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 authority regulates chit funds in India?
[A] SEBI
[B] RBI
[C] State governments
[D] Central government
Show Answer
Correct Answer: C [State governments]
Notes:
The Chit Funds Act, 1982 is a central law governing chit funds in India. Regulation, registration, and licensing are administered by the state governments. Each state appoints a Registrar of Chits to oversee chit fund activities. Central government sets the legislative framework, but daily regulation and enforcement are delegated to the respective states as per the Act.
12. Who takes the decision regarding the saving and loan activities in a self Help Group (SHG)?
[A] Private Bank
[B] Reserve Bank of India
[C] Members of group
[D] Non Government Organizations
Show Answer
Correct Answer: C [Members of group]
Notes:
Self Help Groups (SHGs) are small groups of poor people. The members of an SHG face similar problems. They help each other, to solve their problems. SHGs promote small savings among their members.
13. Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if?
[A] Any of the borrowal account of the enterprise remains NPA for ten months or more
[B] Any of the borrowal account of the enterprise remains NPA for eight months or more
[C] Any of the borrowal account of the enterprise remains NPA for five months or more
[D] Any of the borrowal account of the enterprise remains NPA for three months or more
Show Answer
Correct Answer: D [Any of the borrowal account of the enterprise remains NPA for three months or more]
Notes:
Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if any of the borrowal account of the enterprise remains NPA for three months or more.
14. Which economic system does the “Socialistic Pattern” evolve from? (UPSC Prelims 1979).
[A] Free Economy
[B] Mixed Economy
[C] Public Sector
[D] None of the above
Show Answer
Correct Answer: B [Mixed Economy]
Notes:
The “Socialistic Pattern” is derived from the Mixed Economy system. In a mixed economic system, the features of both capitalism and socialism are amalgamated. It safeguards private property ownership and promotes certain economic liberty regarding capital usage. Yet, it also permits the government to meddle in economic activities to fulfill societal goals. This marriage of capitalism and socialism in a mixed economy paves the way for the emergence of the so-called “Socialistic Pattern”.
15. Which of the following is the highest milk producing breed of goat in India? (UPSC Prelims 1994)
[A] Barbari
[B] Jamnapari
[C] Black Bengal
[D] Beetal
Show Answer
Correct Answer: B [Jamnapari]
Notes:
Jamnapari is the most popular breed for commercial goat farming in India. It is also the highest milk producing breed of goat in India It is mostly found in Uttar Pradesh.
16. What is referred to as the “invisible hand” in a market economy?
[A] Trade
[B] Money
[C] Demand and supply
[D] Competition
Show Answer
Correct Answer: D [Competition]
Notes:
Adam Smith’s “invisible hand” describes competition, which guides market resources efficiently and benefits society even if individuals act in self-interest. This concept is foundational in classical economic theory and emphasizes the self-regulating nature of competitive markets.
17. Which country is the largest millet producer in the world?
[A] China
[B] India
[C] Indonesia
[D] Mexico
Show Answer
Correct Answer: B [India]
Notes:
India produced over 17 million tonnes of millets in 2022. The main millet-growing states in India are Rajasthan, Maharashtra, Karnataka, Gujarat, and Uttar Pradesh. India accounts for around 40% of global millet production. The country promoted 2023 as the International Year of Millets. Major millets grown in India include jowar, bajra, and ragi.
18. Which state was the Green Revolution initiated in 1968?
[A] Haryana
[B] Punjab
[C] Uttar Pradesh
[D] Rajasthan
Show Answer
Correct Answer: B [Punjab]
Notes:
Punjab was selected as the initial state for the Green Revolution in 1968. The movement focused on wheat production using high-yielding varieties, chemical fertilizers, and modern irrigation. Punjab saw the establishment of research centers and farmer programs during the years 1966–68. The region experienced rapid agricultural growth due to these initiatives.
19. Which statement about ATMA is correct?
[A] ATMA disseminates technology at the state level
[B] Chief Minister chairs ATMA
[C] ATMA uses PSUs to organize farmers
[D] ATMA pilots new institutional arrangements for technology dissemination
Show Answer
Correct Answer: D [ATMA pilots new institutional arrangements for technology dissemination]
Notes:
ATMA was launched in 1998 under the National Agricultural Technology Project. It operates at the district level as an autonomous agency. Its objective includes pilot testing and implementing new institutional arrangements for agricultural technology dissemination. The District Collector or equivalent official chairs the ATMA Governing Board. ATMA integrates extension activities of governmental and non-governmental bodies. It does not function at the state level or use PSUs for farmer organization.
20. Which of these is a private sector steel company?
[A] HPCL
[B] Tata Steel
[C] IOCL
[D] RINL
Show Answer
Correct Answer: B [Tata Steel]
Notes:
Tata Steel was founded in 1907 in Jamshedpur, Jharkhand. It operates as a private sector steel company. In 2024, Tata Steel reported a global crude steel production capacity of 35 million tonnes. It operates in 26 countries. Tata Steel was originally named Tata Iron and Steel Company Limited (TISCO). HPCL, IOCL, and RINL are public sector undertakings.
