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. Kudremukh iron ore was historically exported from which port?
[A] Cochin
[B] Chennai
[C] Mangalore
[D] Karwar
Show Answer
Correct Answer: C [Mangalore]
Notes:
The Kudremukh Iron Ore Company Limited, formed in 1976 in Karnataka, transported mined ore via slurry pipeline to Panambur. Export operations used New Mangalore Port. Kudremukh mine ceased operations in 2006 after Supreme Court directive. KIOCL now exports pellets through Mangalore port. New Mangalore Port is a major port located in Karnataka on the Arabian Sea, operational since 1974.
12. Which of the following curves represents the demand of all consumers in the market taken together at different levels of the price of the good?
[A] Monotonic
[B] Indifferent
[C] Market demand
[D] Diminishing
Show Answer
Correct Answer: C [Market demand]
Notes:
The market demand curve is the summation of all the individual demand curves in a given market. It shows the quantity demanded of the good by all individuals at varying price points.
13. Which of the following is the management of securities of the corporate sector offered to the public on a regular basis?
[A] Corporate Issues Management
[B] Public Issues Management
[C] Securities Issues Management
[D] Private Issues Management
Show Answer
Correct Answer: B [Public Issues Management]
Notes:
Public Issue Management is the management of securities of the corporate sector offered to the public on a regular basis, and existing shareholders on a rights basis, is known as public issue management.
14. ‘Terms of trade’ between agriculture and industry has reference to?
[A] Relative price movements between the two sectors
[B] Relative quantities of production in the two sectors
[C] The extent of trade existent between the two sectors
[D] Relative international valuation of the agricultural produce in contrast to the industrial produce
Show Answer
Correct Answer: D [Relative international valuation of the agricultural produce in contrast to the industrial produce]
Notes:
Terms of trade between agriculture and industry can be thought of as the ratio of prices of agricultural products to that of prices of industrial products. This is analogous to International Terms of Trade that are given by the formula: (Price of exports)/ (price of imports).
15. What is a free good?
[A] Opportunity cost = Maximum
[B] Opportunity cost = Negative
[C] Opportunity cost = 0
[D] A good which is freely available to all
Show Answer
Correct Answer: C [Opportunity cost = 0]
Notes:
A free good is a good with zero opportunity cost. This means it can be consumed in as much quantity as needed without reducing its availability to others. For Example sunlight, ideas, music or air.
16. Who is the author “The Theory of Economic Growth”?
[A] Gary Becker
[B] Mark Skousen
[C] Israel Kirzner
[D] W Arthur Lewis
Show Answer
Correct Answer: D [W Arthur Lewis]
Notes:
Sir William Arthur Lewis (23 January 1915 – 15 June 1991) was an economist well known for his contributions in the field of economic development. In 1979 he was awarded the Nobel Memorial Prize in Economic Science . He had dual Saint Lucian and British citizenships. Lewis published The Theory of Economic Growth in 1955 in which he sought to “provide an appropriate framework for studying economic development,” driven by a combination of “curiosity and of practical need.”
17. Which among the following sectors work can be outsourced?
[A] Primary sector
[B] Secondary sector
[C] Tertiary sector
[D] Public sector
Show Answer
Correct Answer: C [Tertiary sector]
Notes:
The tertiary sector’s activities help in the development of the primary and secondary sectors. By itself, economic activities in the tertiary sector do not produce goods so they can be outsourced.
18. Which among the following is caused by a lack of proper infrastructure?
[A] Low Export cost
[B] Less devlopment of interior region
[C] More imports
[D] High Cost of goods
Show Answer
Correct Answer: B [Less devlopment of interior region]
Notes:
The lack of infrastructure creates a lot of problems mainly regarding the development of interior regions. The two most vital sectors i.e. agriculture and industry could not make much headway in the absence of proper infrastructural facilities in the country. Moreover, due to the absence of proper infrastructural facilities, the development potential of different regions of the country largely remains under-utilized.
19. 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.
20. Which scheme is NOT a component of Pradhan Mantri Krishi Sinchayee Yojana?
[A] Accelerated Irrigation Benefits Programme (AIBP)
[B] Per Drop More Crop (PDMC)
[C] Watershed Development Component (WDC)
[D] Pradhan Mantri Fasal Bima Yojana (PMFBY)
Show Answer
Correct Answer: D [Pradhan Mantri Fasal Bima Yojana (PMFBY)]
Notes:
Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) was launched in 2015. Its main components are Accelerated Irrigation Benefits Programme, Per Drop More Crop, and Watershed Development Component. Pradhan Mantri Fasal Bima Yojana (PMFBY) is a separate crop insurance scheme, launched in 2016, and is not a component under PMKSY.
