Indian Economy MCQ Practice Set – Series 8


11) The Planning Commission of India:

I. was set up in 1950

II. is a constitutional body

III. is an advisory body

IV. is a government department

(a) I and II

(b) II and III

(c) I and III

(d) III only

View Answer
Option – c)


12) The situation with increasing unemployment and inflation is termed as:

(a) hyperinflation

(b) galloping inflation

(c) stagflation

(d) reflation

View Answer
Option – c)


13) How do we define the terms bull and bear with regard to stock markets?

(a) A bull is an optimistic operator who first buys and then sells shares in expectation of the price going up; a bear is a pessimistic market operator who sells the shares in expectation of buying them back at a lower price

(b) There is nothing significantly different as both operate in the capital market

(c) Bull is one who first sells a share and then buys it at a lower price; bear means one who first buys and then sells it in expectation of prices going up

(d) A bull is ready to buy any share; a bear only deals in government securities

View Answer
Option – a)


14) The National Stock Exchange functions from:

(a) New Delhi

(b) Mumbai

(c) Nagpur

(d) Kolkata

View Answer
Option – b)


15) Which of the following is not a method of estimating national income?

(a) Income method

(b) Value-added method

(c) Expenditure method

(d) Export-import method

View Answer
Option – d)


16) The per capita income has been low in India because:

(a) of population growth

(b) of price rise

(c) more people are in rural areas

(d) of regional imbalances

View Answer
Option – a)


17) As the economy develops, the share of the tertiary sector in the GDP:

a) Decreases

b) Decreases then increases

c) Increases

d) Remainds constant

View Answer
Option – c)


18) It will be true of classify India as:

a) A food-deficit economy

b) A labour-surplus economy

c) A trade-surplus economy

d) A capital-surplus economy

View Answer
Option – b)


19) Which one of the following States of India records the highest sex-ratio?

a) Kerala

b) Karnataka

c) Meghalaya

d) Tamil Nadu

View Answer
Option – a)


20) As per the Census of 2011, the least urbanized State of India is:

a) Arunachal Pradesh

b) Assam

c) Himachal Pradesh

d) Uttaranchal

View Answer
Option – c)

Good Luck!