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 of the following are used as tool for the Liquidity adjustment facility (LAF)?
- Repo Rate
- Reverse Repo Rate
- Cash Reserve Ratio
- Statutory liquidity ratio
Select the correct option from codes given below:
[A] 1 & 2 Only
[B] 3 & 4 Only
[C] 1, 2 & 3 Only
[D] 1, 2, 3 & 4
Show Answer
Correct Answer: A [ 1 & 2 Only ]
Notes:
Liquidity adjustment facility (LAF) is a monetary policy tool which allows banks to borrow money through repurchase agreements. It consists of Rep and Reverse Repo Rate.
12. What is output per unit of input of labor known as?
[A] Labor Productivity
[B] Production ability
[C] Capacity
[D] None of the above
Show Answer
Correct Answer: A [Labor Productivity]
Notes:
Productivity, in economics, measures output per unit of input, such as labor, capital, or any other resource – and is typically calculated for the economy as a whole, as a ratio of GDP to hours worked.
13. In which type of economy is government interference is limited?
[A] Socialist economy
[B] Market Economy
[C] Mixed Economy
[D] None of the above
Show Answer
Correct Answer: B [Market Economy]
Notes:
Market economy or capitalist economy works on the laissez-faire principle where there is limited gov and market forces of demand and supply plays a key role in its functioning.
14. In which type of economy, competition doesn’t exist in the market?
[A] Mixed economy
[B] Capitalist economy
[C] Market economy
[D] Socialist economy
Show Answer
Correct Answer: D [Socialist economy]
Notes:
In the socialist form of economy where the control of the state is in excess, the competition doesn’t exist. The market forces don’t play any role. It is the state which makes all the decisions.
15. Which Five-year plan was also known as “Gadgil Yojna”?
[A] Second
[B] Third
[C] Fourth
[D] Fifth
Show Answer
Correct Answer: B [Third]
Notes:
The third Five-year plan was made for the duration of 1961 to 1966. This plan is called ‘Gadgil Yojna’ also. The main target of this plan was to make the country economically independent.
16. Which country is the largest producer of sugarcane globally?
[A] India
[B] China
[C] Brazil
[D] USA
Show Answer
Correct Answer: C [Brazil]
Notes:
Brazil is the world’s largest producer of sugarcane. In the 2022-23 season, Brazil produced over 715 million metric tons of sugarcane. The main cultivation areas in Brazil include São Paulo and the Central-South region. Brazil leads global sugar and ethanol exports due to its sugarcane industry size and production capacity. India ranks as the second largest sugarcane producer worldwide after Brazil.
17. Which country is currently the world’s largest cotton exporter?
[A] India
[B] USA
[C] Brazil
[D] China
Show Answer
Correct Answer: C [Brazil]
Notes:
Brazil became the largest cotton exporter globally in 2023, surpassing the USA. Brazil’s high-yield production averages 1.8 times more than the USA. Brazil uses double-cropping of cotton following soybeans and has lower production costs. Brazil’s share of world cotton exports is projected to lead through the 2025/26 season. Its improved logistics also support this leading export position.
18. Which country is the largest producer of castor in the world?
[A] China
[B] India
[C] Australia
[D] Brazil
Show Answer
Correct Answer: B [India]
Notes:
India accounts for 88.5% of global castor oil seed production. In 2024-25, India’s castor production reached 15.88 lakh tonnes by the second advance estimates. Gujarat produces over 70% of the country’s castor oil. India is the top global exporter of castor oil, holding over 87% market share.
19. Which type of poultry farming is primarily for egg production?
[A] Broiler
[B] Layer
[C] Both
[D] None
Show Answer
Correct Answer: B [Layer]
Notes:
Layer poultry farming involves rearing hens specifically for egg production. Layers start laying eggs at about 18-19 weeks of age and continue for approximately 72 weeks. Layer breeds such as White Leghorn and Rhode Island Red are commonly used for eggs. Broiler poultry farming involves birds reared mainly for meat, not for egg-laying purposes.
20. In which state was India’s first Aqua Mega Food Park commissioned?
[A] Tamil Nadu
[B] Kerala
[C] West Bengal
[D] Andhra Pradesh
Show Answer
Correct Answer: D [Andhra Pradesh]
Notes:
The Godavari Mega Aqua Food Park was commissioned at Tundurru Village, West Godavari District, Andhra Pradesh in 2018. It is India’s first dedicated aqua mega food park. The park was launched under the Ministry of Food Processing Industries. It provides infrastructure for fish and shrimp processing. Andhra Pradesh has the highest aquaculture production in India. The state contributes over 70% of the country’s farmed shrimp exports.
