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. What is the name given to the unemployment which occurs when workers move from one job to another job? (UPSC Prelims 1992)
[A] Seasonal unemployment
[B] Frictional unemployment
[C] Technological unemployment
[D] Cyclical unemployment
Show Answer
Correct Answer: B [Frictional unemployment]
Notes:
Frictional unemployment is a type of unemployment. It is sometimes called search unemployment and can be based on the circumstances of the individual. It is time spent between jobs when a worker is searching for a job or transitioning from one job to another.
12. Which was the largest part of non-plan expenditure in 1991-92? (UPSC Prelims 1992)
[A] Subsidies on fertilizer
[B] Compensation to banks for loan waiving
[C] Interest payment
[D] Compensation for PSU losses
Show Answer
Correct Answer: C [Interest payment]
Notes:
In 1991-92, interest payments were the largest non-plan expenditure, estimated at Rs. 27,450 crores, surpassing other items like subsidies and compensations. This reflected the high fiscal burden due to accumulated government debt and was a key reason for economic reforms initiated that year.
13. Which country does Economist Dambisa Moyo belong to?
[A] Zambia
[B] Namibia
[C] Africa
[D] None of the above
Show Answer
Correct Answer: A [Zambia]
Notes:
Zambian-born economist Dambisa Moyo focuses on wealth and poverty in the global economy. A key critic on development aid for low-income economies, her work has earned her the Friedrich Hayek Institute’s lifetime achievement award.
14. Which Economist highlighted ethical consideration behind his economic thinking?
[A] Francis Fukuyama
[B] Abhijit Banerjee
[C] Amartya Sen
[D] Friedrich Hayek
Show Answer
Correct Answer: C [Amartya Sen]
Notes:
Amartya Sen is an Indian economist, who has worked internationally, highlighting ethical considerations behind his economic thinking. Sen has contributed greatly to welfare economics, arguing for instance that famines arise due to a lack of income, not food.
15. Who among the following economist was awarded ‘Order of the Rising Sun’ by the Japanese government?
[A] Amartya Sen
[B] Jagadish Banerjee
[C] Amit Mitra
[D] None of the above
Show Answer
Correct Answer: C [Amit Mitra]
Notes:
The Japanese government conferred the `Order of the Rising Sun’ on Amit Mitra in 2005 by His Majesty the Emperor of Japan. The award was presented for his contribution towards the promotion of friendly relations between India and Japan.
16. Which Indian Economist created Dui-doku?
[A] Raghuram Rajan
[B] I.G.Patel
[C] Jayanti Gosh
[D] Kaushik Basu
Show Answer
Correct Answer: D [Kaushik Basu]
Notes:
Kaushik Basu created Dui-doku, a competitive two-player version of Sudoku. He is an Indian economist who previously worked as a chief economic advisor to Manmohan Singh govt.
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. Which of the following is not part of the core industry?
1. ELectricity
2. Steel
3. Cement
4. Agriculture
5. Fishing
Choose the correct option from the codes given below:
[A] 1, 3 and 4 only
[B] 4 and 5 only
[C] 1 and 3 only
[D] 1 and 2 only
Show Answer
Correct Answer: B [4 and 5 only]
Notes:
Eight Core Industries are Electricity, steel, refinery products, crude oil, coal, cement, natural gas, and fertilizers.
The Index of Eight Core Industries is compiled based on the monthly production information received from the Source Agencies. It is a lead indicator of the monthly industrial performance.
19. 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.
20. Which GM crop is approved for commercial cultivation in India?
[A] Bd Brinjal
[B] Bd Carrot
[C] Bd Mustard
[D] Bd Cotton
Show Answer
Correct Answer: D [Bd Cotton]
Notes:
Bd Cotton was approved for commercial cultivation in India in 2002. It is genetically modified to resist bollworm pests. By 2023, Bd Cotton accounted for over 90% of India’s cotton cultivation area. The Genetic Engineering Appraisal Committee under the Ministry of Environment, Forest and Climate Change granted the approval. No other GM food crop has been commercially approved in India.
