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.
| 101. |
The volatility in the Indian share market is due to |
| A. | 1 and 2 |
| B. | 1 and 3 |
| C. | 1, 2 and 3 |
| D. | 2 and 3 |
| Answer» B. 1 and 3 | |
| 102. |
India's Trade Policy (2009-14) seeks to |
| A. | 1 and 2 |
| B. | 2 and 3 |
| C. | 1 and 3 |
| D. | 1, 2 and 3 |
| Answer» D. 1, 2 and 3 | |
| 103. |
Which of the following can be the outcomes of very high inflation in the economy? |
| A. | l and 3 only |
| B. | 3 and 4 only |
| C. | 2 and 3 |
| D. | 1 and 4 only |
| Answer» E. | |
| 104. |
Consider the following statements in regard to Gross Domestic product (GDP) of India : |
| A. | 1 only |
| B. | 2 only |
| C. | Both l and 2 |
| D. | Neither l nor 2 |
| Answer» E. | |
| 105. |
Which of the following are correct in regard to the austerity measures taken by a country going through adverse economy conditions: |
| A. | l and 2 only |
| B. | 1 and 3 only |
| C. | 2 and 3 only |
| D. | l, 2 and 3 |
| Answer» E. | |
| 106. |
Consider the following statements in regard to Headline inflation : |
| A. | l only |
| B. | 2 only |
| C. | Both l and 2 |
| D. | Neither l nor 2 |
| Answer» C. Both l and 2 | |
| 107. |
The most appropriate measure of a |
| A. | Gross Domestic Product |
| B. | Net Domestic Product |
| C. | Net National Product |
| D. | Per capita real income |
| Answer» E. | |
| 108. |
Economic liberalization |
| 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 | |
| 109. |
Which of the following is definitely a |
| 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 | |
| 110. |
Which of the following is not a example of |
| A. | Schools |
| B. | Sanitary facilities |
| C. | Roads and Railway |
| D. | Coal mines |
| Answer» E. | |
| 111. |
Which of the following activities can lead to financial inclusion in India? |
| A. | 1, 2 and 3 only |
| B. | 2, 3 and 4 only |
| C. | l, 3 and 4 only |
| D. | 2 and 3 only |
| Answer» D. 2 and 3 only | |
| 112. |
Which of the following is are the functions of the national Development Council of India ? |
| A. | 1 only |
| B. | 1 and 2 only |
| C. | 2 and 3 only |
| D. | 1, 2 and 3 |
| Answer» E. | |
| 113. |
Consider the following statements . |
| A. | l only |
| B. | 2 only |
| C. | Both l and 2 |
| D. | Neither l nor 2 |
| Answer» E. | |
| 114. |
Consider the following systems : |
| A. | 1 and 2 only |
| B. | 2 only |
| C. | 1 and 3 only |
| D. | 3 only |
| Answer» C. 1 and 3 only | |
| 115. |
Consider the following statements in regard to 'Inflation Index bonds'? |
| A. | 1 only |
| B. | 2 only |
| C. | both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» E. | |
| 116. |
Who among the following has suggested |
| A. | I.V. Reddy |
| B. | D.N. Ghosh |
| C. | R.H. Patil |
| D. | C. Rangarajan |
| Answer» C. R.H. Patil | |
| 117. |
Consider the following statement in regard to reserve currency : |
| A. | I only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» D. Neither 1 nor 2 | |
| 118. |
Consider the following in regard to the reason for the persistence of inflation according to the Economic Survey 2012-13 |
| A. | 1 and 2 only |
| B. | 2 and 3 only |
| C. | 1 and 3 only |
| D. | 1, 2 and 3 |
| Answer» E. | |
| 119. |
Consider the following statements in regard to 'RESIDEX' : |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» D. Neither 1 nor 2 | |
| 120. |
Consider the following statements in regard to inclusive development : |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» D. Neither 1 nor 2 | |
| 121. |
Consider the following statements in regard to money market in India : |
| A. | 1 only |
| B. | 2 only |
| C. | Both 1 and 2 |
| D. | Neither 1 nor 2 |
| Answer» C. Both 1 and 2 | |
| 122. |
In an economy, the sectors are classified into |
| A. | employment condition |
| B. | nature of economic activities |
| C. | ownership of enterprises |
| D. | use of raw materials |
| Answer» D. use of raw materials | |
| 123. |
It will be true to |
| A. | a food-deficit economy |
| B. | a labour-surplus economy |
| C. | a trade-surplus economy |
| D. | a capital-surplus economy |
| Answer» C. a trade-surplus economy | |
| 124. |
Which of the following statement is true about the |
| A. | It is difference between Revenue Receipts and Revenue Expenditure |
| B. | It is difference between Capital Receipts and Interest Payment |
| C. | It is difference between the Fiscal Deficit and Interest Payment |
| D. | It is addition of Fiscal Deficit and Interest Payment |
| Answer» D. It is addition of Fiscal Deficit and Interest Payment | |
| 125. |
Inflation in India is measured on which of the following |
| A. | Cost of Living Index (CLI) |
| B. | Consumer Price Index (CPI) |
| C. | Gross Domestic Product (GDP) |
| D. | Wholesale Price Index (WPI) |
| Answer» E. | |
| 126. |
Tarapore committee |
| A. | Special Economic Zone |
| B. | Fully Capital Account Convertiblity |
| C. | Effect of Oil-prices on the Indian economy |
| D. | Foreign Exchange Reserve |
| Answer» C. Effect of Oil-prices on the Indian economy | |
| 127. |
The theory of economic |
| A. | M.K. Gandhi |
| B. | Jawaharlal Nehru |
| C. | Dadabhai Naoroji |
| D. | R.C. Dutta |
| Answer» D. R.C. Dutta | |
| 128. |
Which of the following is not true when the interest rate in the economy goes up? |
| A. | Saving increases |
| B. | Lending decreases |
| C. | Cost of production increases |
| D. | Return on capital increases |
| Answer» E. | |
| 129. |
Development expenditure |
| A. | defence expenditure |
| B. | expenditure on economic services |
| C. | expenditure on social and community services |
| D. | grant to states |
| Answer» E. | |
| 130. |
In which of the following years India |
| A. | 1955 |
| B. | 1956 |
| C. | 1957 |
| D. | 1960 |
| Answer» D. 1960 | |
| 131. |
In which year the Indian rupee was |
| A. | 1990 |
| B. | 1991 |
| C. | 1994 |
| D. | 1999 |
| Answer» C. 1994 | |
| 132. |
Economic growth |
| A. | Deflation |
| B. | Inflation |
| C. | Hyper inflation |
| D. | Stagflation |
| Answer» C. Hyper inflation | |
| 133. |
The philosophy of |
| A. | Gandhian state |
| B. | Industrial state |
| C. | Socialist state |
| D. | Welfare state |
| Answer» C. Socialist state | |
| 134. |
Due to decrease in |
| A. | 7.25 billion US dollars |
| B. | 11.20 billion US dollars |
| C. | 7.5 billion US dollars |
| D. | 9.43 billion US dollars |
| Answer» E. | |
| 135. |
In which of the following years, was the |
| A. | 1970-17 and 1974-75 |
| B. | 1972-73 and 1976-77 |
| C. | 1972-73 and 1975-76 |
| D. | 1971-72 and 1976-77 |
| Answer» C. 1972-73 and 1975-76 | |
| 136. |
Among India economists, who had done |
| A. | P.N Dhar |
| B. | Prof. Shenoi |
| C. | V.K.R. V Rao |
| D. | Jagdish Bhagwati |
| Answer» D. Jagdish Bhagwati | |
| 137. |
Which of the following best explains the cascading effect pf taxation ? |
| A. | When tax imposition leads to a disproportionate increase in prices by an extent more than the rise in the tax. |
| B. | When tax imposition leads to a disproportionate decrease in prices by an extant more than the decrease in imports. |
| C. | When tax imposition leads to a disproportionate decrease in imports. |
| D. | When tax imposition leads to a disproportionate decrease in exports. |
| Answer» B. When tax imposition leads to a disproportionate decrease in prices by an extant more than the decrease in imports. | |
| 138. |
GDP deflator is used to : |
| A. | measure the relative reduction in GDP growth rate of a country |
| B. | measure the inflation in a country |
| C. | compare the GDP of a country vis a vis other countries of the world. |
| D. | estimate the purchasing power of the citizen of a country. |
| Answer» C. compare the GDP of a country vis a vis other countries of the world. | |
| 139. |
The Minimum Alternative Tax (MAT) introduced in the budget of the government was India for the year? |
| A. | 1991-92 |
| B. | 1992-93 |
| C. | 1995-96 |
| D. | 1996-97 |
| Answer» E. | |
| 140. |
Which of the following is associated with fiscal policy? |
| A. | Inflation |
| B. | Taxation |
| C. | Consumption |
| D. | Money supply |
| Answer» C. Consumption | |
| 141. |
Fiscal deficit implies |
| A. | Total expenditure -- (Revenue receipts + recovery of loans + receipts from disinvestment ) |
| B. | Total expenditure -- Total receipts |
| C. | Total expenditure -- (Revenue receipts + receipts from disinvestment) |
| D. | Total expenditure -- Disinvestment receipts |
| Answer» B. Total expenditure -- Total receipts | |
| 142. |
Mixed economy |
| 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 | |
| 143. |
Currency devaluation done by the government leads to which of the following? |
| A. | Fall in domestic prices |
| B. | Increases in domestic prices |
| C. | No impact on domestic prices |
| D. | Irregular fluctuations in domestic prices. |
| Answer» D. Irregular fluctuations in domestic prices. | |
| 144. |
An economy with very low rate of interest and where economic agents expect the interest rate to rise in future and consequently bond prices to fall, causing capital loss in the economy is going through a situation know as |
| A. | Hyperinflation |
| B. | Double dip recession |
| C. | Slow down in the economy |
| D. | Liquidity trap |
| Answer» E. | |
| 145. |
Fiscal Drag' expresses the impact of impact of inflation on which of the following? |
| A. | Fiscal Deficit |
| B. | Tax Revenue and GDP |
| C. | Black money |
| D. | Investment |
| Answer» C. Black money | |
| 146. |
Economic liberalisation |
| 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 | |
| 147. |
There are in equalities in |
| 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 | |
| 148. |
What does term 'Green shoots' represents in an Economy ? |
| A. | signs of growth of agriculture sector in a growing economy |
| B. | signs of economic recovery during an economy downturn. |
| C. | signs of growth of agriculture sector in a declining economy. |
| D. | Signs of economic decline in a developed economy. |
| Answer» C. signs of growth of agriculture sector in a declining economy. | |
| 149. |
What do you understand by 'regressive taxation'? |
| A. | Taxation where the tax rate falls as taxable income rises. |
| B. | Taxation where the tax rate increases irrespective of fall or rise in taxable incomes. |
| C. | Taxation where the rate increase with the increase of taxanle income |
| D. | None of above |
| Answer» B. Taxation where the tax rate increases irrespective of fall or rise in taxable incomes. | |
| 150. |
In an economy a condition of lack of money supply in comparison to the supply of the goods services, will lead to : |
| A. | Inflation |
| B. | Deflationm |
| C. | Hyperinflation |
| D. | Devaluation |
| Answer» C. Hyperinflation | |