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. India’s Foreign Trade Policy also known as Export Import Policy (EXIM) is framed and implemented by the:
[A] Director General of Foreign Trade (DGFT)
[B] Home Ministry
[C] Niti Aayog
[D] Finance commission
Show Answer
Correct Answer: A [ Director General of Foreign Trade (DGFT) ]
Notes:
The Director General of Foreign Trade is responsible for implementing the India’s Foreign Trade Policy.
12. BGREI scheme mainly aims to increase production of which crop in Eastern states?
[A] Wheat
[B] Pulses
[C] Rice
[D] Oilseeds
Show Answer
Correct Answer: C [Rice]
Notes:
The Bringing Green Revolution to Eastern India (BGREI) scheme started in 2010-11. It is implemented as a sub-scheme of Rashtriya Krishi Vikas Yojana (RKVY). BGREI is operational in Assam, Bihar, Chhattisgarh, Jharkhand, Odisha, eastern Uttar Pradesh, and West Bengal. The main focus of BGREI is to improve the production and productivity of rice in these eastern states using improved technology and crop management.
13. Which of the following is not included in the calculation of national income?
[A] Value of annual goods production
[B] Value of annual services
[C] Value of old goods sold
[D] Value of new technology
Show Answer
Correct Answer: D [Value of new technology]
Notes:
In the calculation of national income, the value of old goods sold is not included. National income accounting typically focuses on the value of goods and services produced within a specific period, usually a year. It includes the production of new goods and the provision of services. However, the resale of old goods does not contribute to the current production of goods and services and therefore is not counted. Additionally, non-market services such as the services of a housewife, which are not paid for in the market, are also not included in the national income calculations. This exclusion is due to the difficulty in accurately measuring the economic value of such non-market services.
14. What is the purpose of Ways and Means Advances scheme?
[A] to give insurance to the large corporates for their investment in abroad projects
[B] to handle the mismatch between cash flow of the receipts and payments of the State Governments
[C] to promote export oriented projects by giving interest free credit
[D] None of the above
Show Answer
Correct Answer: B [to handle the mismatch between cash flow of the receipts and payments of the State Governments]
Notes:
Ways and means advances (WMA) is a mechanism used by Reserve Bank of India (RBI) to help the states tide over temporary mismatches in the cash flow of their receipts and payments.
15. To which of the following sectors largest allocation in the Seventh Five- Year Plan was given? (UPSC Prelims 1987)
[A] Agriculture
[B] Transport
[C] Education
[D] Energy
Show Answer
Correct Answer: A [Agriculture]
Notes:
Largest allocation in the Seventh Five- Year Plan has been given to agriculture. The main objectives of the Seventh Five–Year Plan were to establish growth in areas of increasing economic productivity, production of food grains, and generating employment through “Social Justice”.
16. Who among the following created the Human development index?
- Amartya Sen
- Mehboob Ul Haq
- Paul Krugman
- Walter Gillies
Choose the correct option from the code given below:
[A] 1 and 2 only
[B] 2 and 3 only
[C] 1 and 4 only
[D] 3 and 4 only
Show Answer
Correct Answer: A [1 and 2 only]
Notes:
Amartya sen and Mehboob Ul Haq created the Human Development Index which captures the development of human beings of a country as development is not only about economic indicators.
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 was the second Five Year plan known as?
[A] Nehru-Mahalonibis
[B] Harrod-Domar
[C] Mountbatton-Nehru
[D] Nehru-Swami
Show Answer
Correct Answer: A [Nehru-Mahalonibis]
Notes:
The Second Plan was particularly in the development of the public sector and “rapid Industrialisation”. The plan followed the Mahalanobis model, an economic development model developed by the Indian statistician Prasanta Chandra Mahalanobis in 1953. The plan attempted to determine the optimal allocation of investment between productive sectors in order to maximize long-run economic growth.
19. Which Five-year plan introduced the state secondary education boards?
[A] 5th
[B] 3rd
[C] 2nd
[D] 4th
Show Answer
Correct Answer: B [3rd]
Notes:
During the second five-year plan State electricity boards and state secondary education boards were formed. States were made responsible for secondary and higher education. State road transportation corporations were formed, and local road building became a state responsibility.
20. Which among the following is correct for a Registered seed?
[A] Genetic identitiy is not maintained
[B] Purity of genes is considered
[C] A Violet color certificate is issued
[D] It is breeded only by public sector
Show Answer
Correct Answer: B [Purity of genes is considered]
Notes:
A registered seed shall be the progeny of foundation seed that is so handled as to maintain its genetic identity and purity according to standard specified for the particular crop being certified. A purple color certificate is issued.
