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. Using iron instead of wooden ploughs is an example of which technology? (UPSC Prelims 1983)
[A] Obsolete technology
[B] Appropriate technology
[C] Redundant technology
[D] Ultimate technology
Show Answer
Correct Answer: B [Appropriate technology]
Notes:
Appropriate technology refers to methods or tools that are affordable, locally adaptable, and suited to the community’s needs. Iron ploughs replace less durable wooden ones, improving productivity and lifespan without requiring advanced infrastructure. The shift increases agricultural efficiency in areas with limited resources. This practice matches the concept of appropriate technology in rural agricultural settings.
12. What mainly makes national income calculation difficult in India? (UPSC Prelims 1983)
[A] Large population growth
[B] Very low per capita income
[C] Existence of non-monetized sectors
[D] Insufficient government infrastructure
Show Answer
Correct Answer: C [Existence of non-monetized sectors]
Notes:
India has a large non-monetized sector, especially in rural areas, where many goods and services are exchanged through barter or kept for self-consumption. This makes it challenging to assign monetary values during national income calculations. The Central Statistical Office reports this as a major obstacle for accurate estimation since such transactions are not recorded in the monetary economy.
13. Which of these is a conventional source of energy? (UPSC Prelims 1987)
[A] Geothermal
[B] Coal
[C] Solar
[D] Wind
Show Answer
Correct Answer: B [Coal]
Notes:
Coal is a fossil fuel formed from plant remains over millions of years. It has been used extensively in thermal power plants. India is the second largest producer of coal as of 2023. Coal is classified as a non-renewable, conventional energy source. It primarily consists of carbon, hydrogen, oxygen, nitrogen, and sulfur.
14. What was India’s share in world tea exports in 2024?
[A] More than 40%
[B] Between 20% and 30%
[C] About 13%
[D] Less than 5%
Show Answer
Correct Answer: C [About 13%]
Notes:
According to Tea Board India’s 2024 data, India exported 256 million kg of tea, giving it about 13% of global tea exports. India remained among the major tea-exporting countries, alongside Kenya, Sri Lanka and China. The share is far below 20% but clearly higher than 10%, making about 13% the best answer. This reflects India’s strong position in the global tea trade during 2024.
15. Why is full convertibility of the Indian rupee advocated? (UPSC Prelims 1996)
[A] It stabilizes the rupee’s exchange value globally.
[B] It attracts more foreign capital into India.
[C] It helps promote Indian exports.
[D] It helps India secure loans on attractive terms.
Show Answer
Correct Answer: B [It attracts more foreign capital into India.]
Notes:
Full convertibility allows the rupee to be freely exchanged with foreign currencies for all transactions at market rates without Reserve Bank of India restrictions. India achieved current account convertibility in 1994. Full capital account convertibility is under consideration. Currency stability and reduced exchange rate uncertainty are key reasons for advocating convertibility to stabilize the rupee’s value against global currencies.
16. Which of the following is the limitation of the Socialist Economic system?
[A] High Taxes
[B] Easy Mobilization of resources
[C] Concentration of wealth is prevented
[D] Market Monopoly doesn’t exist
Show Answer
Correct Answer: A [High Taxes]
Notes:
In a socialist economy, taxes are high on the people as the state has to provide all the goods and services to all. The other options given are the advantages of the system.
17. Which sector comprises of the activities like exploitation of natural resources?
[A] Secondary
[B] Tertiary
[C] Primary
[D] Unorganised
Show Answer
Correct Answer: C [Primary]
Notes:
The exploitation of natural resources is part of the primary sector. The primary sector includes activities that are directly dependent on nature.
18. Genetic Engineering Appraisal Committee (GEAC) works under which ministry?
[A] Ministry of Agriculture
[B] Ministry of Environment, Forest and Climate Change
[C] Ministry of Science and Technology
[D] Ministry of Rural Development
Show Answer
Correct Answer: B [Ministry of Environment, Forest and Climate Change]
Notes:
The Genetic Engineering Appraisal Committee (GEAC) functions under the Ministry of Environment, Forest and Climate Change. It is the apex body that appraises activities involving large-scale use of hazardous microorganisms and recombinants, and proposals related to the release of genetically engineered organisms and products into the environment.
19. Which virus mainly affects birds but has caused human deaths?
[A] H1N1 (swine flu)
[B] H5N1 (avian influenza)
[C] H3N2 (seasonal flu)
[D] H7N9 (avian influenza subtype)
Show Answer
Correct Answer: B [H5N1 (avian influenza)]
Notes:
H5N1 is a subtype of avian influenza first detected in 1996. It has caused documented human infections since 1997. The virus primarily affects birds but has spread to humans through direct contact with infected poultry. H5N1 has a high human case fatality rate, with nearly 50% of about 900 reported cases worldwide resulting in death as of 2023. Human-to-human transmission is rare.
20. Under which list is agricultural marketing in the Seventh Schedule placed?
[A] Union List
[B] State List
[C] Concurrent List
[D] None of the above
Show Answer
Correct Answer: B [State List]
Notes:
Agricultural marketing is placed under the State List (List II) of the Seventh Schedule via Entry 28, which covers “Markets and fairs.” States regulate agricultural marketing through their own laws and Agricultural Produce Marketing Committees (APMCs). Entry 14 further relates to agriculture. As of 2024, agricultural marketing remains primarily a state subject in the Indian Constitution.
