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. What does ‘expropriation’ mean in Foreign Direct Investment (FDI) context?
[A] Government seizes a foreign firm’s property, usually with compensation
[B] Investor acquires property rights in host country
[C] Estimating potential profits and returns from FDI
[D] Government bans profit repatriation to home country

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12. Which of the following is the distribution of the burden of paying a tax?
[A] Sharing of tax burden
[B] Shifting of the tax
[C] Incidence of a tax
[D] Tax capitalization

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13. Which of the following curves represents the demand of all consumers in the market taken together at different levels of the price of the good?
[A] Monotonic
[B] Indifferent
[C] Market demand
[D] Diminishing

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14. Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if?
[A] Any of the borrowal account of the enterprise remains NPA for ten months or more
[B] Any of the borrowal account of the enterprise remains NPA for eight months or more
[C] Any of the borrowal account of the enterprise remains NPA for five months or more
[D] Any of the borrowal account of the enterprise remains NPA for three months or more

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15. Which of the following is the management of securities of the corporate sector offered to the public on a regular basis?
[A] Corporate Issues Management
[B] Public Issues Management
[C] Securities Issues Management
[D] Private Issues Management

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16. If capital stock is everlasting, what is the depreciation rate? (UPSC Prelims 1991)
[A] Zero
[B] High
[C] Low
[D] Infinite

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17. What is the primary basis for defining a small-scale industry in India? (UPSC Prelims 1992)
[A] The market outreach of a unit
[B] The size of annual turnover
[C] Investment in plant and machinery
[D] Products listed by the Ministry of Industry

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18. Which one of the following statements regarding the levying, collecting and distribution of Income Tax is correct? (UPSC Prelims 1999)
[A] The Union levies, collects and distributes the proceeds of income-tax between itself and the States
[B] The Union levies, collects and keeps all the proceeds of income-tax to itself
[C] The Union levies and collects the tax but all the proceeds are distributed among the States
[D] Only the surcharge levied on income-tax is shared between the Union and the States

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19. Which economist is credited for developing theories based on Gandhism?
[A] Jagadish Bhagwati
[B] P.C.Mehalonibis
[C] J.C.Kumarappa
[D] Kaushik Basu

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20. Which among the following countries have traditional economic system?
[A] India
[B] USA
[C] Germany
[D] None of the above

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