Indian Economy MCQ Question and Answer

1.The term ‘mixed economy’ denoted

  • 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
Answer / Hint Save Question
Correct Answer : (B)

Existence of both Private and public Sectors

Explanation:

2.In India, agriculture income is calculated by:

  • AOutput method
  • BInput method
  • CExpenditure method
  • DCommodity method
Answer / Hint Save Question
Correct Answer : (A)

Output method

Explanation:

3.Who coined the term ‘Hindu rate of growth’ for Indian Economy?

  • AA.K. Sen
  • BKirit S. Parikh
  • CRaj Krishna
  • DMontek Singh Ahluwalia
Answer / Hint Save Question
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
Answer / Hint Save Question
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
Answer / Hint Save Question
Correct Answer : (A)

Total population of the country

Explanation:

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
Answer / Hint Save Question
Correct Answer : (D)

Final goods and services produced in an economy in a year

Explanation:

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
Answer / Hint Save Question
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
Answer / Hint Save Question
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
Answer / Hint Save Question
Correct Answer : (D)

GNP minus depreciation allowances

Explanation:

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
Answer / Hint Save Question
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
Answer / Hint Save Question
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
Answer / Hint Save Question
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
Answer / Hint Save Question
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
Answer / Hint Save Question
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
Answer / Hint Save Question
Correct Answer : (B)

Sum total of factor income

Explanation:

16.The tern 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
Answer / Hint Save Question
Correct Answer : (C)

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

Explanation:

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
Answer / Hint Save Question
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
Answer / Hint Save Question
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
Answer / Hint Save Question
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
Answer / Hint Save Question
Correct Answer : (D)

A Non-Statutory body

Explanation: