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. SIDO is associated with which of the following industries?
[A] Small industry
[B] Iron industry
[C] Steel industry
[D] Soap industry
Show Answer
Correct Answer: A [Small industry]
Notes:
The Small Industries Development Organization (SIDO) is the national SME Development Agency of India. It is a major constituent of the Ministry of Small Scale Industries of the Government of India. It was Set up in 1954, SIDO provides services to small industry throughout the country by implementing a broad program of activities and services like Entrepreneurship Development, Tool Room Services, Testing Centres, Extension Services, R&D Services, etc.
12. What is the effect of increasing the Cash Reserve Ratio (CRR)?
[A] It decreases the money supply
[B] It increases interest rates
[C] It decreases inflation
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
CRR is the portion of deposits banks must keep with the Reserve Bank of India. When CRR increases, banks have less money to lend, which lowers the money supply. With reduced funds available, lending interest rates rise. Reduced money supply and higher lending rates lead to lower inflation. As of 2024, RBI uses CRR as a monetary policy tool for credit and inflation control.
13. What is the recent average gross domestic savings rate for India? (UPSC Prelims 1997)
[A] 15 to 20 per cent
[B] 20 to 25 per cent
[C] 25 to 30 per cent
[D] 30 to 35 per cent
Show Answer
Correct Answer: C [25 to 30 per cent]
Notes:
India’s gross domestic savings rate was 28.37% in 2024. It was 30.7% for FY2024 as per CEIC and ICRA data. The savings rate in 2023 and 2024 has remained consistently within the 25 to 30 per cent range. No official data places the recent rate below or above this range as of June 2024.
14. What is the aggregate of the gross balances of primary income of all resident institutional units knows as?
[A] Gross domestic Product
[B] Gross national product
[C] Gross National income
[D] Net national product
Show Answer
Correct Answer: C [Gross National income]
Notes:
Gross National Income is the aggregate value of the gross balances of the primary income of all resident institutional units.
15. What does free market in an economy imply?
[A] Minimum government intervention in trade and maximum regulations
[B] Maximum government intervention in trade and maximum regulations
[C] Minimum government intervention in trade and minimum regulations
[D] Maximum government intervention in trade and maximum regulations
Show Answer
Correct Answer: C [Minimum government intervention in trade and minimum regulations]
Notes:
In a free market economy, the law of supply and demand, rather than a central government, regulates production and labor. Companies sell goods and services at the highest price consumers are willing to pay while workers earn the highest wages companies are willing to pay for their services
16. Which fertilizer element is most overused in U.S. agriculture?
[A] Phosphorus
[B] Potassium
[C] Nitrogen
[D] All equally
Show Answer
Correct Answer: C [Nitrogen]
Notes:
U.S. corn-soybean farmers overapplied 3.5-5.8 million metric tons of synthetic nitrogen fertilizer. Over 50% of the country’s nitrogen fertilizer is used for corn production. In 2022, the U.S. consumed around 14,900 thousand metric tons of nitrogen fertilizer, compared to about 6,500 for phosphate and 4,600 for potassium chloride. Nitrogen usage remains significantly higher than the other elements.
17. Where is the Indian Institute of Horticultural Research (IIHR) located?
[A] Dehradun
[B] Hyderabad
[C] Bengaluru
[D] Pune
Show Answer
Correct Answer: C [Bengaluru]
Notes:
The Indian Institute of Horticultural Research (IIHR) is an autonomous organization in Bengaluru. It is acting as a nodal agency for basic, strategic, anticipatory and applied research on various aspects of horticulture such as fruits, vegetable, ornamental, medicinal and aromatic plants and mushrooms in India.
18. Which organization implements the central sector scheme “Silk Samagra”?
[A] NITI Aayog
[B] Ministry of agriulture
[C] Central silk board
[D] NABARD
Show Answer
Correct Answer: C [Central silk board]
Notes:
The Central Sector Scheme “Silk Samagra” is for the development of sericulture in the country. The scheme is being implemented by the Central Silk Board (CSB). Central Silk Board (CSB) is a statatory body.
19. The local system of canal irrigation found in Parts of Himachal Pradesh over four hundred years ago is known as?
[A] Baori
[B] Khadin
[C] Jhalara
[D] Kuhl
Show Answer
Correct Answer: D [Kuhl]
Notes:
Kuhl is a type of traditional irrigation system in Himachal Pradesh. They are surface channels diverting water from natural flowing streams (khuds). A typical community of kuhls services 6 to 30 farmers, irrigating an area of about 20 ha.
20. In which year was the Essential Commodities Act enacted?
[A] 1960
[B] 1955
[C] 1950
[D] None of the above
Show Answer
Correct Answer: B [1955]
Notes:
The Essential Commodities Act was enacted by the Parliament of India in 1955. This Act empowers the government to regulate the production, supply, and distribution of essential commodities. The Act helps prevent hoarding and black marketing of items such as foodgrains, drugs, and petroleum products. The Essential Commodities Act was last amended in 2020.
