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 Public Sector Giant issued world’s first Indian green masala bond?
[A] ONGC
[B] NTPC
[C] IOCL
[D] CIL
Show Answer
Correct Answer: B [NTPC]
Notes:
State-owned energy major National Thermal Power Corporation (NTPC) raised almost Rs 2,000 crores with the launch of its ‘Green Masala Bond’ on the London Stock Exchange (LSE). NTPC’s bond issue has been described as the first-ever Indian quasi-sovereign to issue a Masala Bond.
12. What is the resource curse in economic terms?
[A] A country with large resources but lack technology to exploit them
[B] Export from resource-rich countries increases currency value and hurts other sectors
[C] Countries with large reserves but only short-term market gains
[D] A paradox where resource-rich countries lack economic growth
Show Answer
Correct Answer: D [A paradox where resource-rich countries lack economic growth]
Notes:
Resource curse refers to the paradox where nations rich in natural resources tend to experience low economic growth, poor governance, and greater instability. Examples include Nigeria, where oil wealth has resulted in economic and political challenges. The term was first coined in 1993 by economist Richard Auty. The phenomenon is studied in the context of various minerals including oil, diamonds, and other extractive industries.
13. What is the classification of a Local Area Bank in India?
[A] Always Non-scheduled Bank
[B] Can be Scheduled or Non-scheduled Bank
[C] Always Scheduled Bank
[D] None of the above
Show Answer
Correct Answer: A [Always Non-scheduled Bank]
Notes:
Local Area Banks in India are small, region-specific banks created to serve limited geographic areas. They are classified as non-scheduled commercial banks and are not treated as scheduled banks under the Reserve Bank of India Act. Hence, a Local Area Bank remains a non-scheduled bank. This makes option 1 the correct answer. The key distinction is that scheduling depends on inclusion in the Second Schedule of the RBI Act, which does not apply to Local Area Banks.
14. What restricts the spending of a person in a market?
[A] Marginal Utility
[B] Purchasing power
[C] Demand curve
[D] None of the above
Show Answer
Correct Answer: B [Purchasing power]
Notes:
The purchasing power of a person is the reason for his limited spending. He has budget constraints which inturn affect the market as a whole. The budget constraint is used to analyze consumers choices.
15. What is a free good?
[A] Opportunity cost = Maximum
[B] Opportunity cost = Negative
[C] Opportunity cost = 0
[D] A good which is freely available to all
Show Answer
Correct Answer: C [Opportunity cost = 0]
Notes:
A free good is a good with zero opportunity cost. This means it can be consumed in as much quantity as needed without reducing its availability to others. For Example sunlight, ideas, music or air.
16. Which sector is small, unregulated and outside government control?
[A] Organised Sector
[B] Unorganised sector
[C] Public sector
[D] Private sector
Show Answer
Correct Answer: B [Unorganised sector]
Notes:
An unorganised worker is a home-based worker or a self-employed worker or a wage worker in the unorganized sector and includes a worker in the organized sector who is not covered by any of the Acts pertaining to welfare Schemes. So the are small and outside controlling authority.
17. Which sector was most affected due to the de-industrialization of the British?
[A] Jute
[B] Textile
[C] Ship building
[D] Banking
Show Answer
Correct Answer: B [Textile]
Notes:
The textile industry was the most affected due to the de-industrialization of the British. The British followed the systematic destruction of the Indian Industries. Indian textiles were banned in European markets and Indian markets were flooded with machine-made goods which destroyed the Indian industry.
18. Which of the following is most directly affected by agricultural growth?
[A] Poverty eradication
[B] Inflation
[C] Employment
[D] Balance of Payments
Show Answer
Correct Answer: D [Balance of Payments]
Notes:
Agricultural growth can influence several macroeconomic indicators. Higher farm output raises rural incomes, creates seasonal and allied-sector employment, and can help moderate food inflation by improving supply. It also affects the balance of payments through agricultural exports, reduced food imports, and foreign-exchange earnings. Therefore, among the given options, balance of payments is also directly affected, making it a relevant indicator of agricultural growth.
19. Which of these is a non-edible oilseed?
[A] Sesame
[B] Sunflower
[C] Linseed
[D] Groundnut
Show Answer
Correct Answer: C [Linseed]
Notes:
Linseed, also called flaxseed, is primarily used for industrial purposes like making linoleum, varnishes, and paints. The oil extracted from linseed is not commonly used for edible purposes in India. Sesame, sunflower, and groundnut oils are widely consumed as cooking oils. India is among the top producers of linseed globally.
20. Which crop is mainly affected by red rot disease?
[A] Bajra
[B] Sugarcane
[C] Wheat
[D] Maize
Show Answer
Correct Answer: B [Sugarcane]
Notes:
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.
