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Indian Economy GK Questions with Answers – Page 14

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Indian Economy multiple choice questions with answers and explanations, 20 per page, for SSC, Banking, UPSC, Railway and state exams.

1127 questions

Indian Economy NotesOnly previous-year questions (580)GK Quiz
Q262.Indian EconomyEasy

Which Act governs consumer protection in India at present?

  1. A.The Consumer Protection Act, 1986
  2. B.The Consumer Protection Act, 2019
  3. C.The Monopolies and Restrictive Trade Practices Act, 1969
  4. D.The Essential Commodities Act, 1955
Show answer
Correct answer: B. The Consumer Protection Act, 2019

The new Act widened the definition of a consumer to cover online, teleshopping and multi-level marketing purchases, created the Central Consumer Protection Authority, introduced product liability and rules for electronic commerce, allowed mediation and e-filing, and renamed the three redressal bodies as Commissions.

Q263.Indian EconomyAsked in: Delhi · 15 Nov, 2023, Shift 3Medium

Which of the following is NOT an element of the Competition Act 2002?

  1. A.Prohibition of anti-competitive agreements
  2. B.Regulation of combination
  3. C.Abuse of dominant position
  4. D.Prohibition of trade
Show answer
Correct answer: D. Prohibition of trade

The Competition Act, 2002 rests on three pillars, and freedom of trade is the very thing it protects, so no provision of it prohibits trade; on the contrary, the Act opens by stating that it seeks to ensure freedom of trade carried on by other participants in markets in India.

Q264.Indian EconomyAsked in: SSC MTS · 12 Oct 2021, Shift 3Medium

As per the Consumer Protection Act, 1986 a complaint can be filed in the District Consumer Disputes Redressal Forum if the value of the claim is up to:

  1. A.Rs. 5 lakh
  2. B.Rs. 15 lakh
  3. C.Rs. 20 lakh
  4. D.Rs. 10 lakh
Show answer
Correct answer: C. Rs. 20 lakh

The Consumer Protection Act, 1986 created a three-tier machinery and fixed a money limit for each tier: the district forum could hear a complaint where the value of the goods or services and the compensation claimed did not exceed twenty lakh rupees, the state commission took claims above that limit…

Q267.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2018, GS Paper IMedium

Consider the following statements : Human capital formation as a concept is better explained in terms of a process which enables

1. individuals of a country to accumulate more capital.

2. increasing the knowledge, skill levels and capacities of the people of the country.

3. accumulation of tangible wealth.

4. accumulation of intangible wealth.

Which of the statements given above is/are correct ?

  1. A.1 and 2
  2. B.2 only
  3. C.2 and 4
  4. D.1, 3 and 4
Show answer
Correct answer: C. 2 and 4

Human capital formation means raising people's knowledge, skills and abilities, which is a form of intangible wealth. Human capital is the stock of education, skill, health and experience that makes people productive.

Q268.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2020, GS Paper IMedium

Consider the following statements :

1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.

2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.

Which of the statements given above is/are correct?

  1. A.1 only
  2. B.2 only
  3. C.Both 1 and 2
  4. D.Neither 1 nor 2
Show answer
Correct answer: D. Neither 1 nor 2

Procurement at MSP is limited, and MSP is a floor price that market prices often exceed. The Government announces MSPs for 22 mandated crops on the recommendation of the Commission for Agricultural Costs and Prices (CACP).

Q269.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2018, GS Paper IMedium

Increase in absolute and per capita real GNP do not connote a higher level of economic development, if

  1. A.industrial output fails to keep pace with agricultural output.
  2. B.agricultural output fails to keep pace with industrial output.
  3. C.poverty and unemployment increase.
  4. D.imports grow faster than exports.
Show answer
Correct answer: C. poverty and unemployment increase.

Economic development means better lives for people, so rising income alone is not development if poverty and joblessness are growing.

Q270.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2019, GS Paper IMedium

Consider the following statements :

1. Coal sector was nationalized by the Government of India under Indira Gandhi.

2. Now, coal blocks are allocated on lottery basis.

3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production.

Which of the statements given above is/are correct?

  1. A.1 only
  2. B.2 and 3 only
  3. C.3 only
  4. D.1, 2 and 3
Show answer
Correct answer: A. 1 only

The coal industry was nationalised under Indira Gandhi, but coal blocks are not given by lottery and India still imports coal.

Q271.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2025, GS Paper IMedium

Consider the following statements in respect of the International Bank for Reconstruction and Development (IBRD) :

I. It provides loans and guarantees to middle income countries.

II. It works single-handedly to help developing countries to reduce poverty.

III. It was established to help Europe rebuild after the World War II.

Which of the statements given above are correct?

  1. A.I and II only
  2. B.II and III only
  3. C.I and III only
  4. D.I, II and III
Show answer
Correct answer: C. I and III only

Statement II is wrong because the IBRD works alongside other World Bank Group institutions and partners, not single-handedly. The IBRD was set up at the Bretton Woods Conference in 1944, together with the IMF.

Q272.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2018, GS Paper IMedium

If a commodity is provided free to the public by the Government, then

  1. A.the opportunity cost is zero.
  2. B.the opportunity cost is ignored.
  3. C.the opportunity cost is transferred from the consumers of the product to the tax-paying public.
  4. D.the opportunity cost is transferred from the consumers of the product to the Government.
Show answer
Correct answer: C. the opportunity cost is transferred from the consumers of the product to the tax-paying public.

A free good still uses up resources, and taxpayers pay for them. Opportunity cost is the value of the next best alternative given up when resources are used for something.

Q273.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2020, GS Paper IMedium

Consider the following statements :

1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).

2. The WPI does not capture changes in the prices of services, which CPI does.

3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

Which of the statements given above is/are correct?

  1. A.1 and 2 only
  2. B.2 only
  3. C.3 only
  4. D.1, 2 and 3
Show answer
Correct answer: A. 1 and 2 only

Statement 3 is wrong because the RBI uses CPI, not WPI, as its main measure of inflation. Food has a much larger weight in the CPI, close to half of the basket, than in the WPI, where food articles and manufactured food together form roughly a quarter.

Q274.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2025, GS Paper IHard

Which of the following statements with regard to recommendations of the 15th Finance Commission of India are correct?

I. It has recommended grants of ₹ 4,800 crores from the year 2022-23 to the year 2025-26 for incentivizing States to enhance educational outcomes.

II. 45% of the net proceeds of Union taxes are to be shared with States.

III. ₹ 45,000 crores are to be kept as performance-based incentive for all States for carrying out agricultural reforms.

IV. It reintroduced tax effort criteria to reward fiscal performance.

Select the correct answer using the code given below.

  1. A.I, II and III
  2. B.I, II and IV
  3. C.I, III and IV
  4. D.II, III and IV
Show answer
Correct answer: C. I, III and IV

Statement II is wrong because the 15th Finance Commission fixed the States' share at 41%, not 45%. The 15th Finance Commission, chaired by N. K. Singh, covered 2021-22 to 2025-26.

Q275.Indian EconomyAsked in: UPSC CAPF · CAPF 2020, Paper IEasy

SAUBHAGYA, a Central Government scheme, is related to

  1. A.providing cash money to women giving birth of single female child
  2. B.connecting kitchen of every household with piped cooking gas
  3. C.strengthening and augmenting infrastructure for piped water supply
  4. D.achieving universal household electrification in the country
Show answer
Correct answer: D. achieving universal household electrification in the country

SAUBHAGYA, the Pradhan Mantri Sahaj Bijli Har Ghar Yojana, aimed to give an electricity connection to every household. The scheme was launched by the Ministry of Power in September 2017 and was carried out mainly through the Rural Electrification Corporation.

Q276.Indian EconomyAsked in: UPSC CAPF · CAPF 2025, Paper IMedium

Which one of the following statements with reference to Jal Jeevan Mission is not correct?

  1. A.It was established in the year 2016.
  2. B.It aims to improve quality of life in rural areas.
  3. C.It is to provide functional tap water connections to every rural household.
  4. D.It is a centrally sponsored scheme.
Show answer
Correct answer: A. It was established in the year 2016.

Jal Jeevan Mission was announced on 15 August 2019, not in 2016, so this is the statement that is not correct.

Q277.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2025, GS Paper IMedium

A country's fiscal deficit stands at ₹50,000 crores. It is receiving ₹10,000 crores through non-debt creating capital receipts. The country's interest liabilities are ₹1,500 crores. What is the gross primary deficit?

  1. A.₹48,500 crores
  2. B.₹51,500 crores
  3. C.₹58,500 crores
  4. D.None of the above
Show answer
Correct answer: A. ₹48,500 crores

Gross primary deficit is the fiscal deficit minus interest payments: 50,000 − 1,500 = ₹48,500 crores. The fiscal deficit is total expenditure minus total receipts other than borrowings, so it already takes account of non-debt capital receipts such as recovery of loans and disinvestment proceeds.

Q278.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2018, GS Paper IEasy

Which one of the following statements correctly describes the meaning of legal tender money ?

  1. A.The money which is tendered in courts of law to defray the fee of legal cases
  2. B.The money which a creditor is under compulsion to accept in settlement of his claims
  3. C.The bank money in the form of cheques, drafts, bills of exchange, etc.
  4. D.The metallic money in circulation in a country
Show answer
Correct answer: B. The money which a creditor is under compulsion to accept in settlement of his claims

Legal tender is money that the law says must be accepted in payment of a debt. In India, banknotes issued by the Reserve Bank under the RBI Act, 1934 are unlimited legal tender: no one can refuse them for any amount.

Q279.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2020, GS Paper IMedium

Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes ?

1. Working capital for maintenance of farm assets

2. Purchase of combine harvesters, tractors and mini trucks

3. Consumption requirements of farm households

4. Post-harvest expenses

5. Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below:

  1. A.1, 2 and 5 only
  2. B.1, 3 and 4 only
  3. C.2, 3, 4 and 5 only
  4. D.1, 2, 3, 4 and 5
Show answer
Correct answer: B. 1, 3 and 4 only

The short-term part of the Kisan Credit Card covers working capital for farm assets, household consumption needs and post-harvest expenses.

Q280.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2020, GS Paper IMedium

Which of the following factors/policies were affecting the price of rice in India in the recent past ?

1. Minimum Support Price

2. Government's trading

3. Government's stockpiling

4. Consumer subsidies

Select the correct answer using the code given below :

  1. A.1, 2 and 4 only
  2. B.1, 3 and 4 only
  3. C.2 and 3 only
  4. D.1, 2, 3 and 4
Show answer
Correct answer: D. 1, 2, 3 and 4

All four policies shape the market price of rice in India, because the government is the biggest buyer, holder and seller of the grain.