Practice Indian economy mcq - indian economy mcq Online Quiz (set-2) For All Competitive Exams
Q-1) Which of the following were the priority objectives of the Eighth plan? - Universalization of elementary education.
- Growth and diversification of agriculture.
- Containment of population growth.
- Gradual privatization of most public sector undertakings.
Choose your answer from the following codes
(a)
(b)
(c)
(d)
Q-2) Which among the following is the type of organised sector of Indian money market?- Call money market
- Treasury Bill Market
- Commercial Bill Market
- Collateral loan market
Choose the correct code.
(a)
(b)
(c)
(d)
The type of organised sector of Indian money market are Call Money Market, Treasury Bill Market, Commercial Bill Market and Collateral loan market
Q-3) Which one of the following major markets has the highest share of composition of exports of ores and minerals in the world ?
(a)
(b)
(c)
(d)
Major share of ore and mineral exports comes from the export of iron ore from China.
Q-4) With reference to India, consider the following statements. - The Wholesale Price Index (WPI) in India is available on a monthly basis only.
- As compared on Consumers Price Index for Industrial Workers [CPI(IW)] the WPI gives less weight to food articles.
Which of the following statement(s) given above is/are correct?
(a)
(b)
(c)
(d)
Q-5) The alphabet ‘D’ in the abbreviation ‘NDTL’, commonly used in banking world, stands for
(a)
(b)
(c)
(d)
The abbreviation of Net Demand and Time Liabilities is NDTL, in which ‘D’ stands for demand.
Q-6) The Indian Coins are minted at the four Indian Government Mints, which of the following is ‘not’ one of them?
(a)
(b)
(c)
(d)
The Government of India has the sole right to mint coins.
Coins are minted at the four India Government Mints at
- Mumbai, Alipore(Kolkata),
- Saifabad(Hyderabad),
- Cherlapally (Hyderabad) and
- Noida (UP).
Q-7) The importance of agriculture in Indian economy is indicated by its contribution to which of the following?
(a)
(b)
(c)
(d)
The importance of agriculture in the Indian Economy is indicated by its contribution to national income, industrial development and supply of foodgrains.
It contributes around 13.7% to GDP, supplies raw material for the development of industries along with supplying foodgrains for livelihood.
Q-8) Which of the following should be considered for ‘Pigovian taxation’? - Consumption of cigarettes
- Research for new technologies
- Burning of fossil fuels
- Restoration of lost cultural heritage
Choose the correct answer using the codes given below:
(a)
(b)
(c)
(d)
A Pigovian tax is applied to a market activity that is generating negative externalities (costs for somebody else) like cigarette consumption, burning of fossil fuel.
Q-9) Per capita income =
(a)
(b)
(c)
(d)
Per capita income, more simply known as income per person, is the mean income within an economic aggregate such as a country or city.
It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross national income) and dividing it by the total population.
Q-10) Consider the following statements regarding Indian Planning:
- The Second Five-Year Plan emphasized on the establishment of heavy industries.
- The Third Five-Year Plan introduced the concept of import substitution as a strategy for industrialization.
Which of the statements given above is/are correct?
(a)
(b)
(c)
(d)
Second Five-Year Plan (1956-1961);
The fourth Five-Year Plan (1969-74) introduced the concept of import substitution as a strategy for industrialization.
Q-11) Who is called father of Modern Economics?
(a)
(b)
(c)
(d)
Q-12) Which of the following grants / grant direct credit assistance to rural households?
- Regional Rural Banks
- National Bank for Agriculture and Rural Development
- Land Development Banks
Select the correct answer using the codes given below.
(a)
(b)
(c)
(d)
Land development banks started financing long term loans for more significant rural development activities like rural and cottage industries, rural artisans etc.
The main purpose of RRB’s is to mobilize financial resources from rural / semi-urban areas and grant loans and advances mostly to small and marginal farmers, agricultural labourers and rural artisans.
Q-13) Which one of the following items has the highest share of India in the World Exports?
(a)
(b)
(c)
(d)
These exports have marked a growth of 0.8 in the year 2012-13.
Recently India has diversified its export basket for these products.
Q-14) Consider the following statements: - Average annual growth target of 12th Five Year Plan is 9%.
- Average annual growth of the agriculture sector in the Eleventh Five Year Plan was 4%.
Which of the statements given above is/are correct?
(a)
(b)
(c)
(d)
Average annual growth target of 12th Five Year Plan is 8%. Average annual growth of the agriculture sector in the Eleventh Five Year Plan was 3.3%.
Q-15) The decimal system was made applicable to Indian currency system in which year?
(a)
(b)
(c)
(d)
Q-16) Consider the following statements : - World GSM mobile tower architecture is an environment-friendly mobile system, to deliver affordable services in villages.
- World GSM is solar-powered
Which of the statements given above is/are correct?
(a)
(b)
(c)
(d)
The Indian telecom equipment-maker, Vihaan Networks Ltd (VNL) launched its’ solar-powered ‘World GSM’ mobile tower architecture, an environment-friendly and cost-effective mobile system, to deliver affordable services in villages.
Q-17) Consider the following statements :
- LPG model of the Indian Economy was fully implemented in the Eighth Five Year plan.
- The Eighth plan envisaged an annual average growth rate of 5.6% but the real growth rate was 6.8%.
Which of the statements given above is/are correct?
(a)
(b)
(c)
(d)
The economy of India had undergone significant policy shifts at the beginning of the 1990s at the time of the eighth plan. This new model of economic reforms is commonly known as the LPG or Liberalization, Privatization and Globalization model.
LPG model of economic development in India was proposed by Dr Manmohan Singh, economist and finance minister at that time.
Moreover, the Eighth plan envisaged an annual average growth rate of 5.6% but the real growth rate was 6.8%.
Q-18) NAMA-11, group of countries frequently appears in the news in the context of the affairs of which one of the following?
(a)
(b)
(c)
(d)
The fight on pruning industrial tariffs at the WTO has become more fierce with a group of developing countries (NAMA-11).
Q-19) In which year was the new currency Euro introduced?
(a)
(b)
(c)
(d)
The euro was introduced to world financial markets as an accounting currency on 1 January 1999, replacing the former European Currency Unit (ECU) at a ratio of 1:1 (US$1.1743).
Q-20) Match the following:
List I
List II
(Five Year Plan)
(Emphasis)
A. First
1. Food security and women empowerment
B. Second
2. Heavy industries
C. Fifth
3. Agriculture and community development
D. Ninth
4. Removal of poverty
Codes: A B C D
| List I | List II |
| (Five Year Plan) | (Emphasis) |
| A. First | 1. Food security and women empowerment |
| B. Second | 2. Heavy industries |
| C. Fifth | 3. Agriculture and community development |
| D. Ninth | 4. Removal of poverty |
(a)
(b)
(c)
(d)
A. First Five Year Plan (1951-56)- Agriculture and community development
B. Second Five Year Plan (1956-61)- Heavy Industry
C. Fifth Five Year Plan (1974-79)- Removal of Poverty
D. Ninth Five Year Plan (1997-2002)- Food Security and woman empowerment
Q-21) Consider the following statements:
- PM Kisan will fall under “Green Box” in WTO subsidies
- Peace Clause under WTO is still continuing
Select the correct answer using the code given below:
(a)
(b)
(c)
(d)
PM-Kisan scheme is not linked to production i.e. the farmers will get the subsidy even if they do not produce hence it is non-distorting and will belong to “Green Box”.
And Peace Clause is still valid and continuing till a permanent solution to the issue of agricultural subsidies is arrived at.
Q-22) Consider the following statements :
- The first petrochemical industry in India was started with the establishment of the National organic chemical industry limited in the sixties.
- The real thrust of the petrochemical industry in India came with the establishment of the Indian Petrochemical Corporation Limited (IPCL) at Baroda.
Which of the statements given above is/are Correct:
(a)
(b)
(c)
(d)
The first petrochemical industry in India was started with the establishment of National Organic Chemical Industry Limited in 1961.
The company manufacture various organic and inorganic chemicals.
The real thrust of the Petrochemical industry in India came with the establishment of Indian Petrochemical Corporation Limited (IPCL) at Baroda on March 22, 1969, with a view to promote and encourage the use of plastics in India.
Q-23) Which among the following is an example of Green Field Investment?
(a)
(b)
(c)
(d)
Q-24) Equilibrium price means
(a)
(b)
(c)
(d)
The equilibrium price is a state in an economy where the supply of goods matches demand. When a major index experiences a period of consolidation or sideways momentum, it can be said that the forces of supply and demand are relatively equal and that the market is in a state of equilibrium.
In short, it is the market price at which the supply of an item equals the quantity demanded.
Q-25) Who said ‘Supply creates its own demand’?
(a)
(b)
(c)
(d)
“Supply creates its own demand” is the formulation of Say’s law by John Maynard Keynes.
The rejection of this doctrine is a central component of The General Theory of Employment, Interest and Money (1936) and a central tenet of Keynesian economics.
Say’s law, or the law of the market is an economic principle of classical economics named after the French businessman and economist Jean-Baptiste Say (1767– 1832), who stated that “products are paid for with products” and “a glut can take place only when there are too many means of production applied to one kind of product and not enough to another
Q-26) Which one of the following is not included in the Agriculture and Allied Services of Indian Economy?
(a)
(b)
(c)
(d)
Agriculture(crops) and allied sectors are like forestry, logging and fishing. Food processing is not included in the Agriculture and allied services of the Indian Economy.
Q-27) The “Dual Economy” is a mixture of ?
(a)
(b)
(c)
(d)
(e)
A dual economy is the existence of two separate economic sectors within one country, divided by different levels of development, technology, and different patterns of demand.
The concept was originally created by Julius Herman Boeke to describe the coexistence of modern and traditional economic sectors in a colonial economy.
Q-28) The excess of price a person is to pay rather than forego the consumption of the commodity is called
(a)
(b)
(c)
(d)
‘Producer Surplus’ is an economic measure of the difference between the amount that a producer of a good receives and the minimum amount that he or she would be willing to accept for the good.
The difference, or surplus amount, is the benefit that the producer receives for selling the good in the market.
Q-29) The Green Revolution in India has contributed to
(a)
(b)
(c)
(d)
The Green Revolution in India has contributed to inter-regional, inter-class and inter-crop inequality as certain regions like UP and Punjab which used HYVs performed much better than others and become more advanced than other states.
Q-30) Which one of the following statements represent ‘Headcount ratio’?
(a)
(b)
(c)
(d)
The Headcount ratio (HCR) is the proportion of a population that exists, or lives, below the poverty line.
The Poverty headcount ratio at the national poverty line (percentage of population) in India was last reported at 21.9% in 2011-12 as per the Tendulkar committee.