Indian Economy MCQs

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Expropriation is the act of a government forcibly taking control of assets owned by foreign investors. International law generally requires such action to serve a public purpose, follow due process, and involve prompt, adequate compensation at fair market value. Expropriation may be direct, such as transfer of title, or indirect, such as regulatory measures that remove economic value without actual seizure.

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A letter of credit is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount.

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Infrastructure Finance Companies in India are registered with the Reserve Bank of India. They primarily provide long-term financial assistance for infrastructure projects. Their main activities include lending for infrastructure development, refinancing, and offering subordinated loans. They also facilitate equity participation and consulting services for large-scale infrastructure projects across sectors such as energy, transportation, and telecommunications. They do not engage in retail banking or property management.

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As per data from Union Budget 2026-27 and Ministry notifications, Micro, Small and Medium Enterprises account for about 35.4% of total manufacturing sector output in India. There are 7.47 crore MSME units in India. MSMEs also contribute 48.58% to exports and 31.1% to GDP. Earlier, MSMEs’ share in output was 40% in 1998-99.

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Market price(MP)refers to the actual transacted price and includes indirect taxes. The market price is the current price at which an asset or service can be bought or sold. The economic theory contends that the market price converges at a point where the forces of Supply and demand meet.

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The Social Framework. Posted on May 23, 2015. is the title of a short book by John Hicks published in 1942. It’s an introduction, for the general reader, to the then-new fangled concept of national income accounting – beautifully clearly written and very straightforward.

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Amartya Sen, noted Nobel Laureate, has developed an index known as Sen Index to estimate the poverty.
The Global Multidimensional Poverty Index (MPI) was developed in 2010 by the Oxford Poverty & Human Development Initiative (OPHI) and the United Nations Development Programme and uses health, education, and standard of living indicators to determine the degree of poverty experienced by a population.
The poverty gap index is a measure of the intensity of poverty.

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The Fifth Five-Year Plan from (1974-78) laid stress on employment, poverty alleviation (Garibi Hatao), and justice. It is the first time a plan had emphasis on poverty. The plan also focused on self-reliance in agricultural production and defense. In 1978 the newly elected Morarji Desai government rejected the plan.

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Kerala produces around 78% of India’s natural rubber. In 2022-23, Kerala produced about 490,960 tons of rubber. The state has favorable tropical climatic conditions with high rainfall and humidity, suitable for rubber cultivation. Plantations are mainly concentrated in Kottayam, Pathanamthitta, and Idukki districts. The Rubber Board of India is headquartered in Kottayam, Kerala.

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The United States averages 126.4 grams of sugar consumption per person daily. Germany averages 102.9 grams, Netherlands 102.5 grams, and Ireland 96.7 grams. The United States ranks highest in per capita sugar consumption globally based on latest available dietary studies and food industry data. This value is consistently reported in international health and nutrition databases as of 2023.