Indian Economy MCQ For UPSC: All Required Details About Economy

An elementary grasp of economic concepts applies to solve the questions as per the demand of Union Public Service Commission.

Most of the questions in Economy are centred on theoretical estimation or the fresh management systems in the economic sector. On the regular note, 10 to 15 questions are posted on the certain subject.

1. Which of the following schemes has been subsumed in the recently approved Ayushman Bharat – National Health Protection Mission (AB-NHPM)?

[A] Rashtriya Swasthya Bima Yojana (RSBY)
[B] Senior Citizen Health Insurance Scheme (SCHIS)
[C] National Life Insurance Scheme
[D] 1 & 2

Correct Answer: D [ 1 & 2 ]

Explanation:
Ayushman Bharat -National Health Protection Mission (AB-NHPM) is a centrally sponsored scheme under Ayushman Bharat Mission. The scheme will provide insurance cover of Rs. 5 Lakh per family per year. The scheme will benefit more than ten crore families belonging to the poor and vulnerable population. AB-NHPM will subsume the on-going centrally sponsored schemes –Rashtriya Swasthya Bima Yojana (RSBY) and the Senior Citizen Health Insurance Scheme (SCHIS).

  1. Which of the following Price Indices of India is considered for measuring ‘Headline Inflation’?

[A] GDP Deflator
[B] CPI-AL/RL
[C] CPI-IW
[D] WPI

Correct Answer: D [WPI]

  1. Consider the following Statements:

Indicative Planning is a feature of ‘Mixed Economy’.

Perspective Planning is used by socialist countries where every aspect of planning is controlled by the State.

Which of the above Statement(s) is/are correct?

[A] Only 1
[B] Only 2
[C] Both 1 and 2
[D] Neither 1 nor 2

Correct Answer: A [Only 1]

Explanation:

Indicative planning, which generally puts forward some broad principles and guidelines to achieve some specific goals. Indicative planning is flexible. It is peculiar to the mixed economy, and both the public and private sector co-exist.

Comprehensive or imperative planning is used by socialist countries, and every aspect of planning is controlled by the State. Perspective planning refers to long-term planning for a period of 15, 20, 25 yrs, however objective of perspective planning can be achieved by breaking the period in 5‐7 yr plans.

  1. Arrange the following in the descending order of the largest agricultural imports of India:

1.Pulses
2.Wood and Wood Products
3.Edible Vegetable Oils

[A] 1-2-3
[B] 1-3-2
[C] 2-1-3
[D] 3-2-1

Correct Answer: D [3-2-1]

  1. Which of the following agricultural commodity of India gives largest regarding export value?

[A] Tea
[B] Basmati Rice
[C] spices
[D] cotton

Correct Answer: B [Basmati Rice]

  1. Public Distribution System(PDS) is operated under the responsibility of the:

1.Central Government
2.State Governments

[A] Only 1
[B] Only 2
[C] Both 1 and 2
[D] Neither one nor 2

Correct Answer: C [Both 1 and 2]

Explanation:

PDS is operated under the joint responsibility of the Central and the State Governments. The Central government through FCI has the following responsibilities:
1. Procurement, storage, transportation of food grains
2.Bulk allocation of food grains to the State Governments.

The State Government’s responsibility is operational. They are as follows: Identification of families below the poverty line, Issue of Ration Cards, Supervision of the functioning of Fair Price Shops.

  1. The central nodal agency for implementing the price support operations for commercial crops is:

[A] NAFED
[B] NABARD
[C] TRIFED
[D] FCI

Correct Answer: A [NAFED]

  1. Which of the following are the provisions of SARFAESI Act which enables banks to reduce their non-performing assets (NPAs)

Enforcement of Security Interest by the secured creditor (Banks/ Financial Institutions).

Transfer of non- performing assets to asset reconstruction company, which will then dispose of those assets and realize the proceeds.

To provide a legal framework for securitization of assets.

Assisting banks in making the credibility track record of customers under Credit Information Bureau of India (CIBIL).

[A] 1 and 2
[B] 1, 2 and 3
[C] 2, 3 and 4
[D] 1, 2 ,3 and 4

Correct Answer: B [1, 2 and 3]

  1.  Indian Currency Printing Institutions are located in which of the following places?
    (1) Nasik
    (2) Hoshangabad
    (3) Hyderabad
    (4) Aurangabad
    (5) Devas

Select the correct option:

[A] 1 ,2 and 4
[B] 1, 2, 3 and 4
[C] 1, 2, 3 and 5
[D] All of the above

Correct Answer: C [1, 2, 3 and 5]

Explanation:
There are currently four printing presses in India where currency notes are printed – Dewas, Salboni, Nasik, Mysore. Further, there are four mints where coins are minted at Kolkata, Hyderabad, Mumbai, Noida. Security Paper Mill was established in 1968 at Hoshangabad, Madhya Pradesh to make papers for bank notes.

  1. Which of the following statements regarding the ‘Viability Gap Funding Scheme (VGF)’ is not true?

[A] Under VGF, the central government meets up to 20% of capital cost of a project being implemented in public,-private partnership (PPP) mode
[B] The scheme is administered by the ministry of finance.
[C] Sectors eligible for VGF are Infrastructure, health, and education.
[D] VGF is a force multiplier, enabling the government to leverage its resources more effectively.

Correct Answer: C [Sectors eligible for VGF are Infrastructure, health, and education.]

Explanation:

There are many projects with high economic returns, but the financial returns may not be adequate for a profit-seeking investor. For instance, a rural road connecting several villages to the nearby town. This would yield huge economic benefits by integrating these villages with the market economy, but because of low incomes, it may not be possible to charge the user fee. In such a situation, the project is unlikely to get private investment. In such cases, the government can pitch in and meet a portion of the cost, making the project viable. This method is known as viability gap funding. The scheme is administered by the ministry of finance. Sectors eligible for VGF is the only Infrastructure at present.