Economics MCQs – Set 1: Economic & Social Development for UPSC/PCS

  1. National Income of India is estimated by –
    (A) Planning Commission
    (B) Finance Commission
    (C) Reserve Bank of India
    (D) Central Statistical Organisation
    Answer: (D)
  2. Gross Domestic Product is measured in terms of –
    (A) Total value of money
    (B) Total value of goods
    (C) Total value of services
    (D) Total value of goods and services
    Answer: (D)
  3. The concept of “Green GDP” emphasizes –
    (A) Economic growth
    (B) Growth with human development
    (C) Growth with sustainable development
    (D) Growth with savings
    Answer: (C)
  4. Human Development Index (HDI) does NOT include –
    (A) Education
    (B) Life Expectancy
    (C) Gross Enrolment
    (D) Political Freedom
    Answer: (D)
  5. Which one of the following is not part of the capital budget?
    (A) Expenditure on acquisition of assets
    (B) Loans and advances
    (C) Grants
    (D) Defence Expenditure
    Answer: (D)
  6. Planning Commission was replaced by –
    (A) NITI Aayog
    (B) Finance Commission
    (C) RBI
    (D) National Council for Development
    Answer: (A)
  7. The Reserve Bank of India was nationalized in –
    (A) 1935
    (B) 1947
    (C) 1949
    (D) 1951
    Answer: (C)
  8. CRR refers to –
    (A) Cash Ratio Regulation
    (B) Cash Reserve Ratio
    (C) Credit Reserve Rate
    (D) Current Risk Ratio
    Answer: (B)
  9. Repo Rate is –
    (A) Rate at which RBI gives loan to banks
    (B) Rate at which banks lend to RBI
    (C) Rate at which RBI lends to public
    (D) None of the above
    Answer: (A)
  10. Fiscal policy deals with –
    (A) Money supply
    (B) Taxation and government spending
    (C) Interest rates
    (D) All of the above
    Answer: (B)
  1. The largest source of revenue in India is –
    (A) Income Tax
    (B) GST
    (C) Excise Duty
    (D) Corporation Tax
    Answer: (B)
  2. Disinvestment refers to –
    (A) Investing in public enterprises
    (B) Selling equity in public sector units
    (C) Reducing foreign investment
    (D) Increasing budget deficit
    Answer: (B)
  3. The first Five-Year Plan in India was launched in –
    (A) 1947
    (B) 1950
    (C) 1951
    (D) 1952
    Answer: (C)
  4. The term ‘inflation’ means –
    (A) Increase in GDP
    (B) Increase in prices
    (C) Decrease in money supply
    (D) Decrease in production
    Answer: (B)
  5. ‘Monetary Policy’ is formulated by –
    (A) Ministry of Finance
    (B) SEBI
    (C) RBI
    (D) NITI Aayog
    Answer: (C)
  6. The base year for GDP calculation in India (current) is –
    (A) 2004–05
    (B) 2011–12
    (C) 2001–02
    (D) 1999–2000
    Answer: (B)
  7. Which institution publishes the ‘World Economic Outlook’?
    (A) World Bank
    (B) IMF
    (C) WTO
    (D) OECD
    Answer: (B)
  8. The ‘poverty line’ in India is based on –
    (A) Income
    (B) Expenditure
    (C) Consumption
    (D) All of the above
    Answer: (C)
  9. FDI refers to –
    (A) Foreign Direct Income
    (B) Foreign Direct Investment
    (C) Fiscal Development Investment
    (D) Foreign Domestic Investment
    Answer: (B)
  10. The National Development Council was set up in –
    (A) 1947
    (B) 1950
    (C) 1951
    (D) 1952
    Answer: (D)
  1. Which tax is levied by the Union and collected by States?
    (A) Excise duty
    (B) Income tax
    (C) Stamp duty
    (D) GST
    Answer: (D)
  2. The Goods and Services Tax (GST) was implemented in –
    (A) 2016
    (B) 2015
    (C) 2017
    (D) 2018
    Answer: (C)
  3. The term ‘budget deficit’ refers to –
    (A) Total expenditure > total revenue
    (B) Total revenue > total expenditure
    (C) Fiscal deficit + revenue deficit
    (D) None of the above
    Answer: (A)
  4. Full employment means –
    (A) 100% employment
    (B) Employment for all who seek work
    (C) Zero unemployment
    (D) No disguised unemployment
    Answer: (B)
  5. NITI Aayog’s first Vice-Chairman was –
    (A) Arvind Panagariya
    (B) Raghuram Rajan
    (C) C. Rangarajan
    (D) Kaushik Basu
    Answer: (A)
  6. The main feature of the Indian economy is –
    (A) Industrial economy
    (B) Agricultural economy
    (C) Mixed economy
    (D) Socialist economy
    Answer: (C)
  7. India’s foreign exchange reserves are held by –
    (A) Ministry of Finance
    (B) RBI
    (C) SEBI
    (D) SBI
    Answer: (B)
  8. The term ‘dumping’ in trade means –
    (A) Selling goods below cost price
    (B) Selling goods with profit
    (C) Exporting expensive goods
    (D) None of the above
    Answer: (A)
  9. Which body regulates the stock market in India?
    (A) RBI
    (B) IRDA
    (C) SEBI
    (D) FICCI
    Answer: (C)
  10. Balance of Payments includes –
    (A) Only imports and exports
    (B) All economic transactions with foreign countries
    (C) Domestic financial transfers
    (D) Budget receipts
    Answer: (B)
  1. The term ‘stagflation’ refers to –
    (A) High inflation and high growth
    (B) High growth and low inflation
    (C) High inflation and high unemployment
    (D) Low growth and low unemployment
    Answer: (C)
  2. Black money is –
    (A) Unaccounted money
    (B) Money kept in banks
    (C) Money from exports
    (D) Legitimate income
    Answer: (A)
  3. The fiscal deficit is –
    (A) Revenue deficit + capital receipts
    (B) Total deficit minus revenue deficit
    (C) Total expenditure – total receipts excluding borrowings
    (D) None of these
    Answer: (C)
  4. PPP stands for –
    (A) Purchasing Power Parity
    (B) Private Production Policy
    (C) Price Promotion Protocol
    (D) Public Price Planning
    Answer: (A)
  5. Which of the following is a direct tax?
    (A) GST
    (B) Excise
    (C) Customs
    (D) Income Tax
    Answer: (D)
  6. The GST Council is chaired by –
    (A) Prime Minister
    (B) Finance Secretary
    (C) Union Finance Minister
    (D) RBI Governor
    Answer: (C)
  7. The World Bank is headquartered in –
    (A) Geneva
    (B) New York
    (C) Washington DC
    (D) Paris
    Answer: (C)
  8. Which index measures inflation in wholesale prices?
    (A) CPI
    (B) WPI
    (C) GDP deflator
    (D) Base price index
    Answer: (B)
  9. The term “inclusive growth” refers to –
    (A) Growth of all sectors
    (B) Growth benefiting all sections of society
    (C) Growth with imports
    (D) Industrial growth
    Answer: (B)
  10. The Mahatma Gandhi National Rural Employment Guarantee Act was enacted in –
    (A) 2002
    (B) 2003
    (C) 2005
    (D) 2006
    Answer: (C)
  1. The ‘Make in India’ initiative was launched in –
    (A) 2013
    (B) 2014
    (C) 2015
    (D) 2016
    Answer: (B)
  2. ‘Jan Dhan Yojana’ primarily aims at –
    (A) Literacy
    (B) Financial Inclusion
    (C) Urban Employment
    (D) Micro Loans
    Answer: (B)
  3. The apex bank of rural credit in India is –
    (A) NABARD
    (B) SIDBI
    (C) RBI
    (D) SBI
    Answer: (A)
  4. The IMF’s main function is –
    (A) Lending to poor countries
    (B) Monitoring global economic trends
    (C) Maintaining exchange rate stability
    (D) Facilitating trade
    Answer: (C)
  5. A situation in which unemployment and inflation rise together is –
    (A) Recession
    (B) Stagflation
    (C) Deflation
    (D) Boom
    Answer: (B)
  6. The poverty line in India is defined based on –
    (A) Income
    (B) Consumption
    (C) Calorie intake
    (D) Living standards
    Answer: (C)
  7. What does GDR stand for in capital markets?
    (A) General Demand Ratio
    (B) Global Development Reserve
    (C) Global Depository Receipt
    (D) General Debt Receipt
    Answer: (C)
  8. The Planning Commission was established in –
    (A) 1947
    (B) 1950
    (C) 1951
    (D) 1955
    Answer: (B)
  9. The term ‘base year’ in GDP calculation refers to –
    (A) The year with the highest growth
    (B) The reference year for comparison
    (C) The latest year with available data
    (D) A fiscal year
    Answer: (B)
  10. Which of the following is NOT a function of money?
    (A) Medium of exchange
    (B) Unit of account
    (C) Store of value
    (D) Standard of living
    Answer: (D)

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