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 Ministry set “Haat to Hypermarket” as the Rural Business Hubs’ objective?
[A] Ministry of Panchayati Raj
[B] Ministry of Corporate Affairs
[C] Ministry of Skill Development and Entrepreneurship
[D] Ministry of Rural Development
Show Answer
Correct Answer: A [Ministry of Panchayati Raj]
Notes:
The Ministry of Panchayati Raj launched the Rural Business Hubs (RBH) initiative in 2007. The “Haat to Hypermarket” objective aims to connect rural producers to wider markets. The ministry focuses on rural empowerment through economic partnerships and market linkages for local artisans. RBH projects involve village industries, micro-enterprises, and cooperatives under the ministry’s schemes.
12. Which of the following is not included in the World Bank Group?
[A] IBRD
[B] IDA
[C] MIGA
[D] UNCTAD
Show Answer
Correct Answer: D [ UNCTAD ]
Notes:
The World Bank Group (WBG) is a family of five international organizations that make leveraged loans to developing countries. Its five organizations are the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID). UNCTAD is the principal organ of the United Nations General Assembly dealing with trade, investment, and development issues. The primary objective of UNCTAD is to formulate policies relating to all aspects of development including trade, aid, transport, finance and technology.
13. Open market operations (OMO):
- act as a monetary tool of RBI
- are conducted for the sale or purchase of government securities
Which of the above statements is/are correct?
[A] 1 Only
[B] 2 Only
[C] Both 1 & 2
[D] Neither 1 nor 2
Show Answer
Correct Answer: C [Both 1 & 2]
Notes:
Both are correct statementsRBI conducts open market operations by selling government securities in order to maintain ample liquidity in the system.
14. Which of the following is the distribution of the burden of paying a tax?
[A] Sharing of tax burden
[B] Shifting of the tax
[C] Incidence of a tax
[D] Tax capitalization
Show Answer
Correct Answer: C [Incidence of a tax]
Notes:
In economics, tax incidence or tax burden is the effect of a particular tax on the distribution of economic welfare. The introduction of a tax drives a wedge between the price consumers pay and the price producers receive for a product, which typically imposes an economic burden on both producers and consumers.
15. Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if?
[A] Any of the borrowal account of the enterprise remains NPA for ten months or more
[B] Any of the borrowal account of the enterprise remains NPA for eight months or more
[C] Any of the borrowal account of the enterprise remains NPA for five months or more
[D] Any of the borrowal account of the enterprise remains NPA for three months or more
Show Answer
Correct Answer: D [Any of the borrowal account of the enterprise remains NPA for three months or more]
Notes:
Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if any of the borrowal account of the enterprise remains NPA for three months or more.
16. Which Economist highlighted ethical consideration behind his economic thinking?
[A] Francis Fukuyama
[B] Abhijit Banerjee
[C] Amartya Sen
[D] Friedrich Hayek
Show Answer
Correct Answer: C [Amartya Sen]
Notes:
Amartya Sen is an Indian economist, who has worked internationally, highlighting ethical considerations behind his economic thinking. Sen has contributed greatly to welfare economics, arguing for instance that famines arise due to a lack of income, not food.
17. Which of the below statements is incorrect regarding Market Economy?
[A] Government doesn’t control the factors of production
[B] Government decides which goods to produce and how much
[C] Consumers and producers choice plays a key role in economy
[D] The profit motive is the main reason for increased efficiency
Show Answer
Correct Answer: B [Government decides which goods to produce and how much]
Notes:
Capitalist economy is also known as free market economy. It is based on the private sector and the market forces . The demand supply forces drive the market. Profit motive is the main reason for increased efficiency in private sector.
18. Which economy is based on the state ownership of resources and factors of production?
[A] Capitalist economy
[B] Mixed economy
[C] Socialist economy
[D] None of the above
Show Answer
Correct Answer: C [Socialist economy]
Notes:
In Socialist economy a large part of the economic system is controlled by a centralized power. Since the government is such a central feature of the economy, it is often involved in everything from planning to redistributing resources.
19. Which of the following are the reasons for India to shift from the primary sector to the tertiary sector and not the secondary sector?
[A] Restriction of FDI
[B] Availability of skilled labour
[C] Well developed and educated human resource
[D] Liberal labour laws
Show Answer
Correct Answer: C [Well developed and educated human resource]
Notes:
Well educated and immense human resources, Fluency in English and availability of cheap labour are other reasons for rapid growth of service sector in the country. On the other hand low growth in Secondary sector can be attributed to various reasons like rigid laws, restriction of FDI etc.
20. Who among the following prepared the National income estimate in India?
[A] Lord Rippon
[B] Dadabai Naoroji
[C] Lord Mcculay
[D] C.R.Das
Show Answer
Correct Answer: B [Dadabai Naoroji]
Notes:
Dadabhai Naoroji prepared the first estimates of National income in 1876. He estimated the national income by first estimating the value of agricultural production and then adding a certain percentage as non-agricultural production.
