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. 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.
12. Which of the following is true about NBFC?
[A] NBFC cannot accept demand deposits
[B] NBFCs cannot issue cheques drawn on itself
[C] Deposit insurance facility of DICGC is not available to depositors of NBFCs
[D] All are true
Show Answer
Correct Answer: D [All are true]
Notes:
All the three points mentioned above are true. These points differentiate NBFC and banks
13. The standard of living of a nation is best judged by which metric? (UPSC Prelims 1986)
[A] Increase in GNP per capita at factor cost
[B] Increase in GDP per capita (PPP)
[C] Human Development Index (HDI)
[D] Genuine Progress Indicator (GPI)
Show Answer
Correct Answer: C [Human Development Index (HDI)]
Notes:
The Human Development Index (HDI) was introduced in 1990 by the United Nations Development Programme. It combines three dimensions: life expectancy at birth, mean and expected years of schooling, and gross national income per capita adjusted for purchasing power parity. HDI is published annually in the Human Development Report covering most United Nations member countries.
14. Who authored “The Economics of Imperfect Competition”?
[A] E.H. Chamberlin
[B] J.R. Hicks
[C] Joan Robinson
[D] Dean Baker
Show Answer
Correct Answer: C [Joan Robinson]
Notes:
Joan Robinson, a British economist, published “The Economics of Imperfect Competition” in 1933. The book introduced the concept of imperfect competition and analyzed distribution, allocation, and exploitation, marking a significant contribution to microeconomic theory.
15. Which of the following is not an example of the secondary sector?
[A] Artisan production
[B] Textile Mills
[C] Food production
[D] Nurse
Show Answer
Correct Answer: D [Nurse]
Notes:
The secondary sector includes industries where finished products are made from natural materials produced in the primary sector. Industrial production, cotton fabric, sugar cane production artisan production, Mills producing textiles, Factories producing steel, chemicals, plastic, car activities come under this sector.
16. 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.
17. Which farming method uses alternating strips of crops to prevent soil erosion?
[A] Row cropping
[B] Intercropping
[C] Strip cropping
[D] Relay cropping
Show Answer
Correct Answer: C [Strip cropping]
Notes:
Strip cropping involves planting crops in alternating strips along the contours of land. This method reduces soil erosion by establishing barriers that slow water flow and trap sediment. The practice is used on sloped land and with crops like wheat, hay, and corn. Strip cropping helps decrease soil loss by 65 to 75 percent compared to open field planting. It stabilizes soil and improves water infiltration.
18. Which is the main root cause of food insecurity?
[A] Malnutrition
[B] Lack of knowledge about nutrition
[C] Poverty and limited income
[D] Excess consumption of fatty foods
Show Answer
Correct Answer: C [Poverty and limited income]
Notes:
Poverty and limited income reduce access to sufficient nutritious food. Food insecurity occurs when households cannot afford adequate food. In 2022, nearly 350 million people globally were food insecure due to poverty. Economic hardship remains the principal driver. Malnutrition is a result, not a cause, of food insecurity. The United Nations identifies poverty as the leading root cause of food insecurity worldwide.
19. Which state in India is the largest producer of Mulberry?
[A] Karnataka
[B] Kerala
[C] Tamil Nadu
[D] Andhra Pradesh
Show Answer
Correct Answer: A [Karnataka]
Notes:
Karnataka is the largest producer of Mulberry silk in India, accounting for approximately 42% of the country’s total mulberry raw silk production. It is the leading state in sericulture, with major production hubs in districts like Ramanagara, Chikkaballapura, and Kolar. Other mulberry producing states are Andhra Pradesh, Assam and Bodoland, West Bengal, Jharkhand and Tamil Nadu.
20. Which state has the largest buffalo population in India?
[A] Madhya Pradesh
[B] Uttar Pradesh
[C] Punjab
[D] Gujarat
Show Answer
Correct Answer: B [Uttar Pradesh]
Notes:
According to the 20th Livestock Census released in 2019, Uttar Pradesh had the highest buffalo population among all Indian states. The census recorded more than 30 million buffaloes in Uttar Pradesh. The 20th Livestock Census provides the latest comprehensive livestock data at state and national levels, with the next cycle scheduled in 2024.
