is agricultural marketing in the Seventh Schedule placed?
[A] Union List
[B] State List
[C] Concurrent List
[D] None of the above
Show Answer
Correct Answer: B [State List]
Notes:
Agricultural marketing is placed under the State List (List II) of the Seventh Schedule via Entry 28, which covers “Markets and fairs.” States regulate agricultural marketing through their own laws and Agricultural Produce Marketing Committees (APMCs). Entry 14 further relates to agriculture. As of 2024, agricultural marketing remains primarily a state subject in the Indian Constitution.
19. What is the current base year of the Index of Industrial Production (IIP) in India?
[A] 2011-12
[B] 2004-05
[C] 1993-94
[D] 2022-23
Show Answer
Correct Answer: D [2022-23]
Notes:
The Index of Industrial Production (IIP) in India has its base year revised to 2022-23. Previous base years included 2011-12 and 2004-05. The revision to 2022-23 was initiated by the National Statistical Office under the Ministry of Statistics and Programme Implementation. The revision reflects changes in the industrial sector and production structure. The NSO is responsible for publishing the IIP data.
20. Which group has the highest weight in the IIP use-based classification?
[A] Capital Goods
[B] Consumer Non-Durables
[C] Intermediate Goods
[D] Primary Goods
Show Answer
Correct Answer: D [Primary Goods]
Notes:
In the latest IIP series with base year 2022-23, Primary Goods has the highest weight in the use-based classification, at 31.136%. It comprises goods directly obtained from natural sources and used for further processing or consumption in manufacturing and power-generating activities.
