MCQ on Indian Economy for the preparation of UPSC Civil Services and TPSC, WBSC, APSC, TCS & TPS Examinations

In India, National Income is computed by :

Ministry of Fianance
Central Statistical Organisation
National Development Council
Finance Commission

Correct Option: B [ Central Statistical Organisation ]

Explanation:

Which of the following sector gives the largest income in India ?

Trade sector
Railway
Agriculture
Service sector

Correct Option: D [ Service sector ]

Explanation:

Which of the following is a primary sector of economic activities in India ?

Food processing
Telecom services
Manufacturing industry
Agriculture

Correct Option: D [ Agriculture ]

Explanation:

Tertiary sector activities include

Cottage industries
Mining activities
Construction activities
Infrastructure services

Correct Option: D [ Infrastructure services ]

Explanation:

Which of the following is true in respect of Centre-State financial relations ?

Amount given by Centre is the only source of income to States
States can by-pass Centre while taking foreign loans
States can not levy income tax
States can claim 100 % share in excise duty on goods produced in the State

Correct Option: C [ States can not levy income tax ]

Explanation:

Poverty is defined as:

A monetary condition brought about by people's own laziness
A monetary condition where people do not have enough to satisfy basic needs
A monetary and non-monetary conditions where people lack access to community regulated common resources, opportunities and income
All of the above

Correct Option: C [ A monetary and non-monetary conditions where people lack access to community regulated common resources, opportunities and income ]

Explanation:

In order to control inflationary price rise, Reserve Bank directs Banks to

Reduce rate of interest on credit
Reduce Statutory Liquidity Ratio (SLR)
Increase Cash Reserve Ratio (CRR)
Buy bonds from capital market

Correct Option: C [ Increase Cash Reserve Ratio (CRR) ]

Explanation:

About Deendayal Antyodaya Yojana (DAY) which of the following is not correct ?

It focuses on both the rural and urban areas
It aims at skill development.
It is a State Government's scheme
It has replaced Ajeevika

Correct Option: C [ It is a State Government's scheme ]

Explanation:

Existence of huge black money creates

increase in the inequality of income
decrease in the quality of output
high living standard for all
Both (B) and (C)

Correct Option: A [ increase in the inequality of income ]

Explanation:

The LPG model of development was introduced by India since:

1991
1992
1993
1994

Correct Option: A [ 1991 ]

Explanation: