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. Kudremukh iron ore was historically exported from which port?
[A] Cochin
[B] Chennai
[C] Mangalore
[D] Karwar
Show Answer
Correct Answer: C [Mangalore]
Notes:
The Kudremukh Iron Ore Company Limited, formed in 1976 in Karnataka, transported mined ore via slurry pipeline to Panambur. Export operations used New Mangalore Port. Kudremukh mine ceased operations in 2006 after Supreme Court directive. KIOCL now exports pellets through Mangalore port. New Mangalore Port is a major port located in Karnataka on the Arabian Sea, operational since 1974.
12. Rolling plan was designed for which of the following periods?
[A] 1974-79
[B] 1978-83
[C] 1980-85
[D] 1985-90
Show Answer
Correct Answer: B [1978-83]
Notes:
The Janta Government terminated the fifth five year plan in 1977-78 and launched its own sixth five year plan for period 1978-83 and called it a Rolling Plan. This second plan is kept changing as per the requirements of the economy (and politics).
13. According to the RBI’s Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises (MSMEs), what is the first step for identifying incipient stress in an MSME loan account before it turns NPA?
[A] Classify the account as NPA after 90 days of default
[B] Create Special Mention Account (SMA) sub-categories and monitor the account
[C] Write off the loan after one missed instalment
[D] Refer the unit directly to the NCLT
Show Answer
Correct Answer: B [Create Special Mention Account (SMA) sub-categories and monitor the account]
Notes:
Under the RBI’s Framework for Revival and Rehabilitation of MSMEs, banks are expected to identify stress in the account before it turns non-performing. The framework requires lenders to monitor such accounts through Special Mention Account (SMA) categories, which helps detect early warning signals and enables timely corrective action. This approach is meant to support revival, rehabilitation, and structured resolution of viable MSME units at an early stage.
14. If capital stock is everlasting, what is the depreciation rate? (UPSC Prelims 1991)
[A] Zero
[B] High
[C] Low
[D] Infinite
Show Answer
Correct Answer: A [Zero]
Notes:
Everlasting capital stock does not lose value or efficiency, so the depreciation rate is zero as no part decreases in utility or worth over time.
15. Who among the following economists made a contribution to welfare economics?
[A] Abhijit Banerjee
[B] Amartya Sen
[C] Manmohan Singh
[D] Amit Mitra
Show Answer
Correct Answer: B [Amartya Sen]
Notes:
Amartya Sen has made contributions to welfare economics, social choice theory, economic and social justice, economic theories of famines, and indices of the measure of well-being of citizens of developing countries. His work on welfare economics got him Noble prize in economic in 1998.
16. The classification of Sectors in an economy into the public and privates sector is on the basis of which of the following?
[A] On the basis of activity
[B] On the basis of work condition
[C] On the basis of Ownership
[D] None of the above
Show Answer
Correct Answer: C [On the basis of Ownership]
Notes:
On the basis of ownership, the economy is divided into public and private sectors. The public sector is owned by the government whereas the private sector is owned by Private individuals.
17. Which of the following is not part of the core industry?
1. ELectricity
2. Steel
3. Cement
4. Agriculture
5. Fishing
Choose the correct option from the codes given below:
[A] 1, 3 and 4 only
[B] 4 and 5 only
[C] 1 and 3 only
[D] 1 and 2 only
Show Answer
Correct Answer: B [4 and 5 only]
Notes:
Eight Core Industries are Electricity, steel, refinery products, crude oil, coal, cement, natural gas, and fertilizers.
The Index of Eight Core Industries is compiled based on the monthly production information received from the Source Agencies. It is a lead indicator of the monthly industrial performance.
18. Which industry holds the highest weightage in the updated Index of Core Industries (Base Year 2022-23) in India?
[A] Electricity
[B] Steel
[C] Refinery Products
[D] Coal
Show Answer
Correct Answer: A [Electricity]
Notes:
In the revised Index of Core Industries with base year 2022-23, Electricity has the highest weightage at 30.932%. The revised series expanded from eight to nine core industries by adding Iron Ore. Petroleum Refinery Products now has a lower weightage than Electricity.
19. Which of the following are the measures are not part of the Liberalization of Economy in 1991?
[A] Allowed FDI in Indian companies
[B] Removal of Bureaucratic control over Industries
[C] Privatization of PSU’s
[D] New Government controlled companies were set up
Show Answer
Correct Answer: D [New Government controlled companies were set up]
Notes:
The liberalization of the economy in 1991 led to a decrease in government control over the economy. The control of private entities over the economy has increased. FDI was allowed and convertibility of rupee was started.
20. In which year, National Food Security Act was passed?
[A] 2014
[B] 2013
[C] 2012
[D] 2009
Show Answer
Correct Answer: B [2013]
Notes:
The Parliament of India, enacted legislation in 2013 known as the National Food Security Act, 2013 to provide the food to every citizen of the country.
