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 leading state in India in ship breaking industry?
[A] Gujarat
[B] West Bengal
[C] Andhra Pradesh
[D] Jharkhand
Show Answer
Correct Answer: A [Gujarat ]
Notes:
Alang is a census town in Bhavnagar district in the Indian state of Gujarat. In the past three decades, its beaches have become a major worldwide centre for ship breaking. The longest ship ever built, Seawise Giant, was sailed to and beached here for demolition in December 2009.
12. Which of the following is an example of sunset industries?
[A] Peda making industry
[B] Petrochemical industry
[C] Food processing industry
[D] Space tourism
Show Answer
Correct Answer: A [ Peda making industry ]
Notes:
A sunrise industry is one that is new or relatively new, is growing fast and is expected to become important in the future. A sunset industry is an industry in decline, one that has passed its peak or boom periods.
13. Which section of the RBI allows the RBI to provide loans to banks and state financial corporations?
[A] 17
[B] 18
[C] 19
[D] 20
Show Answer
Correct Answer: A [ 17 ]
Notes:
Under Section 17, The RBI can provide loans to banks and state financial corporations. It can provide advances to the central government and state governments.
14. What do we call the banking oriented towards mass welfare and financial inclusion of the poor?
[A] Mass Banking
[B] Narrow banking
[C] Social banking
[D] None of the above
Show Answer
Correct Answer: C [Social banking]
Notes:
Social banking is a concept where banking services are oriented towards mass welfare and financial inclusion of the poor and vulnerable segments of society.
15. Which of the following steps should be taken by investor who wishes to form a portfolio that lies to the right of the optimal risky portfolio on the Capital Allocation Line?
[A] Lend some of her money at the risk-free rate and invest the remainder in the optimal risky portfolio
[B] Borrow some money at the risk-free rate and invest in the optimal risky portfolio
[C] Such a portfolio cannot be formed
[D] None of the above
Show Answer
Correct Answer: B [Borrow some money at the risk-free rate and invest in the optimal risky portfolio]
Notes:
An investor who wishes to form a portfolio that lies to the right of the optimal risky portfolio on the Capital Allocation Line must invest only in risky securities and borrow some money at the risk-free rate and invest in the optimal risky portfolio.
16. Capitalist economic system is the feature of which of these countries?
[A] USA
[B] China
[C] Russia
[D] India
Show Answer
Correct Answer: A [USA]
Notes:
USA has a capitalist system followed in its economy. The prices are controlled by the market forces of demand and supply.
17. Which of the economic system have the shortcoming of overproduction and over-exploitation of workers?
[A] Socialist system
[B] Mixed system
[C] Market system
[D] Traditional system
Show Answer
Correct Answer: C [Market system]
Notes:
In the market system or the capitalist system, there is always a risk of overexploitation of workers for the profits of the companies. A profit is the main motive of this type of economy. It also may lead to the overproduction of goods since there are no regulations. This can also be attributed to the fact that the workers have low wages and hence cannot afford to consume all the products that are being manufactured.
18. Which sector do the red collar workers belong to?
[A] Primary sector
[B] Secondary sector
[C] Tertiary sector
[D] None of the above
Show Answer
Correct Answer: A [Primary sector]
Notes:
The people involved in the
Primary sector – red collar,
Secondary sector – blue-collar and
Tertiary sector – white collar.
19. Which of the following activities comes under the primary sector?
- Fishing
- Pisciculture
- Apiculture
- Manufacturing
- Internet of things
Select the correct option from the codes given below:
[A] 1 and 2 only
[B] 1, 4 and 5 only
[C] 4 and 5 only
[D] 1, 2 and 3 only
Show Answer
Correct Answer: D [1, 2 and 3 only]
Notes:
Primary sector activities involve direct extraction or utilization of natural resources. Fishing, pisciculture (fish farming), and apiculture (beekeeping) are all primary sector activities. Manufacturing and Internet of Things (IoT) are secondary and tertiary sector activities, respectively, and do not fall under the primary sector.
20. Which sector comprises of the activities like exploitation of natural resources?
[A] Secondary
[B] Tertiary
[C] Primary
[D] Unorganised
Show Answer
Correct Answer: C [Primary]
Notes:
The exploitation of natural resources is part of the primary sector. The primary sector includes activities that are directly dependent on nature.
