Indian Economy MCQ Question Answer Paper Set 17

1)Which of the following taxes is collected by the Government on sale of goods and service in the Country?

a) NAT

b) GET

c) SAT

d) VAT

ANS: d

2) When was the Wealth tax first introduced in India?

a) 1948

b) 1957

c) 1976

d) 1991

ans: b

3) Invisible export means export of :

a) Services

b) Prohibited goods

c) Unrecorded goods

d) Goods through smuggling

ans: a

4)Who is called the pioneer of liberalization of Indian economy?

a)Dr.Man Mohan Singh

b) P.V Narsimha Rao

c)Dr.Bimal Jalan

d) P.Chidambaram


5) Which among the following is the oldest Development Financial Institution of India?

(a) UTI

(b) IDBI


(d) IFCI

Ans: (d)

6) In which year, some more commercial banks (in addition to the first lot of 14) were nationalized in India?

(a) 1976

(b) 1979

(c) 1980

(d) 1982

Ans: (c)

7) Which of the following is not required while computing Gross National Product (GNP)?

(a) Net foreign investment

(b) Private investment

(c) Per capita income of citizens

(d) Purchase of goods by government

Ans: (c)

8) Companies pay Corporation Tax on their:

(a) investment

(b) production

(c) sales proceeds

(d) incomes

Ans: (d)

9) Homogeneous product is a feature of:

a) Imperfect market

b) Monopoly

c) Oligopoly

d) Perfect competition

ans: d

10) Who said ‘Economics is the Science of Wealth’?

a) Adam Smith

b) Robbin


d) Keynes

ans: a

11) Indian Railways revenue from:

(a) passenger fare

(b) freight

(c) traffic tax

(d) passenger tax

Ans: (b)

12) Under perfect competition:

(a) any firm can influence price in the market

(b) any firm can influence supply in the market

(c) any firm can influence price and supply in the market

(d) no firm can influence price and supply in the market

Ans: (c)

13) Which of the following names/terms is NOT associated with the World Trade Organization (WTO)?





Ans: d

14) Which one of the following is not a member of Organization of the Petroleum Exporting Countries (OPEC)?

(a) Algeria

(b) Brazil

(c) Ecuador

(d) Nigeria

Ans: (b)

15) Which one of the following is different from the others from the point of view of ownership?

(a) LIC Policy

(b) Bank Fixed Deposit

(c) Kisan Vikas Patra

(d) Debenture of a Company

Ans: (a)

16) What does S & P 500 relate to?

(a) Supercomputer

(b) A new technique in e-business

(c) A new technique in bridge building

(d) An index of stocks of large companies

Ans: (d)

17) FERA is India has been replaced by:




d) feta

ans: a

18) Which is known as the third pillar in international economic relation?

a) IMF

b) World Bank

c) WTO


ans: c

19) Which is the highest bank in the banking structure of India?

a)  State Bank of India

b) Central Bank of India

c) Industrial Development Bank of India

d) Reserve Bank of India

ans: d

20) Who is the originator of Green Revolution in India?

(a) Norman E. Borlaug

(b) M.S. Swaminathan

(c) Garry Backer

(d) None of these

Ans: (a)

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