Chapter:

150+ more mcqs Solved MCQs

in Indian Economy

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Arts (BA) , Bachelor of Arts in Economics (BA Economics) , Union Public Service Commission (UPSC) .

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51.	Indian Iron and Steel company was established in ……………
A.	1919
B.	1909
C.	1976
D.	1090
Answer» B. 1909

52.	…………… is known as the father of Iron and Steel company in India.
A.	jamshedji tata
B.	ratan tata
C.	ambani
D.	mittal
Answer» A. jamshedji tata

53.	Bockaro Steel plant was started during ……………. plan .
A.	first
B.	second
C.	third
D.	fourth
Answer» D. fourth

54.	WTO prescribes export subsidies as:
A.	competition
B.	unfair competition
C.	monopolistic competition
D.	exploitation
Answer» B. unfair competition

55.	Export promotion is an:
A.	inward looking strategy
B.	outward looking strategy
C.	fiscal strategy
D.	political strategy
Answer» B. outward looking strategy

56.	Since March 1973, the world, more or less, had a:
A.	free floating exchange rate system
B.	fixed exchange rate system
C.	managed floating exchange rate system
D.	adjustable peg system
Answer» C. managed floating exchange rate system

57.	Net National gains from trade is measurable function of:
A.	volume of trade
B.	relative prices in two countries
C.	factor cost of commodities traded
D.	volume of trade credited and change in prices caused by trade
Answer» D. volume of trade credited and change in prices caused by trade

58.	Outward looking development policies are not associated with:
A.	open system of communications
B.	free movement of capital
C.	multinational enterprises
D.	learning by doing
Answer» D. learning by doing

59.	Import quota is :
A.	tariff
B.	non-tariff trade barrier
C.	concession
D.	international obligation
Answer» B. non-tariff trade barrier

60.	Balance of payments must always balance because:
A.	trade deficit is cancelled by invisible credits
B.	import always equals exports
C.	of an accounting connection
D.	what a country gets, it must either pay or save
Answer» C. of an accounting connection

61.	Trade Policy measures for correction of balance of payments disequilibrium include of export promotion:
A.	export promotion
B.	import control
C.	both a & b
D.	import substitution
Answer» C. both a & b

62.	In calculating India’s balance of payments position, we must:
A.	omit invisible items
B.	omit exports and imports of gold
C.	include expenditure by foreign tourists as imports
D.	include long term loans abroad as debit
Answer» B. omit exports and imports of gold

63.	The convertibility of dollar was formally abandoned in:
A.	1971
B.	1966
C.	1973
D.	1962
Answer» A. 1971

64.	Each member of IMF is assigned a quota expressed in:
A.	member country’s currency
B.	dollar
C.	special drawing rights
D.	none of the above
Answer» C. special drawing rights

65.	The international monetary system that existed from 1947 to 1971 is generally known as:
A.	par value system
B.	pegged exchange rate system
C.	bothe a & b
D.	fewer rupees in the spot market than in the home market
Answer» A. par value system

66.	The fundamental cause for the collapse of the Bretton woods system was:
A.	liquidity problem
B.	the adjustment problem
C.	the confidence problem
D.	all of the above
Answer» D. all of the above

67.	The direction of trade indicates:
A.	the nature of goods that are exported and imported
B.	the value of goods that are exported and imported
C.	the countries to which commodities are exported and the countries from which commodities are imported
D.	the terms at which exports exchanges for imports school of distance education indian economy
Answer» C. the countries to which commodities are exported and the countries from which commodities are imported

68.	The important component of foreign trade:
A.	terms of trade, balance of trade and balance of payment
B.	the volume of trade, the composition of trade and direction of trade
C.	terms of trade and volume of trade
D.	terms of trade and direction of trade
Answer» B. the volume of trade, the composition of trade and direction of trade

69.	The balance of payment in unfavorable:
A.	when value of export is greater than import
B.	when value of import is greater than export
C.	when value of imports and exports are equal
D.	only when there is much greater difference between exports and imports
Answer» B. when value of import is greater than export

70.	In which of the plan period, the Balance of payment position had surplus:
A.	first plan
B.	second plan
C.	third plan
D.	fifth plan
Answer» D. fifth plan

71.	The Mudaliar Committee was related to:
A.	export-import policy
B.	exim bank
C.	small scale industries
D.	banking sector
Answer» A. export-import policy

72.	EXIM Bank was set up in:
A.	1980
B.	1982
C.	1991
D.	2000
Answer» B. 1982

73.	The balance of payment on current account shows:
A.	the record of the current position of the country in transfer of both visible and invisible items
B.	the record of the financial position of the country
C.	the extent of the financial position of the country
D.	the record of the current position of visible items.
Answer» A. the record of the current position of the country in transfer of both visible and invisible items

74.	“Capitalism” refers to?
A.	The use of market
B.	Government ownership of capital
C.	Private ownership of capital goods
D.	Private ownership of homes & cars
Answer» C. Private ownership of capital goods

75.	What is the main cause of exports surplus?
A.	Country’s stringent import policy
B.	Developments in national and international markets
C.	Country’s exports promotion value
D.	above all
Answer» D. above all

150+ more mcqs Solved MCQs

Indian Iron and Steel company was established in ……………

…………… is known as the father of Iron and Steel company in India.

Bockaro Steel plant was started during ……………. plan .

WTO prescribes export subsidies as:

Export promotion is an:

Since March 1973, the world, more or less, had a:

Net National gains from trade is measurable function of:

Outward looking development policies are not associated with:

Import quota is :

Balance of payments must always balance because:

Trade Policy measures for correction of balance of payments disequilibrium include of export promotion:

In calculating India’s balance of payments position, we must:

The convertibility of dollar was formally abandoned in:

Each member of IMF is assigned a quota expressed in:

The international monetary system that existed from 1947 to 1971 is generally known as:

The fundamental cause for the collapse of the Bretton woods system was:

The direction of trade indicates:

The important component of foreign trade:

The balance of payment in unfavorable:

In which of the plan period, the Balance of payment position had surplus:

The Mudaliar Committee was related to:

EXIM Bank was set up in:

The balance of payment on current account shows:

“Capitalism” refers to?

What is the main cause of exports surplus?

Which is the primary objective of economic planning in India

Which of the following is associated with poverty estimation ?

Which of the following state introduced Employment Guarantee Scheme first?

Infant mortality

is below the income that secures the bare essentials of food, clothing,

The unemployment rate is the

In which type of unemployment do the marginal productivity of the workers is zero?

Which is the state with minimum sex ratio in India?

Which is the state with highest number of Scheduled Castes in India?

Which country is the largest consumer of sugar in the world?

Which is the largest sugar-producing country in the world?

When was cotton textile industry established in Mumbai?

Which is the Indian state with the highest number of powerlooms?

Which of the following industries is not a heavy industriy.

Which one of the following agencies, markets steel for the public sector plants?

Where was oil discovered for the first time in India?

In production sector, a micro enterprise is an enterprise where investment in plant and

Which of the following does not form part of current account under balance of payments?

Balance in capital account refer to the

Balance in capital account refer to the

When was the first five-year plan of India started?

What as the prime target of the first five-year plan of India?

Which programme given the slogan of Garibi Hatao?

In which five-year plan India opted for a mixed economy?

When was the plan holiday declared?

76.	Which is the primary objective of economic planning in India
A.	Reducing Inequalities of
B.	Abolition of poverty
C.	Growth with social justice
D.	Removing unemployment
Answer» C. Growth with social justice

77.	Which of the following is associated with poverty estimation ?
A.	Tendulkar committee
B.	Lakdawala committee
C.	Saxena committee
D.	All the above
Answer» D. All the above

78.	Which of the following state introduced Employment Guarantee Scheme first?
A.	Madhya Pradesh
B.	Maharashtra
C.	Tamil Nadu
D.	Karnataka
Answer» B. Maharashtra

79.	Infant mortality
A.	Defined as the annual number of deaths of infant under 1 year
B.	Reflects the availability of primary education, the rights of
C.	life expectancy up to age 3.
D.	Reflects the availability of hospitals and
Answer» A. Defined as the annual number of deaths of infant under 1 year

80.	is below the income that secures the bare essentials of food, clothing,
A.	Income inequality.
B.	Absolute poverty.
C.	Sen’s poverty index.
D.	Purchasing-power poverty.
Answer» B. Absolute poverty.

81.	The unemployment rate is the
A.	Employed plus unemployed divided by labor force.
B.	Total employment divided by population.
C.	Labor force divided by population.
D.	Uunemployed divided by employed
Answer» A. Employed plus unemployed divided by labor force.

82.	In which type of unemployment do the marginal productivity of the workers is zero?
A.	Disguised Unemployment
B.	Involuntary unemployment
C.	Seasonal unemployment
D.	Structural Unemployment
Answer» A. Disguised Unemployment

83.	Which is the state with minimum sex ratio in India?
A.	Chandigarh
B.	Delhi
C.	Haryana
D.	Punjab
Answer» C. Haryana

84.	Which is the state with highest number of Scheduled Castes in India?
A.	Andhra Pradesh
B.	Bihar
C.	Tamil Nadu
D.	Uttar Pradesh
Answer» D. Uttar Pradesh

85.	Which country is the largest consumer of sugar in the world?
A.	USA
B.	CHINA
C.	JAPAN
D.	INDIA
Answer» A. USA