Indian Economy MCQ Question and Answer

1.The term “mixed economy” denotes

  • AExistence of both rural and urban sectors
  • BExistence of both Private and public Sectors
  • CExistence of both heavy and small industries
  • DExistence of both developed and underdeveloped sectors
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Correct Answer : (B)

Existence of both Private and public Sectors

Explanation:

The term “mixed economy” denotes existence of both Private and public Sectors.

2.In India, agriculture income is calculated by

  • AOutput method
  • BInput method
  • CExpenditure method
  • DCommodity method
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Correct Answer : (A)

Output method

Explanation:

In India, agriculture income is calculated by Output method.

3.Who coined the term “Hindu rate of growth” for Indian Economy?

  • AA.K. Sen
  • BKirit S. Parikh
  • CRaj Krishna
  • DMontek Singh Ahluwalia
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Correct Answer : (C)

Raj Krishna

Explanation:

4.GDP at factor cost is :

  • AGDP minus indirect taxes plus subsidies
  • BGNP minus depreciation allowances
  • CNNP plus depreciation allowances
  • DGDP minus subsidies plus indirect taxes
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Correct Answer : (C)

NNP plus depreciation allowances

Explanation:

5.Per Capita income is obtained by dividing National Income by

  • ATotal population of the country
  • BTotal working population
  • CArea of the country
  • DVolume of the capital use
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Correct Answer : (A)

Total population of the country

Explanation:

Per Capita income is obtained by dividing National Income by Total population of the country.

6.Gross Domestic Product (GDP) is defined as the value of all

  • AGoods produced in an economy in a year
  • BGoods and services in an economy in a year
  • CFinal goods produced in an economy in a year
  • DFinal goods and services produced in an economy in a year
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Correct Answer : (D)

Final goods and services produced in an economy in a year

Explanation:

Gross Domestic Product (GDP) is defined as the value of all Final goods and services produced in an economy in a year.

7.Depreciation is equal to :

  • AGross National Product-Net National Product
  • BNet National Product- Gross National Product
  • CGross National Product- Personal Income
  • DPersonal Income- Personal Taxes
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Correct Answer : (A)

Gross National Product-Net National Product

Explanation:

8.Which one of the following is NOT a method of measurement of National Income?

  • AValue added Method
  • BIncome Method
  • CExpenditure Method
  • DInvestment Method
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Correct Answer : (D)

Investment Method

Explanation:

9.Net National Product (NNP) of a country is

  • AGDP minus depreciation allowances
  • BGDP plus net income from aboard
  • CGNP minus net income from aboard
  • DGNP minus depreciation allowances
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Correct Answer : (D)

GNP minus depreciation allowances

Explanation:

Net National Product (NNP) of a country is GNP minus depreciation allowances.

10.National Income is based on the

  • ATotal revenue of the State
  • BProduction of goods and services
  • CNet profit earned and expenditure made by the state
  • DThe sum of all factions of income
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Correct Answer : (B)

Production of goods and services

Explanation:

11.Which of the following is definitely a major indication of the State of the economy of a country?

  • ARate of GDP growth
  • BRate of inflation
  • CNumber of Banks in a country
  • DStock of food grains in a country
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Correct Answer : (A)

Rate of GDP growth

Explanation:

12.Per Capital Income of a country derived from

  • ANational Income
  • BNational Income
  • CNational Income and National Income both
  • DNone of these
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Correct Answer : (C)

National Income and National Income both

Explanation:

13.The main source of National Income in India is

  • AService Sector
  • BAgriculture
  • CIndustrial Sector
  • DTrade Sector
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Correct Answer : (A)

Service Sector

Explanation:

14.Who had estimate National Income in India first?

  • ADadabhai Naoroji
  • BR.C. Dutt
  • CV.K.R.V. Rao
  • DD.R. Gadgil
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Correct Answer : (A)

Dadabhai Naoroji

Explanation:

15.The National Income of a country is :

  • AThe annual Revenue of the Government
  • BSum total of factor income
  • CSurplus of Public Sector Undertakings
  • DSurplus of Public Sector Undertakings
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Correct Answer : (B)

Sum total of factor income

Explanation:

16.The term “National Income” Represents

  • AGross National Product at market price minus depreciation
  • BGross National Product at market price minus depreciation plus net factor income from abroad
  • CGross National Product at market price minus depreciations and indirect taxes plus subsidies
  • DGross National Product at market price minus net factor income from abroad
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Correct Answer : (C)

Gross National Product at market price minus depreciations and indirect taxes plus subsidies

Explanation:

The term “National Income” Represents Gross National Product at market price minus depreciations and indirect taxes plus subsidies.

17.Under which pan did the Government introduce an agricultural strategy which gave rise to Green Revolution?

  • ASecond Five Year Plan
  • BThird Five Year Plan
  • CFourth Five Year Plan
  • DSixth Five Year Plan
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Correct Answer : (B)

Third Five Year Plan

Explanation:

18.Under which pan did the Government introduce an agricultural strategy which gave rise to Green Revolution?

  • ASecond Five Year Plan
  • BThird Five Year Plan
  • CFourth Five Year Plan
  • DSixth Five Year Plan
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Correct Answer : (B)

Third Five Year Plan

Explanation:

19.The Second Five Year Plan was based on :

  • AMahalanobis Model
  • BVakil and Brahmananda?s wage-Goods Model
  • CHarrod-Domar Growth Model
  • DSolow Growth Model
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Correct Answer : (A)

Mahalanobis Model

Explanation:

20.The Planning commission of India is

  • AA constitutional body
  • BAn Independent and autonomous body
  • CA Statutory body
  • DA Non-Statutory body
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Correct Answer : (D)

A Non-Statutory body

Explanation: