Indian Economy MCQ Question Answer Paper Set 14

1)The state Financial Corporation have given assistance mainly to develop

a) agriculture farms

b) cottage industries

c) medium and small-scale industries

d) large scale industries

ans: c

2) Sudden decrease of birth rate would cause

a) increase in per capita income

b) increase in investment

c) increase in savings

d) increase in loan requests

ans: a

3) The deputy chairman of the Planning Commission:

(a) is the Prime Minister

(b) is the Planning Minister

(c) holds the rank of a cabinet minister

(d) is an economist of repute

Ans: (c)

4) During which Five Year Plan was the total expenditure on agriculture the highest?

(a) First Five Year Plan

(b) Second Five Year Plan

(c) Third Five Year Plan

(d) Fourth Five Year Plan

Ans: (d)

5) Cyclical unemployment refers to:

(a) seasonal unemployment

(b) disguised unemployment

(c) voluntary unemployment

(d) unemployment during recessionary phase of a trade cycle

Ans: (d)

6) Which of these programs has not been included in the Swarna Jayanti Swarozgar


(a) IRDP



(d) JR

Ans: (d)

7) When was the decimal system of currency introduced in India?

(a) 1948

(b) 1950

(c) 1954

(d) 1957

Ans: (d)

8) Inflation implies:

(a) rise in budget deficit

(b) rise in money supply

(c) rise in general price index

(d) rise in prices of consumer goods

Ans: (c)

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

(a) UTI

(b) IDBI


(d) IFCI

Ans: (d)

10) The RBI uses the following instruments for quantitative central of credit:

(i) Cash Reserve Ratio

(ii) Bank Rate

(iii) Open Market Operations

(iv) Margin Requirements

Choose your answer from:

(a) (i) and (ii)

(b) (ii) and (iv)

(c) (i), (ii) and (iii)

(d) (i), (ii), (iii) and (iv)

Ans: (c)

11) Under increasing returns the supply curve is

(a) positively sloped from left to right

(b) negatively sloped from left to right

(c) parallel to the quantity-axis

(d) parallel to the price-axis

Ans: (a)

12) Which Plan was negatively affected by the arrival of refugees from Bangladesh?

a) Fifth Five Year Plan

b)Fourth Five Year Plan

c) Third Five Year Plan

d) Annual Plan

ans: b

13) By which bill does the government make arrangement for the collection of revenues for a year?

(a) Supplementary Budget

(b) Finance Bill

(c) Fiscal Budget

(d) Economic Bill

Ans: (b)

14) The father of ‘Operation Flood’ is

a) MS Swaminathan

b) Verghese Kurien

c) Uma Kapila

d) Amartya Sen

ans: b

15) Low productivity of agriculture in India is not caused by:

(a) inadequate availability of inputs

(b) subdivision of land holdings

(c) less area under cultivation

(d) poor finance facilities

Ans: (c)

16) The Five Year Plans of India intend to develop the country industrially through:

(a) the public sector

(b) the private sector

(c) the public, private, joint and Cooperative sectors

(d) increasing collaboration with non-resident Indians

Ans: (c)

17) Oil Pool Deficit is a deficit:

1. in the balance of payments

2. that the government owes to the world bank

3. in the oil pool account

4. that the government owes to the oil companies

Choose your answer from:

(a) 1 and 3

(b) 2 and 3

(c) 3 and 4

(d) 2 and 4

Ans: (c)

18) What is Green Gold?

(a) Tea

(b) Coffee

(c) Gold

(d) Rice

Ans: (a)

19) Which of the following industries was started first in India?

(a) Cotton

(b) Paper

(c) Tea

(d) Jute

Ans: (c)

20) Which of the following is not an indirect tax?

(a) Land revenue

(b) Customs duties

(c) Entertainment tax

(d) Sales tax

Ans: (a)

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