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.
If a company declares a 100% dividend, the shareholder will get an amount equal to the ___
[A]
Face Value of the Share
[B]
Market Value of the Share
[C]
Previous dividend announced
[D]
Face Value or Market Value, whichever is higher
Show Answer
Correct Answer: A [
Face Value of the Share
]
Notes:
Dividend is the portion of profits that a company distributes among its shareholders in the form of cash. Usually it is expressed per share. In some cases it is expressed as a percentage of the share’s face value. So if your company declares a 100% dividend, you will get an amount equal to the face value of the share and not equal to its market price. When dividend is expressed in percentage terms, it is the face value that is referred to. The same holds good when it comes to dividends declared by mutual funds — it is the par value of units that is considered — which usually stands at Rs 10.
12. Which state in India has the largest coal reserves?
[A] Jharkhand
[B] Odhisha
[C] Madhya Pradesh
[D] Rajasthan
Show Answer
Correct Answer: A [Jharkhand]
Notes:
Jharkhand has the largest estimated coal reserves in India. It constitutes of about 38% of the total reserves in India. The main coal mining centres of the state are Ramgarh, Auranga, Bokaro, Karanpur, etc. India’s top 3 coal-producing states are 1. Jharkhand 2. Odisha 3. Chattisgarh.
13. What do we call the banks that undertakes commercial banking, investment banking, mutual funds and merchant banking?
[A] Mixed Banking
[B] Retail Banking
[C] Universal Banking
[D] Narrow Banking
Show Answer
Correct Answer: C [Universal Banking]
Notes:
Universal banking is a system of banking under which big banks undertake a variety of banking services like commercial banking, investment banking, mutual funds, merchant banking, insurance etc.
14. Which of the following is an alternative way of representing the production function?
[A] Average Product
[B] The Long Run
[C] Isoquant
[D] The Short Run
Show Answer
Correct Answer: C [Isoquant]
Notes:
An isoquant is a firm’s counterpart of the consumer’s indifference curve. An isoquant is a curve that shows all the combinations of inputs that yield the same level of output. ‘Iso’ means equal and ‘quant’ means quantity.
15. Which commodities do Middle East arid countries export to India?
[A] Raw wool and carpets
[B] Precious stones and pearls
[C] Fruits and palm oil
[D] Perfume and coffee
Show Answer
Correct Answer: C [Fruits and palm oil]
Notes:
Arid and semi-arid Middle Eastern countries mainly export fruits and palm oil to India, contributing to India’s food imports. Other Middle Eastern exports include dates, dry fruits, and edible oils; these products align with their agricultural output suited to arid climates.
16. What is subtracted from Gross Value Added to get Net Value Added?
[A] Depreciation
[B] Value added
[C] Production flow
[D] Investment
Show Answer
Correct Answer: A [Depreciation]
Notes:
Net Value Added is obtained by subtracting depreciation from Gross Value Added. Depreciation represents the wear and tear or consumption of fixed capital during the production process. It is a key measure in national income accounting.
17. Which of the following is not the advantage of the Socialist Economy?
[A] Equitable distribution of resources
[B] Social development is possible
[C] Government can take steps to focus on important sectors
[D] There is Lack of Innovation.
Show Answer
Correct Answer: D [There is Lack of Innovation.]
Notes:
There is a lack of innovation is the disadvantage of Socialist form of Economy. Since there is no need to take any risk as all the jobs are protected innovation doesn’t take place. Workers are also forced to pursue jobs the government deems fit.
18. In which year, the Pradhan Mantri Gram Sadak Yojana was launched to improve rural connectivity?
[A] 2001
[B] 1999
[C] 2000
[D] 1998
Show Answer
Correct Answer: C [2000]
Notes:
The Pradhan Mantri Gram Sadak Yojana is a nationwide plan in India to provide good all-weather road connectivity to unconnected villages. It was launched in 2000 under the Ministry of Rural Development.
19. Which is the most produced silk variety in India?
[A] Mulberry
[B] Eri
[C] Tasar
[D] Muga
Show Answer
Correct Answer: A [Mulberry]
Notes:
India is the second-largest producer of silk in the world. Among the four varieties of silk produced in India, Mulberry accounts for 71.8% (20,434 MT), Tasar 9.9% (2,818 MT), Eri 17.8% (5,054 MT) and Muga 0.6% (166 MT) of the total raw silk production of 28,472 MT.
20. Which is the largest exporter of raw cashews in the world?
[A] India
[B] China
[C] Vietnam
[D] Brazil
Show Answer
Correct Answer: A [India]
Notes:
Export earnings from raw cashew nut during April 2018-January 2019 stood at 11,414 MT, valued at Rs 143.98 crore (US$ 29.12 million). India accounts for about 65 percent of global cashew exports.
