Easy Indian Economics GK Questions and Answers

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Easy Indian Economics GK Questions and Answers

India's economy is diverse, with agriculture, manufacturing, and services being the major sectors. Agriculture has traditionally been a significant contributor to the Indian economy, with a large population dependent on it for their livelihoods. The manufacturing sector has seen significant growth in recent years, particularly in areas such as automobiles, pharmaceuticals, and electronics. The service sector, which includes industries such as IT, telecommunications, and finance, has been a major contributor to India's economic growth in recent years.

Indian Economics GK Questions

In this article, Easy Indian Economics GK Questions and Answers, we are giving important Indian Economic GK Questions related to the private sector, and the agriculture, services, and manufacturing sectors for those learners who are preparing for upcoming competitive exams. Under the Indian Economy section, Easy Indian Economics GK Questions and Answers are generally asked in government and competitive exams. 

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Students can quickly get free General Knowledge Mock Test and Current Affairs Mock Test on this platform for online exam practice to obtain good marks in competitive exams.

Economics GK Questions and Answers

  Q :  

What else is micro economics called?

(A) Income theory

(B) Principle of investment

(C) Theory of price

(D) Principle of Expenditure


Correct Answer : C
Explanation :

Micro economics is also known as Price theory because it takes into account the demand and supply of individual units and thus aims to determine the price of a product using the factors of production.


Q :  

Camera_object is in the hands of a professional photographer.

(A) Free

(B) Intermediate

(C) Consumer

(D) Capital


Correct Answer : D
Explanation :

Camera, in photography, a device for recording an image of an object on a light-sensitive surface; It is essentially a light-tight box with a hole to admit light that is focused onto a sensitive film or plate. 35 mm single-lens reflex (SLR) camera.


Q :  

Who was the proponent of the dynamic theory of profit?

(A) Clarke

(B) Schumpeter

(C) Knight

(D) Halli


Correct Answer : A
Explanation :

Dynamic theory of profit was advocated by J.B Clark. He stated that profits rise in that of type of economy where the things change. No profits will be generated n the static economy, where everything remains constant.


Q :  

Which of the following may be called a fiscal deficit?

(A) Revenue expenditure − Revenue receipts

(B) Capital expenditure – Capital receipts

(C) Total expenditure – Total receipts other than borrowings

(D) Revenue expenditure + Capital expenditure − Revenue receipts


Correct Answer : C
Explanation :

Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure. It occurs when the government's expenditure exceeds its income.


Q :  

The foreign exchange reserves in India crossed the landmark of ___________ in June 2021.

(A) US$ 900 trillion

(B) US$ 600 trillion

(C) US$ 600 billion

(D) US$ 900 billion


Correct Answer : C
Explanation :

Correct answer is US$ 600 billion. In June 2021, India crossed the 600 Billion USD mark for the first time. India has large foreign-exchange reserves; holdings of cash, bank deposits, bonds, and other financial assets denominated in currencies other than India's national currency, the Indian rupee.


Q :  

The decadal growth rate of the population between 2001-2011 is ______.

(A) 18.70 per cent

(B) 15.70 per cent

(C) 17.70 per cent

(D) 16.70 per cent


Correct Answer : C
Explanation :

According to preliminary Census 2011 data, there are 1210.19 million people living in the nation. Out of these, 623.72 million (51.54%) are men and 586.46 million (48.46%) are women. The following are the main points of the Census 2011 (Provisional figures): Over the decade from 2001 to 2011, India's population grew by more than 181 million people. Percentage growth in 2001-2011 is 17.64; males 17.19 and females 18.12. With the exception of 1911–1921, the decade from 2001–2011 is the first in which population growth was lower than that of the prior decade. The most populous State in the nation is Uttar Pradesh, with 199.5 million people, followed by Maharashtra, with 112 million.


Q :  

Which of the following combinations of ‘RBI Tool – Monetary instrument’ is correct?

(A) Qualitative – Moral Suasion

(B) Quantitative – Marginal requirement

(C) Qualitative - Cash Reserve ratio

(D) Qualitative – Open Market Operations


Correct Answer : A
Explanation :

The correct answer is Qualitative – Moral Suasion. Monetary policy refers to the policy of the central bank with regard to the use of monetary instruments under its control to achieve the goals specified in the Act. The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy.


Q :  

The rate at which RBI lends to commercial banks for the short term is called ________.

(A) repo rate

(B) reverse repo rate

(C) bank rate

(D) cash reserve rate


Correct Answer : A
Explanation :

The correct answer is Repo Rate. Key Points. Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation.


Q :  

In which of the following market structures, there is a variable demand curve?

(A) Perfect competition

(B) Monopoly

(C) Oligpoly

(D) Monopolistic competition


Correct Answer : C
Explanation :

There is freedom of entry and exit. Sellers have perfect knowledge about the market conditions. They are price taker. Price Elasticity of Demand of a firm is Infinite which means demand curve for Perfect competition is a Perfectly Elastic.


Q :  

Gross primary deficit is the difference between ______.

(A) Revenue deficit and interest receipts

(B) Gross fiscal deficit and interest receipts

(C) Revenue deficit and interest payments

(D) Gross fiscal deficit and net interest liabilities


Correct Answer : A
Explanation :

Gross primary deficit refers to the difference between the current year's fiscal deficit and interest payments made on the previous year's borrowings. In other words, it represents the fiscal deficit of the government excluding interest payments.


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    Rajesh Bhatia

    A Writer, Teacher and GK Expert. I am an M.A. & M.Ed. in English Literature and Political Science. I am highly keen and passionate about reading Indian History. Also, I like to mentor students about how to prepare for a competitive examination. Share your concerns with me by comment box. Also, you can ask anything at linkedin.com/in/rajesh-bhatia-7395a015b/.

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