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 one of the following statements regarding the levying, collecting and distribution of Income Tax is correct? (UPSC Prelims 1999)
[A] The Union levies, collects and distributes the proceeds of income-tax between itself and the States
[B] The Union levies, collects and keeps all the proceeds of income-tax to itself
[C] The Union levies and collects the tax but all the proceeds are distributed among the States
[D] Only the surcharge levied on income-tax is shared between the Union and the States
Show Answer
Correct Answer: A [The Union levies, collects and distributes the proceeds of income-tax between itself and the States]
Notes:
Article 270 permitted mandatory sharing of the net proceeds of income tax levied and collected by the Union with the States. Such proceeds assigned to States did not form part of the Consolidated Fund of India. Article 272 provided for sharing of Union excise duties, if Parliament by law so provided.
12. Which among the following is a guiding force for the capitalist economy?
[A] Social service
[B] Private property
[C] Competition
[D] Profit motive
Show Answer
Correct Answer: D [Profit motive]
Notes:
Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.
13. Which neighbouring country officially accepts Indian Rupee as legal tender?
[A] Bangladesh
[B] Pakistan
[C] Bhutan
[D] Myanmar
Show Answer
Correct Answer: C [Bhutan]
Notes:
The Indian Rupee is legal tender in Bhutan and Nepal. Bhutan’s ngultrum is pegged to INR, and both currencies circulate freely. Nepal also accepts INR, but only certain denominations. Other neighbours like Bangladesh, Pakistan, and Myanmar do not officially accept it as legal tender.
14. Who notifies a good as an essential commodity under the essential commodities act, 1955?
[A] Parliament
[B] State Government
[C] Central Government
[D] State Legislature
Show Answer
Correct Answer: C [Central Government]
Notes:
The central government states a commodity as an essential commodity. When the Centre finds that a certain commodity is in short supply and its price is spiking, it can notify stock-holding limits on it for a specified period.
15. Where is the headquarters of FSSAI located?
[A] Mumbai
[B] Delhi
[C] Kolkata
[D] Bangalore
Show Answer
Correct Answer: B [Delhi]
Notes:
Food Safety and Standards Authority of India is an autonomous body established under the Ministry of Health & Family Welfare, Government of India. It was founded in 2011 with headquarters at New Delhi.
16. Which country is the largest exporter of imitation jewelry globally?
[A] China
[B] India
[C] Italy
[D] Hong Kong
Show Answer
Correct Answer: A [China]
Notes:
In 2023, China was the top exporter of imitation jewelry with exports valued at 935.97 million. In 2024, China maintained its lead with 1.17 billion in such exports. India accounted for 32.6% of global imitation jewelry exports in 2022. Italy exported 202 million and Hong Kong 432 million in 2023. China consistently leads in recent data.
17. What is the FDI allowed in the construction sector under the automatic route?
[A] 100
[B] 75
[C] 49
[D] 51
Show Answer
Correct Answer: A [100]
Notes:
The FDI allowed in the construction sector under the automatic route is 100%. The FDI under automatic route is permitted in completed projects for operations and management of townships, malls/shopping complexes, and business constructions.
18. Who establishes RERA under the Real Estate (Regulation and Development) Act, 2016?
[A] Central Government for all states
[B] Appropriate Government as defined by the Act
[C] NITI Aayog with state governments
[D] Real Estate Appellate Tribunal
Show Answer
Correct Answer: B [Appropriate Government as defined by the Act]
Notes:
Section 20 of the Real Estate (Regulation and Development) Act, 2016 mandates the Appropriate Government to establish the Real Estate Regulatory Authority. Appropriate Government refers to the State Government for states, Central Government for Union Territories without legislature, and Union Territory Government for Puducherry. Each state must set up its own RERA for regulating real estate sector activities within its jurisdiction.
19. Where is the headquarters of Jute corporation of India located?
[A] Delhi
[B] Mumbai
[C] Kolkata
[D] Chennai
Show Answer
Correct Answer: C [Kolkata]
Notes:
The Jute Corporation of India Ltd. (JCI) is based in Kolkata, is an agency of the government of India that assists jute cultivators in states where this crop is grown, providing minimum price support.
20. In which year was India's first mechanized paper mill established?
[A] 1812
[B] 1832
[C] 1861
[D] 1870
Show Answer
Correct Answer: A [1812]
Notes:
India's first mechanized paper mill was established at Serampore (then Sorampur), in present-day West Bengal, in 1812. It is widely linked with the work of William Carey and the Serampore missionaries. The year 1832 is associated with later mechanized paper production developments at Serampore, but not with the first establishment of the mill. Hence, 1812 is the correct answer.
