Indian Economy MCQs

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Bhutan is the correct answer. The country follows a ‘high value, low volume’ tourism policy and charges a Sustainable Development Fee from visitors to help finance environmental protection, cultural preservation, and infrastructure development. The current standard SDF is US$100 per person per night for most foreign visitors, while Indian nationals pay a preferential rate of Nu./INR 1,200 per person per night. This fee is a key part of Bhutan’s tourism model.

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Utility is the power or capacity of a commodity to satisfy a human want or it is the amount of satisfaction that a person gets from the consumption of a good or service. It is measured in utils.

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Arvind Panagariya served as Chief Economist of the Asian Development Bank. He later became the first Vice-Chairman of NITI Aayog from January 2015 to August 2017. The other options do not match this position.

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Adam Smith’s “invisible hand” describes competition, which guides market resources efficiently and benefits society even if individuals act in self-interest. This concept is foundational in classical economic theory and emphasizes the self-regulating nature of competitive markets.

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An unorganized worker is a home-based worker or a self-employed worker or a wage worker in the unorganized sector. In this sector, labour is less paid and is largely non-unionised.

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Coffea arabica is a species of coffee. Around 70% of global coffee production is Arabica. India produces Arabica coffee mainly in Karnataka, Kerala, and Tamil Nadu. The Coffee Board of India was established in 1942. Indian Arabica is known for its mild flavor and aroma. Arabica coffee plants grow best at elevations between 600 and 2000 meters above sea level.

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Red rot is a fungal disease affecting sugarcane, caused by Colletotrichum falcatum. The disease produces characteristic internal reddening of sugarcane stalks with white patches and a sour, alcoholic smell. It results in yield loss by affecting juice quality and content. The disease was first reported in India in 1893 and remains a major constraint in sugarcane-producing regions.

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Drip irrigation in India is projected to grow at a CAGR of 14.4% from 2025 to 2030. In 2030, expected market value is USD 1,897 million. The Government of India promotes drip systems through the Pradhan Mantri Krishi Sinchayee Yojana. Drip irrigation reduces water use, delivering water directly to roots, and raises crop yields. India’s per ton crop water use is 2-3 times the global average.

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Gujarat is the largest tobacco-producing state in India, accounting for about 45% of the country's total tobacco output. Andhra Pradesh is usually the next major producer, contributing around 20%. This makes Gujarat the correct answer among the given options.

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China generated over 12 million metric tons of electronic waste in 2022. China is the leading global manufacturer and consumer of electronics. The Global E-waste Monitor 2024 classifies China as the largest e-waste producer, followed by the USA, India, Japan, and Brazil. China banned imports of foreign e-waste in 2018 through government notification.