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Indian Economy Mixed Quiz: Set 62

  • 20 questions
  • 20 minutes
  • Difficulty: Medium
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About this quiz

Set 62 of the Indian Economy mixed quiz has 20 multiple-choice questions from 20 different topics of the subject: Sectors of the Indian Economy, Intellectual Property Rights: Patents, Trademarks and Copyright, Planning in India and NITI Aayog and more. 15 of them were asked in real previous-year papers. A topic quiz checks one chapter; this set revises the whole subject at once, the way an exam paper does, where the next question can come from any chapter. Every question carries an explanation of why the correct option is right and why the others are wrong. Keep to the timer, read the explanations at the end, and go back to the notes of any topic where you slipped.

Questions in this quiz

20 questions with answers and explanations

Q1.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2024, GS Paper IMedium

With reference to the sectors of the Indian economy, consider the following pairs : (Economic activity) (Sector) 1. Storage of agricultural produce : Secondary 2. Dairy farm : Primary 3. Mineral exploration : Tertiary 4. Weaving cloth : Secondary How many of the pairs given above are correctly matched?

  1. A.Only one
  2. B.Only two
  3. C.Only three
  4. D.All four
Show answer
Correct answer: B. Only two

Dairy farming (primary) and weaving cloth (secondary) are correctly matched; storage and mineral exploration are not. The primary sector draws goods directly from nature: farming, dairy, fishing, forestry, mining and quarrying.

Q3.Indian EconomyAsked in: CDS · CDS-I 2023, GKEasy

Which among the following is/are the objective/objectives of the NITI Aayog? 1. Imposing policies on the States/UTs 2. Allocation of funds at National and State levels 3. Design strategies and long-term policies and programme frameworks Select the correct answer using the code given below.

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

NITI Aayog is a policy think tank that designs strategies and long-term policy and programme frameworks; it neither imposes policies on states nor allocates funds.

Q4.Indian EconomyEasy

National Statistics Day is observed in India on which date?

  1. A.29 February
  2. B.29 June
  3. C.20 October
  4. D.15 September
Show answer
Correct answer: B. 29 June

National Statistics Day has been observed on 29 June every year since 2007 to mark the birth anniversary of Prasanta Chandra Mahalanobis and to create awareness about the use of statistics in planning and policy; a theme is announced each year by the Ministry of Statistics and Programme Implementation.

Q5.Indian EconomyAsked in: UPSC CAPF · CAPF 2021, Paper IMedium

For anything to be recognized as money, it needs to have which of the following characteristics? 1. Act as an intermediate in the exchange process 2. Standard unit for quoting prices 3. Must be easily divisible 4. Have higher value in alternative uses Select the correct answer using the code given below.

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

Money must work as a medium of exchange, serve as a unit of account and be easy to divide; a higher value in other uses is not required.

Q6.Indian EconomyAsked in: UPSC CAPF · CAPF 2025, Paper IMedium

Which among the following regarding the nature of goods and income elasticity are correctly matched? (Nature of Goods : Income Elasticity) 1. Necessity : Between 0 and 1 2. Luxury : More than 1 3. Inferior : More than 0 Select the answer using the code given below.

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

Necessities and luxuries are matched correctly, but an inferior good has a negative income elasticity, not a positive one. Income elasticity of demand is the percentage change in quantity demanded divided by the percentage change in income.

Q7.Indian EconomyAsked in: CDS · CDS-II 2026, GKMedium

Under the Ministry of Finance, which Department is responsible for giving advice on economic issues having a bearing on internal and external aspects of economy including foreign exchange management?

  1. A.Department of Economic Affairs
  2. B.Department of Expenditure
  3. C.Department of Investment and Public Asset Management
  4. D.Department of Financial Services
Show answer
Correct answer: A. Department of Economic Affairs

It is the Finance Ministry's nodal department for economic policy, at home and abroad, including the management of foreign exchange.

Q9.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2024, GS Paper IMedium

In India, which of the following can trade in Corporate Bonds and Government Securities? 1. Insurance Companies 2. Pension Funds 3. Retail Investors Select the correct answer using the code given below:

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

Insurance companies, pension funds and ordinary retail investors can all buy and sell both corporate bonds and government securities in India.

Q11.Indian EconomyAsked in: UPSC CAPF · CAPF 2021, Paper IMedium

Which one among the following statements is not correct?

  1. A.When the economy grows slowly than its potential, the unemployment rate rises.
  2. B.Structural unemployment occurs when jobs are eliminated by changes in demand for particular goods or due to automation.
  3. C.Recession in the economy leads to cyclical unemployment.
  4. D.At full employment, the measured unemployment rate is negative.
Show answer
Correct answer: D. At full employment, the measured unemployment rate is negative.

At full employment the measured unemployment rate is not negative; it stays at a small positive level called the natural rate of unemployment.

Q12.Indian EconomyAsked in: UPSC CAPF · CAPF 2019, Paper IEasy

According to the Law of Diminishing Returns, in a production function when more and more units of the variable factor are used, holding the quantities of a fixed factor constant, a point is reached beyond which

  1. A.the marginal revenue will diminish
  2. B.the average revenue will diminish
  3. C.the marginal product will diminish
  4. D.the marginal product will increase
Show answer
Correct answer: C. the marginal product will diminish

When one input is kept fixed and another is added again and again, each extra unit eventually adds less to output than the one before.

Q13.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2017, GS Paper IEasy

What is/are the advantage/advantages of implementing the 'National Agriculture Market' scheme ? 1. It is a pan-India electronic trading portal for agricultural commodities. 2. It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce. Select the correct answer using the code given below:

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

e-NAM is an online trading platform for farm produce across India, and it lets farmers reach buyers beyond their local mandi at prices that reflect quality.

Q14.Indian EconomyMedium

A sustained rise in the production of capital goods within the IIP is generally read as a sign of:

  1. A.Rising consumer demand for everyday items
  2. B.A revival of investment activity in the economy
  3. C.Improving export competitiveness
  4. D.Rising inflation in industrial goods
Show answer
Correct answer: B. A revival of investment activity in the economy

Capital goods are machines, plant and equipment that are bought not to be consumed but to produce other goods, and a firm orders them only when it expects demand to grow enough to justify adding capacity.

Q15.Indian EconomyAsked in: CDS · CDS-I 2023, GKHard

Which of the following is/are the sub-mission/sub-missions of the National Skill Development Mission (NSDM)? 1. Institutional training 2. Overseas employment 3. Leveraging of public infrastructure Select the correct answer using the code given below.

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

Institutional training, overseas employment and leveraging of public infrastructure are all sub-missions of the National Skill Development Mission.

Q16.Indian EconomyMedium

For the purposes of trade operations, duties and tariffs, a special economic zone is treated as

  1. A.part of the domestic tariff area
  2. B.foreign territory
  3. C.a union territory
  4. D.a bonded warehouse of the state government
Show answer
Correct answer: B. foreign territory

The law deems a special economic zone to be outside the customs territory of India for trade operations, duties and tariffs, which is why a supply from the rest of the country into the zone is an export and a sale from the zone into the rest of the country…

Q17.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2016, GS Paper IEasy

'India's ranking in the Ease of Doing Business Index' is sometimes seen in the news. Which of the following has declared that ranking?

  1. A.Organization for Economic Cooperation and Development (OECD)
  2. B.World Economic Forum
  3. C.World Bank
  4. D.World Trade Organization (WTO)
Show answer
Correct answer: C. World Bank

The Ease of Doing Business ranking was published by the World Bank in its annual Doing Business report.

Q18.Indian EconomyAsked in: UPSC CAPF · CAPF 2020, Paper IMedium

Which one of the following educational development indicators is currently used by United Nations Development Programme (UNDP) to construct Human Development Index?

  1. A.Level of Literacy
  2. B.Gross Enrolment Ratio
  3. C.Mean Years of Schooling
  4. D.Dropout rate
Show answer
Correct answer: C. Mean Years of Schooling

Since 2010 the UNDP measures the education dimension of the HDI with mean years of schooling and expected years of schooling.

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