MCQs with Solutions for all Competitive Examinations

Indian Economy MCQs for Competitive Examination

Q. 91
The first steel factory in India was established at

(A) Jamshedpur
(B) Durgapur
(C) Bhilai
(D) Chandrapur

Answer: (A) Jamshedpur (1907)
Explanation: N/A

Q. 92
Per Capita Income is highest in which of the following states in India?

(A) Maharashtra
(B) Goa
(C) Punjab
(D) Gujarat

Answer: (B) Goa
Explanation: N/A

Q. 93
Balance of trade of a country is the difference between

(A) Country’s Income and Expenditure
(B) Country’s Exports and Imports
(C) Country’s Tax revenue and Expense
(D) Country’s Capital Inflow and Outflow

Answer: (B) Country’s Exports and Imports
Explanation: N/A

Q. 94
Unemployment that occurs when there is a general downturn in business activity is known as

(A) Structural unemployment
(B) Frictional unemployment
(C) Cyclical unemployment
(D) Disguised unemployment

Answer: (C) Cyclical unemployment
Explanation: N/A

Q. 95
The record of all economic transactions between one country and the rest of the world in a given period is called

(A) Balance of Payments
(B) Balance of Trade
(C) Balance of Capital Account
(D) Balance of Current Account

Answer: (A) Balance of Payments
Explanation: N/A

Q. 96
Oldest stock exchange of Asia is

(A) Tokyo Stock Exchange, Japan
(B) Bombay Stock Exchange, India
(C) Hang Seng, Hong kong
(D) Shanghai Stock Exchange, China

Answer: (B) Bombay Stock Exchange, India
Explanation: N/A

Q. 97
The headquarters of the Insurance Regulatory and Development Authority (IRDA) is at

(A) Mumbai
(B) New Delhi
(C) Hyderabad
(D) Bengaluru

Answer: (C) Hyderabad
Explanation: N/A

Q. 98
The stock exchanges of India are regulated by


Answer: (A) SEBI
Explanation: N/A

Q. 99
The headquarter of Securities and Exchange Board of India is at

(A) Mumbai
(B) Hyderabad
(C) New Delhi
(D) Bengaluru

Answer: (A) Mumbai
Explanation: N/A

Q. 100
Goods whose demand drop when people’s income rise are called

(A) Veblen goods
(B) Inferior goods
(C) Exclusive goods
(D) Generic goods

Answer: (B) Inferior goods
Explanation: N/A

Q. 101
The unemployment that occurs when workers move from one job to another is known as

(A) Seasonal unemployment
(B) Cyclical unemployment
(C) Disguised unemployment
(D) Frictional unemployment

Answer: (D) Frictional unemployment
Explanation: N/A

Q. 102
Punjab National Bank was established in the year

(A) 1894
(B) 1881
(C) 1791
(D) 1890

Answer: (A) 1894
Explanation: N/A

Q. 103
An economic condition when there is one buyer and many sellers is called

(A) Monopoly
(B) Oligopoly
(C) Reverse monopoly
(D) Monopsony

Answer: (D) Monopsony
Explanation: N/A

Q. 104
Unemployment resulting from the mismatch between the jobs available and the skill level of the unemployed is known as

(A) Cyclical unemployed
(B) Seasonal unemployed
(C) Structural unemployed
(D) Technical unemployed

Answer: (C) Structural unemployed
Explanation: N/A

Q. 105
Which of the following state in India has the lowest per capita income?

(A) Rajasthan
(B) Sikkim
(C) Manipur
(D) Bihar

Answer: (D) Bihar
Explanation: N/A

Q. 106
When was Imperial Bank nationalised and become State Bank of India?

(A) 1921
(B) 1969
(C) 1980
(D) 1955

Answer: (D) 1955
Explanation: N/A

Q. 107
Life Insurance Corporation in India was established in

(A) 1956
(B) 1972
(C) 1955
(D) 1974

Answer: (A) 1956
Explanation: N/A

Q. 108
Which one of the following is a direct tax?

(A) Sales Tax
(B) Excise Tax
(C) Wealth Tax
(D) Entertainment Tax

Answer: (C) Wealth Tax
Explanation: N/A

Q. 109
Functional Finance is associated with

(A) Adolph Wagner
(B) Adam Smith
(C) Adams
(D) Abba ‘P’ Lerner

Answer: (D) Abba ‘P’ Lerner
Explanation: N/A

Q. 110
Disinvestment in public sector is called

(A) Liberalisation
(B) Globalisation
(C) Privatisation
(D) Industrialisation

Answer: (C) Privatisation
Explanation: N/A

Q. 111
Coal Mines of India were nationalised in the year

(A) 1971
(B) 1972
(C) 1973
(D) 1976

Answer: (C) 1973
Explanation: N/A

Q. 112
Golden Handshake scheme in India is associated with

(A) Voluntary Retirement Scheme
(B) New Pension Scheme
(C) Foreign Investment
(D) Privatization

Answer: (A) Voluntary Retirement Scheme
Explanation: N/A

Q. 113
Small industries are those in which maximum investment is ___________________.

(A) 1 crore
(B) 50 lakh
(C) 75 lakh
(D) 2 lakh

Answer: (A) 1 crore
Explanation: N/A

Q. 114
Abid Hussain Committee is related to reforms in 

(A) Medium Industries
(B) Small Industries
(C) Heavy Industries
(D) Banking

Answer: (B) Small Industries
Explanation: N/A

Q. 115
The Industrial Finance Corporation of India (IFCI) was established in the year

(A) 1990
(B) 1969
(C) 1948
(D) 1976

Answer: (C) 1948
Explanation: N/A

Q. 116
Which of the following is the apex bank in the field of Industrial Finance in India?


Answer: (D) IDBI
Explanation: N/A

Q. 117
General Insurance Company of India (GIC) was formed in

(A) 1956
(B) 1972
(C) 1964
(D) 1978

Answer: (B) 1972
Explanation: N/A

Q. 118
First country to implement Goods and Services Tax (GST) is

(A) France
(C) Germany
(D) Canada

Answer: (A) France
Explanation: N/A

Q. 119
In which year was the World Trade Organisation (WTO) established?

(A) 1952
(B) 1942
(C) 1947
(D) 1995

Answer: (D) 1995
Explanation: N/A

Q. 120
Which of the following is the apex bank for agricultural credit in India?

(C) EXIM Bank

Answer: (A) NABARD
Explanation: N/A

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