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 among the following is not a component of monetary policy in India?
[A] Moral suasion
[B] Public Debt
[C] Repo rate
[D] Credit Rationing
Show Answer
Correct Answer: B [Public Debt]
Notes:
The public debt is how much a country owes to lenders outside of itself. The term “public debt” is often used interchangeably with the term sovereign debt. Public debt usually only refers to national debt.
12. Any change in flow of funds and the demand of them, is clearly reflected in which of the following?
[A] Call money market
[B] Money market
[C] Repo market
[D] Commercial bill market
Show Answer
Correct Answer: A [Call money market]
Notes:
Call money market reflects any change in flow of funds and the demand of them.
13. Which of the following problems is needed to be resolved under issue management?
[A] Problems with staff
[B] Technical failures
[C] Material shortages
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Issue management is the process of identifying and resolving issues. Problems with staff or suppliers, technical failures, material shortages – these might all have a negative impact on your project
14. The share of village and small-scale industries in the total output of the manufacturing sector is nearly how much?
[A] 40%
[B] 35%
[C] 25%
[D] 15%
Show Answer
Correct Answer: A [40%]
Notes:
As per the published Report of the Development Commissioner, Small Scale Industries (DCSSI), the sector encompasses about 32 lakh units, during 1998-99 which produce over 7500 different items for domestic as well as foreign markets, contributing to about 40per cent of the value added to the manufacturing sector.
15. Economic Survey in India is published officially, every year by which of the following authorities?
[A] Reserve Bank of India
[B] Planning Commission of India
[C] Ministry of Finance, Government of India
[D] Ministry of Industries, Government of India
Show Answer
Correct Answer: C [Ministry of Finance, Government of India]
Notes:
The Department of Economic Affairs, Finance Ministry of India presents the Economic Survey in the parliament every year, just before the Union Budget. It is prepared under the guidance of the Chief Economic Adviser, Finance Ministry. It is the ministry’s view on the annual economic development of the country.
16. What is perfectly inelastic demand?
[A] Demand doesn’t change with price
[B] Demand change with price
[C] Change in demand is equal to price
[D] Demand changes infinitely
Show Answer
Correct Answer: A [Demand doesn’t change with price]
Notes:
Price elasticity = 0, Perfectly inelastic- Demand does not change as price changes
Price elasticity < 1, less than unit elastic- % change in demand is less than that in price
Price elasticity = 1, Unit elastic – % change in demand is equal that in price
Price elasticity > 1, more than unit elastic – % change in demand is more than that in price
Price elasticity = ∞ , Perfectly elastic Demand changes infinitely
17. Which of the following type of economy has purely private ownership?
[A] Socialist economy
[B] Capitalist economy
[C] Mixed economy
[D] Traditional economy
Show Answer
Correct Answer: B [Capitalist economy]
Notes:
In a Capitalist economic system, the factors of production are owned by private companies and only private ownership exists.
18. Who determines prices in a capitalist economy?
[A] Government
[B] Market forces
[C] Big corporates
[D] None of the above
Show Answer
Correct Answer: B [Market forces]
Notes:
In a capitalist economy, prices are set by demand and supply, collectively known as market forces. Government intervention is minimal. Prices fluctuate based on consumer preference and availability of goods, ensuring efficient allocation of resources within the economy.
19. Which of the following measures are not for the protection of workers in the unorganized sector?
[A] Government fixing minimum wages and minimmum working hours
[B] Government providing cheap loans to self employed people
[C] Government providing subsidised food and education
[D] None of the above
Show Answer
Correct Answer: D [None of the above]
Notes:
All the given options are the measures taken by the government for the protection of workers in unorganized workers. Because of the conditions in the unorganized sector, there is a need for the government to give protection to these workers.
20. During which five-year plan the Private sector was given priority over the public sector?
[A] 5th
[B] 7th
[C] 6th
[D] 8th
Show Answer
Correct Answer: B [7th]
Notes:
Seventh Five Year Plan from 1985 to 1990 had the objective to establish a self-sufficient economy, opportunities for productive employment. For the first time, the private sector got priority over the public sector. Socialist India started moving away from it.
