Economics · Banking Financial Awareness

Indian Economy and Policy

1,777 Questions

Indian economy and policy questions cover the structural dynamics and regulatory measures shaping the national market. Topics include foreign direct investment, taxation reforms, and government initiatives for growth. This section is highly relevant for competitive exams requiring economic awareness.

Foreign direct investmentGST impactEconomic reformsTrade policyGovernment economic initiatives

Indian Economy and Policy Questions

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

From the national point of view which of the following indicates micro approach?

  1. Per capital income of India.

  2. Under employment in agricultural sector.

  3. Lock out in TELCO

  4. Total savings in India
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Microeconomics deals with the study of individual demand, supply, income, production, etc. so lockout in TELCO which is an individual firm in the industry is a micro concept.

Multiple choice history industrial sector growth of banks in india nationalisation and privatisation of banks private sector anddifference between public and private sector

What led to the need for New Economic Policy in India?

  1. Gulfcrises

  2. Bad performance of public sector

  3. Inflation

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Gulf crisis, bad performance of public sector and inflation led to the need for New Economic Policy in India. New Economic Policy was adopted by the Central government of India in the year of 1991. It has given emphasis on liberalization, privatization and globalization.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

The inadequate number of investment channels is one of the reasons for low capital formation in India.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Insufficient options to invest in an economy results in low net capital accumulation during a period of time in an economy since the people of that economy is left with very few options to invest.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

In the pre-reforms period (i.e. before 1991), import permission was available primarily for ________________.

  1. Capital Equipment

  2. Machinery

  3. Industrial Raw Material

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

During the pre-reform period, the import regime was highly restrictive. Permissions were granted primarily for essential inputs required for domestic industrial production, which included capital equipment, machinery, and raw materials, while restricting consumer goods.

Multiple choice

Moving jobs to foreign countries b/c it's cheaper is known as

  1. Outsourcing

  2. Emigration

  3. Diwali

  4. Desalination
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Outsourcing is the business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house by the company's own employees.

Multiple choice

The British did NOT introduce this to India.

  1. Railroads

  2. Industrialization

  3. Commercialization of Agriculture

  4. English language education
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The British colonial policy was designed to keep India as a source of raw materials and a market for finished British goods, which actively discouraged or prevented the development of a domestic industrial base.

Multiple choice

British tariffs had this impact on India.

  1. commercialized agriculture

  2. prevented industrialization

  3. spread diseases

  4. outlawed sati
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

By imposing high tariffs on Indian manufactured goods while allowing British goods to enter India duty-free, the British effectively destroyed the domestic manufacturing sector and prevented industrialization.

Multiple choice infrastructure in india infrastructure tertiary sector economics

Which of the following is false?

  1. India should boost its infrastructure investment

  2. In any country, as the income rises, the composition of infrastructure requirements changes significantly

  3. As economies become larger, the share of agriculture in the economy expands and lesser service-related infrastructure is required

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Option C. 

As agriculture expands the revenue will automatically rises as by the means of foreign and exchange of trade. Also, employment opportunities rises as for those who are not educated by means of wager. So, overall of agriculture expands then infrastructure will also develop. 

Multiple choice infrastructure in india infrastructure tertiary sector economics

Economic development has retarded in India mainly due to ______.

  1. overgrowing service sector

  2. westernised social attitudes

  3. poor infrastructural facilities

  4. modern agrarian system
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Poor infrastructural facilities (such as inadequate power, transport, and communication) have been a major bottleneck hindering the pace of economic development in India.

Multiple choice infrastructure in india infrastructure tertiary sector economics

In India, Energy Sector suffers from a number of shortcomings/problems. Which one of the following is not a problem?

  1. Rising Oil Prices

  2. High Profitability of SEBs

  3. Transmission and Distribution Losses

  4. Operational Inefficiency of SEBs
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

State Electricity Boards (SEBs) in India have historically suffered from high operational inefficiencies and financial losses, not high profitability.

Multiple choice

What is the cause of competition for natural resources in South Asia?

  1. increase in the cost of gold

  2. summer monsoons

  3. huge and growing population

  4. value of land
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

South Asia has one of the highest population densities in the world. This massive population places significant strain on limited natural resources like water, land, and energy.

Multiple choice

What was the BEIC intended to be?

  1. A buisiness that created a new silk road

  2. A buisiness that held a monopoly on India and its goods.

  3. The name for Britian's government of India ruled by the crown

  4. The Portuguese expedition to explore southeast Asia
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The British East India Company (BEIC) was a joint-stock company established to trade in the Indian Ocean region. It eventually gained a monopoly over trade in India and acted as a colonial power.

Multiple choice

One of the biggest financial problems of the later Mauryan period was the ruler's decision to

  1. trade exclusively with China

  2. debase the currency

  3. not invest in sea trade

  4. borrow money from Persia at high interest rates.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Debasing the currency, which involved reducing the precious metal content in coins, was a common practice in the later Mauryan period to address financial strain. This led to inflation and economic instability.

Multiple choice

Business contribute to National Wellbeing via

  1. More imports than exports

  2. Spending less time on research

  3. Low GDP

  4. Financial Security
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Businesses contribute to national wellbeing through financial security by creating jobs, generating tax revenue, supporting GDP growth, and providing stable income for households. Options A-C are negative or incorrect: more imports than exports creates trade deficits, less research hinders development, and low GDP indicates economic weakness.

Multiple choice

How did British colonization of India impact the Indian economy?

  1. Brining industrialism to India helped it establish itself as a global power

  2. Use of British currency allowed the economy to grow quickly

  3. Destruction of natural resources weakened Indian economy

  4. Indian businesses collapsed - Could not compete with industrialized goods
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

British colonial policy in India focused on extracting raw materials and creating a market for British manufactured goods. This led to the decline of traditional Indian industries, such as textiles, which could not compete with cheaper, mass-produced British imports.