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. The Unified Package Insurance Scheme aims at providing:
[A] government-backed Life insurance cover
[B] financial protection to citizens associated in agriculture sector
[C] government-backed accidental insurance cover
[D] credit linked subsidy for first-time home buyers
[B] financial protection to citizens associated in agriculture sector
[C] government-backed accidental insurance cover
[D] credit linked subsidy for first-time home buyers
Correct Answer: B [financial protection to citizens associated in agriculture sector]
Notes:
Unified Package Insurance Scheme aims at providing financial protection to citizens associated in agriculture sector, thereby ensuring food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from financial risks. The cover will be for one full year except for Crop Insurance (which will be bi-annual separately for Kharif and Rabi seasons) renewable from year to year.
Unified Package Insurance Scheme aims at providing financial protection to citizens associated in agriculture sector, thereby ensuring food security, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting farmers from financial risks. The cover will be for one full year except for Crop Insurance (which will be bi-annual separately for Kharif and Rabi seasons) renewable from year to year.
12. What is the resource curse in economic terms?
[A] A country with large resources but lack technology to exploit them
[B] Export from resource-rich countries increases currency value and hurts other sectors
[C] Countries with large reserves but only short-term market gains
[D] A paradox where resource-rich countries lack economic growth
[B] Export from resource-rich countries increases currency value and hurts other sectors
[C] Countries with large reserves but only short-term market gains
[D] A paradox where resource-rich countries lack economic growth
Correct Answer: D [A paradox where resource-rich countries lack economic growth]
Notes:
Resource curse refers to the paradox where nations rich in natural resources tend to experience low economic growth, poor governance, and greater instability. Examples include Nigeria, where oil wealth has resulted in economic and political challenges. The term was first coined in 1993 by economist Richard Auty. The phenomenon is studied in the context of various minerals including oil, diamonds, and other extractive industries.
Resource curse refers to the paradox where nations rich in natural resources tend to experience low economic growth, poor governance, and greater instability. Examples include Nigeria, where oil wealth has resulted in economic and political challenges. The term was first coined in 1993 by economist Richard Auty. The phenomenon is studied in the context of various minerals including oil, diamonds, and other extractive industries.
13. India’s first tribal circuit tourism project has launched in which state?
[A] Assam
[B] Rajasthan
[C] Madhya Pradesh
[D] Chhattisgarh
[B] Rajasthan
[C] Madhya Pradesh
[D] Chhattisgarh
Correct Answer: D [Chhattisgarh ]
Notes:
India’s first tribal circuit tourism project under the Swadesh Darshan scheme has launched at Gangrel in Chhattisgarh on September 13. It covers 13 sites in Chhattisgarh which are Jashpur, Kunkuri, Mainpat, Kamleshpur, Maheshpur, Kurdar, Sarodadadar, Gangrel, Kondagaon, Nathiya Nawagaon, Jagdalpur, Chitrakoot and Tirthgarh. Under the tribal circuit theme of the scheme the Ministry of Tourism has sanctioned 4 projects to Nagaland, Telangana and Chhattisgarh for Rs. 380 crore. Major components sanctioned in the tribal circuit theme include eco log huts, craft haats, souvenir shops or kiosk, tourist reception and facilitation centres, open amphitheatre, tribal interpretation centres, workshop centres, tourist amenities centres, last mile connectivity, wayside amenities, viewpoints, nature trails, solar illuminations, signages and solid waste management among others. The Swadesh Darshan scheme was launched in 2014 -15 for development of thematic circuits in the country in a planned and prioritized manner.
India’s first tribal circuit tourism project under the Swadesh Darshan scheme has launched at Gangrel in Chhattisgarh on September 13. It covers 13 sites in Chhattisgarh which are Jashpur, Kunkuri, Mainpat, Kamleshpur, Maheshpur, Kurdar, Sarodadadar, Gangrel, Kondagaon, Nathiya Nawagaon, Jagdalpur, Chitrakoot and Tirthgarh. Under the tribal circuit theme of the scheme the Ministry of Tourism has sanctioned 4 projects to Nagaland, Telangana and Chhattisgarh for Rs. 380 crore. Major components sanctioned in the tribal circuit theme include eco log huts, craft haats, souvenir shops or kiosk, tourist reception and facilitation centres, open amphitheatre, tribal interpretation centres, workshop centres, tourist amenities centres, last mile connectivity, wayside amenities, viewpoints, nature trails, solar illuminations, signages and solid waste management among others. The Swadesh Darshan scheme was launched in 2014 -15 for development of thematic circuits in the country in a planned and prioritized manner.
14. What is the main goal of Antyodaya Anna Yojana (AAY) scheme?
[A] Provide employment to urban workers
[B] Ensure food security for the poorest
[C] Subsidize inputs for marginal farmers
[D] Distribute cash to BPL households
[B] Ensure food security for the poorest
[C] Subsidize inputs for marginal farmers
[D] Distribute cash to BPL households
Correct Answer: B [Ensure food security for the poorest]
Notes:
The Antyodaya Anna Yojana was launched in December 2000 by the Government of India. Its objective is to provide food security to the poorest of the poor identified under the Targeted Public Distribution System. Eligible families receive 35 kg of food grains per month at highly subsidized prices—rice at ₹3/kg and wheat at ₹2/kg. This scheme operates nationwide.
The Antyodaya Anna Yojana was launched in December 2000 by the Government of India. Its objective is to provide food security to the poorest of the poor identified under the Targeted Public Distribution System. Eligible families receive 35 kg of food grains per month at highly subsidized prices—rice at ₹3/kg and wheat at ₹2/kg. This scheme operates nationwide.
15. Which option best represents a person’s overall financial wealth?
[A] Bank balance
[B] Capital
[C] Assets
[D] Net worth
[B] Capital
[C] Assets
[D] Net worth
Correct Answer: D [Net worth]
Notes:
Net worth equals total assets minus total liabilities. It includes properties, financial investments, cash, and all debts. Net worth calculation is used for individuals, companies, and governments to assess overall financial position. The term is commonly used in balance sheets and personal financial statements. As of 2024, net worth remains the primary financial indicator in banking, accounting, and wealth management sectors globally.
Net worth equals total assets minus total liabilities. It includes properties, financial investments, cash, and all debts. Net worth calculation is used for individuals, companies, and governments to assess overall financial position. The term is commonly used in balance sheets and personal financial statements. As of 2024, net worth remains the primary financial indicator in banking, accounting, and wealth management sectors globally.
16. Which is a primary cause of inflation? (UPSC Prelims 1979).
[A] Increase in money supply
[B] Fall in production
[C] Increase in money supply and fall in production
[D] Decrease in money supply and rise in production
[B] Fall in production
[C] Increase in money supply and fall in production
[D] Decrease in money supply and rise in production
Correct Answer: C [Increase in money supply and fall in production]
Notes:
Inflation is caused by an increase in the money supply and a decrease in production. Demand-pull inflation arises when the growth in money supply surpasses economic output. Cost-push inflation occurs with supply shocks or reduced production. Both factors together can increase the general price level. India has experienced inflation due to these sources in multiple years.
Inflation is caused by an increase in the money supply and a decrease in production. Demand-pull inflation arises when the growth in money supply surpasses economic output. Cost-push inflation occurs with supply shocks or reduced production. Both factors together can increase the general price level. India has experienced inflation due to these sources in multiple years.
17. Which of the following clearly define mixed economy?
[A] Co-existence of private and public sectors
[B] Co-existence of small and large scale industries
[C] Industries completely owned by the Government
[D] Control of means of production by the Government
[B] Co-existence of small and large scale industries
[C] Industries completely owned by the Government
[D] Control of means of production by the Government
Correct Answer: A [Co-existence of private and public sectors]
Notes:
A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.
A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.
18. What was the target of the first five-year plan?
[A] Development of agriculture
[B] Development of textile industry
[C] Develpoemnt of manufacturing
[D] Removal of poverty
[B] Development of textile industry
[C] Develpoemnt of manufacturing
[D] Removal of poverty
Correct Answer: A [Development of agriculture]
Notes:
After Independence Indian economy was in a dismal state. The main focus of the first five-year plan was kept on the agricultural development as it is still the backbone of the Indian economy in terms of employment generation.
After Independence Indian economy was in a dismal state. The main focus of the first five-year plan was kept on the agricultural development as it is still the backbone of the Indian economy in terms of employment generation.
19. Which of the following is classified as a Rabi crop?
[A] Rice
[B] Mustard
[C] Maize
[D] Cotton
[B] Mustard
[C] Maize
[D] Cotton
Correct Answer: B [Mustard]
Notes:
Mustard is sown in the Rabi season from October to December and harvested between February and April. Major Rabi crops in India include wheat, barley, mustard, peas, and gram. Rabi crops grow with the help of rainwater that has percolated into the ground post-monsoon. Mustard is mainly cultivated in states like Rajasthan, Uttar Pradesh, Haryana, and Madhya Pradesh.
Mustard is sown in the Rabi season from October to December and harvested between February and April. Major Rabi crops in India include wheat, barley, mustard, peas, and gram. Rabi crops grow with the help of rainwater that has percolated into the ground post-monsoon. Mustard is mainly cultivated in states like Rajasthan, Uttar Pradesh, Haryana, and Madhya Pradesh.
20. What are the main objectives of India’s buffer stock policy?
[A] Only stabilize food grain prices in the market
[B] Stabilize prices, ensure food security, provide relief, support welfare programs
[C] Store excess food grains, prevent farmers from selling produce
[D] Replace the Targeted Public Distribution System entirely
[B] Stabilize prices, ensure food security, provide relief, support welfare programs
[C] Store excess food grains, prevent farmers from selling produce
[D] Replace the Targeted Public Distribution System entirely
Correct Answer: B [Stabilize prices, ensure food security, provide relief, support welfare programs]
Notes:
The buffer stock policy in India maintains reserves of rice and wheat, managed by Food Corporation of India. Objectives include moderating price fluctuations, ensuring food security, providing emergency relief during disasters, and supporting welfare programs such as the Targeted Public Distribution System. The policy also ensures procurement at Minimum Support Price for farmers, with storage and release regulated as per Government orders.
The buffer stock policy in India maintains reserves of rice and wheat, managed by Food Corporation of India. Objectives include moderating price fluctuations, ensuring food security, providing emergency relief during disasters, and supporting welfare programs such as the Targeted Public Distribution System. The policy also ensures procurement at Minimum Support Price for farmers, with storage and release regulated as per Government orders.
