TNPSC - Economics - MCQ

1.India has ?

• Socialistic economy
• Gandhian economy
• Mixed economy
• Free economy

Answer: Mixed economy

2.The most important source of capital formation in India has been?

• Household savings
• Public sector savings
• Government revenue surpluses
• Corporate savings

Answer: Household savings

3.In India, the Public Sector is most dominant in?

• transport
• steel production
• commercial banking
• organised term lending financial institutions.

Answer: commercial banking

4.Goa’s economy is mainly based on ?

• tourism
• export of ores
• agriculture
• None of these

Answer: export of ores

5.India’s wage policy is based on ?

• Cost Of Living
• Standard of living
• productivity
• None of these

Answer: Cost Of Living

6.One of the reasons for India’s occupational structure remaining more or less the same over the years has been that

• Productivity in agriculture has been high enough to induce people to stay with agriculture
• People are largely unaware of the significance of transition from agriculture to industry for economic development.
• Investment pattern has been directed towards capital intensive industries.
• ceilings-on land holdings have enabled more people to own land and hence their preference to stay with agriculture

Answer: People are largely unaware of the significance of transition from agriculture to industry for economic development.

7. Which of the following is correct regarding the Gross Domestic Savings in India?

• Contribution of Household sector is the largest
• Contribution of Government sector is the largest
• Contribution of Corporate sector is the largest
• None of these.

Answer: Contribution of Household sector is the largest

8.Which of the following governmental steps has proved relatively effective in controlling the double digit rate of inflation in the Indian economy during recent years

• Containing budgetary deficits and unproductive expenditure
• Streamlined public distribution system
• Enhanced rate of production of all consumer goods
• Pursuing an export -oriented strategy

Answer: Containing budgetary deficits and unproductive expenditure

9.The modern economy is not characterized by?

• capital intensive mode of production
• development of money economy
• production for market
• self-sufficient village system

Answer: self-sufficient village system

10.One of the problems in calculating the national income in India correctly is?

• under - employment
• inflation
• Non -monetized consumption
• low savings

Answer: non -monetized consumption