Indian Economy MCQs

Notes:
First statement is correct. Adopt a Heritage project is a key initiative of Ministry of Tourism in close collaboration with Ministry of Culture and Archaeological Survey of India (ASI). Second statement is correct. The project aims to entrust heritage sites to the public sector and private sector companies and individuals for the development of tourist amenities. The private, public or individual entities holding the responsibility for development of a tourist site are treated as “Monument Mitras”. The basic and advanced amenities of the tourist destinations are being provided by them. Also, they hold the responsibility to look after the operations and the maintenance of the amenities.

Notes:
India’s first tribal circuit tourism project under the Swadesh Darshan scheme has launched at Gangrel in Chhattisgarh on September 13. It covers 13 sites in Chhattisgarh which are Jashpur, Kunkuri, Mainpat, Kamleshpur, Maheshpur, Kurdar, Sarodadadar, Gangrel, Kondagaon, Nathiya Nawagaon, Jagdalpur, Chitrakoot and Tirthgarh. Under the tribal circuit theme of the scheme the Ministry of Tourism has sanctioned 4 projects to Nagaland, Telangana and Chhattisgarh for Rs. 380 crore. Major components sanctioned in the tribal circuit theme include eco log huts, craft haats, souvenir shops or kiosk, tourist reception and facilitation centres, open amphitheatre, tribal interpretation centres, workshop centres, tourist amenities centres, last mile connectivity, wayside amenities, viewpoints, nature trails, solar illuminations, signages and solid waste management among others. The Swadesh Darshan scheme was launched in 2014 -15 for development of thematic circuits in the country in a planned and prioritized manner.

Notes:
The real exchange rate measures the price of foreign goods relative to the price of domestic goods. Mathematically, the real exchange rate is the ratio of a foreign price level and the domestic price level, multiplied by the nominal exchange rate.

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.

Notes:
In 2023–2024, global rice production was about 520 million metric tons. International rice trade accounts for less than 10 percent of total production. Rice is mainly consumed domestically in producing countries such as China and India. The largest exporters export a small share of total production. Rice is a staple for over half the world’s population, contributing to low export volumes.

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

Notes:
A monopoly exists when a specific entity is the sole supplier of a particular commodity. This market condition can only occur if the unique product is exclusively sold by one seller, eliminating any form of direct competition. It is regulated by certain laws to prevent marketplace inefficiency. However, a monopoly can lead to innovation as other companies strive to create an alternative or similar product.

Notes:
Arvind Panagariya is an Indian-American economist and a professor of economics at Columbia University, who served as the first vice-chairman of the think-tank Niti Aayog between January 2015 and August 2017.

Notes:
According to the Agriculture Census of India 2015-16, the average size of operational holdings has decreased to 1.08 hectares. Recent estimates, including NABARD All India Rural Financial Inclusion Survey 2016-17, place the average farm size at around 0.74 hectares. The average size was 2.28 hectares in 1970-71. Approximately 86% of Indian farmers are small or marginal with less than 2 hectares.

Notes:
A 2026 Cornell study of 1961-2021 data reported global agricultural productivity increased by 270% while emissions increased by 45%. Land productivity innovations, such as improved seeds and precision fertilizers, played a greater role in reducing emissions than mechanization. These improvements led to more output per acre, preventing expansion of cultivated land and helping limit overall emissions growth.