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 term represents government’s total borrowing needs from all sources?
[A] Revenue Deficit
[B] Fiscal Deficit
[C] Primary Deficit
[D] Effective Revenue Deficit
Show Answer
Correct Answer: B [Fiscal Deficit]
Notes:
Fiscal deficit is calculated as total expenditure minus the sum of revenue receipts and non-debt capital receipts. Fiscal deficit data is published annually in the Union Budget. It shows the full amount the government must borrow in a financial year. The government’s fiscal deficit for 2023-24 was targeted at 5.9% of GDP.
12. Which among the following represents a fall in the prices?
- Stagflation
- Disinflation
- Deflation
Select the correct option from the codes given below:
[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 3
[D] Only 2
Show Answer
Correct Answer: C [ Only 3 ]
Notes:
Stagflation, as you might know is a condition when economy isn’t growing but prices are. So, this option would be opted out. Next two are disinflation and deflation. Disinflation means rise in prices has slowed down significantly as compared with the previous year. This simply implies that prices don’t fall during disinflation also. Deflation is when the prices actually fall. Kindly note that deflation usually moves hand in hand with economic slowdown, lower productivity and loss of employments.
13. BGREI scheme mainly aims to increase production of which crop in Eastern states?
[A] Wheat
[B] Pulses
[C] Rice
[D] Oilseeds
Show Answer
Correct Answer: C [Rice]
Notes:
The Bringing Green Revolution to Eastern India (BGREI) scheme started in 2010-11. It is implemented as a sub-scheme of Rashtriya Krishi Vikas Yojana (RKVY). BGREI is operational in Assam, Bihar, Chhattisgarh, Jharkhand, Odisha, eastern Uttar Pradesh, and West Bengal. The main focus of BGREI is to improve the production and productivity of rice in these eastern states using improved technology and crop management.
14. Which is the largest oil refinery in India?
[A] Panipat Refinery
[B] Jamnagar Refinery
[C] Digboi Refinery
[D] Kochi Refinery
Show Answer
Correct Answer: B [Jamnagar Refinery]
Notes:
The Jamnagar Refinery is owned by Reliance Industries and is located in Jamnagar, Gujarat. Its crude oil processing capacity is 1.4 million barrels per day. Commissioned in 1999, the refinery complex includes both domestic and export-oriented refinery units. It has the highest Nelson Complexity Index in India, standing at 21.1.
15. Which of the following exchange rates is the relative price of foreign goods in terms of domestic goods?
[A] Nominal
[B] Real
[C] Artificial
[D] Fixed
Show Answer
Correct Answer: B [Real]
Notes:
The real exchange rate measures the price of foreign goods relative to the price of domestic goods. Mathematically, the real exchange rate is the ratio of a foreign price level and the domestic price level, multiplied by the nominal exchange rate.
16. Which industry has expanded most in India’s cooperative sector recently?
[A] Cotton textile
[B] Jute
[C] Sugar
[D] Cement
Show Answer
Correct Answer: C [Sugar]
Notes:
As of 2024, the sugar industry is the largest in India’s cooperative sector. Nearly 50% of sugar mills in India operate under cooperative societies, especially in Maharashtra. Production increased significantly in recent years due to government support, favorable policies, and ethanol blending programs. Maharashtra and Uttar Pradesh contribute the majority of cooperative sugar factories. Cooperative expansion continued through 2023-24.
17. Which among the following is not a part of factor of production?
[A] Land
[B] Labour
[C] Capital
[D] Wages
Show Answer
Correct Answer: D [Wages]
Notes:
The Factors of production are the inputs available to supply goods and services in an economy.
They are Land, Labour, Capital and Enterprise.
18. Who is the author of “Volatility and Growth”?
[A] Esther Duflo
[B] Amartya Sen
[C] Abhijit Banerjee
[D] Jagadish Bhagwati
Show Answer
Correct Answer: C [Abhijit Banerjee]
Notes:
Abhijit Banerjee is the author of “Volatility and Growth”. It has long been recognized that productivity growth and the business cycle are closely interrelated.
19. Which type of unemployment is mostly seen in the Primary sector?
[A] Structural unemployment
[B] Disguised unemployment
[C] Cyclical unemployment
[D] Frictional unemployment
Show Answer
Correct Answer: B [Disguised unemployment]
Notes:
People working in the Primary sector remain unemployed most of the time in a year. This sector has more workers than required. This type of unemployment is known as disguised unemployment.
20. Which company owns Air India as of 2025?
[A] Reliance Group
[B] Tata Group
[C] Adani Group
[D] Birla Industries
Show Answer
Correct Answer: B [Tata Group]
Notes:
Tata Group acquired Air India from the government in 2022, regaining control after nearly 69 years of public ownership. Air India was initially founded as Tata Airlines in 1932 by J.R.D. Tata. The acquisition marks Air India’s return to its original founders.
