Indian Economy Questions and Answers

  • 1. Which of the following policies of the financial sectors is basically designed to transfer local financial assets into foreign financial assets freely and at market determined exchange rates?
   A.) Capital Account Convertibility
   B.) Financial Deficit Management
   C.) Mimimum Support Price
   D.) Restrictive Trade Practices

Answer: Option 'A'

Capital Account Convertibility

  • 2. In India, Agriculture income is calculated by
   A.) Output method
   B.) Input method
   C.) Expenditure method
   D.) Commodity flow method

Answer: Option 'A'

Output method

  • 3. Where was electricity supply first introduced in India
   A.) Darjeeling
   B.) Mumbai
   C.) Kolkata
   D.) Chennai

Answer: Option 'A'

Darjeeling

  • 4. The Standard of living in a country is represented by its
   A.) National Income
   B.) Per Capita Income
   C.) Unemployment Rate
   D.) Poverty Ratio

Answer: Option 'B'

Per Capita Income

  • 5. The minimum forest cover to maintain ecological balance in the plains is
   A.) 40%
   B.) 50%
   C.) 33%
   D.) 25%

Answer: Option 'C'

33%

  • 6. Who had estimate National Income in India first
   A.) V.K.R.V.Rao
   B.) D.R.Gadgil
   C.) R.C. Dutt
   D.) Dadabhai Naoroji

Answer: Option 'D'

Dadabhai Naoroji

  • 7. Which kind of power accounts for the largest share of power generation in India
   A.) Hydro - electricity
   B.) Thermal
   C.) Nuclear
   D.) Solar

Answer: Option 'B'

Thermal

  • 8. National Income estimates in India are prepared by
   A.) Planning Commission
   B.) Reserve Bank of India
   C.) Central statistical organisation
   D.) Indian statistical Institute

Answer: Option 'C'

Central statistical organisation

  • 9. The main source of National Income in India is
   A.) Service Sector
   B.) Agriculture
   C.) Industrial Sector
   D.) Trade Sector

Answer: Option 'A'

Service Sector

  • 10. Who coined the term 'Hindu rate of growth' for Indian economy
   A.) Raj Krishna
   B.) A.K.Sen
   C.) Kirit S.Parikh
   D.) Montek Singh Ahluwalia

Answer: Option 'A'

Raj Krishna

  • 11. The implementation of Jawahar Rojgar Yojana rests with
   A.) State Government
   B.) Gram Panchayat
   C.) District Collector
   D.) Union Government

Answer: Option 'B'

Gram Panchayat

  • 12. What is the full form of GDP
   A.) Gross depository revenue
   B.) Global domestic Ratio
   C.) Global depository receipts
   D.) Gross domestic product

Answer: Option 'D'

Gross domestic product

  • 13. During which decade did the population of India record a negative growth rate 
   A.) 1911 - 21
   B.) 1921 - 31
   C.) 1931 - 41
   D.) 1941 -51

Answer: Option 'A'

1911 - 21

  • 14. The first Census in India during the British period was held during the tenure of
   A.) Lord Dufferin
   B.) Lord Lytton
   C.) Lord Mayo
   D.) Lord Ripon

Answer: Option 'C'

Lord Mayo

  • 15. In an economy , the sectors are classified into public and private on the basis of
   A.) employment conditions
   B.) nature of economic activities
   C.) ownership of enterprises
   D.) use of raw materials

Answer: Option 'C'

ownership of enterprises

  • 16. When was the first national Forest Policy issued by the Government of India
   A.) 1940
   B.) 1952
   C.) 1942
   D.) 1999

Answer: Option 'B'

1952

  • 17. Which plan gave emphasis on removal of poverty for the first time
   A.) Fourth
   B.) Fifth
   C.) Sixth
   D.) Seventh

Answer: Option 'B'

Fifth

  • 18. MODVAT is related to
   A.) Sales Tax
   B.) Income Tax
   C.) Wealth Tax
   D.) Excise Tax

Answer: Option 'D'

Excise Tax

  • 19. When did India's population touch 100 crore mark
   A.) May, 2001
   B.) May 2000
   C.) May, 2002
   D.) May, 2003

Answer: Option 'B'

May 2000

  • 20. The Government of India has decided to declare which of the following rivers a ' National River '
   A.) Yamuna
   B.) Kaveri
   C.) Ganga
   D.) None of these

Answer: Option 'C'

Ganga

  • 21. Who wrote a book describing the theory of economic drain of India during British rule
   A.) Late lajpat rai
   B.) Mahatma Gandhi
   C.) Jawaharlal nehru
   D.) Dadabhai naoroji

Answer: Option 'D'

Dadabhai naoroji

  • 22. Which amongst the following states/UTs has Not identified tribal community
   A.) Chhattisgarh
   B.) Haryana
   C.) Maharashtra
   D.) Karnataka

Answer: Option 'B'

Haryana

  • 23. The prices at which the government purchases food grains for maintaining the Public Distribution system (PDS) and for building up buffer - stock is known as :
   A.) minimum support prices
   B.) procurement prices
   C.) issue prices
   D.) ceiling prices

Answer: Option 'B'

procurement prices

  • 24. Paper currency first started in India in _____ ?
   A.) 1542
   B.) 1601
   C.) 1861
   D.) 1880

Answer: Option 'C'

1861

  • 25. In India, the state known for its sandalwood is
   A.) Karnataka
   B.) Assam
   C.) Kerala
   D.) West Bengal

Answer: Option 'A'

Karnataka

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