Indian Economy MCQ Set-1

Indian Economy MCQ for competitive examinations in India such as UPSC CSE, State PSC, IBPS PO, SBI PO, IBPS SO, IBPS RRB, IBPS Clerk and various government & public sector undertaking jobs in India.

Q.1 Which of the following is NOT a main items of the Capital Receipts?

A. Market Loans

B. Loans received from foreign governments and International financial Institutions.

C. Borrowings by the Government

D. Import duty

Answer: D. Import duty

Note: Capital receipts are receipts that create liabilities or reduce financial assets. They also refer to incoming cash flows. Capital receipts can be both non-debt and debt receipts. Loans from the general public, foreign governments and the Reserve Bank of India (RBI) form a crucial part of capital receipts.

Q.2 Comprehensive inflation is when:

A. The prices of all commodities rise throughout the economy

B. The price of service taxes rise throughout the economy

C. The price of income taxes rise throughout the economy

D. The price of industrial products rise throughout the economy

Answer: A. The prices of all commodities rise throughout the economy

Q.3 India is called a mixed economy because of the existence of:

A. Private & Public Sector

B. Private & Govt Sector

C. Private Sector & Cooperative Sector

D. None of these

Answer: A. Private & Public Sector

Note: A mixed economy is an economy organized with some free market elements and some socialistic elements, which lies on a continuum somewhere between pure capitalism and pure socialism.

Q.4 Which among the following is NOT a feature of monopoly?

A. Single seller of a commodity

B. Full control over price

C. Low profit margin

D. None of these

Answer: C. Low profit margin

Note: A monopoly market is characterized by the profit maximizer, price maker, high barriers to entry, single seller, and price discrimination.

Q.5 Planning Commission, currently transformed to NITI Aayog was setup in which of the following year?

A. 1950

B. 1948

C. 1954

D. 1976

Answer: A. 1950

Note: The Planning Commission was an institution in the Government of India, which formulated India’s Five-Year Plans, among other functions. In his first Independence Day speech in 2014, Prime Minister Narendra Modi announced his intention to dissolve the Planning Commission and this the NITI Aayog was setup.

Q.6 The term “SEBI” in the financial market of India stands for:

A. Securities & Exchange Board of India

B. Services and Exchange Board of India

C. Secretary to the Exchange Board of India

D. None of these

Answer: A. Securities & Exchange Board of India

Note: The Securities and Exchange Board of India is the regulatory body for securities and commodity market in India under the jurisdiction of Ministry of Finance, Government of India. It was established on 12 April 1988 and given Statutory Powers on 30 January 1992 through the SEBI Act, 1992.

Q.7 Seawater, fresh air, etc. are regarded in a economy as:

A. Natural Goods

B. Free Goods

C. Veblen Goods

D. Giffen Goods

Answer: B. Free Goods

Note: A free good is a good that is not scarce, and therefore is available without limit. A free good is available in as great a quantity as desired with zero opportunity cost to society. A good that is made available at zero price is not necessarily a free good.

Q.8 Insurance Sector in India is regulated by:

A. SEBI

B. RBI

C. IRDAI

D. SBI

Answer: C. IRDAI

Note: IDRAI stands for Insurance Regulatory and Development Authority of India. The Insurance Regulatory and Development Authority of India, founded in 1999 is a regulatory body under the jurisdiction of Ministry of Finance, Government of India and is tasked with regulating and promoting the insurance and re-insurance industries in India.

Q.9 National Rural Employment Guarantee Act was enacted in which of the following year?

A. 2005

B. 2006

C. 2014

D. 2018

Answer: A. 2005

Note: The National Rural Employment Guarantee Act (NREGA), 2005 is also known as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005.

Q.10 Which among the following is CORRECT about implementation of the NREGA, 2005?

I. Gaon Panchayat implements the act

II. The rural employment is guaranteed through contractors

III. Under the act, if the government fails to provide employment, the government has to provide unemployment allowance to the registered workers

A. Only I is correct

B. Both I & II are correct

C. Both I & III are correct

D. All, I, II & III are correct

Answer: C. Both I & III are correct

Note: Under the NREGA, 2005, involvement of contractor is banned and the Gaon Panchayat provide works to the workers directly without involving contractors.

List of Indian Economy MCQ sets from GKLead.com

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