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. Using iron instead of wooden ploughs is an example of which technology? (UPSC Prelims 1983)
[A] Obsolete technology
[B] Appropriate technology
[C] Redundant technology
[D] Ultimate technology
Show Answer
Correct Answer: B [Appropriate technology]
Notes:
Appropriate technology refers to methods or tools that are affordable, locally adaptable, and suited to the community’s needs. Iron ploughs replace less durable wooden ones, improving productivity and lifespan without requiring advanced infrastructure. The shift increases agricultural efficiency in areas with limited resources. This practice matches the concept of appropriate technology in rural agricultural settings.
12. Who is the author “The Theory of Economic Growth”?
[A] Gary Becker
[B] Mark Skousen
[C] Israel Kirzner
[D] W Arthur Lewis
Show Answer
Correct Answer: D [W Arthur Lewis]
Notes:
Sir William Arthur Lewis (23 January 1915 – 15 June 1991) was an economist well known for his contributions in the field of economic development. In 1979 he was awarded the Nobel Memorial Prize in Economic Science . He had dual Saint Lucian and British citizenships. Lewis published The Theory of Economic Growth in 1955 in which he sought to “provide an appropriate framework for studying economic development,” driven by a combination of “curiosity and of practical need.”
13. Which economist proved the impossibility theorem?
[A] Kenneth Rogoff
[B] Kenneth Arrow
[C] Gary Becker
[D] Mark Skousen
Show Answer
Correct Answer: B [Kenneth Arrow]
Notes:
Kenneth Arrow proved the impossibility theorem, which shows the limitations underlying predicting people’s preferences between options. His groundbreaking work in these fields as well as broader topics in general equilibrium theory and welfare theory led to him acquiring the Noble Prize in 1972.
14. Which of the following is not a feature of a mixed economy?
[A] State ownership
[B] Private property
[C] Market forces
[D] Open trade
Show Answer
Correct Answer: D [Open trade]
Notes:
In a mixed economy both private and public sector are the players. The trade in this type is opened only to a certain extent but not completely as trade restrictions exist. This is because the government has the social obligation to fulfil.
15. 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.
16. The transformation of goods from the primary sector into economic goods is known as?
[A] Input
[B] Production
[C] Output
[D] Efficiency
Show Answer
Correct Answer: B [Production]
Notes:
The transformation of raw material into a useful economic good is known as production. It is part of the secondary sector.
17. The unemployment in agriculture to Mechanization is called?
[A] Disguised Unemplyment
[B] Technical Unemployment
[C] Structural Unemployment
[D] Seasonal Unemployment
Show Answer
Correct Answer: C [Structural Unemployment]
Notes:
The unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.
18. Which among the following is caused by a lack of proper infrastructure?
[A] Low Export cost
[B] Less devlopment of interior region
[C] More imports
[D] High Cost of goods
Show Answer
Correct Answer: B [Less devlopment of interior region]
Notes:
The lack of infrastructure creates a lot of problems mainly regarding the development of interior regions. The two most vital sectors i.e. agriculture and industry could not make much headway in the absence of proper infrastructural facilities in the country. Moreover, due to the absence of proper infrastructural facilities, the development potential of different regions of the country largely remains under-utilized.
19. Which of the following is classified as a Rabi crop?
[A] Rice
[B] Mustard
[C] Maize
[D] Cotton
Show Answer
Correct Answer: B [Mustard]
Notes:
Mustard is sown in the Rabi season from October to December and harvested between February and April. Major Rabi crops in India include wheat, barley, mustard, peas, and gram. Rabi crops grow with the help of rainwater that has percolated into the ground post-monsoon. Mustard is mainly cultivated in states like Rajasthan, Uttar Pradesh, Haryana, and Madhya Pradesh.
20. What is relay cropping in agricultural practices?
[A] Second crop grown after the first is harvested
[B] Second crop planted into established crop after its reproductive stage
[C] Second crop grown in the next growing season
[D] Second crop grown in a separate field
Show Answer
Correct Answer: B [Second crop planted into established crop after its reproductive stage]
Notes:
Relay cropping involves sowing a second crop into an existing standing crop after the first crop’s reproductive stage but before its harvest. This system allows overlapping growth periods within the same field. Relay cropping increases land use efficiency and was first systematically described in the 20th century. It is practiced with crops like wheat and soybean, especially in regions with short growing seasons.
