MCQs with Solutions for all Competitive Examinations

Indian Economy MCQ for Competitive Examination

Q. 61
Which five-year plan focused on ‘Growth with Social Justice and Equality’?

(A) Seventh five-year plan
(B) Eight five-year plan
(C) Ninth five-year plan
(D) Tenth five-year plan

Answer: (C) Ninth five-year plan
Explanation: N/A

Q. 62
LPG model was introduced in India in which year?

(A) 1991
(B) 1992
(C) 1993
(D) 1995

Answer: (A) 1991
Explanation: N/A

Q. 63
Who among the following advocated for the adoption of PURA model of development in India?

(A) Atal Bihari Bajpayee
(B) Manmohan Singh
(C) A.P.J Abdul Kalam
(D) Raghuram Rajan

Answer: (C) A.P.J Abdul Kalam
Explanation: PURA (Providing Urban Amenities in Rural Areas)

Q. 64
The fourteen major banks in India were nationalised in the year

(A) 1967
(B) 1969
(C) 1970
(D) 1971

Answer: (B) 1969
Explanation: N/A

Q. 65
India switched to decimal currency system in the year

(A) 1955
(B) 1956
(C) 1957
(D) 1958

Answer: (C) 1957
Explanation: N/A

Q. 66
Small farmers in the country have been defined as those farmers having landholding of

(A) Below one hectare
(B) One to two hectare
(C) Two to three hectare
(D) Three to four hectare

Answer: (B) One to two hectare
Explanation: N/A

Q. 67
Which is NOT a measure undertaken by the government to check inflation?

(A) Increase in consumption
(B) Increase in production
(C) Reduction in Deficit financing
(D) Taxation measures

Answer: (A) Increase in consumption
Explanation: N/A

Q. 68
The ‘Slack Season’ in the Indian Economy is:

(A) March–April
(B) September–December
(C) January–June
(D) February–April

Answer: (C) January–June
Explanation: N/A

Q. 69
Which of the following is the regulator of the credit rating agencies in India?


Answer: (C) SEBI
Explanation: N/A

Q. 70
Which is the first India company to be listed in NASDAQ?

(A) Reliance
(D) Infosys

Answer: (D) Infosys
Explanation: N/A

Q. 71
Which of the following method is not used in determining National Income of a country?

(A) Income Method
(B) Output Method
(C) Input Method
(D) Investment Method

Answer: (D) Investment Method
Explanation: N/A

Q. 72
Overuse of resource is called ‘Tragedy of Commons’. It was propounded by

(A) Garett Hardin
(B) Seligman
(C) Adolph Wagner
(D) A.P. Lemier

Answer: (A) Garett Hardin
Explanation: N/A

Q. 73
Which five-year plan period is not correct among the following?

(A) First: 1951-56
(B) Second: 1956-61
(C) Third: 1961-66
(D) Fourth: 1966-71

Answer: (D) Fourth: 1966-71
Explanation: N/A

Q. 74
Community Development Programme was launched in the year

(A) 1952
(B) 1950
(C) 1951
(D) 1953

Answer: (A) 1952
Explanation: N/A

Q. 75
Who made the statement that ‘Multi-purpose river valley projects are the ‘New temples of modem India’?

(A) Mahatma Gandhi
(B) Jawaharlal Nehru
(C) Indira Gandhi
(D) Rajiv Gandhi

Answer: (B) Jawaharlal Nehru
Explanation: N/A

Q. 76
Which of the following is a non-banking financial institution?


Answer: (D) LIC
Explanation: N/A

Q. 77
The largest component of National Income in India is

(A) Service sector
(B) Agriculture
(C) Industrial sector
(D) Trade sector

Answer: (A) Service sector
Explanation: N/A

Q. 78
In a developing country like India, in which sector a high rate of disguised unemployment exists?

(A) Corporate Sector
(B) Household Sector
(C) Service Sector
(D) Agricultural Sector

Answer: (D) Service Sector
Explanation: N/A

Q. 79
Which is the biggest tax-paying sector in India?

(A) Agriculture sector
(B) Industrial sector
(C) Transport sector
(D) Banking sector

Answer: (B) Industrial sector
Explanation: N/A

Q. 80
Self-reliance was first emphasized during which five-year plan?

(A) Second five-year plan
(B) Third five-year plan
(C) Fourth five-year plan
(D) Fifth five-year plan

Answer: (D) Fifth five-year plan
Explanation: N/A

Q. 81
Which law states that bad money drives good money out of circulation?

(A) Gresham’s Law
(B) Keynes’ Law
(C) Grimm’s Law
(D) Wagner’s Law

Answer: (A) Gresham’s Law
Explanation: N/A

Q. 82
Lowering of value of currency relative to a foreign reference currency is called

(A) Revaluation
(B) Devaluation
(C) Inflation
(D) Recession

Answer: (B) Devaluation
Explanation: N/A

Q. 83
Wealth Definition of economics was put forward by

(A) Lionel Robbins
(B) Alfred Marshall
(C) Adam Smith
(D) David Ricardo

Answer: (C) Adam Smith
Explanation: N/A

Q. 84
In which year Imperial Bank was constituted?

(A) 1930
(B) 1935
(C) 1955
(D) 1921

Answer: (D) 1921
Explanation: N/A

Q. 85
Who estimated the national income for the first time in India?

(A) Mahalanobis
(B) Dadabhai Naoroji
(C) Osborne Smith
(D) M. Narasimham

Answer: (B) Dadabhai Naoroji
Explanation: N/A

Q. 86
The abbreviation ‘SEBI’ stands for

(A) Savings and Exchange Bank of India
(B) Securities and Exchange Bank of India
(C) Survey of essential business in India
(D) Securities and Exchange Board of India

Answer: (D) Securities and Exchange Board of India
Explanation: N/A

Q. 87
Insurance sector in India is regulated by


Answer: (C) IRDA
Explanation: N/A

Q. 88
Who coined the term ‘Hindu Rate of Growth’ for Indian Economy?

(A) Amartya Sen
(B) Raj Krishna
(C) Montek Singh Ahlualia
(D) Raghuram Rajan

Answer: (B) Raj Krishna
Explanation: N/A

Q. 89
Per capita income is obtained by dividing National Income by

(A) Total population of the country
(B) Total working population
(C) Area of the country
(D) Volume of capital used

Answer: (A) Total population of the country
Explanation: N/A

Q. 90
The goods which people consume more, when their price rises are called

(A) Essential goods
(B) Demand goods
(C) Giffen goods
(D) Veblen goods

Answer: (C) Giffen goods
Explanation: N/A

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