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 also regarded as Disguised unemployment?
[A] Under employment
[B] Frictional unemployment
[C] Seasonal unemployment
[D] Cyclical unemployment
Show Answer
Correct Answer: A [Under employment]
Notes:
Under employment is a condition in which people in labor force are employed at less than full time or require regular job or at jobs inadequate with respect to training or economic need.
12. The demand for heavy loans can lead to which situation for banks?
[A] Improved bank cost efficiency through scale economies
[B] Liquidity constraints and solvency risks for banks
[C] Reduced need for risk management systems
[D] Automatic increases in bank capital reserves
Show Answer
Correct Answer: B [Liquidity constraints and solvency risks for banks]
Notes:
Heavy loan demand can strain a bank’s available liquid assets, increasing the risk of liquidity shortfall. High loan volumes, if unmatched by equivalent growth in capital or asset quality, can adversely impact the solvency position of banks. The Basel III regulatory framework emphasizes maintenance of adequate capital buffers to absorb credit risk and liquidity shocks. Instances of aggressive loan growth have historically preceded bank distress during financial crises.
13. Who is the author of Das Kapital?
[A] J S Mill
[B] Adam Smith
[C] Keynes
[D] Karl Marx
Show Answer
Correct Answer: D [Karl Marx]
Notes:
Das Kapital, a critique of political economy is a foundational theoretical text in materialist philosophy, economics and politics by Karl Marx . It was published in 1867.
14. 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.
15. Which of the following conditions are expected in an Unorganised sector?
- Paid Holidays
- Lack of proper working conditions
- Social security from employers
- Lack of protection from legislations
Choose the correct option from the codes given below:
[A] 1 and 2 only
[B] 3 and 4 only
[C] 1, 2 and 4 only
[D] 2 and 4 only
Show Answer
Correct Answer: D [2 and 4 only]
Notes:
The Unorganised sector is marked by low incomes, unstable and irregular employment, and lack of protection either from legislation or trade unions. They use mainly labor-intensive technology. The workers in the unorganized sector, are so scattered that the implementation of the Legislation is very inadequate and ineffective.
16. Which body publishes the Travel & Tourism Competitiveness Report?
[A] World Economic Forum
[B] World Trade Organisation
[C] UN commission of Trade and Commerce
[D] Germanwatch
Show Answer
Correct Answer: A [World Economic Forum]
Notes:
The World Economic Forum releases the Travel & Tourism Competitiveness Report, currently called Travel & Tourism Development Index. It assesses travel and tourism sectors worldwide. The WEF is an international non-profit organization based in Switzerland, best known for its annual Davos summit.
17. What is India’s estimated share in global merchandise exports in 2024?
[A] 1%
[B] 1.8%
[C] 2.5%
[D] 3.2%
Show Answer
Correct Answer: B [1.8%]
Notes:
India’s share of global merchandise exports reached approximately 1.8% in 2024. This share increased from about 1% in 2005. Merchandise exports include goods such as agricultural products, textiles, chemicals, and engineering goods. India’s services exports have also grown significantly, but merchandise exports remain a key component of total export earnings.
18. Which fertilizer had the highest nitrogen consumption share in India as of 2026?
[A] Ammonium Sulphate
[B] Calcium Nitrate
[C] Calcium Ammonium Nitrate
[D] Urea
Show Answer
Correct Answer: D [Urea]
Notes:
Urea led nitrogen fertilizer consumption in India as of 2026. It accounted for the majority share due to widespread use and government subsidies. Domestic urea production was 30-31 million tonnes annually, with demand projected at nearly 40 million tonnes in 2025. Additional imports were 6-10 million tonnes per year to meet demand.
19. Who manages food grains distribution under India’s Public Distribution System?
[A] Central Government only
[B] State Government only
[C] Food Corporation of India only
[D] Central and State Governments jointly
Show Answer
Correct Answer: D [Central and State Governments jointly]
Notes:
The Central Government procures, stores, transports, and allocates food grains through the Food Corporation of India. State Governments are responsible for distribution, ration card issuance, allocation within the state, and supervision of Fair Price Shops. Both Central and State Governments have joint but distinct roles under the Public Distribution System. Division of responsibilities is notified by respective ministries and departments.
20. Which state is the largest producer of coffee in India?
[A] Kerala
[B] Tamil Nadu
[C] Karnataka
[D] Assam
Show Answer
Correct Answer: C [Karnataka]
Notes:
Karnataka accounted for nearly 70% of India’s total coffee production in 2022-23. The major coffee-growing districts in Karnataka are Kodagu, Chikkamagaluru, and Hassan. Coffee cultivation in Karnataka began in the 17th century. The state primarily produces Arabica and Robusta varieties. Karnataka consistently ranks first in coffee output among Indian states since independence.
