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 also regarded as Disguised unemployment?
[A] Under employment
[B] Frictional unemployment
[C] Seasonal unemployment
[D] Cyclical unemployment
Show Answer
Correct Answer: A [Under employment]
Notes:
Under employment is a condition in which people in labor force are employed at less than full time or require regular job or at jobs inadequate with respect to training or economic need.
12. What does low price elasticity of demand for a commodity show?
[A] Necessity of good
[B] It is luxury good
[C] It doesn’t have importance
[D] It is inferior good
Show Answer
Correct Answer: A [Necessity of good]
Notes:
Price Elasticity is the measure of the degree of responsiveness of demand for a commodity to change in its price. That means the low price elasticity is demand doesn’t change with the price. These are the necessary goods.
13. Which economy is based on the state ownership of resources and factors of production?
[A] Capitalist economy
[B] Mixed economy
[C] Socialist economy
[D] None of the above
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Correct Answer: C [Socialist economy]
Notes:
In Socialist economy a large part of the economic system is controlled by a centralized power. Since the government is such a central feature of the economy, it is often involved in everything from planning to redistributing resources.
14. Which is not a characteristic of the Indian Economy?
[A] Chronic unemployment and underemployment
[B] High poverty
[C] Equal distribution of wealth
[D] Low labor productivity
Show Answer
Correct Answer: C [Equal distribution of wealth]
Notes:
The Indian economy has significant wealth inequality. The 2026 World Inequality Report states that the top 1% of India’s population owns 40% of the country’s wealth. The richest 10% hold approximately 65% of the total wealth. There is no policy or data showing equal wealth distribution in India. Income and wealth disparities remain persistent across the population.
15. Which among the following is caused by a lack of proper infrastructure?
[A] Low export cost
[B] Less development of interior region
[C] More imports
[D] High cost of goods
Show Answer
Correct Answer: B [Less development of interior region]
Notes:
Lack of proper infrastructure slows economic activity and reduces access to markets, power, transport, and communication. As a result, interior or remote regions often develop more slowly than better-connected areas. This is a recognized effect of infrastructure deficiency in economic development.
16. Which advancement most reduced agricultural emissions while boosting productivity?
[A] Labor-saving machinery and mechanization
[B] Land productivity improvements like better seeds and precision fertilizer use
[C] Increased irrigation systems
[D] Expansion of agricultural land area
Show Answer
Correct Answer: B [Land productivity improvements like better seeds and precision fertilizer use]
Notes:
A 2026 Cornell study of 1961-2021 data reported global agricultural productivity increased by 270% while emissions increased by 45%. Land productivity innovations, such as improved seeds and precision fertilizers, played a greater role in reducing emissions than mechanization. These improvements led to more output per acre, preventing expansion of cultivated land and helping limit overall emissions growth.
17. Which among the following is / are Kharif Crop(s)?
- Maize
- Rice
- Groundnut
- Cotton
Select the correct option from the codes given below:
[A] 1, 2 and 3
[B] 1 and 3
[C] 2 and 4
[D] 1, 2, 3 and 4
Show Answer
Correct Answer: D [1, 2, 3 and 4]
Notes:
The kharif crops include rice, maize, sorghum, pearl millet/bajra, finger millet/ragi (cereals), arhar (pulses), soyabean, groundnut (oilseeds), and cotton.
18. What is growing two or more crops per year on the same land called?
[A] Mixed farming
[B] Multiple cropping
[C] Mono cropping
[D] Intercropping
Show Answer
Correct Answer: B [Multiple cropping]
Notes:
Multiple cropping is agricultural practice of cultivating two or more crops on the same land in a year. This system increases land productivity by producing more than one crop within a single year. It can be done through arrangements like sequential cropping or relay cropping. The concept is used globally to achieve food security and efficient resource use.
19. What is India’s horticulture cultivation area in 2024–25 (third advance estimates)?
[A] 29.1 million hectares
[B] 29.5 million hectares
[C] 28.7 million hectares
[D] 30.0 million hectares
Show Answer
Correct Answer: B [29.5 million hectares]
Notes:
The Ministry of Agriculture & Farmers Welfare released third advance estimates on 27 November 2025 for 2024–25. The total area under horticultural crops in India is 29.488 million hectares for 2024–25. The area was 29.086 million hectares in 2023–24. Horticulture includes fruits, vegetables, and plantation crops. These estimates are part of annual agriculture data collection at the national level.
20. Which is the only country to produce all types of commercial silks?
[A] China
[B] India
[C] Australia
[D] USA
Show Answer
Correct Answer: B [India]
Notes:
India has the unique distinction of being the only country producing all the five known commercial silks, namely, mulberry, tropical tasar, oak tasar, eri and muga, of which muga with its golden yellow glitter is unique and prerogative of India.
