Indian Economy MCQs
Indian Economy Multiple Choice Questions (MCQs) for State and UPSC Civil Services Examinations. Objective Questions on Indian Economy for competitive examinations.
1. Which of the following is/are Money Market Instruments?
[A] Treasury Bills
[B] Commercial Papers
[C] Certificate of Deposits
[D] All of the above
Show Answer
Correct Answer: D [All of the above]
Notes:
Money market securities are debt issues with maturities of one year or less. Treasury Bills, Certificate of Deposit as well as Commercial papers are money market instruments.
2. Which of the following industries is the not covered in the Index of Eight Core Industries?
[A] Electricity
[B] Crude Oil
[C] Natural Gas
[D] Pharmaceutical
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Correct Answer: D [Pharmaceutical]
Notes:
The industries covered in the Index of Eight Core are namely Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity.
3. From July 1, 2017, the nationwide GST (Goods & Services Tax) has been rolled out in India, making the country a single market. What is the current size of Indian economy?
[A] USD 1 Trillion
[B] USD 2 Trillion
[C] USD 3 Trillion
[D] USD 4 Trillion
Show Answer
Correct Answer: B [ USD 2 Trillion ]
Notes:
India is a USD 2 trillion economy with around 1.3 billion people.
4. A persistent fall in the general price level of goods and services is known as __:
[A] Deflation
[B] Disinflation
[C] Stagflation
[D] Depression
Show Answer
Correct Answer: A [ Deflation ]
Notes: Inflation refers to rise in general price level of goods and services, deflation is fall in general price level of goods and services. Deflation is inflation in negative zone, i.e. a decrease in the general price level of goods and services. {
Reference}
5. Agricultural Income Tax revenue goes to which of the following governments in India?
[A] State Governments
[B] Central Government
[C] Collected by State Governments , delivered to Central Government
[D] Collected by Central Government, delivered to State Governments
Show Answer
Correct Answer: A [State Governments]
Notes:
The taxing powers of the central government encompass taxes on income (except agricultural income), excise on goods produced (other than alcohol), customs duties, and inter-state sale of goods.
The state governments are vested with the power to tax agricultural income, land and buildings, sale of goods (other than inter-state), and excise on alcohol. Local authorities such as Panchayat and Municipality also have power to levy some minor taxes.
6. Planning Commission of India was established by which among the following means?
[A] Act of Parliament
[B] Presidential Order
[C] Presidential Ordinance
[D] Cabinet Resolution
Show Answer
Correct Answer: D [Cabinet Resolution]
7. Universalization of Secondary Education was an aim of which among the following five year plans?
[A] 9th
[B] 10th
[C] 11th
[D] 12th
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8. Birth rate is number of births per ………….of the population during one year.
[A] 100
[B] 1000
[C] 10000
[D] 100000
Show Answer
Correct Answer: B [1000]
Notes:
Births are usually measured using the birth rate i.e. the number of live births per 1,000 people. Deaths are usually measured using the death rate i.e. the number of deaths per 1,000 people. Migrations is the movement of people in and out of an area. Births and deaths are the natural causes of population change. The difference between the birth rate and the death rate of a country is called the natural growth rate
9. Who among the following Indian Economists have played a crucial role in the MNREGA formerly NREGA?
[A] Amartya Sen
[B] Jean Dreze
[C] Jagdish Natwarlal Bhagwati
[D] Dr. Vijay Kelkar
Show Answer
Correct Answer: B [Jean Dreze]
10. Which among the following sentences is / are correct ?
[A] The Union Levies, collects and distributes the proceeds of income tax between itself and states
[B] The Union Levies, collects and distributes the proceeds of income tax between states
[C] The Union Levies, collects and keeps the proceeds of income tax
[D] The Union Levies, collects and distributes the proceeds of income tax & Surcharge and only surcharge is distributed among states
Show Answer
Correct Answer: A [The Union Levies, collects and distributes the proceeds of income tax between itself and states]
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