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. What is investment by FIIs in Indian company bonds and shares called?
[A] Foreign Direct Investment (FDI)
[B] Foreign Portfolio Investment (FPI)
[C] Domestic Institutional Investment (DII)
[D] Non-Resident Indian (NRI) Investment
Show Answer
Correct Answer: B [Foreign Portfolio Investment (FPI)]
Notes:
Foreign Portfolio Investment (FPI) covers investment in listed securities such as shares and bonds by foreign institutional investors. FPI does not grant control or management of companies. FIIs must register with SEBI to invest via FPI as per regulations amended in 2014. FPI contrasts with FDI, which involves direct control and long-term interest in an enterprise.
12. Which Economist highlighted ethical consideration behind his economic thinking?
[A] Francis Fukuyama
[B] Abhijit Banerjee
[C] Amartya Sen
[D] Friedrich Hayek
Show Answer
Correct Answer: C [Amartya Sen]
Notes:
Amartya Sen is an Indian economist, who has worked internationally, highlighting ethical considerations behind his economic thinking. Sen has contributed greatly to welfare economics, arguing for instance that famines arise due to a lack of income, not food.
13. Which of the below statements is incorrect regarding Market Economy?
[A] Government doesn’t control the factors of production
[B] Government decides which goods to produce and how much
[C] Consumers and producers choice plays a key role in economy
[D] The profit motive is the main reason for increased efficiency
Show Answer
Correct Answer: B [Government decides which goods to produce and how much]
Notes:
Capitalist economy is also known as free market economy. It is based on the private sector and the market forces . The demand supply forces drive the market. Profit motive is the main reason for increased efficiency in private sector.
14. Which of the following is not part of the core industry?
1. ELectricity
2. Steel
3. Cement
4. Agriculture
5. Fishing
Choose the correct option from the codes given below:
[A] 1, 3 and 4 only
[B] 4 and 5 only
[C] 1 and 3 only
[D] 1 and 2 only
Show Answer
Correct Answer: B [4 and 5 only]
Notes:
Eight Core Industries are Electricity, steel, refinery products, crude oil, coal, cement, natural gas, and fertilizers.
The Index of Eight Core Industries is compiled based on the monthly production information received from the Source Agencies. It is a lead indicator of the monthly industrial performance.
15. Which crop is given Fair and Remunerative Price by the government?
[A] Coffee
[B] Tea
[C] Sugarcane
[D] Barley
Show Answer
Correct Answer: C [Sugarcane]
Notes:
Fair and Remunerative Price (FRP) for sugarcane was introduced by the Government of India in 2009-10 under the Sugarcane (Control) (Amendment) Order, 2009. FRP is fixed annually by the central government on the recommendation of the Commission for Agricultural Costs and Prices. Sugar mills are legally required to pay this price to sugarcane farmers.
16. What is the ideal N:P:K ratio for the soil?
[A] 3:2:1
[B] 5:2:1
[C] 8:2:1
[D] 4:2:1
Show Answer
Correct Answer: D [4:2:1]
Notes:
The ideal N(Nitrogen):P(Phosphorous):K(Potassium) ratio. for the top soil is 4:2:1
17. What is growing of trees or shrubs around or among crops known as?
[A] Agro forestry
[B] Ally cropping
[C] Forestry
[D] Multi cropping
Show Answer
Correct Answer: A [Agro forestry]
Notes:
Agroforestry is a land use management system in which trees or shrubs are grown around or among crops or pastureland. This intentional combination of agriculture and forestry has varied benefits, including increased biodiversity and reduced erosion.
18. Where is the Headquarters of the International Society for Horticulture Science (ISHS) located?
[A] USA
[B] Belgium
[C] France
[D] Brazil
Show Answer
Correct Answer: B [Belgium]
Notes:
The International Society for Horticultural Science (ISHS) is headquartered at Belgium. It is the world’s leading independent organization of horticultural scientists.
19. Which Indian state leads in poultry meat production in 2024-25?
[A] West Bengal
[B] Uttar Pradesh
[C] Haryana
[D] Andhra Pradesh
Show Answer
Correct Answer: C [Haryana]
Notes:
Haryana is the leading poultry meat producing state in India with a production of 352 thousand metric tonnes (000′ MT), followed by West Bengal at 328 thousand metric tonnes. Uttar Pradesh ranks third with 270 thousand metric tonnes, while Tamil Nadu produces 226 thousand metric tonnes. Maharashtra completes the top five with a production of 144 thousand metric tonnes, according to data from the Department of Animal Husbandry, Dairying and Fisheries (DAHD).
20. Which organization releases India State of Forest Report (ISFR)?
[A] NITI Aayog
[B] Ministry of environment, forest and climate change
[C] Pratham NGO
[D] Ministry of Agriculture
Show Answer
Correct Answer: B [Ministry of environment, forest and climate change]
Notes:
Ministry for Environment, Forests and Climate Change has releases the India State of Forest Report (ISFR). ISFR is a biennial publication of Forest Survey of India (FSI), an organization under the Ministry of Environment Forest & Climate Change.
