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50 Multiple Choice Questions (MCQ) on Indian Economics.


Questions related to Indian Economics are asked in various competitive examinations conducted by SSC, UPSC, PSC, LIC, GIC, Railways, IBPS, etc. The main objective of these questions is to test the candidate's knowledge in the subject - Economics, particularly Indian Economy.


Candidates who wants to test their preparation in the topic - Indian Economics, we have provided below 50 Important Multiple Choice Questions (MCQ) on Indian Economics. These questions on economics have already been asked in various competitive examinations.




Model Test Paper-2


51) Economic Planning is a subject:
A) in the Union List
B) in the State List
C) in the Concurrent List
D) unspecified in any special list

52) Economic planning is an essential feature of ?
A) Dual economy
B) Mixed economy
C) Socialist economy
D) Capitalist economy

53) 'Economic Planning' refers to ?
A) The allocation of resources
B) The planning of manpower
C) The mobilisation of both taxes and manpower
D) The mobilisation of taxes

54) Economic survey is published by :
A) Ministry of Finance
B) Planning Commission
C) Govt. of India
D) Indian Statistical Institute

55) Equilibrium of the monopolistic firm
A) necessarily is profitable
B) occurs where P = MC
C) occurs where MR = MC
D) occurs where P = MR

56) Estimates of national income in India are prepared by the?
A) Ministry of finance
B) Reserve bank of India
C) Central statistical organization
D) Planning commission

57) Excise Duty is a tax levied on the?
A) export of goods
B) import of goods
C) production of goods
D) sale of goods

58) EXIM Bank was set-up in the year:
A) 1980
B) 1982
C) 1985
D) 1987

59) Fiscal Deficit in the Union Budget means?
A) The sum of budgetary deficit and net increase in internal and external borrowings
B) The sum of monetized deficit and budgetary deficit
C) The difference between current expenditure and current revenue
D) Net increase in Union Government borrowings from the RBI

60) Fiscal Policy is connected with?
A) exports and imports
B) Issue of currency
C) public revenue and expenditure
D) None of these

61) For internal financing of Five Year Plans, the government depends on:
A) taxation only
B) taxation and public borrowing
C) public borrowing and deficit financing
D) taxation, public borrowing and deficit financing

62) For regulation of the Insurance Trade in the country the Government has formed:
A) SEBI
B) Reserve Bank of India
C) Insurance Regulatory and Development Authority
D) General Insurance Corporation

63) Fresh evaluation of every item of expenditure from the very beginning of each financial year is called ?
A) Fresh Budgeting
B) Deficit Budgeting
C) Performance Budgeting
D) Zero-based Budgeting

64) From which country India adopted the Five Year Plans?
A) USSR
B) USA
C) Australia
D) Germany

65) Gilt-edged market means?
A) Market of government securities
B) Bullion market
C) Market of commodities
D) Market of pure metals

66) Globalisation of Indian Economy means:
A) stepping up external borrowings
B) establishing Indian business units abroad
C) having minimum possible restrictions on economic relations with other countries
D) giving up programmes of import substitution

67) Goa's economy is mainly based on ?
A) Export of ores
B) Tourism
C) Agriculture
D) None of these

68) Government imposes taxes to ?
A) Run the machinery of state
B) Uplift weaker sections
C) Check the accumulation of wealth among the rich
D) None of these

69) Gross domestic capital formation is defined as?
A) Expenditure incurred on physical assets only
B) Production exceeding demand
C) Flow of expenditure devoted to increased or maintaining of the capital stock
D) Net addition to stock after depreciation

70) Gross Domestic Product (GDP) is the monetary value of?
A) goods for the market and for self consumption
B) stock of goods and services
C) all final goods and services produced in a year
D) goods produced for the markets only

71) Growth rate of population means
A) The difference of growth between male and female.
B) The difference in population between urban and rural area.
C) The number of births per thousand people.
D) The difference between birth and death rates.

72) Hard Currency is defined as currency:
A) which can hardly be used for international transactions
B) which is used in times of war
C) which loses its value very fast
D) traded in foreign exchange market for which demand is persistently relative to the supply

73) If the price of an inferior good falls, then its demand
A) Rises
B) Falls
C) Remains constant
D) Can be any of these

74) If the RBI adopts an expansionist open market operations policy, this means that it will?
A) Openly announce to the market that it intends to expand credit
B) Sell securities in the open market
C) Offer commercial banks more credit in the open market
D) Buy securities from non-government holders

75) In a free economy, inequalities of income are mainly due to ?
A) Free competition
B) Private property and inheritance
C) Differences in the marginal productivity of labour
D) Private property only

76) In equilibrium, a perfectly competitive firm will equate
A) Marginal social cost with marginal social benefit
B) Market supply with market demand
C) Marginal profit with marginal cost
D) Marginal revenue with marginal cost

77) In estimating the budgetary deficit, the official approach in India is to exclude
A) Long term borrowings from the market
B) Borrowings from the Reserve Bank of India
C) Drawing down of the cash balance
D) Borrowings from Reserve Bank in the form of ways and means advance

78) In general our five year plans aim at making our country to attain the status of a/an?
A) Rich country
B) Developed country
C) Self sufficient country
D) Industrially advanced country

79) In India largest share of revenue comes from?
A) Direct Taxes
B) Excise Duties
C) Sales Tax
D) None of these

80) In India which of the following measures of Money denotes the Broad Money ?
A) M1
B) M2
C) M3
D) M4

81) In India, the bank NABARD does not provide refinance to :
A) Scheduled Commercial Banks
B) Regional Rural Banks
C) Export-Import Banks
D) State Land Development Banks

82) In India, the first bank of limited liability managed by Indians and founded in 1881 was:
A) Hindustan Commercial Bank
B) Oudh Commercial Bank
C) Punjab National Bank
D) Punjab and Sind Bank

83) In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?
A) Commercial Banks
B) Cooperative Banks
C) Regional Rural Banks
D) Microfinance Institutions

84) In India, Inflation is measured by the?
A) National Income Deflation
B) Consumers Price Index for agriculture workers
C) Consumers Price Index for urban non-manual workers
D) Wholesale Price Index number

85) In India, Paper Currency first started in the year?
A) 1774
B) 1810
C) 1852
D) 1861

86) In India, present trend of rapid urbanisation is due to:
A) lack of employment opportunities in rural areas
B) influence of cinema and electronic media
C) break up of joint family system
D) abolition of zamindari system

87) In India, present trend of rapid urbanisation is due to?
A) Break up of joint family system
B) Abolition of zamindari system
C) Lack of employment opportunities in rural areas.
D) Influence of cinema and electronic media

88) In India, the concepts of Minimum Heeds and Directed Anti-poverty Programmes were the innovations of:
A) Fourth Five-year Plan
B) Fifth Five-year Plan
C) Sixth Five-year Plan
D) Seventh Five-year Plan

89) In India, the first bank of limited liability managed by Indians and founded in the year 1881 was?
A) Punjab National Bank
B) Punjab and Sind Bank
C) Oudh Commercial Bank
D) Hindustan Commerical Bank

90) In India, the interest rate on savings accounts in all the nationalised commercial banks is fixed by
A) Finance Minister of India
B) Union Finance Commission
C) Indian Bank Association
D) Reserve Bank of India

91) The place where bankers meet and settle their mutual claims and accounts is known as:
A) treasury
B) clearing house
C) collection centre
D) dumping ground

92) In India, the Public Sector is most dominant in?
A) Steel production
B) Organised term lending financial institutions.
C) Transport
D) Commercial banking

93) In India, which of the following affects poverty line the most?
A) Quantum of gold reserve
B) Per capita income
C) Production quantum
D) Level of prices

94) In the context of India's Five Year Plans, a shift in the pattern of industrialization, with lower emphasis on heavy industries and more on infrastructure begins in:
A) fourth Plan
B) sixth Plan
C) eighth Plan
D) tenth Plan

95) In the last one decade, which one among the following sectors has attracted the highest foreign direct investment(FDI) inflows into India?
A) Services sector
B) Insurance sector
C) Telecommunication
D) Defence sector

96) In the second phase of nationalization of commercial banks, how many banks were nationalized?
A) 4
B) 6
C) 8
D) 10

97) In the terms of economics, the recession occurring two times with a small gap in between is known as:
A) Double Deflation
B) Deflation
C) Deep Recession
D) Double Dip Recession

98) In the year 1969 how many banks were nationalised?
A) 12
B) 14
C) 16
D) 18

99) In which of the Five Year Plans, preference was given to the weaker sections of the society?
A) Second
B) Third
C) Fourth
D) Fifth

100) In which one of the following five year plans the actual growth performance in India in respect of GDP (at factor cost) was less than the target set?
A) Sixth five year plan
B) Seventh five year plan
C) Eighth five year plan
D) Ninth five year plan