MCQOPTIONS
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MCQOPTIONS
This section includes 157 Mcqs, each offering curated multiple-choice questions to sharpen your Indian Economy knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
In which of the following years India switched over to decimal currencies? |
| A. | 1955 |
| B. | 1956 |
| C. | 1957 |
| D. | 1960 |
| Answer» D. 1960 | |
| 52. |
In which year the Indian rupee was devalued two times within a month? |
| A. | 1990 |
| B. | 1991 |
| C. | 1994 |
| D. | 1999 |
| Answer» C. 1994 | |
| 53. |
The one rupee note bears the signature of the |
| A. | Secretary, Ministry of Finance |
| B. | Governor, RBI |
| C. | Finance Minister |
| D. | None of these |
| Answer» B. Governor, RBI | |
| 54. |
Economic growth is usually coupled with |
| A. | Deflation |
| B. | Inflation |
| C. | Hyper inflation |
| D. | Stagflation |
| Answer» C. Hyper inflation | |
| 55. |
Who wrote a book describing the theory of economic drain of India during British rule ? |
| A. | Lala Lajpat Rai |
| B. | Mahatma Gandhi |
| C. | J.L. Nehru |
| D. | Dadabhai Naoroji |
| Answer» E. | |
| 56. |
The most appropriate measure of a country's economic growth is its |
| A. | Gross Domestic Product |
| B. | Net Domestic Product |
| C. | Net National Product |
| D. | Per capita real income |
| Answer» E. | |
| 57. |
In India, one-rupee coins and notes subsidiary coins are issued by |
| A. | The Reserve Bank of India |
| B. | The Central Government |
| C. | The State Bank of India |
| D. | The Unit Trust of India |
| Answer» C. The State Bank of India | |
| 58. |
Which one among the following countries has the lowest GDP per capita ? |
| A. | China |
| B. | India |
| C. | Indonesia |
| D. | Sri Lanka |
| Answer» C. Indonesia | |
| 59. |
Inflation in India is measured on which of the following indexes / indicators ? |
| A. | Cost of Living Index (CLI) |
| B. | Consumer Price Index (CPI) |
| C. | Gross Domestic Product (GDP) |
| D. | Wholesale Price Index (WPI) |
| Answer» E. | |
| 60. |
Economic liberalization in India started with |
| A. | Substantial changes in industrial licensing policy |
| B. | the convertibility of Indian rupee |
| C. | doing away with procedural formalities for foreign direct investment |
| D. | significant reduction in tax rates |
| Answer» B. the convertibility of Indian rupee | |
| 61. |
Who coined the term 'Hindu rate of growth' for Indian economy? |
| A. | A.K.Sen |
| B. | Kirit S.Parich |
| C. | Raj Krishna |
| D. | Montek Singh Ahluwalia |
| Answer» B. Kirit S.Parich | |
| 62. |
Which of the following is not a example of economic overheads ? |
| A. | Schools |
| B. | Sanitary facilities |
| C. | Roads and Railway |
| D. | Coal mines |
| Answer» E. | |
| 63. |
Which of the following is definitely a major indication of the state of the economy of a country? |
| A. | Rate of GDP growth |
| B. | Rate of inflation |
| C. | Number of banks in a country |
| D. | None of these |
| Answer» B. Rate of inflation | |
| 64. |
Development expenditure of the Central government does not include |
| A. | defence expenditure |
| B. | expenditure on economic services |
| C. | expenditure on social and community services |
| D. | grant to states |
| Answer» E. | |
| 65. |
The slack season in the Indian economy is |
| A. | Feb-April |
| B. | Mar-April |
| C. | Jan-June |
| D. | Sept-Dec |
| Answer» D. Sept-Dec | |
| 66. |
The philosophy of 'Laissesz-Faire' is associated with |
| A. | Gandhian state |
| B. | Industrial state |
| C. | Socialist state |
| D. | Welfare state |
| Answer» C. Socialist state | |
| 67. |
Consider the following statements in regard to Zero Base Budgeting (ZBB) :(1) Existing Government program can be discarded under ZBB if they are found to be outdated. (2) ZBB is difficult to be applied to Human Development program as the outcome of such program is intangible in nature. Which of the statement given above is correct ? |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» D. Neither 1 nor 2 | |
| 68. |
Which of the following is the characteristic of progressive tax?(1) Marginal tax rate should be increasing.(2) Marginal tax rates should be more than average tax rate.Select the correct answer using the code given below : |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 only |
| D. | Neither 1 nor 2 |
| Answer» D. Neither 1 nor 2 | |
| 69. |
Which of the following can be associated with 'Gini Coefficient'?(1) National income inequality (2) Lorenz curve (3) Education system Select the correct answer using the codes given below : |
| A. | 1 only |
| B. | 2 only |
| C. | 1 and 2 only |
| D. | 1, 2 and 3 |
| Answer» D. 1, 2 and 3 | |
| 70. |
(A) : Emergence of economic globalism does not imply the decline of socialist ideology.(R) : The ideology of socialism believes in Universalism and globalism.Which one of the following is correct? |
| A. | Both A and R are true and R is the correct explanation. |
| B. | Both A and R are true but R is not the correct explanation of A. |
| C. | A is true but R is false. |
| D. | A is flase but R is true. |
| Answer» B. Both A and R are true but R is not the correct explanation of A. | |
| 71. |
Mixed economy means |
| A. | Where agriculture and industry are given equal importance |
| B. | Where public sector exists alongwith the private sector in national economy |
| C. | Where globlization is transferred with heavy dose of Swadeshi in national economy |
| D. | Where the Centre and the States are equal partners in economic planning and development |
| Answer» C. Where globlization is transferred with heavy dose of Swadeshi in national economy | |
| 72. |
The term 'mixed economy' denotes |
| A. | existence of both rural and urban sectors |
| B. | existence of both private and public sectors |
| C. | existence of both heavy and small industries |
| D. | existence of both developed and underdeveloped srctors |
| Answer» C. existence of both heavy and small industries | |
| 73. |
The 'Dual Economy' is a mixture of |
| A. | traditional agriculture sector and modern industrial sector |
| B. | industrial sector and manufacturing sector |
| C. | state ownership of the means of production in corporation of foreign organisation. |
| D. | industrial sector and trading of goods obtained through imports |
| Answer» B. industrial sector and manufacturing sector | |
| 74. |
Economic liberalisation in India started with |
| A. | substantial changes in industrial licensing policy |
| B. | the convertibility of Indian rupee |
| C. | doing away with procedural formalities for foreign direct investment |
| D. | significant reduction in tax rates |
| Answer» B. the convertibility of Indian rupee | |
| 75. |
There are in equalities in income and wealth distribution in India. This implies that |
| A. | India has a feudal society |
| B. | The economy is under developed |
| C. | Indian society is conservative |
| D. | Planning has failed |
| Answer» C. Indian society is conservative | |
| 76. |
In India, planned economy is based on |
| A. | Gandhian System |
| B. | Socialist System |
| C. | Capitalist System |
| D. | Mixed Economy System |
| Answer» C. Capitalist System | |
| 77. |
When development in economy takes place, the share of tertiary sector in National Income |
| A. | first falls and then rises |
| B. | first rises and then falls |
| C. | keeps on increasing |
| D. | remains constant |
| Answer» D. remains constant | |
| 78. |
Identify the factors responsible for the retarded economic development of India(1) Long British Rule(2) Shortage of capital(3) Westernised social attitude(4) Caste system |
| A. | 1 and 4 only |
| B. | 1, 2 and 3 only |
| C. | 1, 2 and 4 only |
| D. | 3 and 4 only |
| Answer» D. 3 and 4 only | |
| 79. |
Which sector of Indian Economy has shown remarkable expansion during the last decade ? |
| A. | Primary Sector |
| B. | Secondary Sector |
| C. | Tertiary Sector |
| D. | Mining Sector |
| Answer» D. Mining Sector | |
| 80. |
Which of the following governmental steps has proved relatively effective in |
| A. | Containing budgetary deficits and unproductive expenditure |
| B. | Streamlined public distribution system |
| C. | Enhanced rate of production of all consumer goods |
| D. | Pursuing an export-oriented strategy |
| Answer» B. Streamlined public distribution system | |
| 81. |
Which one of the following is not a feature of |
| A. | imperative planning |
| B. | limited centralisation |
| C. | democratic socialism |
| D. | indicative planning |
| Answer» B. limited centralisation | |
| 82. |
What is the approximate share of |
| A. | 25% |
| B. | 30% |
| C. | 5% |
| D. | 40% |
| Answer» E. | |
| 83. |
Which of the following should be considered for 'Pigovian taxation'? |
| A. | 1 and 3 only |
| B. | 2, 3 and 4 only |
| C. | 1, 2 and 3 |
| D. | 2 and 4 only |
| Answer» B. 2, 3 and 4 only | |
| 84. |
Consider the following statements in regard to Hedge funds: |
| A. | 1 only |
| B. | 1 and 2 only |
| C. | 2 and 3 only |
| D. | 3 only |
| Answer» E. | |
| 85. |
Which of the following will not contribute to a higher current account deficit ? |
| A. | 1 and 2 only |
| B. | 2 only |
| C. | 3 only |
| D. | 1 and 3 only |
| Answer» C. 3 only | |
| 86. |
Consider the following statements in regard to the GDP of a country : |
| A. | 1 only |
| B. | 2 only |
| C. | Both l and 2 |
| D. | Nether l nor 2 |
| Answer» D. Nether l nor 2 | |
| 87. |
In the hours of surging energy needs. why and how it is necessary to manage coal wisely for a sustainable socio-economic development? |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» E. | |
| 88. |
The Ministry of Corporate Affairs has notified the Corporate Social Responsibility (CSR) rules and they would come into effect from April I. Under the new laws that govern companies, spending on CSR or social welfare activities is mandatory for certain class of firms. They are required to shell out at least 2 per cent of their three----year aver- age annual profit towards such works Which of the following firms classify under the new law to make CSR spend? |
| A. | (i) & (ii) |
| B. | (i), (ii) & (iii) |
| C. | Only (iii) |
| D. | (i) & (iii) |
| Answer» D. (i) & (iii) | |
| 89. |
Consider the following statements in regard to Zero Base Budgeting (ZBB) : |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» D. Neither 1 nor 2 | |
| 90. |
Which of the following is the characteristic of progressive tax? |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 only |
| D. | Neither 1 nor 2 |
| Answer» D. Neither 1 nor 2 | |
| 91. |
Which of the following can be associated with 'Gini Coefficient'? |
| A. | 1 only |
| B. | 2 only |
| C. | 1 and 2 only |
| D. | 1, 2 and 3 |
| Answer» D. 1, 2 and 3 | |
| 92. |
(A) : Emergence of economic globalism does not imply the decline of socialist ideology. |
| A. | Both A and R are true and R is the correct explanation. |
| B. | Both A and R are true but R is not the correct explanation of A. |
| C. | A is true but R is false. |
| D. | A is flase but R is true. |
| Answer» B. Both A and R are true but R is not the correct explanation of A. | |
| 93. |
When the RBI wants to inject liquidity int economy it may adopt the following : |
| A. | l only |
| B. | 1 and 4 only |
| C. | 1, 2 and 4 only |
| D. | 1, 2 , 3 and 4 |
| Answer» C. 1, 2 and 4 only | |
| 94. |
Which of the following comes under Non-plan expenditure? |
| A. | 1 and 2 |
| B. | 1 and 3 |
| C. | 2 and 4 |
| D. | 1, 2 , 3 and 4 |
| Answer» E. | |
| 95. |
In India rural incomes are generally lower than the urban incomes Which of the following reasons account for this? |
| A. | 1, 2 and 3 |
| B. | 1 and 2 |
| C. | 1 and 3 |
| D. | 2 and 3 |
| Answer» B. 1 and 2 | |
| 96. |
Which of the following will not be the part of 'financial inclusion'? |
| A. | 1, 2 and 3 only |
| B. | 1, 2 and 4 only |
| C. | 1, 3 and 4 only |
| D. | 1, 2, 3 and 4 |
| Answer» C. 1, 3 and 4 only | |
| 97. |
Consider the following the statements in regard to the goods and service tax: |
| A. | 1 only |
| B. | 2 and 3 only |
| C. | 1 and 3 |
| D. | 1 and 2 only |
| Answer» B. 2 and 3 only | |
| 98. |
'Based III' norms target at which of the following? |
| A. | 1 Only |
| B. | 1 and 2 only |
| C. | 1 and 3 only |
| D. | 1 , 2 and 3 |
| Answer» E. | |
| 99. |
Consider the following statements in regard to devaluation and depreciation of a currency: |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» B. 2 only | |
| 100. |
Consider the following statements in regard to 'Marginal Standing Facility (MSF)' of RBI : |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» B. 2 only | |