Multiple Choice Questions for Economics with Answers Download PDF

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Economics MCQs with Answers PDF Free Download | INDIAN ECONOMY

1. The achieved growth rate of agriculture sector in Ninth Plan has been estimated……

a. 2.1%

b. 3.1%

c. 5.7%

d. 0.3%

Ans. a

2. Which of the first Export Processing zone declared as Free Trade Zone in India?

a. Santacruz

b. Kandla

c. Falta

d. Noida

Ans. a

3. ‘Janta Cloth Scheme’ was started to ensure employment to handloom weavers and supply of low priced cloths to weaker section of the society. The scheme was started in…..

a. 1976

b. 1991

c. 1992

d. 1980

Ans. a

4. Which institution is known as ‘Soft Loan Window’ of World Bank?

a. IFC

b. IDA

c. IMF

d. Indian Development Forum

Ans. b

5. ‘Backwash Effect’ was firstly introduced by ……

a. Gunnar Myrdal

b. Peter Suderland

c. Arthur Dunkel

d. Kindelberger

Ans. a

6. Meera Seth Committee was related to…..

a. Development of Handlooms

b. Sex-differentiation in employment

c. Abolition of Child Labour

d. Welfare of working women

Ans. a

7. During Marketing year 2002-03, the effective statutory support price for Niger Seed was announced to be…

a. Rs. 1090 per Qt.

b. Rs. 915 per Qt.

c. Rs. 1100 per Qt.

d. Rs. 1120 per Qt.

Ans. d

8. Finance Commission is appointed by the President under Article……

a. 256 of constitution

b. 280 of constitutions

c. 293 of constitution

d. 356 of constitution

Ans. b

9. ‘SAPTA’ is related to…..

a. Education

b. Trade

c. Security

d. Environment

Ans. b

10. National Income estimates in India is prepared by……

a. Planning Commission

b. RBI

c. Finance Ministry

d. C.S.O.

Ans. d

Multiple Choice Questions for Economics with Answers Download PDF

11. Maastrict Treaty is related to….

a. Enviroment Protection

b. Europe Unification

c. Limitation of Atomic Power

d. Unification of East and West Germany

Ans. b

12.  CSO has recently gave advance estimates for 2002-03. GDP at factor cost(on 1993-94 price) growth rate has been estimated at:

a. 6.8%

b. 6.5%

c. 5.6%

d. 4.4%

Ans. d

13. During 2002-03, per capita income has gone up by % over the previous year:

a. 4.6%

b. 4.2%

c. 3.2%

d. 2.4%

Ans. d

14. According to 2001 census urban-rural population ratio is about….

a. 35:65

b. 32:68

c. 28:72

d. 25:75

Ans. c

15. During 2001-02 the growth rate of NNP (at 1993-94 prices) was estimated to be….

 a. 6.7%

b. 6.2%

c. 5.5%

d. 5.2%

Ans. b

16. According to 2001 census the state having highest urban population is…

a. U.P.

b. Maharashtra

c. Tamil Nadu

d. Kerala

Ans. b

17. The growth rate of service sector during 2009-10 has been…..

a. 9.2%

b. 8.9%

c. 8.7%

d. 6.8%

Ans. c

18. Who is chairman of Island Development Authority?

a. President

b. Prime Minister

c. Home Minister

d. Planning Minister

Ans. b

19. Which year of the Ninth Plan (1997-2002) gave the  lowest GDP growth rate?

a. 1997-98

b. 1998-99

c. 2001-02

d. 2000-01

Ans. d

20. Recently CSO has changed the base year for national income estimates. The new base year is……

a. 1990-91

b. 1993-94

c. 1994-95

d. 1995-96

Ans. b

21. During 2002-03 which sector has been estimated to have highest growth rate?

a. Service sector

b. Manufacturing sector

c. Mining sector

d. None of these

Ans. A

22. The minimum Paid-up capital requirement at present for new Private Bank in India is……

a. Rs. 100 crore

b. Rs. 200 crore

c. Rs. 500 crore

d. None of these

Ans. b

23. In National Mineral Policy (1993) which mineral was allowed for having investment from private sector?

a. Coal

b. Iron

c. Gold

d. Platinum

Ans. a

24. The share of road transport in total transport of the country is……

a. 20%

b. 40%

c. 60%

d. 80%

Ans. d

25. Presently India is having one telephone on every……

a. 10 People

b. 30 People

c. 100 People

d. 1000 People

Ans. b

26. Mike Moor, the Director General of W.T.O. belongs to……

a. U.S.A.

b. New Zealand

c. Ireland

d. France

Ans. b

27. Which state possesses the maximum percentage of SC population?

a. U.P.

b. M.P.

c. Kerala

d. Punjab

Ans. d

28. Which country is not the member of IMF?

a. Russia

b. Uzbakistan

c. India

Ans. None of these

Ans. d

29. Which statement is correct for Indian Planning Commission?

a. It is not defined in Indian Constitution

b. Members and vice-chairman of it do not have fixed working duration

c. Members do not require any minimum education

d. All of these

Ans. d

30. Planning Commission has……

a. 12 members

b. 13 members

c. 11 members

d. Changeable by the Government

Ans. d

31. The share of concessional loan in India’s Foreign debt (at the end of September 2002) was…..

a. 45.5%

b. 36.5%

c. 30.3%

d. 35.3%

Ans. b

32. The percentage of short term debt to total debt (at the end of September 2002) was….

a. 5.0%

b. 4.5%

c. 3%

d. 2.5%

Ans. c

33. The base year of the present wholesale Price Index (WPI) is…..

a. 2004-05

b. 1971-72

c. 1980-81

d. 1981-82

Ans. a

34. The base year of present Consumer Price Index (CPI) for industrial laborers is……

a. 1980

b. 1981

c. 1982

d. 1985

Ans. c

35. Note issuing deptt. of RBI should always posses the minimum gold stock of worth….

a. Rs. 85 crores

b. Rs. 115 crores

c. Rs. 200 crores

d. None of these

Ans. b

36. Ad hock Treasury Bill system of meeting budget deficit in India was abolished on….

a. 31 March, 1997

b. 31 March, 1996

c. 1 April, 1992

d. 1 April, 1995

Ans. a

37. SEBI was established in…..

a. 1993

b. 1992

c. 1988

d. 1990

Ans. c

38. Asian Development Bank has opened its Residential Office in….

a. New Delhi

b. Kolkata

c. Mumbai

d. Bangalore

Ans. c

39. Which foreign bank has got the maximum number of branches in India?

a. ANZ Griendleys Bank

b. Standard Charter Bank

c. Hong Kong Banking Corporation

d. City Bank

Ans. a

40. Which statement of the following is true for IMF?

a. It is not an agency of UNO

b. It can grant loan to any country of the world

c. It can grant laon to state Govt. of a country

d. It grants loan only to member nations

Ans. d

41. Chairman of Tax Reform Committee was….

a. Pranab Mukherjee

b. K.P. Narsimham

c. S. Janakiraman

d. Raja Chelliah

Ans. d

42. Which of the following is public sector organization?

1. FCI – Food Corporation of India

2. FCI – Fertilizer Corporation of India

3. Cotton Corporation of India

4. Jute Corporation of India

a. only 1 and 2

b. only 2 and 3

c. only 3

d. All of these

Ans. d

43. Find the odd man out.





Ans. d

44. In budget proposals of 2002-2003 allocation for RIDF-VIII was made……

a. Rs. 5500 crore

b. Rs. 4500 crore

c. Rs. 5000 crore

d. Rs. 6000 crore

Ans. a

45. Rural women can avail the benefit of Mahila Samriddhi Yojana if they open their account in….

a. Rural Post Offices

b. Commercial Banks

c. Rural Development Banks

d. Any of the above

Ans. a

46. The targeted Incremental capital output ratio for ninth plan was…..

a. 6.0

b. 5.5

c. 5.0

d. 4.3

Ans. d

47. In 2003-04 budget proposals primary deficit is shown at the level of………..

a. 5.6% of GDP

b. 4.6% of GDP

c. 3.2% of GDP

d. 1.1% of GDP


48. The Head Quarter of CAPART is situated at…….

a. Mumbai

b. Kolkata

c. New Delhi

d. Bangalore

Ans. c

49. In budget 2003-04 proposal the service tax has been raised from 5% to…….

a. 6%

b. 7%

c. 8%

d. 10%

Ans. c

50. The cause of deflation is……..

a. Lack of goods and services as compared to money supply

b. Lack of imports as compared to exports

c. Lack of money supply as compared to supply of goods and services

d. None of these

An. C

51. Which bank in India performs duties of Central Bank?

a. Central Bank of India

b. State Bank of India

c. Reserve Bank of India

d. Both a and b

Ans. c

52. ‘India Brand Equity Fund’ was established in…..

a. 1996

b. 1997

c. 1995

d. 1992

Ans. a

53. Mixed Economy means…….

a. Co-existence of small and large industries

b. Promoting both Agriculture and Industries in the economy

c. Co-existence of public and private sectors

d. Co-existence of rich and poor

Ans. c

54. Indian state having the lowest Infant Mortality Rate is…..

a. Maharashtra

b. Goa

c. Gujarat

d. Kerala

Ans. d

55. According to buffer stocks standards, the stock of wheat and rice at the end of January should be……

a. 30 Million Tonnes of each

b. 15.4 Million Tonnes of each

c. 8.4 Million Tonnes of each

d. 30 Million Tonnes of each

Ans. c

56. The main objective of TRYSEM was….

a. To train rural youth for self employment

b. To train urban youth for self employment

c. Both of the above

d. None of these

Ans. a

57. Inside Trading is related to…..

a. Share Market

b. Horse racing

c. Taxation

d. Public Expenditure

Ans. a

58. The largest source of National Income in India is……..

a. Service Sector

b. Agriculture

c. Industrial Sector

d. Public Expenditure

Ans. a

59. ‘Public Sector’ means…..

a. Government ownership on commerce and trade

b. Capitalist ownership on commerce and trade

c. Private ownership

d. None of these

Ans. a

60. Indian Green Revolution is the most successful in…….

a. Wheat and Potato

b. Jwar and Oil Seeds

c. Wheat and Rice

d. Tea and Coffee

Ans. c

61. The period of tenth Plan in India is…..

a. 2000-2005

b. 2001-2006

c. 2002-2007

d. 2003-2008

Ans. c

62. Economic Planning is in…..

a. Union List

b. State List

c. Concurrent List

d. Not any specifies list

Ans. c

63. The average total expenditure of the central govt. envisaged in the 10th Plan is….

a. 20.6%

b. 15.6%

c. 13.2%

d. 11.3%

Ans. b

64. The industry having the largest investment in Indian Economy is…….

a. Tea

b. Cement

c. Steel

d. Jute

Ans. c

65. Which country had first Industrial Revolution?

a. France

b. Germany

c. England

d. America

Ans. c

66. Which of the following is a direct tax?

a. Sales Tax

b. Excise Duty

c. Custom Duty

d. None of these

Ans. d

67. Who is the Managing Director of IMF?

a. Lewis Preston

b. Michel Cambessus

c. Arthur Dunkel

d. Barbara Connebel

Ans. b

68. In 2003 first budget proposals maximum revenue collection is proposed from…..

a. Internal debt

b. External debt

c. Excise duty

d. Custom duty

Ans. a

69. The disadvantage target for 2003-04 in budget proposal is…..

a. Rs. 55000 crore

b. Rs. 32000 crore

c. Rs. 16500 crore

d. Rs. 13200 crore

Ans. d

70. To which community/organization maximum goods are exported from India?

a. EEC

b. Commonwealth nation



Ans. a

71. According to 2001 census, per 1000 male, female number is…….

a. 939

b. 959

c. 933

d. 927

Ans. c

72. The Nobel Prize for Economics in 2001 was given to……

a. Robert E. Lucas Junior

b. George A. Akerlof, Michael Spence & Joseph E. Stiglitz

c. James Huckman and Deniel Macfadan

d. None of the above

Ans. b

73. Name a Poverty Eradication Programme in which Banks played the dominant role.


b. MNP

c. Rojgar Bima Yojna

d. Jawahar Rojgar Yojna

Ans. a

74. What is ‘Hawala’?

a. Full details of a subject

b. Illegal transactions of foreign exchange

c. Illegal trading of shares

d. Tax evasion

Ans. b

75. Which plan was suspended one year before the time schedule?

a. First Plan(1951-56)

b. Third Plan(1966-71)

c. Sixth Plan(1980-85)

d. Fifth Plan(1974-79)

Ans. d

76. Which pair is not correct?

a. I Plan (1956-56)

b. III Plan (1966-71)

c. VI Plan (1980-85)

d. X Plan (2002-2007)

Ans. b

77. Which steps improve Adverse Balance of Payment?

a. Over- valuation

b. Devaluation

c. Demonetization

d. None of these

Ans. b

78. According to 2001 census, Indian population was…..

a. 98.7 crore

b. 100 crore

c. 102.7 crore

d. 105.7 crore

Ans. c

79. Which Union Territory ensured Lowest Population in 2001 census?

a. Delhi

b. Chandigarh

c. Pondicherry

d. Lakshadweep

Ans. d

80. The Headquarter of Asian Development Bank(ADB) is at…

a. Singapore

b. Manila

c. Hong Kong

d. Tokyo

Ans. b

81. The Chairman of tenth Finance Commission was……..

a. Pranab Mukherjee

b. K.C. Pant

c. Mohan Dharia

d. Man Mohan Singh

Ans. b

82. The largest expenditure head in 2003-04 budget is…..

a. Security

b. Social Services

c. Science and Technology

d. Interest Payment

Ans. d

83. Which Indian plan ensured high growth rate as compared with targeted growth rate?

a. Fifth Plan

b. Fourth Plan

c. Second Plan

d. Eighth Plan

Ans. d

 84. MRTP Act was implemented since…..

a. 1970

b. 1968

c. 1969

d. 1967

Ans. a

85. Which committee was constituted for reforms in ta-structure?

a. Narsimham Committee

b. Chelliah Committee

c. Gadgil Committee

d. Kelkar Committee

Ans. b

86. Narsimham committee was related to….

a. High Education Reforms

b. Tax Structure Reforms

c. Banking Structure Reforms

d. Planning Implementation Reforms

Ans. c

87. KVIC ( Khadi and Village Industry Committee ) was established in……

a. Third Plan

b. Fourth Plan

c. Second Plan

d. First Plan

Ans. c

88. Which year is declared as Customer’s Satisfaction Year by Railways?

a. 2001-02

b. 2002-03

c. 2003-04

d. 2004-05

Ans. c

89. The main security guard of International trade is…..

a. IMF

b. World Bank

c. WTO

d. IFC

Ans. c

90. What percentage of Maharashtra’s population live in slums of Greater Mumbai?

a. 2%

b. 4%

c. 6%

d. 9%

Ans. c

91. The minimum purchase price of wheat (per Qt.) for marketing year 2002-03 was declared to be……

a. Rs. 580

b. Rs. 610

c. Rs. 620

d. Rs. 630

Ans. d

92. Due to which reason India had to export Gold to Bank of England U.K. in 1991…….

a. India returned U.K. gold

b. India returned gold taken as loan from U.K.

c. To meet foreign exchange crisis

d. For investment in British Companies

Ans. c

93. According to 2001 census, which state has the maximum slum population?

 a. Uttar Pradesh

b. Maharashtra

c. Delhi

d. Orissa

Ans. b

94. ‘Closed Economy’ is that economy in which……

a. Only export takes place

b. Money supply is fully controlled

c. Deficit financing takes pplace

d. Neither export nor import takes place

Ans. d

95. In which budget proposals tax scheme of Rs. 1400 p.a. for small retailers was dropped?

a. 1994-95

b. 1995-96

c. 1996-97

d. 1997-98

Ans. d

96. National Rural Development Institute is situated at….

a. Shimla

b. Hyderabad

c. Patna

d. New Delhi

Ans. b

97. Which of the following have/has not been included in wealth of a nation?

a. Mines

b. Dams

c. Money Supply

d. Animals

Ans. c

98. The Headquarter of World Bank is situated at……

a. Manila

b. Washington D.C.

c. New York

d. Geneva

Ans. b

99. Which state has a lower literacy rate than country’s literacy rate according to 2001 census?

a. Maharashtra

b. Gujarat

c. Orissa

d. West Bengal

Ans. c

100. The actual growth rate of GDP for 2002-03 is…..

a. 6.6%

b. 6.0%

c. 5.4%

d. 4.4%

Ans. d

101. Which pair is not correct?

a. EXIM Bank……Financing for export import

b. RBI……….. Banker’s bank

c. IDBI……….Industrial finance

d. FCI…….. Financial assistance to commercial institutions

Ans. d

102. Which country returned 280 kg gold ornamental to India. (These ornaments were taken away by our ex-rulers)……….

 a. England

b. France

c. Portugal

d. Spain

Ans. c

103. The per capita income according to the latest CSO estimates during 2002-03 ( on current prices) …….

a. 11554 rupees

b. 16486 rupees

c. 17978 rupees

d. 18765 rupees

Ans. d

104. Which of the following controls the working of share market in India?

a. MRTP Act




Ans. d

105. Which public sector enterprises has become the largest from annual sales point of view?




d. Coal India Ltd.

Ans. c

106. Indian Planning Commission was constituted in……

a. 1948

b. 1949

c. 1950

d. 1951

Ans. c

107. VDIS-1997 became operative between…..

a. 1.4.97 to 31.12.97

b. 1.4.97 to 31.3.98

c. 1.7.97 to 31.3.98

d. 1.7.97 to 31.12.97

Ans. d

108. Gresham’s law is related to………..

a. Consumption and Demand

b. Supply and Demand

c. Circulation of Money

d. Deficit Financing

Ans. c

109. The estimated number of working children in the country as per the 55th round of the NSSO Survey (1999-2000) is…….

a. 8.6 million

b. 9.2 million

c. 9.9 million

d. 10.4 million

Ans. d

110. During 2002-2003, Indian trade deficit was about…….

a. 6.650 billion dollar

b. 7.580 billion dollar

c. 9.171 billion dollar

d. 3.500 billion dollar

Ans. b

111. The process of budget making after re-evaluating every item of expenditure in every financial year is known as…..

a. Performance Budgeting

b. Deficit Budgeting

c. Zero Based Budgeting

d. Fresh Budgeting

Ans. c

112. Which of the following is not the member of EEC?

a. Poland

b. Germany

c. Italy

d. U.K.

Ans. a

113. Which place India holds in milk production?

a. Fourth

b. Third

c. Second

d. First

Ans. d

114. In which production India has attained self-sufficiency?

a. Fertilizers

b. Foodgrains

c. Edible Oil

d. Petroleum

Ans. b

115. What is ‘Super 301’?

a. A name of modern computer

b. A new variety of Rice

c. American treatment name for AIDS

d. American trade law

Ans. d

116. If the capital stock is always stable, its deprecration will be……

a. High

b. Low

c. Zero

d. Infinite

Ans. c

117. Population density means….

a. No. of persons living per sq. km

b. No. of persons living per kilometer

c. Ratio of population living below poverty line to total population

d. No. of persons in a village

Ans. a

118. Which tax is collected by Panchayat?

a. Sales tax

b. Custom duty

c. Land Revenue

d. Tax on local fairs

Ans. d

119. Which sector got high rate of growth in its co-operative units?

a. Sugar

b. Cotton Textiles

c. Jute

d. Cement

Ans. a

120. The growth rate of GNP (at factor cost) during 2002-03 based on 1993-94 prices has been……..

a. 7.8%

b. 6.4%

c. 5.4%

d. 4.2%

Ans. d

121. The value of exported goods during 2001-02 was estimated to be…..

a. 203571 crore rupees

b. 209018 crore rupees

c. 113018 crore rupees

d. 123103 crore rupees

Ans. b

122. The Headquarter of IMF is in….

a. New York

b. Washington D.C.

c. London

d. Manila

Ans. b

123. SDR is the currency of IMF which is in the form of ……

a. Paper currency

b. Gold

c. Silver and gold both

d. Book-keeping entry only

Ans. d

124. Indravati Hydro electric Project is the multipurpose project of……

a. Maharashtra

b. Gujarat

c. Orissa

d. Tamil Nadu

Ans. c

125. The nationlisation of the major commercial banks took place in…….

a. 1947

b. 1956

c. 1969

d. 1980

Ans. c

126. What is a ‘limited company’?

a. In which share holders possess the ownership limited to their paid up capital

b. In which shares are issued

c. A company of Government ownership

d. A Registered company

Ans. a

127. The Headquarter of RBI is in……..

a. Delhi

b. Kanpur

c. Mumbai

d. Nasik

Ans. c

128. Who gains in inflation?

a. Saver

b. Creditor

c. Dedtor

d. Pension holder

Ans. c

129. Small scale sector’s contribution in total Indian exports is………

a. 1/3

b. ¼

c. 50%

d. 2/3

Ans. a

130. Group life Insurance Scheme gives life insurance of Rs. 5000 to rural people. The maximum premium to be paid by policy holder is………

a. Nothing

b. Rs. 350 p.a.

c. Rs. 170 p.a.

d. Rs. 70 p.a.

Ans. d

131. The government is planning to establish ‘Price Stabilisation Fund’ to check the price fluctuation of a few crops. These cropes are…….

1. Tea

2. Tobacco

3. Coffee

4. Rubber

Mention the right answer from the following groups.

  1. Only 1 and 3
  2. Only 1,2 and 3
  3. Only 1,3 and 4
  4. All 1,2,3 and 4

Ans. d

132. Chelliah committee recommended to tax the agriculture income of non-farmers having income above…..

a. Rs. 15000

b. Rs. 20000

c. Rs. 25000

d. Rs. 50000

Ans. c

133. SAPTA has come into force since 8 December,1995. How many goods have been brought under concessional import duty?

a. 26

b. 56

c. 76

d. 106

Ans. d

134. The amount of foreign currency earned from tourism in the year 2001-02 is approximately…….

a. $ 3.968 billion

b. $ 3.168 billion

c. $ 2.910 billion

d. $ 10.00 billion

Ans. b

135. Eleventh Finance Commission under Chairmanship of Prof. Khusro has Submitted its final supplementary report on……

a. July 1, 2000

b. July 7, 2000

c. July 17, 2000

d. July 27, 2000


136. National Stock Exchange has introduced a new share index in place of NSE-100 in April 1996. It is known as…..

a. NSE-200

b. NSE-50

c. NSE-20

d. NSE-15

Ans. b

137. ‘Open market operation’ is a part of……

a. Income Policy

b. Fiscal Policy

c. Credit Policy

d. Labour Policy

Ans. c

138. How many foreign banks were working in India at the end of March 2002?

a. 10

b. 20

c. 30

d. 40

Ans. d

139. Which constitutes the maximum share in power generation?

a. Thermal Power

b. Hydro Power

c. Atomic Power

d. All the above have equal share

Ans. a

140. For 2001-02, gross domestic capital formation (as % of GDP) has been estimated to be……

a. 24.3%

b. 25.3%

c. 24.0%

d. 23.7%

Ans. d

141. National Development Council was constituted in…..

a. 1945

b. 1948

c. 1952

d. 1965

Ans. c

142. Which is a credit rating agency in India?




d. All of these

Ans. d

143. CRISIL…….

a. Evaluates the credit documents of a company

b. Provides financial assistance to industries

c. Provides finances for rural areas

d. Promotes exports

Ans. a

144. Which year among the following ensured record production of foodgrains?

a. 1999-2000

b. 2000-2001

c. 2001-2002

d. 2002-2003

Ans. c

145. Which among the following states is a leading industrialized state?

a. West Bengal

b. Orissa

c. Maharashtra

d. Madhya Pradesh

Ans. c

146. GIC includes various insurance companies. This number is….

a. 2

b. 3

c. 4

d. 5

Ans. c

147. How many RRBs are working in the economy?

a. 125

b. 196

c. 216

d. 324

Ans. b

148. In end of June 2000, the total number of branches of RRB working in the country was……

a. 14056

b. 12475

c. 14405

d. 14459

Ans. d

149. Which states have not yet established any RRB?

a. Sikkim and Goa

b. Bihar and Rajasthan

c. Sikkim and Arunachal Pradesh

d. Nagaland

Ans. a

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