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Economics Chapter 2 Class 10 MCQ. We covered all the Economics Chapter 2 Class 10 MCQ in this post for free so that you can practice well for the exam.
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MCQ on Economics for Students
Quick Quiz
The factor connected with exchange is:
(a) Production
(b) Markets
(c) Consumption
(d) Distribution
Option b – Markets
Human wants are generally:
(a) Limited
(b) Unlimited
(c) Easily fulfilled
(d) Absent
Option b – Unlimited
Which of the following is classified as a private good?
(a) Library
(b) Radio
(c) Rail
(d) Park
Option c – Rail
Identify the option that is not a luxury item:
(a) Air journey
(b) Air conditioner
(c) Clothes
(d) Cinema
Option c – Clothes
Items that directly fulfill human needs are known as:
(a) Consumer goods
(b) Capital goods
(c) Intermediate goods
(d) None of the above
Option a – Consumer goods
For a postman, a bicycle is considered a:
(a) Luxury
(b) Necessity
(c) Comfort
(d) None of these
Option b – Necessity
Elements necessary for producing goods are:
(a) Factors of production
(b) Industrialists
(c) Government
(d) Markets
Option a – Factors of production
National income refers to:
(a) The annual income of a country
(b) The country’s monthly income
(c) Income of all states
(d) Yearly income of a person
Option a – The annual income of a country
Small-scale industries generally manufacture:
(a) Rails
(b) Dams
(c) Bags
(d) Cinema halls
Option c – Bags
The services of doctors are primarily used by:
(a) Students
(b) Patients
(c) Government officials
(d) Senior citizens
Option b – Patients
Farmers usually produce:
(a) Oil seeds
(b) Iron ore
(c) Cement
(d) Infrastructure projects
Option a – Oil seeds
To manage population growth, it is vital to implement:
(a) Land reforms
(b) Urban development projects
(c) Family planning
(d) Increase in per capita income
Option c – Family planning
The tool used to assess poverty levels is:
(a) Poverty line
(b) Market system
(c) National income
(d) Per capita income
Option a – Poverty line
For per capita income to rise alongside national income, the population should:
(a) Increase
(b) Decrease
(c) Remain unchanged
(d) Be minimal
Option b – Decrease
What was the Net National Product (NNP) in 2002-2003?
(a) ₹20,03,282
(b) ₹15,90,212
(c) ₹17,04,719
(d) ₹25,31,223
Option a – ₹20,03,282
A key factor in enhancing skill and productivity is:
(a) Environment
(b) Fertile housing
(c) Health
(d) Education
Option d – Education
Indian villages before British rule were:
(a) Self-sufficient
(b) Dependent on external aid
(c) Not self-reliant
(d) Lacking development in all areas
Option a – Self-sufficient
The theory of Economic Drain was proposed by:
(a) Dadabhai Naoroji
(b) D.R. Gadgil
(c) Sen Gupta
(d) P.C. Mahalanobis
Option b – D.R. Gadgil
Who authored the book Poverty of India?
(a) T.T. Krishnamachari
(b) Adam Smith
(c) John Maynard Keynes
(d) Dadabhai Naoroji
Option d – Dadabhai Naoroji
What percentage of India’s population relies on agriculture?
(a) 55%
(b) 60%
(c) 64%
(d) 70%
Option d – 70%
The handloom industry falls under which category?
(a) Automobile sector
(b) Handloom sector
(c) Chemical industry
(d) Engineering goods manufacturing
Option b – Handloom sector
The southwest monsoon typically occurs in:
(a) January to May
(b) June to September
(c) October to December
(d) March to June
Option b – June to September
One of the major states for rice production is:
(a) Kerala
(b) Andhra Pradesh
(c) Gujarat
(d) Punjab
Option b – Andhra Pradesh
The Zamindari land system was brought in by:
(a) Lord Cornwallis
(b) Robert Clive
(c) Lord William Bentinck
(d) Lord Dalhousie
Option a – Lord Cornwallis
The Mahalwari land system was practiced in:
(a) Coorg
(b) Agra
(c) Odisha
(d) Andhra Pradesh
Option b – Agra
Identify the primary Kharif crop:
(a) Rice
(b) Wheat
(c) Millets
(d) Groundnut
Option a – Rice
Which of the following is considered unearned income?
(a) Income from property
(b) Daily wages
(c) Money earned through hard work
(d) Monthly salary
Option a – Income from property
What type of economic system does India follow?
(a) Capitalist economy
(b) Mixed economy
(c) Socialist economy
(d) None of the above
Option b – Mixed economy
An economy where both public and private sectors function is known as:
(a) Socialist economy
(b) Capitalist economy
(c) Mixed economy
(d) None of these
Option c – Mixed economy
Which country follows a socialist economic model?
(a) USA
(b) UK
(c) India
(d) China
Option d – China
Who introduced the classification of Economics?
(a) Adam Smith
(b) Ragner Frisch
(c) Amartya Sen
(d) Marshall
Option b – Ragner Frisch
Macroeconomics primarily focuses on:
(a) Price theory
(b) Profit and loss
(c) Social welfare
(d) National income
Option d – National income
Which economist described economics as the study of wealth?
(a) Ricardo
(b) Robbins
(c) Adam Smith
(d) Amartya Sen
Option c – Adam Smith
Which subject is considered the queen of social sciences?
(a) Economics
(b) History
(c) Civics
(d) Geography
Option c – Civics
Which of the following is not a factor of production?
(a) Land
(b) Labour
(c) Car
(d) Capital
Option c – Car
What does ‘Capital’ refer to in economics?
(b) Goods and services
(c) Organization
(d) Buildings and machinery
Option d – Buildings and machinery
What type of utility is added when a shirt is stitched?
(a) Form utility
(b) Time utility
(c) Collective utility
(d) Place utility
Option a – Form utility
In India’s Union Budget, which expenditure has the highest allocation?
(a) Plan expenditure
(b) Non-plan expenditure
(c) Revenue expenditure
(d) Capital expenditure
Option c – Revenue expenditure
What is the main economic impact of deficit financing?
(a) Reduction in taxes
(b) Increase in wages
(c) Rise in money supply
(d) Drop in money supply
Option c – Rise in money supply
Identify the components of internal debt:
(a) Market borrowing only
(b) Market borrowing and Treasury bills
(c) Treasury bills only
(d) Market borrowing, Treasury bills, and securities to RBI
Option d – Market borrowing, Treasury bills, and securities to RBI
When fiscal deficit is reduced by interest payments, the result is:
(a) Deficit financing
(b) Budget deficit
(c) Fiscal deficit
(d) Primary deficit
Option d – Primary deficit
Fiscal deficit is defined as: ( Economics Chapter 2 Class 10 MCQ )
(a) Total expenditure minus total of revenue receipts, loan recovery, and disinvestment receipts
(b) Total expenditure minus total receipts
(c) Total expenditure minus revenue receipts and disinvestment
(d) Total expenditure minus disinvestment receipts
Option a – Total expenditure minus total of revenue receipts, loan recovery, and disinvestment receipts
In the current account of the central budget, the largest expenditure item is:
(a) Defence spending
(b) Subsidies
(c) Interest payments
(d) Social sector expenses
Option c – Interest payments
Recently, the largest portion of public spending in the Union Budget has gone to: ( Economics Chapter 2 Class 10 MCQ )
(a) Defence
(b) Interest payments
(c) Major subsidies
(d) Capital investment
Option b – Interest payments
Which deficit makes up the largest part of India’s budget gap?
(a) Primary deficit
(b) Fiscal deficit
(c) Revenue deficit
(d) Budgetary deficit
Option b – Fiscal deficit
Which deficit significantly contributes to India’s overall budget deficit? ( Economics Chapter 2 Class 10 MCQ )
(a) Revenue deficit
(b) Budgetary deficit
(c) Fiscal deficit
(d) Primary deficit
Option c – Fiscal deficit
The fast expansion of cities is known as: ( Economics Chapter 2 Class 10 MCQ )
(a) Urbanisation
(b) Civilization
(c) Ruralisation
(d) None of these
Option a – Urbanisation
The Mahalanobis Committee focused on:
(a) Income distribution and living standards
(b) Forest conservation
(c) Panchayat Raj
(d) Wildlife preservation
Option a – Income distribution and living standards
What is a key characteristic of rainfall in India?
(a) Not evenly distributed
(b) Inadequate for farming
(c) Uniform across the country
(d) Causes floods in the northeast
Option a – Not evenly distributed
Which social group was legally privileged under British rule?
(a) Collectors
(b) Revenue officials
(c) Zamindars
(d) None of the above
Option c – Zamindars
Which system involves individuals owning separate and independent plots of land? ( Economics Chapter 2 Class 10 MCQ )
a. Zamindari system
b. Mahalwari system
c. Ryotwari system
d. Community system
Option c – Ryotwari system
In which land revenue system did a group of dominant families collectively own village land?
a. Mahalwari system
b. Zamindari system
c. Ryotwari system
d. None of the above
Option a – Mahalwari system
What is the main cause of income inequality?
a. Property ownership
b. High education levels
c. Monthly salaries
d. Daily wages
Option a – Property ownership
What was the goal behind eliminating the Zamindari system and similar landholding methods? ( Economics Chapter 2 Class 10 MCQ )
a. Return land to the previous owner
b. Give land back to the one who cultivates it
c. Transfer land to the government
d. Make land public property
Option b – Give land back to the one who cultivates it
What was the rural population of India in 1991, in millions? ( Economics Chapter 2 Class 10 MCQ )
a. 524
b. 710
c. 439
d. 629
Option d – 629
What do we call the income generated from owning assets like land or property?
a. Earned income
b. Unearned income
c. Received income
d. Mixed income
Option b – Unearned income
Which country follows a socialist model of economy? ( Economics Chapter 2 Class 10 MCQ )
a. USA
b. UK
c. India
d. China
Option d – China
What does the Lorenz Curve represent? ( Economics Chapter 2 Class 10 MCQ )
a. Income inequality in a country
b. Proportion of people below the poverty line
c. Population growth rate
d. Literacy rate statistics
Option a – Income inequality in a country
If private individuals control the production resources, what type of economy is it?
a. Joint sector
b. Mixed economy
c. Socialist economy
d. Capitalist economy
Option d – Capitalist economy
Which category includes China and the countries of Eastern Europe? ( Economics Chapter 2 Class 10 MCQ )
a. Capitalist economy
b. Mixed economy
c. Socialist economy
d. None of these
Option c – Socialist economy
When did the East India Company gain political power in India? ( Economics Chapter 2 Class 10 MCQ )
a. 1600
b. 1775
c. 1757
d. 1737
Option c – 1757
What is the term for income earned through work or services?
a. Earned income
b. Unearned income
c. National product
d. GNP per capita
Option a – Earned income
How is the Indian economy best described?
a. Mixed economy
b. Capitalistic economy
c. Socialistic economy
d. None of these
Option a – Mixed economy
In which system are prices determined by supply and demand? ( Economics Chapter 2 Class 10 MCQ )
a. Capitalist economic system
b. Socialist economy system
c. Communist economic system
d. Mixed economic system
Option a – Capitalist economic system
What is the per capita income threshold for high-income countries?
a. Below $765
b. $890
c. More than $9386
d. More than $10,000
Option c – More than $9386
A nation’s development is mainly measured by: ( Economics Chapter 2 Class 10 MCQ )
a. Gross National Product
b. Net National Product
c. Per Capita Income
d. Trade Balance
Option c – Per Capita Income
What defines poverty?
a. Low crop yield
b. Rising prices
c. Low industrial output
d. Inability to meet basic needs
Option d – Inability to meet basic needs
When a person lacks access to the minimum necessary food, it is called: ( Economics Chapter 2 Class 10 MCQ )
a. Relative poverty
b. Absolute poverty
c. Poverty line
d. Voluntary poverty
Option b – Absolute poverty
Which of the following is a poverty eradication initiative?
a. State Finance Corporation Scheme
b. National Literacy Program
c. Green Revolution
d. Integrated Rural Development Programme
Option d – Integrated Rural Development Programme
Disguised unemployment is most common in which sector? ( Economics Chapter 2 Class 10 MCQ )
a. Industries
b. Small scale units
c. Agriculture
d. Trade and Commerce
Option c – Agriculture
According to the National Sample Survey, how many hours per week classifies underemployment?
a. 25 hours
b. 42 hours
c. 18 hours
d. 14 hours
Option d – 14 hours
Which of these is a port city in India?
a. Hyderabad
b. Nagpur
c. Kolkata
d. Ahmedabad
Option c – Kolkata
Which state ranks highest in agricultural development?
a. Haryana
b. Andhra Pradesh
c. Punjab
d. Himachal Pradesh
Option c – Punjab
Which state leads in industrial development?
a. Maharashtra
b. West Bengal
c. Gujarat
d. Rajasthan
Option a – Maharashtra
Which country operates under a capitalist economy? ( Economics Chapter 2 Class 10 MCQ )
a. USA
b. Russia
c. China
d. India
Option a – USA
Which country follows a mixed economy system?
a. USA
b. Russia
c. India
d. England
Option c – India
What type of economy does India primarily have?
a. Agricultural economy
b. Industrial economy
c. Export-oriented economy
d. Socialist economy
Option a – Agricultural economy
In the 17th and 18th centuries, who was a major importer of Indian goods?
a. Africa
b. South America
c. Australia
d. Europe
Option d – Europe
Where did the Industrial Revolution begin?
a. Italy
b. England
c. France
d. Germany
Option b – England
Why did India remain underdeveloped? ( Economics Chapter 2 Class 10 MCQ )
a. Dependence on agriculture
b. Lack of industries
c. Raw material shortages
d. Lack of mineral resources
Option a – Dependence on agriculture
Which of the following states is among the top wheat producers in India? ( Economics Chapter 2 Class 10 MCQ )
a. Andhra Pradesh
b. Gujarat
c. Punjab
d. Maharashtra
Option c – Punjab
We covered all the economics chapter 2 class 10 MCQ above in this post for free so that you can practice well for the exam.
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