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 clearly define Stagflation? (UPSC Prelims 1984)
[A] Constant rate of inflation
[B] Low inflation with high recession
[C] High inflation with low recession
[D] Stagnation and inflation
Show Answer
Correct Answer: D [Stagnation and inflation]
Notes:
Stagflation is a condition of slow economic growth and relatively high unemployment, or economic stagnation, accompanied by rising prices, or inflation. It can also be defined as inflation and a decline in gross domestic product (GDP).
12. Who among the following economists made a contribution to welfare economics?
[A] Abhijit Banerjee
[B] Amartya Sen
[C] Manmohan Singh
[D] Amit Mitra
Show Answer
Correct Answer: B [Amartya Sen]
Notes:
Amartya Sen has made contributions to welfare economics, social choice theory, economic and social justice, economic theories of famines, and indices of the measure of well-being of citizens of developing countries. His work on welfare economics got him Noble prize in economic in 1998.
13. 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”.
14. Which of the following statements is true regarding a mixed economy?
[A] Private property is not encouraged
[B] Monopoly doesn’t exist in market
[C] The government play a role in the production and distribution of resources
[D] Consumers choice is limited
Show Answer
Correct Answer: C [The government play a role in the production and distribution of resources]
Notes:
In a mixed economic system, there is a cross between a market economy and the Socialist economy. In the most common types of mixed economies, the market is more or less free of government ownership except for a few key areas like transportation or sensitive industries like defense and railroad.
15. Which sector comprises of the activities like exploitation of natural resources?
[A] Secondary
[B] Tertiary
[C] Primary
[D] Unorganised
Show Answer
Correct Answer: C [Primary]
Notes:
The exploitation of natural resources is part of the primary sector. The primary sector includes activities that are directly dependent on nature.
16. The unemployment in agriculture to Mechanization is called?
[A] Disguised Unemplyment
[B] Technical Unemployment
[C] Structural Unemployment
[D] Seasonal Unemployment
Show Answer
Correct Answer: C [Structural Unemployment]
Notes:
The unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.
17. Which company owns Air India as of 2025?
[A] Reliance Group
[B] Tata Group
[C] Adani Group
[D] Birla Industries
Show Answer
Correct Answer: B [Tata Group]
Notes:
Tata Group acquired Air India from the government in 2022, regaining control after nearly 69 years of public ownership. Air India was initially founded as Tata Airlines in 1932 by J.R.D. Tata. The acquisition marks Air India’s return to its original founders.
18. When does the state government declare agricultural drought in an area?
[A] Rainfall less than normal by 10%
[B] Rainfall less than normal by 5%
[C] More than 20% state facing drought
[D] None of the above
Show Answer
Correct Answer: C [More than 20% state facing drought]
Notes:
Declaration of droughts is done by the States. Meteorological drought and agricultural drought are 2 kinds.
Meteorological drought is when rainfall is 10% or more, less than normal. Agricultural drought is when 20% or more area of a state is facing drought.
19. Which of the following certificate is given for a breeder seed?
[A] A golden yellow certificate
[B] A green certificate
[C] A blood red certificate
[D] A pink certificate
Show Answer
Correct Answer: A [A golden yellow certificate]
Notes:
A breeder seed is a progeny of nucleus seed multiplied in large area under supervision of plant breeder / institute / SAUs and monitored by a committee consisting of the representatives of state seed certification agency. A golden yellow colour certificateis issued for this category of seed by producing breeder.
20. Which of the following is classified as a Rabi crop?
[A] Rice
[B] Mustard
[C] Maize
[D] Cotton
Show Answer
Correct Answer: B [Mustard]
Notes:
Mustard is sown in the Rabi season from October to December and harvested between February and April. Major Rabi crops in India include wheat, barley, mustard, peas, and gram. Rabi crops grow with the help of rainwater that has percolated into the ground post-monsoon. Mustard is mainly cultivated in states like Rajasthan, Uttar Pradesh, Haryana, and Madhya Pradesh.
