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. According to FERA ,Foreign Exchange includes which of the following?
[A] Traveler’s Cheque
[B] Letters of Credit
[C] Bill of Exchange expressed or drawn in Indian Currency
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
According to FERA ,1973 Foreign Exchange means Foreign Currency, which includes: Any Draft Traveller’s Cheque Letters of Credit Bill of Exchange expressed in Indian Currency but payable in Foreign Currency
12. Where was India’s first successful iron and steel industry established?
[A] Parangipettai
[B] Jamshedpur
[C] Kulti
[D] Mumbai
Show Answer
Correct Answer: B [Jamshedpur]
Notes:
Tata Iron and Steel Company (TISCO) was established in Jamshedpur in 1907. Pig iron production began in 1911 and steel production started in 1912. Jamshedpur is located in present-day Jharkhand. TISCO became the first commercially successful iron and steel plant in India, whereas earlier plants in Parangipettai and Kulti eventually failed and did not operate at such a large scale.
13. Which among the following is India’s first Oil refinery?
[A] Guwahati Refinery
[B] Vishakhapatnam Refinery
[C] Digboi Refinery
[D] Barauni Refinery
Show Answer
Correct Answer: C [ Digboi Refinery ]
Notes:
Crude oil was discovered here in late 19th century. Digboi is known as the Oil City of Assam where the first oil well in Asia was drilled. The first refinery was started here as early as 1901. Digboi has the oldest oil Refinery in operation.
14. Which of the following Organisations collects data for the unorganized sector?
[A] CSO
[B] NSSO
[C] ASI
[D] RBI
Show Answer
Correct Answer: B [ NSSO ]
Notes:
The National Sample Survey Office (NSSO) headed by a Director General is responsible for conduct of large scale sample surveys in diverse fields on All India basis. Primarily data are collected through unorganized sector.
15. What does financial inclusion refer to?
[A] Retail banking
[B] Access to affordable financial services for underserved individuals and businesses
[C] Financial statements
[D] Wholesale banking
Show Answer
Correct Answer: B [Access to affordable financial services for underserved individuals and businesses]
Notes:
Financial inclusion refers to providing individuals and businesses, particularly underserved groups, access to affordable financial products and services such as savings, credit, payments, and insurance. The Reserve Bank of India introduced the Financial Inclusion Policy in 2005. The Pradhan Mantri Jan Dhan Yojana was launched in 2014 to increase access to banking facilities across India.
16. Which of the following is an alternative way of representing the production function?
[A] Average Product
[B] The Long Run
[C] Isoquant
[D] The Short Run
Show Answer
Correct Answer: C [Isoquant]
Notes:
An isoquant is a firm’s counterpart of the consumer’s indifference curve. An isoquant is a curve that shows all the combinations of inputs that yield the same level of output. ‘Iso’ means equal and ‘quant’ means quantity.
17. Which of the following is component of capital market?
[A] Equity market
[B] Debt market
[C] Derivative market
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
There are three component of capital market are:- EQUITY MARKET, DEBT MARKET and DERIVATIVE MARKET.
18. What is the primary basis for defining a small-scale industry in India?
[A] The market outreach of a unit
[B] The size of annual turnover
[C] Investment in plant and machinery
[D] Products listed by the Ministry of Industry
Show Answer
Correct Answer: C [Investment in plant and machinery]
Notes:
The MSME Development Act, 2006 defines small-scale industry based on investment in plant and machinery for manufacturing or equipment for services. The 2020 revision set the small enterprise limit at investment up to ₹10 crore and turnover up to ₹50 crore. Prior to this, only investment criteria were used in statutory definitions, excluding factors like sales or product lists.
19. Who wrote the book principles of economics?
[A] Alfred Marshall
[B] Milton Friedman
[C] J S Mill
[D] None of the above
Show Answer
Correct Answer: A [Alfred Marshall]
Notes:
Principles of Economics is a leading political economy or economics textbook of Alfred Marshall (1842–1924), first published in 1890. It says The essence of economics can be reduced to three basic principles: scarcity, efficiency, and sovereignty
20. Who is the author of the famous book “The social Framework”?
[A] James Tobin
[B] Amartya Sen
[C] Dean Baker
[D] J.R.Hicks
Show Answer
Correct Answer: D [J.R.Hicks]
Notes:
The Social Framework. Posted on May 23, 2015. is the title of a short book by John Hicks published in 1942. It’s an introduction, for the general reader, to the then-new fangled concept of national income accounting – beautifully clearly written and very straightforward.
