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Objective Questions on Indian Economy for State Service Preliminary Examination 2017
1Who was the first administrator-statesman to attempt planning as a means for economic development?
a)Â Â Â Â Â Â Â Sir CP Ramaswami Aiyyar
b) M Viswesvarayya
c) VT Krishnamachari
d) C Rajagopalachari
b) M Viswesvarayya
c) VT Krishnamachari
d) C Rajagopalachari
(Ans:B)
2. An economy is at the take off stage on its path to development when it
a) becomes stagnant
b) begins steady growth
c) is liberalized
d) gets maximum foreign aid
b) begins steady growth
c) is liberalized
d) gets maximum foreign aid
(Ans:B)
3. Which of the following is the basic characteristic of Oligopoly?
a) a few sellers, one buyer
b) a few sellers, many buyers
c) a few sellers, a few buyers
d) many sellers, a few buyers
b) a few sellers, many buyers
c) a few sellers, a few buyers
d) many sellers, a few buyers
(Ans:B)
4. The aim of which of the Five Year Plans was to correct the disequilibrium in the economy?
a) First Five Year Plan
b) Second Five Year Plan
c) Third Five Year Plan
d) Fourth Five Year Plan
b) Second Five Year Plan
c) Third Five Year Plan
d) Fourth Five Year Plan
(Ans:A)
5. Which of the following Five Year Plans recognized human development as the core of all developmental efforts?
a) Eighth Five Year Plan
b) Seventh Five Year Plan
c) Fifth Five Year Plan
d) Third Five Year Plan
b) Seventh Five Year Plan
c) Fifth Five Year Plan
d) Third Five Year Plan
(Ans:A)
6. Which of the following plans aimed at improving the standard of living?
a) Third Plan
b) Fourth Plan
c) Fifth Plan
d) Sixth Plan
b) Fourth Plan
c) Fifth Plan
d) Sixth Plan
(Ans:B)
7. At which of the following places was the mining of coal started in 1774?
a) Chhindwara
b) Dhanbad
c) Ranchi
d) Raniganj
b) Dhanbad
c) Ranchi
d) Raniganj
(Ans:D)
8. In which of the following years were the cocking coals and non-cocking coal mines in India nationalized?
a) 1971 and 1972 repetitively
b) 1972 and 1973 respectively
c) 1973 and 1974 respectively
d) 1970 and 1972 respectively
b) 1972 and 1973 respectively
c) 1973 and 1974 respectively
d) 1970 and 1972 respectively
(Ans:B)
9. Which Indian state has the largest number of cotton textile mills?
a) Madhya Pradesh
b) Maharashtra
c) Gujarat
d) West Bengal
b) Maharashtra
c) Gujarat
d) West Bengal
(Ans:A)
11. When, for the first time, did the Prime Minister of India announce the 20-point Economic Programme?
a) 1973
b) 1974
c) 1975
d) 1976
b) 1974
c) 1975
d) 1976
(Ans:C)
12. Which of the following plans aimed at the removal of poverty and attainment of self-reliance?
a) second plan
b) third plan
c) fourth plan
d) fifth plan
b) third plan
c) fourth plan
d) fifth plan
(Ans:D)
13. Census in India is being held regularly after every
a) 6 years
b) 8 years
c) 10 years
d) 12 years
b) 8 years
c) 10 years
d) 12 years
(Ans:C)
14. People belonging to what age group are eligible for training under TRYSEM scheme?
a) 18-35
b) 25-40
c) 18-50
d) 18-25
b) 25-40
c) 18-50
d) 18-25
(Ans:A)
15. According to the census in 2001, which city in India has the largest population?
a) Kolkatta
b) Mumbai
c) Delhi
d) Chennai
b) Mumbai
c) Delhi
d) Chennai
(Ans:B)
16.Which one of the following was launched with the objective of helping the poor in rural areas to become self employed?
a)Â Â Â Â Â Â Â DPAP
b) IRDP
c) TRYSEM
d) DDP
b) IRDP
c) TRYSEM
d) DDP
(Ans:C)
17. In Indian economy, the principal means of transportation is
a) airways
b) railways
c) waterways
d) roadways
b) railways
c) waterways
d) roadways
(Ans:B)
18. Which of the following organizations looks after the credit needs of agriculture and rural development in India?
a) FCI
b) IDBI
c) NABARD
d) ICAR
b) IDBI
c) NABARD
d) ICAR
(Ans:C)
19. Which of the following estimates the National Income in India?
a) Central Statistical Organization
b) National Income Committee
c) Planning commission
d) Reserve Bank of India
b) National Income Committee
c) Planning commission
d) Reserve Bank of India
(Ans:A)
20. In India which of the following taxes is levied by the state governments?
a) Excise duty on liquor
b) Capital gains tax
c) Customs tax
d) corporation tax
b) Capital gains tax
c) Customs tax
d) corporation tax
(Ans:A)
21. Which industry employs the largest number of women in India?
a) tea
b) textile
c) jute
d) coal
b) textile
c) jute
d) coal
(Ans:A)
22. Which of the following is not a cash crop?
a) Jute
b) groundnut
c) jowar
d) sugarcane
b) groundnut
c) jowar
d) sugarcane
(Ans:C)
23. SEBI stands for
a) Science and Engineering Board of India
b) Securities and Exchange Board of India
c) Social Equity Bureau of India
d) Science and Educational Board of India
b) Securities and Exchange Board of India
c) Social Equity Bureau of India
d) Science and Educational Board of India
(AnsB )
24. With which of the following lies the basic regulatory authority for mutual funds and stock markets?
a) Reserve bank of India
b) Government of India
c) SEBI
d) Stock Exchanges
b) Government of India
c) SEBI
d) Stock Exchanges
(Ans:C)
25. With which aspect of commerce are ‘Bulls and Bears’ associated?
a) Foreign Trade
b) Stock Exchange market
c) banking
d) international finance
b) Stock Exchange market
c) banking
d) international finance
(Ans:B)
26. State Financial Corporations give assistance mainly to develop
a) small and medium scale industries
b) agricultural farms
c) cotton industry
d) large scale industries
b) agricultural farms
c) cotton industry
d) large scale industries
(Ans:A)
27. In which of the following fields was the first co-operative movement in India initiated?
a) agricultural credit
b) farming activities
c) consumer co-operation
d) agricultural marketing
b) farming activities
c) consumer co-operation
d) agricultural marketing
(Ans:A)
28. Which of the following taxes is a progressive tax?
a) income tax
b) custom tax
c) sales tax
d) excise duty
b) custom tax
c) sales tax
d) excise duty
(Ans:A)
29. In which year was the policy of population planning adopted by the government of India?
a) 1947
b) 1956
c) 1952
d) 1962
b) 1956
c) 1952
d) 1962
(Ans:C)
30. Which of the following taxes is/are levied by the Union and collected and appropriated by the states?
a) stamp duties
b) passenger and good tax
c) estate duty
d) taxes on newspapers
b) passenger and good tax
c) estate duty
d) taxes on newspapers
(Ans:A)
31. Â The terms TRIPS and TRIMS are related to
a) NAFTA
b) SAPTA
c) EFTA
d) GATT
b) SAPTA
c) EFTA
d) GATT
(Ans:B)
32. In which year was the new liberalized industrial policy announced in India?
a) 1989
b) 1990
c) 1991
d) 1992
b) 1990
c) 1991
d) 1992
(Ans:C)
33. During which Five Year Plan was the annual growth rate of National Income the lowest?
a) second plan
b) third plan
c) fifth plan
d) sixth plan
b) third plan
c) fifth plan
d) sixth plan
(Ans:B)
34. Chelliah Committee of 1992 deals with the overhauling of our
a) public sector undertakings
b) financial system
c) tax system
d) patents and copyrights
b) financial system
c) tax system
d) patents and copyrights
(Ans:A)
35. Economic planning is an essential feature of
a) capitalist economy
b) socialist economy
c) mixed economy
d) dual economy
b) socialist economy
c) mixed economy
d) dual economy
(Ans:B)
36. Which among the following is an essential characteristic of mixed economy?
a) co-existence of small scale and large scale industries
b) co-existence of private and public sectors
c) assigning equal importance to both agriculture and heavy industries
d) co-existence of the rich and the poor
b) co-existence of private and public sectors
c) assigning equal importance to both agriculture and heavy industries
d) co-existence of the rich and the poor
(Ans:C)
37. What is the value of goods and services produced in a country within a year called?
a) National income at factor cost
b) net national output
c) net national product at market prices
d) gross national product at market prices
b) net national output
c) net national product at market prices
d) gross national product at market prices
(Ans:D)
38. Which of the following deals with economic offences?
a) MISA
b) NSA
c) TADA
d) COFEPOSA
b) NSA
c) TADA
d) COFEPOSA
(Ans:D)
39. In India, inflation is measured by
a) wholesale price index number
b) consumer price index for urban non-manual workers
c) consumer price index for agricultural workers
d) national income deflation
b) consumer price index for urban non-manual workers
c) consumer price index for agricultural workers
d) national income deflation
(Ans:D)
40. Which of the following programs meets the credit needs of poor women?
a) Mahila Samriddhi Yojna
b) Rashtriya Mahila Kosh
c) Indira Mahila Yojna
d) Mahila Samakhya Programme
b) Rashtriya Mahila Kosh
c) Indira Mahila Yojna
d) Mahila Samakhya Programme
(Ans:B)
41. National income is the
a) Net National Product at Market price
b) Net National product at factor coast
c) net domestic product at market price
d) net domestic product at factor cost
b) Net National product at factor coast
c) net domestic product at market price
d) net domestic product at factor cost
(Ans:C)
42. Which of the following programs aims at the promotion of savings among rural women?
b) Rashtriya Mahila Kosh
c) Mahila Samriddhi Yojna
d) Indira Mahila Yojna
e) Javhar Rozgar Yojna
c) Mahila Samriddhi Yojna
d) Indira Mahila Yojna
e) Javhar Rozgar Yojna
(Ans:B)
43. Development means economic growth with
a) price stability
b) social change
c) inflation
d) deflation
b) social change
c) inflation
d) deflation
(Ans:B)
44. What happens to marginal cost when average cost increases
a) Marginal cost is below average cost
b) Marginal cost is above average cost
c) Marginal cost is equal to average variable cost
d) Marginal cost is equal to average cost
b) Marginal cost is above average cost
c) Marginal cost is equal to average variable cost
d) Marginal cost is equal to average cost
(Ans:B)
45. Which one of the following is more effective in controlling prices in the long run?
a) decrease in production
b) increase in production
c) decrease in the rate of interest
d) increase in the rate of employment
b) increase in production
c) decrease in the rate of interest
d) increase in the rate of employment
(Ans:B)
46. Through open market operations, the RBI purchase and sell
a) foreign exchange
b) gold
c) government securities
d) all of these
b) gold
c) government securities
d) all of these
(Ans:d)
47. A firm is said to be of optimum size when
a) average total cost is at a minimum
b) marginal cost is at a minimum
c) marginal cost is equal to marginal revenue
d) the firm is maximizing its profit
b) marginal cost is at a minimum
c) marginal cost is equal to marginal revenue
d) the firm is maximizing its profit
(Ans:A)
48. All revenues received, loans raised and money received in repayment of loans by the Union government go into
a) Public account of India
b) Contingency fund of India
c) Consolidated fund of India
d) None of the above
b) Contingency fund of India
c) Consolidated fund of India
d) None of the above
(Ans:C)
49. The law of demand states that
a) demand increases with increase in income
b) when income and prices rise, the demand also rises
c) when price falls, demand increases
d) when price increases, demand increases
b) when income and prices rise, the demand also rises
c) when price falls, demand increases
d) when price increases, demand increases
(Ans:C)
50. The balance of payment comprises
a) a current account of goods and services only
b) a capital account of financial assets only
c) official settlement accounts only
d) all of these
b) a capital account of financial assets only
c) official settlement accounts only
d) all of these
(Ans:D)
Objective Questions on Indian Economy for State Service Preliminary Examinaion 2017 
Reviewed by Bhavana Jain on 09:38:00 Rating:
Reviewed by Bhavana Jain on 09:38:00 Rating:
