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. In which of the following market forms a firm does not exercise control over price?
[A] Monopoly
[B] Mixed Competition
[C] Perfect competition
[D] Oligopoly
Show Answer
Correct Answer: C [Perfect competition]
Notes:
In economics, specifically general equilibrium theory, a perfect market is defined by several idealizing conditions, collectively called perfect competition.
12. Which Mumbai market is famous for antiques and vintage items? (UPSC Prelims 1983)
[A] Chor Bazaar
[B] Ima Keithel
[C] Laad Bazaar
[D] Attar Bazaar
Show Answer
Correct Answer: A [Chor Bazaar]
Notes:
Chor Bazaar, located in South Mumbai, is over 150 years old and renowned for antiques, vintage collectibles, old clocks, Victorian furniture, and rare items. It is one of India’s most historic secondhand markets, attracting antique enthusiasts and tourists alike.
13. Why is full convertibility of the Indian rupee advocated? (UPSC Prelims 1996)
[A] It stabilizes the rupee’s exchange value globally.
[B] It attracts more foreign capital into India.
[C] It helps promote Indian exports.
[D] It helps India secure loans on attractive terms.
Show Answer
Correct Answer: A [It stabilizes the rupee’s exchange value globally.]
Notes:
Full convertibility allows the rupee to be freely exchanged with foreign currencies for all transactions at market rates without Reserve Bank of India restrictions. India achieved current account convertibility in 1994. Full capital account convertibility is under consideration. Currency stability and reduced exchange rate uncertainty are key reasons for advocating convertibility to stabilize the rupee’s value against global currencies.
14. What is marginal utilty in economics signify?
[A] Small utlity
[B] Additional utlity
[C] Minimum utility
[D] Satisfied utilty
Show Answer
Correct Answer: B [Additional utlity]
Notes:
Marginal Utility is the additional utility derived from the consumption of an additional unit of commodity. It quantifies the added satisfaction that a consumer garners from consuming additional units of goods or services.
15. In which system of economy is the “participation of the workers in the collective bargaining” is a feature?
[A] Socialist economy
[B] Mixed economy
[C] Market Economy
[D] Traditional Economy
Show Answer
Correct Answer: A [Socialist economy]
Notes:
The socialist model of the economy is based on the Marx Model of communism where the state owns the factors of production. The capital cannot be privately held and there is communal ownership or what is known as “Communism”. The workers are paid uniform wages and what Marx called the “participation of the workers in the collective bargaining” is a feature of the system.
16. What was the target of the first five-year plan?
[A] Development of agriculture
[B] Development of textile industry
[C] Develpoemnt of manufacturing
[D] Removal of poverty
Show Answer
Correct Answer: A [Development of agriculture]
Notes:
After Independence Indian economy was in a dismal state. The main focus of the first five-year plan was kept on the agricultural development as it is still the backbone of the Indian economy in terms of employment generation.
17. Which crop is given Fair and Remunerative Price by the government?
[A] Coffee
[B] Tea
[C] Sugarcane
[D] Barley
Show Answer
Correct Answer: C [Sugarcane]
Notes:
Fair and Remunerative Price (FRP) for sugarcane was introduced by the Government of India in 2009-10 under the Sugarcane (Control) (Amendment) Order, 2009. FRP is fixed annually by the central government on the recommendation of the Commission for Agricultural Costs and Prices. Sugar mills are legally required to pay this price to sugarcane farmers.
18. Consider the following entities associated with the Public Distribution System (PDS) in India:
- Fair Price Shops
- Cooperative Stores
- Military Canteens
- Food Corporation of India (FCI) depots
Which of the above are actual parts of the Public Distribution System?
[A] Only 1 and 4
[B] Only 2 and 3
[C] All of the above
[D] Only 1
Show Answer
Correct Answer: A [Only 1 and 4]
Notes:
The Public Distribution System (PDS) in India primarily includes Fair Price Shops—the retail outlets where food grains are distributed to beneficiaries—and Food Corporation of India (FCI) depots, which manage the storage and movement of grains. Cooperative Stores and Military Canteens operate outside the PDS framework and are not involved in its distribution network.
19. Which country is the largest exporter of fresh fruits and vegetables to India?
[A] Iran
[B] United Arab Emirates
[C] China
[D] Egypt
Show Answer
Correct Answer: A [Iran]
Notes:
Iran is the leading exporter of fresh fruits and vegetables to India as of 2024. Middle Eastern countries account for about half of India’s fresh fruit and vegetable imports. Iran supplies products such as apples, grapes, and dates to the Indian market in large quantities annually.
20. Which country is the largest seafood exporter globally?
[A] Vietnam
[B] Norway
[C] China
[D] Ecuador
Show Answer
Correct Answer: C [China]
Notes:
China leads the world in seafood exports with an estimated $24.8 billion USD in 2025. China has the largest aquaculture production worldwide, including major species like tilapia, carp, and shrimp. China also processes seafood for re-export in global markets. Norway, Vietnam, and Ecuador follow China in global seafood export rankings based on recent international trade data.
