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 is India’s first shore-based integrated steel plant?
[A] Durgapur Steel Plant
[B] Salem Steel Plant
[C] Bhadravati Steel Plant
[D] Visakhapatnam Steel Plant
Show Answer
Correct Answer: D [Visakhapatnam Steel Plant]
Notes:
Visakhapatnam Steel Plant is India’s first shore-based integrated steel plant. It is also known as Rashtriya Ispat Nigam Limited (RINL). The project was sanctioned in 1982, while the plant was commissioned in phases during the early 1990s. Located at Visakhapatnam in Andhra Pradesh, it was developed with foreign technological assistance and became a major steel production unit on India’s eastern coast.
12. Which of the following rate is charged by banks to their most credit worthy customers?
[A] Prime Lending Rate
[B] Repo Rate
[C] Statutory Liquidity Rate
[D] Bank Rate
Show Answer
Correct Answer: A [Prime Lending Rate]
Notes:
A prime rate or prime lending rate is an interest rate used by banks, usually the interest rate at which banks lend to favoured customers—i.e., those with good credit.
13. What are key outcomes of agricultural mechanization? (UPSC Prelims 1988)
[A] Lower cost, higher productivity, and timely operations
[B] Higher productivity and reduced employment
[C] Lower cost, higher productivity, reduced loss
[D] Lower cost, higher productivity, timely operations, reduced employment
Show Answer
Correct Answer: C [Lower cost, higher productivity, reduced loss]
Notes:
Mechanization in agriculture reduces per unit operational costs by increasing efficiency. It enhances per unit productivity and crop yields by improving timeliness of operations. Mechanization minimizes grain losses during harvesting due to precision of machines. Studies in India report that mechanized land preparation decreases labor requirement from 31 hours to around 3 hours per hectare. Improved technical efficiency and better management practices are documented benefits of agricultural mechanization.
14. If capital stock is everlasting, what is the depreciation rate? (UPSC Prelims 1991)
[A] Zero
[B] High
[C] Low
[D] Infinite
Show Answer
Correct Answer: A [Zero]
Notes:
Everlasting capital stock does not lose value or efficiency, so the depreciation rate is zero as no part decreases in utility or worth over time.
15. What does marginal utility in economics signify?
[A] Small utility
[B] Additional utility
[C] Minimum utility
[D] Satisfied utility
Show Answer
Correct Answer: B [Additional utility]
Notes:
Marginal utility refers to the extra satisfaction or benefit gained from consuming one additional unit of a good or service. In other words, it measures the added utility derived from the next unit consumed.
16. Which type of Economy is Indian Economy?
[A] Mixed
[B] Market
[C] Capitalist
[D] Socialist
Show Answer
Correct Answer: A [Mixed]
Notes:
Indian Economy is a mixed economy where both state and market play a key role in the management of economy. In India both the Public sector as well as the private sector coexist.
17. Which economist famously challenged the view that free markets automatically provide full employment?
[A] John Maynard Keynes
[B] J S Mill
[C] Milton Friedman
[D] Adam Smith
Show Answer
Correct Answer: A [John Maynard Keynes]
Notes:
John Maynard Keynes argued that market economies can settle at underemployment equilibrium, especially during downturns, so full employment is not guaranteed automatically. His ideas formed the basis of Keynesian economics and influenced modern macroeconomic policy, particularly during recessions.
18. Which type of unemployment is mostly seen in the Primary sector?
[A] Structural unemployment
[B] Disguised unemployment
[C] Cyclical unemployment
[D] Frictional unemployment
Show Answer
Correct Answer: B [Disguised unemployment]
Notes:
People working in the Primary sector remain unemployed most of the time in a year. This sector has more workers than required. This type of unemployment is known as disguised unemployment.
19. In which year, the Mid-day meal scheme was launched in India?
[A] 1996
[B] 1994
[C] 1995
[D] 1997
Show Answer
Correct Answer: C [1995]
Notes:
Mid-Day Meal Scheme was launched with a view to enhancing enrolment, retention and attendance and simultaneously improving nutritional levels among children, the National Programme of Nutritional Support to Primary Education (NP-NSPE) was launched as a Centrally Sponsored Scheme on 15th August 1995.
20. Which country leads the world in silk production?
[A] India
[B] China
[C] USA
[D] Brazil
Show Answer
Correct Answer: B [China]
Notes:
China is the largest silk-producing country globally. In 2022, China accounted for approximately 75% of the world’s raw silk output. China’s main silk-producing provinces are Jiangsu, Zhejiang, and Sichuan. The country has been the leading silk producer for several decades, exporting silk products worldwide. The Chinese silk industry is supported by both government initiatives and private sector involvement.
