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. Consider the following statements:
- Stock Exchanges and Future Markets are placed under the union list of Indian Constitution
- Bombay Cotton Trade Association was the first organized futures market in India
Which of the above statements is/are correct?
[A] 1 Only
[B] 2 Only
[C] Both 1 & 2
[D] Neither 1 nor 2
Show Answer
Correct Answer: C [ Both 1 & 2 ]
Notes:
Both are correct statements
First statement is correct because stock exchanges and future markets both are placed under the union list of Indian Constitution. Second statement is also correct because the first organized futures market was established in 1875, under the name of ‘Bombay Cotton Trade Association’ to trade in cotton derivative contracts.
12. Consider the following statements regarding the “PRASAD” scheme:
- It focuses on the development and rejuvenation of identified pilgrimage destinations and heritage cities.
- Under the scheme, the Ministry of Tourism provides Central Financial Assistance (CFA) to State Governments/Union Territory Administrations for tourism projects.
- As per the most recent data, 54 projects have been sanctioned under the scheme across 28 States/UTs.
Which of the above statements is/are correct?
[A] Only 1 and 2
[B] Only 2 and 3
[C] Only 1 and 3
[D] 1, 2 and 3
Show Answer
Correct Answer: D [1, 2 and 3]
Notes:
The PRASAD scheme, launched by the Ministry of Tourism in 2014-15, stands for Pilgrimage Rejuvenation and Spiritual Augmentation Drive. Statement 1 is correct: it targets pilgrimage and heritage city development. Statement 2 is correct: the ministry provides Central Financial Assistance. Statement 3 is correct: 54 projects in 28 States/UTs have been sanctioned under the scheme as per latest data.
13. Which sector best mobilizes savings through formal financial institutions? (UPSC Prelims 1984)
[A] Corporate sector
[B] Banking sector
[C] Credit unions
[D] Informal savings schemes
Show Answer
Correct Answer: B [Banking sector]
Notes:
The banking sector had the largest share of formal household savings globally as of 2022. Scheduled commercial banks in India accounted for over 55% of gross financial savings in 2021-22. The Reserve Bank of India regulates the banking sector through acts including the Banking Regulation Act, 1949, and the RBI Act, 1934. Banks accept public deposits through savings, current, and fixed deposit accounts.
14. On which of the following the economy of Brazil is mostly dependent? (UPSC Prelims 1984)
[A] Tea
[B] Coffee
[C] Tobacco
[D] Sugar
Show Answer
Correct Answer: B [Coffee]
Notes:
Coffee production in Brazil is responsible for about a third of all coffee, making Brazil by far the world’s largest producer. It is a position the country has held for the last 150 years. Coffee plantations, covering some 27,000 km2 are mainly located in the southeastern states of Minas Gerais, Sao Paulo and Parana where the environment and climate provide ideal growing conditions. So coffee is the main reason of Brazil’s economy.
15. Which crop has the highest production in India? (UPSC Prelims 1988)
[A] Rice
[B] Wheat
[C] Tobacco
[D] Gram
Show Answer
Correct Answer: A [Rice]
Notes:
India’s rice production is projected at 152 million tonnes for the 2025-26 crop season. Wheat output is estimated at 117.9 million tonnes in the same period. India accounts for 30.3% of global rice exports. Rice production in India consistently surpasses other major crops, making it the leading agricultural commodity in the country by volume.
16. Which of the following is a major shift in the 8th Five-Year Plan from its preceding ones? (UPSC Prelims 1994)
[A] the significant reduction in public sector outlays
[B] the concentration of pubic investment in infra-structural sectors
[C] major investment in agriculture with a view to promote exports
[D] major investment in sectors in which industrial sickness has been a chronic problem
Show Answer
Correct Answer: A [the significant reduction in public sector outlays]
Notes:
One of the major highlight was modernization of the industries. The plan was launched with twin objectives of alleviation of poverty and unemployment. This plan period saw launching of many flagship programmes and reduction of public sector outlays. In the 8th five year plan, growth rate achieved was 6.8% against the target of 5.6%.
17. 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.
18. What is perfectly inelastic demand?
[A] Demand doesn’t change with price
[B] Demand change with price
[C] Change in demand is equal to price
[D] Demand changes infinitely
Show Answer
Correct Answer: A [Demand doesn’t change with price]
Notes:
Price elasticity = 0, Perfectly inelastic- Demand does not change as price changes
Price elasticity < 1, less than unit elastic- % change in demand is less than that in price
Price elasticity = 1, Unit elastic – % change in demand is equal that in price
Price elasticity > 1, more than unit elastic – % change in demand is more than that in price
Price elasticity = ∞ , Perfectly elastic Demand changes infinitely
19. Which sector is small, unregulated and outside government control?
[A] Organised Sector
[B] Unorganised sector
[C] Public sector
[D] Private sector
Show Answer
Correct Answer: B [Unorganised sector]
Notes:
An unorganised worker is a home-based worker or a self-employed worker or a wage worker in the unorganized sector and includes a worker in the organized sector who is not covered by any of the Acts pertaining to welfare Schemes. So the are small and outside controlling authority.
20. Which months constitute the zaid cropping season in India?
[A] August-November
[B] June-August
[C] March-June
[D] December-March
Show Answer
Correct Answer: C [March-June]
Notes:
Zaid season in India lasts from March to June. Major crops such as watermelon, cucumber, muskmelon, and various vegetables are grown during this period. The zaid crop season falls between the rabi and kharif seasons. Zaid crops typically require warm dry weather for growth and longer days for flowering.
