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 is called GDP Deflator?
[A] Ratio of nominal to real GNP
[B] Ratio of nominal to real CPI
[C] Ratio of real to nominal GNP
[D] Ratio of nominal to real GDP
Show Answer
Correct Answer: D [Ratio of nominal to real GDP]
Notes:
The GDP deflator is a measure of price inflation. It is calculated by dividing Nominal GDP by Real GDP and then multiplying by 100. Nominal GDP is the market value of goods and services produced in an economy, unadjusted for inflation
12. Who prescribes the minimum balance requirement for savings bank accounts in India?
[A] State Bank of India
[B] Grameen Bank of India
[C] Reserve Bank of India
[D] None of these
Show Answer
Correct Answer: D [None of these]
Notes:
Minimum balance requirements for savings accounts are generally decided by individual banks, not prescribed uniformly by the Reserve Bank of India. Banks may set their own rules based on their account policies, while RBI only requires transparent disclosure and fair treatment of customers. Therefore, there is no single institution among the given options that prescribes the minimum balance rule for all savings bank accounts in India.
13. World Tourism Day is celebrated on which of the following days?
[A] September 12
[B] September 25
[C] September 29
[D] September 27
Show Answer
Correct Answer: D [September 27]
Notes:
Since 1980, the United Nations World Tourism Organization has celebrated World Tourism Day as international observances on September 27. This date was chosen as on that day in 1970, the Statutes of the UNWTO were adopted.
14. Which one of the following is a mixed fertilizer? (UPSC Prelims 1995)
[A] CAM
[B] Urea
[C] Ammonium Sulphate
[D] NPK
Show Answer
Correct Answer: D [NPK]
Notes:
NPK fertilizer is a complex fertilizer comprised primarily of the three primary nutrients required for healthy plant growth. NPK stands for “nitrogen, phosphorus, and potassium,” the three nutrients that compose complete fertilizers. The higher the number, the more concentrated the nutrient is in the fertilizer. You may encounter these letters when reading the contents printed on bags of fertilizer.
15. When is the national Tourism day celebrated across the country?
[A] January 23
[B] January 24
[C] January 25
[D] January 26
Show Answer
Correct Answer: C [January 25]
Notes:
The national Tourism day is being celebrated in India on January 25 every year. The day is celebrated to raise awareness the global community about the importance of tourism for the country’s economy and its social, political, financial and cultural worth.
16. Where is the headquarters of the United Nations World Tourism Organization (UNWTO) located?
[A] Paris
[B] Madrid
[C] New York
[D] Geneva
Show Answer
Correct Answer: B [Madrid]
Notes:
The World Tourism Organization (UNWTO) is the United Nations agency responsible for the promotion of sustainable and universally accessible tourism. Its headquarters is located at Madrid, Spain.
17. 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.
18. Which of the following is considered as transfer payment?
[A] College fees
[B] Bank loan
[C] Bonus of employees
[D] Unemployed allowance by the government
Show Answer
Correct Answer: D [Unemployed allowance by the government]
Notes:
Transfer payment– is the payment by the government in grants, allowances, pensions etc to people such as pensioners, widows, sick or unemployed people or others with little or no income. It does not include subsidies given by the government .
Ex: PM KISAN amount transfer
19. Which is not a characteristic of the Indian Economy?
[A] Chronic unemployment and underemployment
[B] High poverty
[C] Equal distribution of wealth
[D] Low labor productivity
Show Answer
Correct Answer: C [Equal distribution of wealth]
Notes:
The Indian economy has significant wealth inequality. The 2026 World Inequality Report states that the top 1% of India’s population owns 40% of the country’s wealth. The richest 10% hold approximately 65% of the total wealth. There is no policy or data showing equal wealth distribution in India. Income and wealth disparities remain persistent across the population.
20. In which years were annual plans first implemented in India?
[A] 1966 to 1969
[B] 1971 to 1975
[C] 1988 to 1991
[D] 1969 to 1972
Show Answer
Correct Answer: A [1966 to 1969]
Notes:
India introduced annual plans during the Plan Holiday period from 1966 to 1969. The government opted for three consecutive annual plans in 1966–67, 1967–68, and 1968–69 after the failure of the Third Five-Year Plan. The annual plans bridged the gap until the Fourth Five-Year Plan began in 1969.
