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 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.
12. Where is the headquarters of Hindustan Zinc Ltd?
[A] Jaipur
[B] Jodhpur
[C] Jaisalmer
[D] Udaipur
Show Answer
Correct Answer: D [Udaipur]
Notes:
Hindustan Zinc Limited (HZL) is an integrated mining and resources producer of zinc, lead, … Chanderiya (Chittorgarh), Debari (Udaipur) & Dariba (Rajsamand) in Rajasthan with total zinc and lead production capacity of 1.0 million tonnes.
13. Who among the following was the first woman to head an Indian public sector bank?
[A] Shikha Sharma
[B] Chanda Kochar
[C] Arundhati Bhattacharya
[D] Ranjana Kumar
Show Answer
Correct Answer: D [Ranjana Kumar]
Notes:
Ranjana Kumar became the first woman to head an Indian public sector bank when she was appointed Chairman and Managing Director of Indian Bank. This made her a notable first in the history of public sector banking in India. Arundhati Bhattacharya is also a landmark figure, but she is known as the first woman Chairperson of State Bank of India, not the first woman to head any public sector bank. Hence, the correct answer is Ranjana Kumar.
14. Which of the following are money markets instruments?
[A] A 14-day repurchase agreement of Treasury 8% 2007
[B] A treasury bill with 7 days to maturity
[C] A 3-month certificate of deposit
[D] All of the above
Show Answer
Correct Answer: D [ All of the above ]
Notes:
The short-term debts and securities sold on the money markets—which are known as money market instruments—have maturities ranging from one day to more.
15. Who among the following economist was awarded the ‘Order of the Rising Sun’ by the Japanese government?
[A] Amartya Sen
[B] Jagadish Banerjee
[C] Amit Mitra
[D] None of the above
Show Answer
Correct Answer: C [Amit Mitra]
Notes:
Amit Mitra was conferred the Order of the Rising Sun by the Government of Japan for his contribution to strengthening India-Japan relations. The honour was announced on April 29, 2006.
16. Which economist is credited for developing theories based on Gandhism?
[A] Jagadish Bhagwati
[B] P.C.Mehalonibis
[C] J.C.Kumarappa
[D] Kaushik Basu
Show Answer
Correct Answer: C [J.C.Kumarappa]
Notes:
J.C.Kumarappa was an Indian economist and a close associate of Gandhiji. A pioneer of rural economic development theories, Kumarappa is credited for developing economic theories based on Gandhism– a school of economic thought he coined “Gandhian Economics”.
17. Which of the following countries follow a Socialist Economic model?
[A] India and China
[B] China and Russia
[C] Japan and Russia
[D] India and Japan
Show Answer
Correct Answer: B [China and Russia]
Notes:
In China and Russia, most decisions were made by the central government. This type of economy was the core of the communist philosophy. So both these economies are based on the socialist model. (Note: As of 2026, China maintains its socialist market economy under the Communist Party, while Russia retains centralized state control in key sectors despite market reforms.)
18. Which sector do the red collar workers belong to?
[A] Primary sector
[B] Secondary sector
[C] Tertiary sector
[D] None of the above
Show Answer
Correct Answer: A [Primary sector]
Notes:
The people involved in the
Primary sector – red collar,
Secondary sector – blue-collar and
Tertiary sector – white collar.
19. Which factor is NOT a main reason India is a developing country in 2026?
[A] Rural population depends on agriculture
[B] Lack of rapid industrialization
[C] Scarcity of capital
[D] High per capita income
Show Answer
Correct Answer: D [High per capita income]
Notes:
India is still classified as developing due to low per capita income. Agriculture dependence, limited industrialization, and scarce capital are other reasons. Despite rapid growth, India’s per capita income remains well below high-income thresholds, keeping it in the developing country category per World Bank standards.
20. Which item is the largest contributor to Indian imports?
[A] Gems and precious metals
[B] Petroleum fuels and oils
[C] Electrical machinery and equipment
[D] Iron and steel
Show Answer
Correct Answer: B [Petroleum fuels and oils]
Notes:
Petroleum fuels and oils consistently top Indian import categories, historically accounting for about 27% of total imports. Main sources include Russia, UAE, and Saudi Arabia. Gems and electrical machinery rank next, but well below petroleum products in share, per recent official trade data and analyses.
