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 countries collaborated with Bhilai Steel plant for its establishment?
[A] Britain
[B] USA
[C] Russia
[D] Japan
Show Answer
Correct Answer: C [Russia]
Notes:
The Bhilai plant and the Bokaro Steel Plant in Jharkhand were commissioned to collaborate with Russia. The agreement for constructing Bhilai plant was signed with the Soviet Union in 1955 after Indian Prime Minster Jawaharlal Nehru visited Magnitogorsk, the capital of Russian iron and steel works.
12. Per Capita Income of a country is obtained by dividing National Income by which of the following?
[A] Total working population
[B] Total population of the country
[C] Area of the country
[D] Volume of the capital used
Show Answer
Correct Answer: B [ Total population of the country ]
Notes:
Per capita income or average income measures the average income earned per person in a given area in a specified year. It is calculated by dividing the area’s total income by its total population.
13. Which one out of the following is least liquid among the measures of money supply?
[A] M1
[B] M2
[C] M3
[D] M4
Show Answer
Correct Answer: D [M4]
Notes:
Liquidity order is M1>M2>M3>M4 i.e. M1 is most liquid and M4 is least liquid.
14. What is the main activity of Infrastructure Finance Companies?
[A] Providing direct loans for infrastructure projects and refinancing
[B] Marketing services for construction firms
[C] Real estate sales and property management
[D] Retail banking and consumer lending
Show Answer
Correct Answer: A [Providing direct loans for infrastructure projects and refinancing]
Notes:
Infrastructure Finance Companies in India are registered with the Reserve Bank of India. They primarily provide long-term financial assistance for infrastructure projects. Their main activities include lending for infrastructure development, refinancing, and offering subordinated loans. They also facilitate equity participation and consulting services for large-scale infrastructure projects across sectors such as energy, transportation, and telecommunications. They do not engage in retail banking or property management.
15. Which of the following problems is needed to be resolved under issue management?
[A] Problems with staff
[B] Technical failures
[C] Material shortages
[D] All of the above
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Correct Answer: D [All of the above]
Notes:
Issue management is the process of identifying and resolving issues. Problems with staff or suppliers, technical failures, material shortages – these might all have a negative impact on your project
16. Which among the following best describes scarcity in economics?
[A] Low demand for good
[B] High demand and less supply of good
[C] Low demand as people don’t want to consume it
[D] Goods available are not free
Show Answer
Correct Answer: D [Goods available are not free]
Notes:
Scarcity means limited goods are for more number of people. In an Economy the resources are scarce and the wants are unlimited.
17. What is subtracted from personal income to get personal disposable income?
[A] Indirect taxes
[B] Direct taxes
[C] subsidies
[D] None of the above
Show Answer
Correct Answer: B [Direct taxes]
Notes:
Personal Disposable Income(PDI) is obtained when personal direct taxes are subtracted from personal income.
PDI = Personal Income – Direct Taxes
PDI = Consumption + Saving
18. What is referred to as the “invisible hand” in a market economy?
[A] Trade
[B] Money
[C] Demand and supply
[D] Competition
Show Answer
Correct Answer: D [Competition]
Notes:
Adam Smith’s “invisible hand” describes competition, which guides market resources efficiently and benefits society even if individuals act in self-interest. This concept is foundational in classical economic theory and emphasizes the self-regulating nature of competitive markets.
19. The transformation of goods from the primary sector into economic goods is known as?
[A] Input
[B] Production
[C] Output
[D] Efficiency
Show Answer
Correct Answer: B [Production]
Notes:
The transformation of raw material into a useful economic good is known as production. It is part of the secondary sector.
20. Which country is the largest producer of castor in the world?
[A] China
[B] India
[C] Australia
[D] Brazil
Show Answer
Correct Answer: B [India]
Notes:
India accounts for 88.5% of global castor oil seed production. In 2024-25, India’s castor production reached 15.88 lakh tonnes by the second advance estimates. Gujarat produces over 70% of the country’s castor oil. India is the top global exporter of castor oil, holding over 87% market share.
