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. SIDO is associated with which of the following industries?
[A] Small industry
[B] Iron industry
[C] Steel industry
[D] Soap industry
Show Answer
Correct Answer: A [Small industry]
Notes:
The Small Industries Development Organization (SIDO) is the national SME Development Agency of India. It is a major constituent of the Ministry of Small Scale Industries of the Government of India. It was Set up in 1954, SIDO provides services to small industry throughout the country by implementing a broad program of activities and services like Entrepreneurship Development, Tool Room Services, Testing Centres, Extension Services, R&D Services, etc.
12. Who takes the decision regarding the saving and loan activities in a self Help Group (SHG)?
[A] Private Bank
[B] Reserve Bank of India
[C] Members of group
[D] Non Government Organizations
Show Answer
Correct Answer: C [Members of group]
Notes:
Self Help Groups (SHGs) are small groups of poor people. The members of an SHG face similar problems. They help each other, to solve their problems. SHGs promote small savings among their members.
13. What is the primary function of the Finance Commission?
[A] Passing the money bills
[B] Approving money bills
[C] Drafting the budget
[D] Making recommendations on tax revenue distribution between Union and States
Show Answer
Correct Answer: D [Making recommendations on tax revenue distribution between Union and States]
Notes:
The Finance Commission, constituted under Article 280 of the Indian Constitution, recommends the distribution of net tax proceeds between the Centre and States and suggests principles for grants-in-aid. It is constituted every five years or earlier as deemed necessary by the President.
14. Which of the following industries was affected most due to partition?
[A] Cotton and jute
[B] Small scale industries
[C] Steel industries
[D] Tea and cotton
Show Answer
Correct Answer: A [Cotton and jute]
Notes:
India’s textile and clothing industry contributes 4% per cent to Gross. Partition of India in 1947 affected Indian cotton and jute industry badly. Most of the weavers who were Muslims migrated to Pakistan.
15. On which of the following the definition of a small-scale industry is based?
[A] The market outreach of a unit
[B] The size of the sales of a unit
[C] The fact whether the products manufactured fall in a list drawn up by the Ministry of Industry
[D] The value of the plant and machinery investment in a unit
Show Answer
Correct Answer: D [The value of the plant and machinery investment in a unit]
Notes:
The definition of a small-scale industry is based on the value of the plant and machinery investment in a unit. Small scale industries (SSI) are those industries in which manufacturing, providing services, productions are done on a small scale or micro scale. These industries do a one-time investment in machinery, plants, and industries which could be on an ownership basis, hire purchase or lease basis.
16. In which of the following circumstances, the total utility is maximum?
[A] Marginal utility is maximum
[B] Marginal utility = 0
[C] Marginal utility is minimum
[D] None of the above
Show Answer
Correct Answer: B [Marginal utility = 0]
Notes:
Total Utility is the sum of all the utilities derived from the consumption of all the units of a particular commodity. So when the marginal utility decreases total utility increases and is maximum when marginal utility is 0.
17. Who wrote “The Theory of Interest as Determined by Impatience to Spend Income and Opportunity to Invest It”?
[A] Alfred Marshall
[B] Milton Friedman
[C] J S Mill
[D] Irving Fisher
Show Answer
Correct Answer: D [Irving Fisher]
Notes:
Irving Fisher, a leading American neoclassical economist, published “The Theory of Interest as Determined by Impatience to Spend Income and Opportunity to Invest It” in 1930. His pioneering work analyzed interest rates, relating them to savings impatience and investment opportunities, influencing modern interest theory and macroeconomics.
18. Which economist is credited for developing theories based on Gandhism?
[A] Jagadish Bhagwati
[B] P.C.Mehalonibis
[C] J.C.Kumarappa
[D] Kaushik Basu
Show Answer
Correct Answer: C [J.C.Kumarappa]
Notes:
J.C.Kumarappa was an Indian economist and a close associate of Gandhiji. A pioneer of rural economic development theories, Kumarappa is credited for developing economic theories based on Gandhism– a school of economic thought he coined “Gandhian Economics”.
19. Which among the following sectors work can be outsourced?
[A] Primary sector
[B] Secondary sector
[C] Tertiary sector
[D] Public sector
Show Answer
Correct Answer: C [Tertiary sector]
Notes:
The tertiary sector’s activities help in the development of the primary and secondary sectors. By itself, economic activities in the tertiary sector do not produce goods so they can be outsourced.
20. Which company owns Air India as of 2025?
[A] Reliance Group
[B] Tata Group
[C] Adani Group
[D] Birla Industries
Show Answer
Correct Answer: B [Tata Group]
Notes:
Tata Group acquired Air India from the government in 2022, regaining control after nearly 69 years of public ownership. Air India was initially founded as Tata Airlines in 1932 by J.R.D. Tata. The acquisition marks Air India’s return to its original founders.
