Indian Economy MCQ-4


One of the main facors that led to rapid expansion of Indian exports is

(A) Liberalisation of the economy
(B) Diversification of exports
(C) Imposition of export duties
(D) Recession in other countries


The measurement of poverty line is based on the criteria of

(A) Their dwelling houses
(B) The nature of employment
(C) Calorific consumption
(D) Level of education


What is recession ?

(A) Rise in the cot of production , especially because of wage increases
(B) Increase in money supply without a matching increase in production
(C) Increase in money supply and employment for want of sufficient demand for goods
(D) None of these


Which of the following increases continuously with the increase in production of an industrial concern?

(A) Fixed cost
(B) Variable cost
(C) Average cost
(D) Marginal cost


The consumers surplus can be defined as

(A) Total consumer satisfaction
(B) Difference between actual price and the potential price
(C) Extra units of commodity brought
(D) Surplus commodity left after consumption


Which committee was related with the policies and programme for Agriculture ?

(A) Wanchoo committee
(B) Boothalingam Committee
(C) Bhanu pratap singh committee
(D) Aggrawal Committee


Which year is known as “ year of the Great Divide ” with regard to population growth in India ?

(A) 1921
(B) 1935
(C) 1947
(D) 1951


Which of the following gives an accurate measurement of economic development through Five Year Plans ?

(A) Development of education and health services
(B) Development of railway and Road ways
(C) Rise in national income and per capita income
(D) Development of industrial towns and industrial estates


India adopted five year plants from

(A) France
(B) Former USSR
(C) America
(D) England


BOP(Balance of payment ) refers to

(A) Transaction in the follow of capital
(B) Transactions relating to receipts and payment of invisible
(C) Transaction related to only imports and exports
(D) Systematic transaction of all its economic transaction with the rest of the world


Who is called “Father of Economics ” ?

(A) Max Muller
(B) Karl Marx
(C) Adam smith
(D) None of these


Modern economy is one of

(A) Open economy
(B) Cash economy
(C) Credit economy
(D) Planned economy


Which of the following is not included in “Minimum Needs Programme” ?

(A) Adult education
(B) Rural Electrification
(C) Rural water supply
(D) Unemployment allowance


In a country like India , why should an increase of direct taxes be preferred to an increase in indirect taxes

(A) Direct taxes serve the end of socialism by taking away the excessive wealth from the rich
(B) Direct taxes involve the well off sections of the society whice indirect taxes affect the masses
(C) It is easy to realise direct taxes and is thus useful in a country troubled by tax evasion
(D) All of the above


The book “ Wealth of Nations ” was written by

(A) Eric Roll
(B) J.M.Keynes
(C) Adam Smith
(D) Harold Laki


Match the following
A.interest paid by the trader
B.purchasing power
C. Minerals
D.Rivers and dams
1. National Wealth
2. Land
3. Gross interest
4. Real Value

(A) 3421
(B) 1234
(C) 2431
(D) 3124


If an economy is in equilibrium at the point where plans to save and to invest are equal , then government expenditure must be

(A) Negative
(B) Zero
(C) Larger than the government income
(D) Equal to government income