The economy of India is the fifth-largest in the world by nominal GDP and the third-largest by purchasing power parity. It is a mixed economy with a large public sector and a growing private sector.

Here you are given Multiple Choice Questions (MCQs) on the Economy of Indiathe topic of General Knowledge. First of all, you have to read all the GK questions related to Economy of India and click on one correct answer for each question. If your answer is correct, you will be displayed with a ✅ sign, but if your answer is wrong, a ❌ sign will be displayed, so that you can identify the correct answer you have given.

Q. Mixed economy' means-

 ◉ Coexistence of both private and public sectors

✅ Correct

 ◉ Foreign cooperation in economic development

❌ Incorrect

 ◉ Co -existence of large and cottage industry

❌ Incorrect

 ◉ Foreign cooperation in social development

❌ Incorrect

Q. By whom is the price determined in a capitalist economy?

 ◉ import and export

❌ Incorrect

 ◉ demand and supply

✅ Correct

 ◉ demand only

❌ Incorrect

 ◉ fulfillment only

❌ Incorrect

Q. In which type of economy national income and domestic income are equal?

 ◉ closed economy

✅ Correct

 ◉ high income

❌ Incorrect

 ◉ running economy

❌ Incorrect

 ◉ moderate income

❌ Incorrect

Q. Indian economy is an example of mixed economy because

 ◉ Private sector public sector co-existence with enterprises

✅ Correct

 ◉ The urban area has co-existence with a vast rural area

❌ Incorrect

 ◉ Monopoly elements have co-existence with competition elements

❌ Incorrect

 ◉ Traditional subsistence economy has co-existence with the modern economy

❌ Incorrect

Q. What rate of growth did Indian economy achieve during 2011-12 ?

 ◉ 4.8% 

❌ Incorrect

 ◉ 6.9% 

✅ Correct

 ◉ 9.6% 

❌ Incorrect

 ◉ 7.3% 

❌ Incorrect

Q. In what words can India's economy be best described?

 ◉ mixed economy

✅ Correct

 ◉ Communist economy

❌ Incorrect

 ◉ capitalist economy

❌ Incorrect

 ◉ None of them

❌ Incorrect

Q. The belief that economic growth will spread to all sectors of the economy is known by what name?

 ◉ Theory of demographic transition)

❌ Incorrect

 ◉ Immersion principle

❌ Incorrect

 ◉ trickle down

✅ Correct

 ◉ Decentralized growth theory

❌ Incorrect

Q. Which sector of the Indian economy has the highest productivity?

 ◉ agriculture

✅ Correct

 ◉ sightseeing

❌ Incorrect

 ◉ transportation

❌ Incorrect

 ◉ Industry

❌ Incorrect

Q. On what principle was the Gandhian economy based?

 ◉ Rural cooperativeness

❌ Incorrect

 ◉ trusteeship

✅ Correct

 ◉ Competition

❌ Incorrect

 ◉ State control

❌ Incorrect

Q. What is meant by the concept of mixed economy?

 ◉ co-existence of private and public sectors

✅ Correct

 ◉ Globalization

❌ Incorrect

 ◉ Co -existence of large and cottage industry

❌ Incorrect

 ◉ Foreign cooperation in economic development

❌ Incorrect

Q. The measure of wealth of final goods and services produced in the economy is-

 ◉ Deflation

❌ Incorrect

 ◉ Inflation

❌ Incorrect

 ◉ gross national product

✅ Correct

 ◉ Opportunity cost

❌ Incorrect

Q. What is the reason for the rise of parallel economy?

 ◉ Caused by tax

❌ Incorrect

 ◉ Due to tax speech

❌ Incorrect

 ◉ tax compliance reasons

✅ Correct

 ◉ Caused by taxes

❌ Incorrect

Q. What is meant by freeing the economy from all unnecessary controls and regulations?

 ◉ liberalization

✅ Correct

 ◉ Demarcation

❌ Incorrect

 ◉ Economy's uproar

❌ Incorrect

 ◉ None of them

❌ Incorrect

Q. What reforms have to be done in the economy to achieve a higher rate of growth in national output?

 ◉ raising the rate of investment and lowering the capital-output ratio

✅ Correct

 ◉ Lowering the rate of investment

❌ Incorrect

 ◉ Implement the policy of protectionism

❌ Incorrect

 ◉ Investment rate reduction and more capital-production ratio

❌ Incorrect

Q. What is an economy called when intended investment is equal to intended saving?

 ◉ balanced economy

✅ Correct

 ◉ Negative economy

❌ Incorrect

 ◉ Positive economy

❌ Incorrect

 ◉ None of them

❌ Incorrect


Visit link below to learn more about the topic:

History of Indian Economy, Features, Important Facts 🔗

  Last update :  Mon 5 Jun 2023
  Post Views :  2105
  Post Category :  Economics Quizzes