Multiple Choice Questions (MCQ) on Indian Economics Set-2

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

1 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 Answer is required

2 Economic planning is an essential feature of ?

A) Dual economy B) Mixed economy C) Socialist economy D) Capitalist economy Answer is required

3 '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 Answer is required

4 Economic survey is published by :

A) Ministry of Finance B) Planning Commission C) Govt. of India D) Indian Statistical Institute Answer is required

5 Equilibrium of the monopolistic firm

A) necessarily is profitable B) occurs where P = MC C) occurs where MR = MC D) occurs where P = MR Answer is required

6 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 Answer is required

7 Excise Duty is a tax levied on the?

A) export of goods B) import of goods C) production of goods D) sale of goods Answer is required

8 EXIM Bank was set-up in the year:

A) 1980 B) 1982 C) 1985 D) 1987 Answer is required

9 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 Answer is required

10 Fiscal Policy is connected with?

A) exports and imports B) Issue of currency C) public revenue and expenditure D) None of these Answer is required

11 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 Answer is required

12 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 Answer is required

13 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 Answer is required

14 From which country India adopted the Five Year Plans?

A) USSR B) USA C) Australia D) Germany Answer is required

15 Gilt-edged market means?

A) Market of government securities B) Bullion market C) Market of commodities D) Market of pure metals Answer is required

16 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 Answer is required

17 Goa's economy is mainly based on ?

A) Export of ores B) Tourism C) Agriculture D) None of these Answer is required

18 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 Answer is required

19 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 Answer is required

20 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 Answer is required

21 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. Answer is required

22 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 Answer is required

23 If the price of an inferior good falls, then its demand

A) Rises B) Falls C) Remains constant D) Can be any of these Answer is required

24 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 Answer is required

25 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 Answer is required

26 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 Answer is required

27 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 Answer is required

28 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 Answer is required

29 In India largest share of revenue comes from?

A) Direct Taxes B) Excise Duties C) Sales Tax D) None of these Answer is required

30 In India which of the following measures of Money denotes the Broad Money ?

A) M1 B) M2 C) M3 D) M4 Answer is required

31 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 Answer is required

32 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 Answer is required

33 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 Answer is required

34 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 Answer is required

35 In India, Paper Currency first started in the year?

A) 1774 B) 1810 C) 1852 D) 1861 Answer is required

36 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 Answer is required

37 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 Answer is required

38 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 Answer is required

39 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 Answer is required

40 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 Answer is required

41 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 Answer is required

42 In India, the Public Sector is most dominant in?

A) Steel production B) Organised term lending financial institutions. C) Transport D) Commercial banking Answer is required

43 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 Answer is required

44 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 Answer is required

45 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 Answer is required

46 In the second phase of nationalization of commercial banks, how many banks were nationalized?

A) 4 B) 6 C) 8 D) 10 Answer is required

47 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 Answer is required

48 In the year 1969 how many banks were nationalised?

A) 12 B) 14 C) 16 D) 18 Answer is required

49 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 Answer is required

50 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 Answer is required

50 Multiple Choice Questions (MCQ) on Indian Economics.