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 is called GDP Deflator?
[A] Ratio of nominal to real GNP
[B] Ratio of nominal to real CPI
[C] Ratio of real to nominal GNP
[D] Ratio of nominal to real GDP
Show Answer
Correct Answer: D [Ratio of nominal to real GDP]
Notes:
The GDP deflator is a measure of price inflation. It is calculated by dividing Nominal GDP by Real GDP and then multiplying by 100. Nominal GDP is the market value of goods and services produced in an economy, unadjusted for inflation
12. Which statement compares the State Legislative Council and Rajya Sabha correctly? (UPSC Prelims 1992)
[A] One-fourth of Legislative Council retires every 18 months, one-third in Rajya Sabha every 2 years
[B] No joint sitting for State houses, but joint sitting exists for two Houses of Parliament
[C] Bills except Money Bills cannot start in State Legislative Council or Rajya Sabha
[D] Rajya Sabha has twelve nominated members, State Legislative Council has none
Show Answer
Correct Answer: B [No joint sitting for State houses, but joint sitting exists for two Houses of Parliament]
Notes:
The Constitution provides a joint sitting provision under Article 108 for Lok Sabha and Rajya Sabha. No such provision exists for resolving disagreements between the State Legislative Assembly and Legislative Council under Article 169 or State Legislature rules. At state level, bills stalled between houses lapse or depend on assembly’s decision.
13. Which among the following is related to utility?
[A] Satisfaction and wants
[B] Necessity and wants
[C] Usefulness and need
[D] None of the above
Show Answer
Correct Answer: A [Satisfaction and wants]
Notes:
Utility is the power or capacity of a commodity to satisfy a human want or it is the amount of satisfaction that a person gets from the consumption of a good or service. It is measured in utils.
14. What does decreasing contribution of agriculture to GDP signifies?
[A] Country is becoming poor
[B] Country is becoming less developed
[C] Country is becoming more developed
[D] None of the above
Show Answer
Correct Answer: C [Country is becoming more developed]
Notes:
The movement from an agrarian-based economy to a manufacturing and the service-based economy shows that, a country is moving from a less developed phase to a developing and developed phase.
15. In which sector, government owns most of the assets and provides all the services?
[A] Public sector
[B] Primary sector
[C] Quinary sector
[D] Organised sector
Show Answer
Correct Answer: A [Public sector]
Notes:
In the public sector, the government owns most of the assets and it is the part of the economy concerned with providing various governmental services. The purpose of the public sector is not just to earn profits. Governments raise money through taxes and other ways to meet expenses on the services rendered by it.
16. Where was the first train called Red Hill Railway was launched in 1837 in India?
[A] Bombay
[B] Kolkata
[C] Madras
[D] Hyderabad
Show Answer
Correct Answer: C [Madras]
Notes:
The first train ran from Red to Chintadripet bridge in Madras and in 1837. It was called Red Hill Railway. It was used for freight transport.
17. Who is the father of the White Revolution in India?
[A] M.S.Swaminathan
[B] Verghese Kurien
[C] R.S.Sodhi
[D] Sam Pitroda
Show Answer
Correct Answer: B [Verghese Kurien]
Notes:
Verghese Kurien is known as the ‘Father of the White Revolution’ in India, was a social entrepreneur whose “billion-liter idea”, Operation Flood, the world’s largest agricultural dairy development program which made India Self sufficient in Dairy products.
18. What is the objective of a welfare state?
[A] To provide health facilities to all citizens
[B] Provide welfare to poorest of the poor
[C] To ensure maximum benefit to maximum people
[D] None of these
Show Answer
Correct Answer: C [To ensure maximum benefit to maximum people]
Notes:
India considers itself as a welfare state. A welfare state is a concept of government in which the state play a key role in the protection and promotion of the economic and social well being of its citizens. It is based on the Principle of equality of opportunities equitable distribution of health and public responsibility for these unable to able themselves of the minimal provision for a good life.
19. Who is the ex-officio Chairman of NITI Aayog?
[A] President of India
[B] Planning Minister
[C] Finance Minister
[D] Prime Minister of India
Show Answer
Correct Answer: D [Prime Minister of India]
Notes:
NITI Aayog was established in 2015, replacing the Planning Commission. The Prime Minister of India is the ex-officio Chairperson of NITI Aayog. Shri Narendra Modi, as of 2024, serves as the Chairman. The organization also has a Vice Chairperson, CEO, and a governing council comprising Chief Ministers of states and union territories.
20. What is India’s estimated share in global merchandise exports in 2024?
[A] 1%
[B] 1.8%
[C] 2.5%
[D] 3.2%
Show Answer
Correct Answer: B [1.8%]
Notes:
India’s share of global merchandise exports reached approximately 1.8% in 2024. This share increased from about 1% in 2005. Merchandise exports include goods such as agricultural products, textiles, chemicals, and engineering goods. India’s services exports have also grown significantly, but merchandise exports remain a key component of total export earnings.
