MCQs – Economy

1. In which of the following market structure is the degree of control over the price
of its product by a firm very large?
a) Imperfect competition
b) Perfect competition
c) Monopoly
d) In A and B both

2. For internal financing of Five Year Plans, the government depends on

a) Taxation only
b) Taxation and public borrowing
c) Public borrowing and deficit financing
d) Taxation, public borrowing and deficit financing

3. The NDC gets its administrative support from

a) Neeti Ayog
b) Finance Commission
c) Administrative Reforms Commission
d) Sarkaria Commission

4. ‘Take off Stage’ in an economy means

a) Steady growth begins
b) Economy is stagnant
c) Economy is about to collapse
d) All controls are removed

5. Planning in India derives its objectives from

a) Fundamental Rights
b) DPSP
c) Fundamental Duties
d) Preamble & FR

6. Economic Survey is published by

a) Finance Ministry
b) Neeti Ayog
c) Govt of India
d) Indian Statistical Institute

7. India opted of ‘Mixed Economy’ in

a) Framing of Constitution
b) Five Year Plan
c) Industrial Policy of 1948
d) All of the above

8. Which of the following gives an accurate measurement of economic development

through five years plan?
a) Development of education and health services
b) Development of railways and roadways
c) Development of industrial towns and estates
d) Rise in national income and per capita income

9. The decentralization system was recommended by

a) C. Rajagopalachari
b) J. B. Kriplani
 c) Balwant Rai Mehta
d) Ashok Mehta

10. The strategy of ‘Rolling Plan’ was adopted during the Prime Ministership of
a) Lal Bahadur Shastri
b) Indira Gandhi
c) Morarji Desai
d) Rajiv Gandhi

11. Dadabhai Naoroji theorised on the drain of wealth from India in his book:
a) Poverty under British Rule in India
b) Poverty in British Rule in India
c) Poverty and Un-British Rule in India
d) Poverty of Economic drain in British India

12. A ‘closed economy’ is an economy in which

a) The money supply is fully controlled
b) Deficit financing take place
c) Only exports take place
d) Nether exports not imports take place

13. The ‘Slack Season’ in the Indian Economy is

a) March – April
b) Sept – Dec
c) Jan – June
d) Feb – April

14. India’s wage policy is based on

a) Cost of living
b) Standard of living
c) Productivity
d) None of the above

15. Unemployment which occurs when workers move from one job to another job is
known as
a) Seasonal unemployment
b) Frictional unemployment
c) Cyclical unemployment
d) Technological unemployment

16. The type of unemployment mostly found in India can be characterised as:
a) Disguised
b) Structural
c) Frictional
d) Cyclical

17. Which committee’s recommendations are being followed for estimating Poverty
Line in India?
a) Dutt committee
b) Chelliah Committee
c) Chakraborty Committee
d) Lakdavala Committee

18. Absolute Poverty means:

a) Poverty in terms of absolute number of people
b) Poverty in terms of the basic minimum calories requirements
c) Poverty in terms of the prevailing price level
 d) Poverty in terms of the absolute level of unemployment

19. Among the following who are eligible to benefit from the MGNREGA?
a) Adult members of only the SC & ST households
b) Adult members of BPL households
c) Adult members of all backward communities households
d) Adult members of any households

20. Poverty Gap is:

a) The difference between poverty line and actual income levels of all those
living below that line
b) Gap between rich and poor
c) Gap between developed nations and developing nations
d) Gap in infrastructural facilities between developed and developing nations

21. The Food for Work Program was renamed as:

a) Rural Landless Employment Guarantee Program
b) National Rural Employment Program
c) Jawahar Rojgar Yojna
d) Integrated Rural Development Program

22. The term National Income represents:

a) GNP at market price minus depreciation
b) GNP at market price minus depreciation plus net factor income from abroad
c) GNP at market price minus depreciation and indirect taxes plus subsidies
d) GNP at market price minus net factor income from abroad

23. Which one of the following sectors is the major contribution towards the Gross
Domestic Saving in India in recent time?
a) Public Sector
b) Private Sector
c) Corporate Sector
d) Household Sector

24. The RBI regulates the commercial banks in matter of

a) Liquidity of assets
b) Branch expansion
c) Merger of banks
d) Winding-up of banks
Select the correct answer using the codes given following

A) 1 & 4 B) 2, 3 & 4 C) 1, 2 & 3 D) All of these

25. The BoP of a country is a systematic record of

a) All import and export transactions of a country during a given period of time,
normally a year.
b) Goods exported from a country during a year
c) Economic transaction between the government of one country to another
d) Capital movements from one country to another

26. Which one of the following is likely to be the most inflationary, in its effect?
a) Repayment of public debt
b) Borrowing from the public to finance a budget deficit
c) Borrowing from banks to finance a budget deficit
d) Creating new money to finance a budget deficit
27. DWCRA stands for
a) Development and Welfare of Catchment Areas
b) Development of Women and Children in Rural Areas
c) Direct Welfare of Children in Rural Areas
d) All of the above

28. Which of the following accounts for Cost-Push-Inflation?

a) Increase in money supply
b) Increase in indirect taxation
c) Increase in population
d) Increase in non-plan expenditure

29. Monetary Policy is regulated by

a) Finance Ministry
b) Central Bank
c) Government Policy
d) Money Lender and Private Entrepreneurs

30. One-rupee currency notes bear the signature of:

a) Finance Secretary of India
b) Finance Minister of India
c) RBI
d) President of India

31. In India, deficit financing is used for raising resources for

a) Economic Development
b) Redemption of Public Debt
c) Adjusting the balance of payments
d) Reducing the foreign debt

32. The National Income of a country for a given period is equal to the
a) Total value of goods and services produced by the nationals
b) Sum of total consumption and investment expenditure
c) Sum of personal income of all individuals
d) Money value of final goods and services produced

33. To obtain full benefits of demographic dividend. What should India do?
a) Promoting skill development
b) Introducing more social security schemes
c) Reducing infant mortality rate
d) Privatisation of higher education

34. In the context of Indian Economy, ‘Open Market Operation’ refer to

a) Borrowing by scheduled banks from the RBI
b) Lending by commercial banks to industry and trade
c) Purchase and sale of government securities by the RBI
d) None of the above

35. Karl Marx explained the process of class struggle with the help of which one of
the following theories?
a) Empirical Liberalism
b) Existentialism
c) Darwin’s theory of evolution
d) Dialectical Materialism