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This set of Indian Economy Multiple Choice Questions & Answers (MCQs) focuses on Indian Economy Set 7

Q1 | A Closed economy means:
  • Money supply is controlled
  • Digital financing take place
  • Neither exports nor imports
  • none
Q2 | What is Literacy rate
  • Number of illiterate persons to total populations
  • Number of graduate peoples to total population
  • Number of literate persons to total population
  • none
Q3 | Measuring number of people who die is
  • Infant note
  • Migration Note
  • Morality rate
  • none
Q4 | The vicious circle theory states that
  • growing government assistance create addiction to welfare programs.
  • low income levels create pressure for money creation.
  • low income levels create pressure for cheap imports.
  • low per capita income creates low savings that keep incomes low
Q5 | The rate of growth of an economy mainly depends upon:
  • The rate of growth of the labour force
  • The proportion of national income saved and invested
  • The rate of technological improvements
  • All of the above
Q6 | With economic growth, the proportion of labour-force engaged in agriculture:
  • Increases
  • Decreases
  • Remains unaffected
  • Changes in an uncertain manner
Q7 | The Gini coefficient is a technique frequently used to show:
  • variations in life expectancy
  • income inequality
  • differences in infant mortality
  • the education gap
Q8 | Disguised unemployment means:
  • Unemployment in agriculture
  • Unemployment due to recession
  • Unemployment due to downturn in business activity
  • Marginal Productivity of Labour (MPL) is zero.
Q9 | During the recessionary phase of a business cycle:
  • The natural rate of unemployment will increase dramatically
  • Potential national income will exceed actual national income
  • Actual national income will exceed potential national income
  • The real rate of interest will exceed the nominal rate of interest.
Q10 | India is passing through the phase of population:
  • Explosion
  • Control
  • Stability
  • None of the above
Q11 | If an economy is underdeveloped, it means:
  • Agriculture is the main occupation
  • Standard of living of people is low
  • Production Techniques are backward and obsolete
  • All of the above
Q12 | When and by whom was HDI introduced?
  • In 1990 by UNDP
  • In 1989 by World Bank
  • In 1990 by UNO
  • In 1989 by IMF
Q13 | Indicator of HDI is:
  • Longevity
  • Educational Attainment
  • Standard of Living
  • All of the above
Q14 | Which plan gave emphasis on removal of poverty for the first time?
  • Fourth
  • Fifth
  • Sixth
  • Seventh
Q15 | Which are the economic consequences of problem of poverty?
  • increasing Unemployment
  • Capital Deficiency
  • Inadequate economic development
  • All of the above
Q16 | What is the full form of IRDP?
  • Integrated Rural Development Programme
  • Intelligent Rural Development Programme
  • Induced Rural Development Programme
  • None of the above.
Q17 | What are the salient demographic features of India’s population?
  • Growth rate of population
  • Uneven distribution of population
  • Age composition
  • All of the above
Q18 | Having insufficient income to provide a minimum standard of living is
  • Absolute poverty
  • Relative poverty
  • None
  • none
Q19 | In which among the following year was ‘liberalized industrial policy’ in India was announced for the first time?
  • 1992
  • 1995
  • 1991
  • none
Q20 | Zero Defect Zero Effect" slogan is related to which of the following scheme?
  • Digital India
  • Make in India
  • Startup India
  • Clean India mission
Q21 | After agriculture, --------------provides highest employment to the local & neighborhoodresidents.
  • Cottage Industry
  • Rural Industry
  • Small scale sector
  • none
Q22 | Parallel economy emerges due to
  • Tax avoidance
  • tax evasion
  • tax abiding
  • none
Q23 | What was the main theme of the 12th five-year plan of India
  • Faster and more inclusive growth
  • Faster, more inclusive and sustainable growth
  • Growth with justice and equity
  • Sustainable Development.