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 India’s largest investor in the debt market?
[A] LIC of India
[B] ICICI Bank
[C] State Bank of India
[D] EPFO
Show Answer
Correct Answer: D [EPFO]
Notes:
EPFO, Employees’ Provident Fund Organisation, manages over Rs 28 lakh crore in assets as of 2023. EPFO allocates more than 89% of its portfolio to debt instruments. The organization invests in central and state government securities, State Development Loans, and corporate bonds. EPFO was established in 1952 under the Employees’ Provident Funds and Miscellaneous Provisions Act.
12. Which of the following is the correct definition of ‘Effective Revenue Deficit’?
[A] difference between revenue deficit and grants for creation of capital assets
[B] difference between revenue deficit and interest liabilities of the Government
[C] difference between fiscal receipt and net expenditure of the government
[D] difference between fiscal receipt and money spent on various social services
Show Answer
Correct Answer: A [ difference between revenue deficit and grants for creation of capital assets ]
Notes:
Effective Revenue Deficit is the difference between revenue deficit and grants for creation of capital assets.
13. In which city is Banaras Locomotive Works (BLW) located?
[A] Kanpur
[B] Lucknow
[C] Agra
[D] Varanasi
Show Answer
Correct Answer: D [Varanasi]
Notes:
Banaras Locomotive Works (BLW), formerly known as Diesel Locomotive Works, is located in Varanasi, Uttar Pradesh. BLW was established in 1956. It is the largest locomotive manufacturing facility in India. The unit was renamed BLW in October 2020. BLW manufactures electric locomotives including WAP-7 and WAG-9 models. The factory exports locomotives to countries like Sri Lanka, Myanmar, and Mozambique.
14. Which is the largest oil refinery in India?
[A] Panipat Refinery
[B] Jamnagar Refinery
[C] Digboi Refinery
[D] Kochi Refinery
Show Answer
Correct Answer: B [Jamnagar Refinery]
Notes:
The Jamnagar Refinery is owned by Reliance Industries and is located in Jamnagar, Gujarat. Its crude oil processing capacity is 1.4 million barrels per day. Commissioned in 1999, the refinery complex includes both domestic and export-oriented refinery units. It has the highest Nelson Complexity Index in India, standing at 21.1.
15. Which factor limits tourism growth in India despite its vast attractions? (UPSC Prelims 1999)
[A] Distances between attractions are too large
[B] India is too hot for tourists
[C] Picturesque resorts are inaccessible
[D] Tourism infrastructure is inadequate
Show Answer
Correct Answer: D [Tourism infrastructure is inadequate]
Notes:
The Ministry of Tourism recognizes infrastructure inadequacy as a major barrier to tourist arrivals. India’s tourist accommodation density and quality lag behind global averages. Major cities and remote tourist destinations face deficits in hotels, transportation, and sanitation. Government schemes like Swadesh Darshan and PRASHAD launched in 2014 and 2015 target these infrastructural gaps. Despite natural and cultural attractions, visitor growth remains below international benchmarks due to these limitations.
16. What is output per unit of input of labor known as?
[A] Labor Productivity
[B] Production ability
[C] Capacity
[D] None of the above
Show Answer
Correct Answer: A [Labor Productivity]
Notes:
Productivity, in economics, measures output per unit of input, such as labor, capital, or any other resource – and is typically calculated for the economy as a whole, as a ratio of GDP to hours worked.
17. Who among the following economist was awarded ‘Order of the Rising Sun’ by the Japanese government?
[A] Amartya Sen
[B] Jagadish Banerjee
[C] Amit Mitra
[D] None of the above
Show Answer
Correct Answer: C [Amit Mitra]
Notes:
The Japanese government conferred the `Order of the Rising Sun’ on Amit Mitra in 2005 by His Majesty the Emperor of Japan. The award was presented for his contribution towards the promotion of friendly relations between India and Japan.
18. Which of the following is the limitation of the Socialist Economic system?
[A] High Taxes
[B] Easy Mobilization of resources
[C] Concentration of wealth is prevented
[D] Market Monopoly doesn’t exist
Show Answer
Correct Answer: A [High Taxes]
Notes:
In a socialist economy, taxes are high on the people as the state has to provide all the goods and services to all. The other options given are the advantages of the system.
19. Which among the following countries have traditional economic system?
[A] India
[B] USA
[C] Germany
[D] None of the above
Show Answer
Correct Answer: D [None of the above]
Notes:
This traditional economy is suited to underdevelop and developing economies. Even today such economies can be found in some pockets of Africa and the Middle East. India and Germany follows a mixed economic system while USA follows capitalist system.
20. Which among the following is not a sunrise industry?
[A] Information technology
[B] Food Processing
[C] Healthcare
[D] cotton industry
Show Answer
Correct Answer: D [cotton industry]
Notes:
Sunrise industry is a term used for a sector that is just in its infancy but shows promise of a rapid boom. The industry is typically characterized by high growth rates, a high degree of innovation, and generally has plenty of public awareness about the sector, and investors get attracted to its long-term growth prospects.
Except for the cotton industry, all the others are part of the sunrise industry as the cotton industry is not a new industry in India.
