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 the largest oil refinery in India?
[A] Panipat Refinery
[B] Jamnagar Refinery
[C] Digboi Refinery
[D] Kochi Refinery
Show Answer
Correct Answer: B [Jamnagar Refinery]
Notes:
The Jamnagar Refinery is owned by Reliance Industries and is located in Jamnagar, Gujarat. Its crude oil processing capacity is 1.4 million barrels per day. Commissioned in 1999, the refinery complex includes both domestic and export-oriented refinery units. It has the highest Nelson Complexity Index in India, standing at 21.1.
12. Which among the following is not an instrument of fiscal policy?
[A] Taxation
[B] Public expenditure
[C] Public debt
[D] Credit Rationing
Show Answer
Correct Answer: D [Credit Rationing]
Notes:
The 3 main instruments of fiscal policy are government taxation and public expenditure and public debt. Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation’s economy.
13. Which of the following are money markets instruments?
[A] A 14-day repurchase agreement of Treasury 8% 2007
[B] A treasury bill with 7 days to maturity
[C] A 3-month certificate of deposit
[D] All of the above
Show Answer
Correct Answer: D [ All of the above ]
Notes:
The short-term debts and securities sold on the money markets—which are known as money market instruments—have maturities ranging from one day to more.
14. What is the name given to the unemployment which occurs when workers move from one job to another job? (UPSC Prelims 1992)
[A] Seasonal unemployment
[B] Frictional unemployment
[C] Technological unemployment
[D] Cyclical unemployment
Show Answer
Correct Answer: B [Frictional unemployment]
Notes:
Frictional unemployment is a type of unemployment. It is sometimes called search unemployment and can be based on the circumstances of the individual. It is time spent between jobs when a worker is searching for a job or transitioning from one job to another.
15. What is the aggregate of the gross balances of primary income of all resident institutional units knows as?
[A] Gross domestic Product
[B] Gross national product
[C] Gross National income
[D] Net national product
Show Answer
Correct Answer: C [Gross National income]
Notes:
Gross National Income is the aggregate value of the gross balances of the primary income of all resident institutional units.
16. Which economist is infamous for the series of economic shocks that rocked America and the world during his tenure as Chairman of the Federal Reserve?
[A] Alan Greenspan
[B] Jerome Powell
[C] Paul Volcker
[D] Roy A. Young
Show Answer
Correct Answer: A [Alan Greenspan]
Notes:
Alan Greenspan served as Chairman of the U.S. Federal Reserve from 1987 to 2006. He is often associated with the monetary policies and market conditions that preceded the 2008 global financial crisis. The original question needed correction only in the spelling of his first name.
17. Who is the author of “Poverty and Famines”?
[A] Abhijit Banerjee
[B] J.R.Harris
[C] Amartya Sen
[D] K.N.Raj
Show Answer
Correct Answer: C [Amartya Sen]
Notes:
Amartya Sen’s “Poverty and Famines”, an essay by Sen on Entitlement and Deprivation (1981) is both theoretical and applied for work. In the essay, several famines have been studied in the working of a general theoretical framework from an original angle. He examined various meanings of poverty and drew attention to the incidence of absolute and relative deprivation.
18. Which state is the largest producer of cocoa in India?
[A] Andhra Pradesh
[B] Kerala
[C] Karnataka
[D] Tamil Nadu
Show Answer
Correct Answer: A [Andhra Pradesh]
Notes:
Andhra Pradesh is the largest producer of cocoa in India, with the highest area under cultivation and the highest production among major cocoa-growing states. Kerala is the second-largest producer, followed by Karnataka and Tamil Nadu.
19. Which is the largest fish producing state in India?
[A] West Bengal
[B] Andhra Pradesh
[C] Gujarat
[D] Kerala
Show Answer
Correct Answer: B [Andhra Pradesh]
Notes:
Andhra Pradesh produced approximately 50 lakh metric tonnes of fish in 2023. The state contributed about 22% of India’s total fish production. Andhra Pradesh leads in aquaculture, especially shrimp farming. Marine and inland fisheries are the primary sources. The state surpassed West Bengal in fish production figures after 2021. West Bengal and Gujarat hold second and third positions respectively in recent years.
20. Rythu Bazar is a direct Agri produce marketing place in which state?
[A] Andhra Pradesh
[B] Telangana
[C] Both
[D] None
Show Answer
Correct Answer: C [Both ]
Notes:
States have introduced direct marketing of farm produce, examples being the Uzhavar Sandhai (Tamil Nadu), the Rythu Bazaar (Andhra Pradesh and Telangana), the Raitha Santhe (Karnataka), the Apni Mandi (Punjab) and the Krushak Bazaar – (Odisha).
