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. Using iron instead of wooden ploughs is an example of which technology?
[A] Obsolete technology
[B] Appropriate technology
[C] Redundant technology
[D] Ultimate technology
Show Answer
Correct Answer: B [Appropriate technology]
Notes:
Appropriate technology refers to methods or tools that are affordable, locally adaptable, and suited to the community’s needs. Iron ploughs replace less durable wooden ones, improving productivity and lifespan without requiring advanced infrastructure. The shift increases agricultural efficiency in areas with limited resources. This practice matches the concept of appropriate technology in rural agricultural settings.
12. What was the prime concern of the Uruguay Round negotiations?
[A] The debt burden of developing countries.
[B] Restrictions on flexible exchange rate systems.
[C] Restrictions on fishing rights on the high seas.
[D] Barriers to market access, domestic support, and export subsidies in agriculture.
Show Answer
Correct Answer: D [Barriers to market access, domestic support, and export subsidies in agriculture.]
Notes:
The Uruguay Round of negotiations ran from 1986 to 1994 under GATT. Its Agreement on Agriculture targeted market access, domestic support, and export subsidies as three core areas for agricultural reform. The round resulted in the Uruguay Round Agreement on Agriculture (URAA), which mandated reductions in these barriers. The Agreement was signed in Marrakesh in April 1994, leading to the establishment of the WTO in 1995.
13. If capital stock is everlasting, what is the depreciation rate?
[A] Zero
[B] High
[C] Low
[D] Infinite
Show Answer
Correct Answer: A [Zero]
Notes:
Everlasting capital stock does not lose value or efficiency, so the depreciation rate is zero as no part decreases in utility or worth over time.
14. Which of the economic system have the shortcoming of overproduction and over-exploitation of workers?
[A] Socialist system
[B] Mixed system
[C] Market system
[D] Traditional system
Show Answer
Correct Answer: C [Market system]
Notes:
In the market system or the capitalist system, there is always a risk of overexploitation of workers for the profits of the companies. A profit is the main motive of this type of economy. It also may lead to the overproduction of goods since there are no regulations. This can also be attributed to the fact that the workers have low wages and hence cannot afford to consume all the products that are being manufactured.
15. Which among the following sectors work can be outsourced?
[A] Primary sector
[B] Secondary sector
[C] Tertiary sector
[D] Public sector
Show Answer
Correct Answer: C [Tertiary sector]
Notes:
The tertiary sector’s activities help in the development of the primary and secondary sectors. By itself, economic activities in the tertiary sector do not produce goods so they can be outsourced.
16. 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.
17. How much FDI is permitted in e-commerce in India?
[A] 75% in marketplace; 0% in inventory-based
[B] 100% in B2B and marketplace; 0% inventory-based
[C] 100% in all e-commerce models
[D] 51% in marketplace; 100% in B2B
Show Answer
Correct Answer: B [100% in B2B and marketplace; 0% inventory-based]
Notes:
India allows 100% FDI under the automatic route in B2B e-commerce and marketplace model since Press Note 3 (2016). FDI is not permitted in the inventory-based model. The marketplace model connects buyers and sellers without holding inventory. The restrictions were reiterated in Press Note 2 (2018). The Department for Promotion of Industry and Internal Trade regulates these FDI norms.
18. Which among the following is not a benefit of neem coated urea?
[A] Slow down the process of nitrogen release
[B] Enhance the yield
[C] Increase urea requirement
[D] Reduce fertilizer cost
Show Answer
Correct Answer: C [Increase urea requirement]
Notes:
Coating urea with neem oil is neem coated urea. It has various benefits like slowing down the process of nitrogen release, enhance the yield, reduce urea requirement so the cost of fertilizer is reduced.
19. Which of the below is / are used as Biofertilizer(s)?
- Agaricus
- Nostoc
- Spirogyra
- Azospirillum
Select the correct option from the codes given below:
[A] 1 and 2 only
[B] 3 and 4 only
[C] 2 and 4 only
[D] 1,2 and 3 only
Show Answer
Correct Answer: C [2 and 4 only ]
Notes:
Nostoc and Azospirillium are the organisms that are used as bio fertilizers. Nostoc is a blue green algae while Azospirillium is aerobic free-living nitrogen fixers which live in associative symbiosis.
20. Which is not a challenge to food security?
[A] Climate change
[B] Conflict and fragility
[C] Overpopulation
[D] Economic growth
Show Answer
Correct Answer: D [Economic growth]
Notes:
Economic growth increases household incomes and boosts food affordability. Higher income levels raise food demand and production capacity. According to World Bank data, countries with higher GDP per capita have lower levels of food insecurity. The Food and Agriculture Organization notes that poverty, conflict, and adverse climate conditions impede food security, whereas economic advancement helps reduce hunger and improves nutrition access.
