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Economy (UPSC)

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Economy (UPSC) MCQ & Objective Questions

The Economy (UPSC) section is crucial for students aiming to excel in competitive exams. Understanding economic concepts not only helps in scoring better but also builds a strong foundation for future studies. Practicing MCQs and objective questions is an effective way to enhance your exam preparation, as it familiarizes you with important questions and improves your problem-solving skills.

What You Will Practise Here

  • Key economic theories and their applications
  • Fundamentals of Indian economy and its structure
  • Monetary and fiscal policies
  • Economic development and planning in India
  • International trade and its impact on the Indian economy
  • Current economic issues and government initiatives
  • Important definitions and formulas related to economics

Exam Relevance

The Economy (UPSC) topic is not only significant for UPSC exams but also appears in various school examinations like CBSE and State Boards. Students can expect questions related to economic policies, definitions, and current affairs. Common question patterns include multiple-choice questions that test conceptual understanding and application of economic principles in real-world scenarios.

Common Mistakes Students Make

  • Confusing terms like GDP and GNP
  • Misunderstanding the implications of fiscal and monetary policies
  • Overlooking current economic events that can be exam-relevant
  • Neglecting the importance of diagrams and graphs in economic explanations

FAQs

Question: What are some important Economy (UPSC) MCQ questions to focus on?
Answer: Focus on questions related to economic policies, definitions, and current affairs as they frequently appear in exams.

Question: How can I improve my understanding of Economy (UPSC) concepts?
Answer: Regular practice of objective questions and engaging with current economic news can significantly enhance your understanding.

Start solving practice MCQs today to test your understanding of Economy (UPSC) concepts and boost your confidence for the exams ahead!

Q. If a country's exports are $500 million and imports are $300 million, what is the trade balance?
  • A. $200 million surplus
  • B. $200 million deficit
  • C. $800 million surplus
  • D. $800 million deficit
Q. If a country’s foreign direct investment inflow is $300 million and outflow is $200 million, what is the net FDI?
  • A. $100 million
  • B. $200 million
  • C. $300 million
  • D. $400 million
Q. If a country’s GDP is $2 trillion and its exports are 10% of GDP, what is the value of its exports?
  • A. $200 billion
  • B. $300 billion
  • C. $150 billion
  • D. $250 billion
Q. If a department has a budget of $150,000 and has already spent $90,000, what is the ratio of the remaining budget to the total budget?
  • A. 1:3
  • B. 2:3
  • C. 1:2
  • D. 1:4
Q. If a farmer produces 1500 kg of wheat from 5 acres of land, how much wheat does he produce per acre?
  • A. 250 kg
  • B. 300 kg
  • C. 350 kg
  • D. 400 kg
Q. If a farmer uses 200 liters of water to irrigate 10 acres of land, how much water does he use per acre?
  • A. 15 liters
  • B. 20 liters
  • C. 25 liters
  • D. 30 liters
Q. If a farmer wants to increase his yield by 25% and his current yield is 800 kg, what will be his new yield?
  • A. 900 kg
  • B. 1000 kg
  • C. 1100 kg
  • D. 1200 kg
Q. If a farmer's profit from selling 500 kg of rice is $600, what is the profit per kg?
  • A. $1.00
  • B. $1.20
  • C. $1.50
  • D. $1.80
Q. If a project budget is $1,000,000 and 15% is allocated for contingency, how much is set aside for contingency?
  • A. $150,000
  • B. $200,000
  • C. $100,000
  • D. $250,000
Q. If a school allocates $12,000 for sports and $8,000 for arts, what fraction of the total budget is allocated to sports?
  • A. 3/5
  • B. 2/5
  • C. 1/3
  • D. 1/2
Q. If the cost of living increases by 12% and your current monthly expense is $1500, what will be your new monthly expense?
  • A. $1680
  • B. $1700
  • C. $1750
  • D. $1800
Q. If the exchange rate of ₹ to $ is 75, how much would 1000 dollars be in rupees?
  • A. ₹75000
  • B. ₹70000
  • C. ₹80000
  • D. ₹90000
Q. If the fiscal deficit of India is ₹15 lakh crore and the total expenditure is ₹30 lakh crore, what is the percentage of fiscal deficit to total expenditure?
  • A. 25%
  • B. 30%
  • C. 50%
  • D. 40%
Q. If the inflation rate is 5% and the current price of a commodity is ₹200, what will be its price after one year?
  • A. ₹210
  • B. ₹205
  • C. ₹220
  • D. ₹215
Q. If the inflation rate is 8% per annum, how much will a $200 item cost after one year?
  • A. $216
  • B. $220
  • C. $224
  • D. $228
Q. If the number of people living below the poverty line increases from 50,000 to 70,000, what is the percentage increase?
  • A. 40%
  • B. 30%
  • C. 20%
  • D. 50%
Q. If the poverty rate in a city is 15% and the population is 200,000, how many people are living in poverty?
  • A. 15,000
  • B. 30,000
  • C. 25,000
  • D. 20,000
Q. If the price of a loaf of bread increases from $2 to $2.40, what is the percentage increase?
  • A. 15%
  • B. 20%
  • C. 25%
  • D. 30%
Q. If the price of a ticket is $15 and it increases by 20% due to inflation, what will be the new price of the ticket?
  • A. $16
  • B. $17
  • C. $18
  • D. $19
Q. If the total population of India is 1.4 billion and the literacy rate is 74%, how many people are literate?
  • A. 1.03 billion
  • B. 1.05 billion
  • C. 1.07 billion
  • D. 1.1 billion
Q. If the unemployment rate decreases from 10% to 6%, what is the percentage decrease in the unemployment rate?
  • A. 40%
  • B. 50%
  • C. 60%
  • D. 70%
Q. In a survey, 40% of respondents reported being unemployed. If 250 people were surveyed, how many reported being unemployed?
  • A. 80
  • B. 100
  • C. 90
  • D. 70
Q. What does 'monetary policy' primarily aim to control?
  • A. Government spending
  • B. Inflation and interest rates
  • C. Trade deficits
  • D. Employment levels
Q. What is the 'discount rate' in banking?
  • A. The interest rate charged to commercial banks for loans from the central bank
  • B. The rate at which consumers can borrow money
  • C. The rate of return on savings accounts
  • D. The interest rate on government bonds
Q. What is the current account deficit (CAD) as a percentage of GDP for India in 2020-21?
  • A. 1.5%
  • B. 2.1%
  • C. 3.0%
  • D. 4.5%
Q. What is the GDP growth rate of India for the financial year 2021-22?
  • A. 6.5%
  • B. 8.4%
  • C. 7.2%
  • D. 9.1%
Q. What is the main objective of the Goods and Services Tax (GST) implemented in India?
  • A. Increase tax rates
  • B. Simplify tax structure
  • C. Reduce tax compliance
  • D. Increase government revenue
Q. What is the primary function of a central bank?
  • A. To regulate the stock market
  • B. To issue currency and manage monetary policy
  • C. To provide loans to individuals
  • D. To manage government budgets
Q. What is the primary source of revenue for the Indian government?
  • A. Direct Taxes
  • B. Indirect Taxes
  • C. Non-Tax Revenue
  • D. Foreign Aid
Q. What is the purpose of a bank's reserve requirement?
  • A. To ensure banks have enough cash to meet customer withdrawals
  • B. To limit the amount of loans banks can issue
  • C. To control inflation rates
  • D. To increase the bank's profitability
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