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Indian Economy MCQ for UPSC Prelims with Answers
Which of the following is a Navaratna PSE?
(a) MMTC Ltd
(b) Engineers India Ltd
(c) Mahanagar Telephone Nigam Ltd
(d) Container Corporation of India Ltd
Option c – Mahanagar Telephone Nigam Ltd
Encouraging more multinational companies in India is to promote the policy of ( Indian Economy MCQ for UPSC Prelims with Answers )
(a) Privatization
(b) Liberalization
(c) Globalization
(d) All of these
Option d – All of these
Omkar Goswami Committee was set up by the government for examining the issue of –
(a) Industrial sickness
(b) Industrial relations
(c) Reforms in the banking sector
(d) Growth of small-scale industries
Option a – Industrial sickness
National Renewal Fund was constituted for the purpose of ( Indian Economy MCQ for UPSC Prelims with Answers )
(a) Social security
(b) Rural reconstruction
(c) Providing pension for retiring employees
(d) Restructuring and modernization of industries
Option d – Restructuring and modernization of industries
Which is the biggest enterprise of the government of India?
(a) Banking
(b) Shipping
(c) Postal and Telegraph
(d) Railway
Option d – Railway
Who is associated with the formulation of the planning strategy in the second Five-Year Plan? ( Indian Economy MCQ for UPSC Prelims with Answers )
(a) P. C. Mahalanobis
(b) B. R. Shenoy
(c) Mahatma Gandhi
(d) Jawahar Lal Nehru
Option a – P. C. Mahalanobis
The major emphasis in the First Five-Year Plan was on –
(a) Employment generation
(b) Export promotion
(c) Agriculture
(d) Industry
Option c – Agriculture
Which of the following represents ‘I’ in the abbreviation IRDP? ( Indian Economy MCQ for UPSC Prelims with Answers )
(a) Indian
(b) Insurance
(c) Integrated
(d) Internal
Option c – Integrated
Which of the following is the name of the organization created to provide full employment and self-reliance to the women folk in India?
(a) SEWA
(b) SVP
(c) USO
(d) ROSCA
Option a – SEWA
Intake of less than the undernoted average daily calories per person has been defined as the poverty line in urban areas by the Planning Commission of India ( Indian Economy MCQ for UPSC Prelims with Answers )
(a) 2100
(b) 2400
(c) 2700
(d) 3000
Option a – 2100
Many times we see in newspapers that some projects are launched by government authorities on PPP basis. What is the full form of PPP?
(a) Public Private Partnership
(b) Popular Private Project
(c) Partial Payment Project
(d) Public Private Plan
Option a – Public Private Partnership
Who had estimated National Income in India first? ( Indian Economy MCQ for UPSC Prelims with Answers )
(a) R. C. Dutt
(b) D. R. Gadgil
(c) V. K. R. V. Rao
(d) Dadabhai Naoroji
Option d – Dadabhai Naoroji
Which of the following can be called as a part of the service sector?
(a) Agriculture
(b) Coal Mines
(c) Textile Mills
(d) Banking
Option d – Banking
A firm sells new shares worth Rs. 1000 directly to individuals. This transaction will cause ( Indian Economy MCQ for UPSC Prelims with Answers )
(a) National Income to rise by Rs. 1000
(b) Gross Domestic Product to rise by Rs. 1000
(c) Gross National Product to rise by Rs. 1000
(d) No impact on Gross National Product
Option d – No impact on Gross National Product
Twenty Point Programme (Beessutri Karyakrama) was first launched in the year –
(a) 1969
(b) 1975
(c) 1977
(d) 1980
Option b – 1975
Which of the following experienced the fastest expansion during the plan in India? ( Indian Economy MCQ for UPSC Prelims with Answers )
(a) Industry
(b) Services
(c) Agriculture
(d) None of these
Option b – Services
The concept of ‘vicious circle of poverty’ is related to –
(a) Adam Smith
(b) Nurkse
(c) Karl Marx
(d) None of these
Option b – Nurkse
In India, which of the following is regulated by the Forward Market Commission? ( Indian Economy MCQ for UPSC Prelims with Answers )
(a) Currency Future Trading
(b) Commodities Future Trading
(c) Equity Future Trading
(d) Both Commodities Future Trading and Financial Future Trading
Option b – Commodities Future Trading
Inside trading is related to –
(a) Horse racing
(b) Share Market
(c) Taxation
(d) International trade
Option b – Share Market
Devaluation of rupee in India was first introduced in the year ( Indian Economy MCQ for UPSC Prelims with Answers )
(a) 1949
(b) 1966
(c) 1972
(d) 1990
Option a – 1949
The main source of long-term credit for a business unit is –
(a) Loans from the government
(b) Borrowing from banks
(c) Sale of stocks and bonds to the public
(d) Deposits from the public and financial institutions
Option c – Sale of stocks and bonds to the public
The share broker who sells shares in the apprehension of falling prices of shares is called ( Indian Economy MCQ for UPSC Prelims with Answers )
(a) Stag
(b) Bull
(c) Bear
(d) Dog
Option c – Bear
The process of curing inflation by reducing money supply is called –
(a) Cost-Push inflation
(b) Disinflation
(c) Reflation
(d) Demand-Pull inflation
Option b – Disinflation
Devaluation makes import –
(a) Dearer
(b) Cheaper
(c) Competitive
(d) Inelastic
Option a – Dearer
Treasury bills are sold in India by –
(a) SEBI
(b) State Governments
(c) Commercial Bank
(d) Reserve Bank of India
Option d – Reserve Bank of India
When did the ‘naya paisa’ introduced with the decimal system of coinage become ‘Paise’?
(a) April 1, 1957
(b) October 2, 1961
(c) June 1, 1964
(d) April 1, 1965
Option a – April 1, 1957
When was the wealth tax first introduced in India?
(a) 1948
(b) 1957
(c) 1976
(d) 1991
Option d – 1991
J. J. Irani committee has been set up to suggest changes in –
(a) Cable Act
(b) Patent Act
(c) Companies Act
(d) Indian Telegraph Act
Option c – Companies Act
The book ‘The Argumentative Indian’ is written by –
(a) Dan Brown
(b) Bimal Jalan
(c) Amartya Sen
(d) Mulk Raj Anand
Option c – Amartya Sen
One of the features of a free market economy is –
(a) Consumer’s sovereignty
(b) Active state intervention
(c) Rationing and price control
(d) Public ownership of factors of production
Option a – Consumer’s sovereignty
Economic profit or normal profit is the same as –
(a) Maximum profit
(b) Optimum profit
(c) Net profit
(d) Accounting profit
Option c – Net profit
The book which is at the centerpiece of the study of Macro Economics was written by –
(a) Prof. Benham
(b) Prof. Baumol
(c) Prof. Samuelson
(d) Prof. J. M. Keynes
Option d – Prof. J. M. Keynes
Production of a commodity mostly through the natural process is an activity of –
(a) Tertiary sector
(b) Technology sector
(c) Primary sector
(d) Secondary sector
Option c – Primary sector
Which one of the following represents the savings of the Private Corporate Sector?
(a) Undistributed profits
(b) Total profits of a company
(c) Dividends paid to shareholders
(d) Excess of income over expenditure
Option a – Undistributed profits
The basic problem studied in Macro-Economics is –
(a) Flow of income
(b) Usage of income
(c) Production of income
(d) Distribution of income
Option a – Flow of income
The main feature of a capitalist economy is –
(a) Private Ownership
(b) Public Ownership
(c) Economic Planning
(d) Administered Prices
Option a – Private Ownership
Which of the following is the most essential function of an entrepreneur?
(a) Marketing
(b) Management
(c) Supervision
(d) Risk bearing
Option d – Risk bearing
Cross elasticity of demand between Petrol and Car is –
(a) Zero
(b) Positive
(c) Negative
(d) Infinite
Option c – Negative
What is referred to as “Depository Services”?
(a) An advisory service to investors
(b) A method of regulating stock exchanges
(c) A new scheme of fixed deposits
(d) An agency for safe-keeping of securities
Option a – An advisory service to investors
A financial instrument is called a primary security if it represents the liability of –
(a) The government of India
(b) A commercial bank
(c) Some ultimate borrower
(d) A primary co-operative bank
Option c – Some ultimate borrower
Which of the following is not a credit rating agency?
(a) IFCI
(b) ICRA
(c) CARE
(d) CRISIL
Option a – IFCI
Which of the following tax sets belong to central tax?
(a) Income tax, custom duty, and house tax
(b) Excise duty, sales tax, and custom duty
(c) Excise duty, custom duty, and income tax
(d) Custom duty, entertainment tax, and income tax
Option c – Excise duty, custom duty, and income tax
Consider the following financial institutions of India:
- Industrial Finance Corporation of India (IFCI)
- Industrial Credit and Investment Corporation of India (ICICI)
- Industrial Development Bank of India (IDBI)
- National Bank for Agriculture and Rural Development (NABARD)
The correct chronological sequence of their establishment is:
(a) 1, 2, 3, 4
(b) 2, 3, 4, 1
(c) 3, 4, 1, 2
(d) 4, 1, 2, 3
Option a – 1, 2, 3, 4
Steel sheet used in the production of furniture is an example of:
(a) An investment good
(b) A consumption good
(c) A final good
(d) An intermediate good
Option d – An intermediate good
What is ‘AGMARK’?
(a) It represents agricultural management and regulation
(b) It is a marketing seal issued on graded agricultural commodities
(c) It stands for agricultural marketing
(d) None of these
Option b – It is a marketing seal issued on graded agricultural commodities
The ‘Sunrise industries’ imply:
(a) Computer industry
(b) Chemical industry
(c) Sunflower oil industry
(d) Petrochemical and electronics industry
Option d – Petrochemical and electronics industry
The upper limit of investment in plant and machinery for small-scale industries has been fixed currently at:
(a) Rs. 60 Lakhs
(b) Rs. 1 Crore
(c) Rs. 45 Lakhs
(d) Rs. 35 Lakhs
Option b – Rs. 1 Crore
Commercialization of agriculture implies:
(a) Plantation
(b) Production of crops for sale
(c) Cultivation of timbers
(d) Production of crops like wheat or rice
Option b – Production of crops for sale
The reserves held by commercial banks over and above the statutory minimum with the RBI are called:
(a) Cash reserves
(b) Deposit reserves
(c) Excess reserves
(d) Momentary reserves
Option c – Excess reserves
A situation where people have a level of income not sufficient to meet the minimum consumption expenditure is considered as:
(a) Urban poverty
(b) Relative poverty
(c) Absolute poverty
(d) Rural poverty
Option c – Absolute poverty
Which of the following is not a public sector unit/undertaking agency?
(a) BHEL
(b) Axis Bank
(c) SEBI
(d) SIDBI
Option b – Axis Bank
The chairman of the National Commission for Enterprises in the Unorganized Sector is:
(a) K. Natwar Singh
(b) Arjun Sen Gupta
(c) P. R. Das Munshi
(d) C. Chandra Shekhar Rao
Option b – Arjun Sen Gupta
In which five-year plan was the Economic Development Rate maximum?
(a) Tenth Five-Year Plan
(b) First Five-Year Plan
(c) Fourth Five-Year Plan
(d) Sixth Five-Year Plan
Option a – Tenth Five-Year Plan
Which of the following pairs is not correctly matched?
(a) First Five-Year Plan: 1951–56
(b) Third Five-Year Plan: 1961–66
(c) Fifth Five-Year Plan: 1974–79
(d) Ninth Five-Year Plan: 1996–2001
Option d – Ninth Five-Year Plan: 1996–2001
Which of the following is the most industrially advanced state in India?
(a) Tamil Nadu
(b) Punjab
(c) Maharashtra
(d) Gujarat
Option d – Gujarat
Economic liberalization in India started with:
(a) Significant reduction in tax rates
(b) The convertibility of the Indian rupee
(c) Substantial changes in industrial licensing policy
(d) Doing away with procedural formalities for foreign direct investment
Option c – Substantial changes in industrial licensing policy
Which one of the following committees recommended the abolition of reservation of items for the small-scale sector in industry?
(a) Nayak Committee
(b) Rakesh Mohan Committee
(c) Narasimhan Committee
(d) Abid Hussain Committee
Option d – Abid Hussain Committee
Encouraging more multinational companies in India is to promote the policy of:
(a) Liberalization
(b) Privatization
(c) Globalization
(d) All of these
Option d – All of these
Which of the following is not a component of the Bharat Nirman Programme?
(a) Rural housing
(b) Rural telephony
(c) Agro-based industries
(d) Rural electrification
Option c – Agro-based industries
With which one of the following has the B. K. Chaturvedi Committee dealt?
(a) Review of Centre-State relations
(b) Price reforms in the oil sector
(c) Tax reforms and measures to increase revenues
(d) Public sector disinvestment
Option b – Price reforms in the oil sector
The first heavy electrical equipment manufacturing plant set up in the public sector in 1960 is at:
(a) Durgapur
(b) Hyderabad
(c) Bhopal
(d) Ranipur (Near Haridwar)
Option a – Durgapur
Commercial paper is a source of credit for which one of the following?
(a) Foreign banks
(b) Corporate industry
(c) Commercial banks
(d) Small-scale industries
Option b – Corporate industry
Prime Minister Gramodaya Yojana does not include:
(a) Basic Education
(b) Rural Roads and Housing
(c) Small Scale Industries
(d) Nutritious Food, Drinking Water, and Health
Option c – Small Scale Industries
Treasury bills are sold in India by:
(a) State governments
(b) SEBI
(c) Commercial Banks
(d) Reserve Bank of India
Option d – Reserve Bank of India
BSE Sensex is an index to measure ups and downs in the share market. The number of companies covered under the index are:
(a) 30
(b) 50
(c) 100
(d) 150
Option a – 30
A rise in SENSEX means:
(a) An overall rise in prices of shares of a group of companies registered with the Bombay Stock Exchange
(b) A rise in price of shares of all companies registered with the National Stock Exchange
(c) A rise in prices of shares of all companies registered with the Bombay Stock Exchange
(d) A rise in prices of shares of all companies belonging to a group of companies registered with the Bombay Stock Exchange
Option a – An overall rise in prices of shares of a group of companies registered with the Bombay Stock Exchange
Gilt-edge market means:
(a) Bullion market
(b) Market of government securities
(c) Market of guns
(d) Market of pure metals
Option b – Market of government securities
Which of the following is/are treated as artificial currency?
(a) ADR
(b) SDR
(c) GDR
(d) Both ADR and SDR
Option b – SDR
Economic growth is usually coupled with:
(a) Inflation
(b) Deflation
(c) Stagflation
(d) Hyperinflation
Option a – Inflation
The Tarapore committee was associated with which one of the following?
(a) Foreign Exchange Reserve
(b) Special Economic Zone
(c) Fully capital account convertibility
(d) Effect of oil prices on the Indian economy
Option c – Fully capital account convertibility
NABARD stands for:
(a) National Bank for Agriculture and Rural Development
(b) National Bank for Aeronautics and Radar Development
(c) National Bureau for Air and Road Transport
(d) National Business for Accounting and Reviewing
Option a – National Bank for Agriculture and Rural Development
STEP is the abbreviated name of the welfare programme to help:
(a) Farmers
(b) Children
(c) Women
(d) Senior citizens
Option c – Women
Which of the following schemes was launched to promote basic education in India and attract children in school-going age to attend classes?
(a) Mid-Day Meal Scheme
(b) Indira Awas Yojna
(c) Pulse Polio Abhiyan
(d) Operation Black Board
Option a – Mid-Day Meal Scheme
Mid-Day Meal is a scheme to provide nutritious food to:
(a) School-going children
(b) Daily wage employees/labour
(c) Those taking treatment in hospitals
(d) Girls who are residing in girls/youth hostels
Option a – School-going children
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