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 city in Gujarat hosts the world’s largest ship-breaking yard?
[A] Jamnagar
[B] Alang
[C] Surat
[D] Kandla
Show Answer
Correct Answer: B [Alang]
Notes:
Alang is located in Bhavnagar district, Gujarat. It is recognized as the world’s largest ship-breaking yard. Alang consists of 183 ship breaking yards along 14 kilometers of coastline with a maximum capacity of 4.5 million Light Displacement Tonnage. As of 2024–25, Alang dismantles about 98% of ships broken up in India.
12. What is the main goal of Antyodaya Anna Yojana (AAY) scheme?
[A] Provide employment to urban workers
[B] Ensure food security for the poorest
[C] Subsidize inputs for marginal farmers
[D] Distribute cash to BPL households
Show Answer
Correct Answer: B [Ensure food security for the poorest]
Notes:
The Antyodaya Anna Yojana was launched in December 2000 by the Government of India. Its objective is to provide food security to the poorest of the poor identified under the Targeted Public Distribution System. Eligible families receive 35 kg of food grains per month at highly subsidized prices—rice at ₹3/kg and wheat at ₹2/kg. This scheme operates nationwide.
13. Rolling plan was designed for which of the following periods?
[A] 1974-79
[B] 1978-83
[C] 1980-85
[D] 1985-90
Show Answer
Correct Answer: B [1978-83]
Notes:
The Janta Government terminated the fifth five year plan in 1977-78 and launched its own sixth five year plan for period 1978-83 and called it a Rolling Plan. This second plan is kept changing as per the requirements of the economy (and politics).
14. Which of these is a conventional source of energy? (UPSC Prelims 1987)
[A] Geothermal
[B] Coal
[C] Solar
[D] Wind
Show Answer
Correct Answer: B [Coal]
Notes:
Coal is a fossil fuel formed from plant remains over millions of years. It has been used extensively in thermal power plants. India is the second largest producer of coal as of 2023. Coal is classified as a non-renewable, conventional energy source. It primarily consists of carbon, hydrogen, oxygen, nitrogen, and sulfur.
15. Economic Survey in India is published officially, every year by which of the following authorities? (UPSC Prelims 1998)
[A] Reserve Bank of India
[B] Planning Commission of India
[C] Ministry of Finance, Government of India
[D] Ministry of Industries, Government of India
Show Answer
Correct Answer: C [Ministry of Finance, Government of India]
Notes:
The Department of Economic Affairs, Finance Ministry of India presents the Economic Survey in the parliament every year, just before the Union Budget. It is prepared under the guidance of the Chief Economic Adviser, Finance Ministry. It is the ministry’s view on the annual economic development of the country.
16. 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.
17. Which economic system is known as the Keynesian Economic system?
[A] Market economic system
[B] Mixed economic system
[C] Socialist economic system
[D] None of the above
Show Answer
Correct Answer: B [Mixed economic system]
Notes:
The mixed economic system combines the command economy and free-market economy, so it has the features of both of these two economic systems. It is also known as the Keynesian economic system or dual economic system.
18. What is the objective of a welfare state?
[A] To provide health facilities to all citizens
[B] Provide welfare to poorest of the poor
[C] To ensure maximum benefit to maximum people
[D] None of these
Show Answer
Correct Answer: C [To ensure maximum benefit to maximum people]
Notes:
India considers itself as a welfare state. A welfare state is a concept of government in which the state play a key role in the protection and promotion of the economic and social well being of its citizens. It is based on the Principle of equality of opportunities equitable distribution of health and public responsibility for these unable to able themselves of the minimal provision for a good life.
19. Which among the following is caused by a lack of proper infrastructure?
[A] Low export cost
[B] Less development of interior region
[C] More imports
[D] High cost of goods
Show Answer
Correct Answer: B [Less development of interior region]
Notes:
Lack of proper infrastructure slows economic activity and reduces access to markets, power, transport, and communication. As a result, interior or remote regions often develop more slowly than better-connected areas. This is a recognized effect of infrastructure deficiency in economic development.
20. The Government fixes Minimum support price(MSP) for agricultural goods on the basis of recommendation of which of the following?
[A] Commission for Agricultural Costs and Prices
[B] NITI Aayog
[C] Finance Ministry
[D] Agriculture Ministry
Show Answer
Correct Answer: A [Commission for Agricultural Costs and Prices]
Notes:
The minimum support price is announced by the government of India on the recommendation of the Commission for agricultural costs and prices at the beginning of the sowing season for certain crops.
