Economics MCQs – Set 4: Economic & Social Development for UPSC/PCS

  1. What does MGNREGA guarantee?
    (A) Urban employment
    (B) Food security
    (C) 100 days of wage employment in rural areas
    (D) Health services for the poor
    Answer: (C)
  2. The ‘Capital Market’ deals with –
    (A) Short-term funds
    (B) Long-term funds
    (C) Foreign exchange
    (D) Derivatives only
    Answer: (B)
  3. The slogan “Garibi Hatao” was given in which Five-Year Plan?
    (A) Fourth Plan
    (B) Fifth Plan
    (C) Sixth Plan
    (D) Seventh Plan
    Answer: (B)
  4. In economics, which of the following is not a factor of production?
    (A) Land
    (B) Labor
    (C) Capital
    (D) Bank
    Answer: (D)
  5. Which of the following is a renewable source of energy?
    (A) Coal
    (B) Natural Gas
    (C) Solar Energy
    (D) Petroleum
    Answer: (C)
  6. Which of the following is NOT an outcome of globalisation?
    (A) Increase in foreign direct investment
    (B) Spread of technology
    (C) Self-sufficiency in economy
    (D) Integration of markets
    Answer: (C)
  7. The ‘Pink Revolution’ in India is related to –
    (A) Onion production
    (B) Poultry and meat processing
    (C) Pharmaceutical production
    (D) Cotton farming
    Answer: (B)
  8. The ‘Primary deficit’ is –
    (A) Fiscal deficit – interest payments
    (B) Fiscal deficit + interest payments
    (C) Revenue deficit – capital receipts
    (D) Budget deficit – total expenditure
    Answer: (A)
  9. Which institution releases the “World Investment Report”?
    (A) IMF
    (B) UNCTAD
    (C) World Bank
    (D) WTO
    Answer: (B)
  10. India became a member of WTO in –
    (A) 1991
    (B) 1993
    (C) 1995
    (D) 1999
    Answer: (C)
  11. In India, the responsibility of economic planning lies with –
    (A) RBI
    (B) Finance Commission
    (C) NITI Aayog
    (D) Ministry of External Affairs
    Answer: (C)
  12. Which tax reform is considered as the biggest in post-liberalisation India?
    (A) Income Tax Reforms
    (B) Excise Reforms
    (C) GST
    (D) VAT
    Answer: (C)
  13. Which of the following is used to measure fiscal health of a nation?
    (A) GDP
    (B) NNP
    (C) Fiscal deficit
    (D) Trade surplus
    Answer: (C)
  14. The New Industrial Policy was introduced in –
    (A) 1990
    (B) 1991
    (C) 1992
    (D) 1995
    Answer: (B)
  15. ‘SWAYAM’ scheme launched by the Government of India is related to –
    (A) Financial inclusion
    (B) Online education
    (C) Agricultural credit
    (D) Startups
    Answer: (B)
  16. What does FRBM stand for?
    (A) Financial Responsibility and Budgetary Management
    (B) Fiscal Responsibility and Budget Management
    (C) Fiscal Reforms and Budget Monitoring
    (D) Finance Reserve and Budget Mechanism
    Answer: (B)
  17. What is the objective of the ‘UDAY’ scheme?
    (A) Renewable energy production
    (B) Discom debt restructuring
    (C) Agricultural reforms
    (D) Clean India mission
    Answer: (B)
  18. “Operation Twist” is associated with –
    (A) RBI monetary policy
    (B) Banking recapitalization
    (C) SEBI reforms
    (D) WTO tariff rules
    Answer: (A)
  19. Which of the following is included in Micro, Small and Medium Enterprises (MSME)?
    (A) Companies with high turnover
    (B) Firms with investment and turnover below a threshold
    (C) All listed companies
    (D) Government-owned industries
    Answer: (B)
  20. The ‘Golden Revolution’ in India is related to –
    (A) Fruits
    (B) Honey and horticulture
    (C) Wheat
    (D) Oilseeds
    Answer: (B)
  21. What is the primary aim of the Start-Up India Scheme?
    (A) Subsidy on agriculture
    (B) Promoting entrepreneurship
    (C) Tax exemption to corporates
    (D) Free higher education
    Answer: (B)
  22. The ‘Blue Revolution’ in India refers to –
    (A) Irrigation projects
    (B) Fishing and aquaculture
    (C) Textile production
    (D) Sky farming
    Answer: (B)
  23. Which organization regulates mutual funds in India?
    (A) IRDAI
    (B) RBI
    (C) SEBI
    (D) NABARD
    Answer: (C)
  24. The repo rate is –
    (A) Interest rate at which RBI lends to banks
    (B) Rate at which banks lend to RBI
    (C) Rate of inflation
    (D) Interbank lending rate
    Answer: (A)
  25. India’s current exchange rate regime is –
    (A) Fixed
    (B) Floating
    (C) Managed floating
    (D) Pegged
    Answer: (C)
  26. Which organization releases the Consumer Confidence Survey in India?
    (A) NITI Aayog
    (B) RBI
    (C) CSO
    (D) Ministry of Statistics
    Answer: (B)
  27. A situation where more money chases fewer goods is called –
    (A) Deflation
    (B) Inflation
    (C) Stagflation
    (D) Disinflation
    Answer: (B)
  28. The index that measures price movement from producer’s perspective is –
    (A) CPI
    (B) WPI
    (C) PPI
    (D) GNP deflator
    Answer: (C)
  29. The term ‘Hyperinflation’ is used when inflation is –
    (A) More than 3%
    (B) More than 10%
    (C) Exceeds 50% per month
    (D) Exceeds 5% per year
    Answer: (C)
  30. Which Indian state has the largest number of MSMEs?
    (A) Maharashtra
    (B) Tamil Nadu
    (C) Uttar Pradesh
    (D) Gujarat
    Answer: (C)
  31. Disinvestment in PSUs is done to –
    (A) Increase tax base
    (B) Reduce fiscal burden
    (C) Create employment
    (D) Promote agriculture
    Answer: (B)
  32. The Bretton Woods Conference led to the establishment of –
    (A) WTO and UNCTAD
    (B) IMF and World Bank
    (C) OECD and ADB
    (D) UNDP and FAO
    Answer: (B)
  33. Which of the following is considered a regressive tax?
    (A) Income tax
    (B) Corporate tax
    (C) GST
    (D) Wealth tax
    Answer: (C)
  34. The base year for India’s GDP series (as per latest revision) is –
    (A) 2004–05
    (B) 2011–12
    (C) 2012–13
    (D) 2015–16
    Answer: (B)
  35. The term “Lorenz Curve” represents –
    (A) Employment growth
    (B) Income distribution
    (C) Inflation trends
    (D) Capital expenditure
    Answer: (B)
  36. The key feature of a ‘command economy’ is –
    (A) Market decides everything
    (B) Prices are determined by supply and demand
    (C) Government controls means of production
    (D) Central bank is independent
    Answer: (C)
  37. The “Chakravarty Committee” is associated with –
    (A) Industrial Policy
    (B) Agricultural reforms
    (C) Monetary policy reforms
    (D) Education policy
    Answer: (C)
  38. Which of the following is a direct instrument of monetary policy?
    (A) Repo Rate
    (B) Moral Suasion
    (C) CRR
    (D) Open Market Operations
    Answer: (C)
  39. GDP at market prices includes –
    (A) Factor cost + indirect taxes – subsidies
    (B) Factor cost + subsidies – indirect taxes
    (C) Factor cost – indirect taxes + subsidies
    (D) Factor cost
    Answer: (A)
  40. ‘Equity’ in the capital market refers to –
    (A) Debentures
    (B) Preference shares
    (C) Ownership shares
    (D) Fixed deposits
    Answer: (C)
  41. What is the key objective of the PM-KISAN scheme?
    (A) Employment for rural youth
    (B) Housing for farmers
    (C) Direct income support to farmers
    (D) Free fertilizers
    Answer: (C)
  42. Which of the following agencies is responsible for publishing CPI inflation data?
    (A) RBI
    (B) SEBI
    (C) Ministry of Finance
    (D) National Statistical Office (NSO)
    Answer: (D)
  43. What is the upper limit for investment under micro enterprise as per MSME classification?
    (A) Rs. 25 lakh
    (B) Rs. 50 lakh
    (C) Rs. 1 crore
    (D) Rs. 5 crore
    Answer: (C)
  44. “Minimum Alternate Tax (MAT)” is levied on –
    (A) Farmers
    (B) Small retailers
    (C) Companies that show zero taxable income
    (D) Exporters
    Answer: (C)
  45. Which of the following is considered part of external debt?
    (A) Government borrowings from RBI
    (B) Commercial borrowings from foreign markets
    (C) Public Provident Fund
    (D) State government’s internal loans
    Answer: (B)
  46. Inflation that occurs due to excessive demand is known as –
    (A) Cost-push inflation
    (B) Demand-pull inflation
    (C) Creeping inflation
    (D) Galloping inflation
    Answer: (B)
  47. Which of the following is not a tax under GST?
    (A) CGST
    (B) SGST
    (C) IGST
    (D) CST
    Answer: (D)
  48. The term “Angel Investor” refers to –
    (A) Investor in large infrastructure
    (B) High net worth individual investing in startups
    (C) Government-owned investor
    (D) Cooperative banks
    Answer: (B)
  49. The term “SWIFT” in banking stands for –
    (A) Society for Worldwide Interbank Financial Telecommunication
    (B) Simple Wireless Interface for Funds Transfer
    (C) Secure Web International Funds Transfer
    (D) Software for Web Interbank Transfers
    Answer: (A)
  50. The agency responsible for setting poverty lines in India is –
    (A) RBI
    (B) NSSO
    (C) Planning Commission / NITI Aayog
    (D) Finance Commission
    Answer: (C)

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