Economy MCQ & Objective Questions
The study of Economy is crucial for students preparing for school exams and competitive tests in India. Understanding economic concepts not only helps in scoring better but also builds a strong foundation for future studies. Practicing MCQs and objective questions on Economy allows students to familiarize themselves with important topics and enhances their exam preparation.
What You Will Practise Here
Basic concepts of Economy and its significance
Types of economic systems: capitalism, socialism, and mixed economy
Key economic indicators: GDP, inflation, and unemployment
Government policies and their impact on the economy
International trade and its effects on the Indian economy
Economic theories and models: supply and demand
Current economic issues and challenges in India
Exam Relevance
Economy is a vital topic that frequently appears in CBSE, State Boards, NEET, JEE, and other competitive exams. Students can expect questions related to economic principles, definitions, and real-world applications. Common question patterns include multiple-choice questions that assess both theoretical knowledge and practical understanding of economic scenarios.
Common Mistakes Students Make
Confusing different economic systems and their characteristics
Misunderstanding key economic indicators and their implications
Overlooking the impact of government policies on the economy
Failing to relate economic theories to current events
FAQs
Question: What are some important Economy MCQ questions for exams?Answer: Important Economy MCQ questions often cover topics like GDP, inflation rates, and the effects of fiscal policies.
Question: How can I improve my understanding of Economy concepts?Answer: Regular practice of objective questions and reviewing key concepts will significantly enhance your understanding of Economy.
Start solving practice MCQs today to test your understanding and boost your confidence in the Economy section. Remember, consistent practice is the key to success in your exams!
Q. In 2021, which country faced a severe energy crisis leading to widespread blackouts and economic disruptions?
A.
India
B.
China
C.
Germany
D.
South Africa
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Solution
China faced a severe energy crisis in 2021, leading to widespread blackouts and economic disruptions.
Correct Answer:
B
— China
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Q. In 2022, which country became the first to adopt Bitcoin as legal tender?
A.
El Salvador
B.
Venezuela
C.
Japan
D.
Switzerland
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Solution
El Salvador was the first country to adopt Bitcoin as legal tender in September 2021.
Correct Answer:
A
— El Salvador
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Q. In 2022, which country experienced a significant depreciation of its currency, leading to economic instability?
A.
Turkey
B.
Brazil
C.
South Africa
D.
Russia
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Solution
Turkey experienced significant currency depreciation in 2022, leading to economic instability.
Correct Answer:
A
— Turkey
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Q. In 2022, which country experienced hyperinflation, with inflation rates exceeding 1,000%?
A.
Venezuela
B.
Zimbabwe
C.
Argentina
D.
Turkey
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Solution
Venezuela continued to experience hyperinflation in 2022, with rates exceeding 1,000%.
Correct Answer:
A
— Venezuela
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Q. In 2022, which country experienced hyperinflation, with rates exceeding 1,000%?
A.
Venezuela
B.
Zimbabwe
C.
Argentina
D.
Turkey
Show solution
Solution
Venezuela experienced hyperinflation in 2022, with rates exceeding 1,000%.
Correct Answer:
A
— Venezuela
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Q. In 2022, which country faced a severe economic crisis leading to protests against rising inflation and food shortages?
A.
Sri Lanka
B.
Argentina
C.
Turkey
D.
Greece
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Solution
Sri Lanka faced a severe economic crisis in 2022, leading to widespread protests due to inflation and food shortages.
Correct Answer:
A
— Sri Lanka
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Q. In 2022, which organization projected that global economic growth would slow down to 3.2%?
A.
World Bank
B.
International Monetary Fund
C.
OECD
D.
United Nations
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Solution
The International Monetary Fund (IMF) projected that global economic growth would slow down to 3.2% in 2022.
Correct Answer:
B
— International Monetary Fund
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Q. In 2023, which country faced a severe economic crisis leading to widespread protests against the government?
A.
Sri Lanka
B.
Argentina
C.
Greece
D.
Lebanon
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Solution
Argentina faced a severe economic crisis in 2023, leading to widespread protests against the government.
Correct Answer:
B
— Argentina
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Q. What major economic agreement was signed between the United States and European Union in 2021 to address trade issues?
A.
Trans-Pacific Partnership
B.
Atlantic Trade Agreement
C.
EU-US Trade and Technology Council
D.
Bilateral Trade Agreement
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Solution
The EU-US Trade and Technology Council was established in 2021 to address trade and technology issues.
Correct Answer:
C
— EU-US Trade and Technology Council
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Q. What major economic initiative did China launch in 2021 to enhance global trade?
A.
Belt and Road Initiative
B.
Asian Infrastructure Investment Bank
C.
Regional Comprehensive Economic Partnership
D.
China-ASEAN Free Trade Area
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Solution
China launched the Belt and Road Initiative to enhance global trade and infrastructure development in 2021.
Correct Answer:
A
— Belt and Road Initiative
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Q. What was the main reason for the global supply chain crisis that began in 2021?
A.
Labor Shortages
B.
Natural Disasters
C.
COVID-19 Pandemic
D.
Trade Wars
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Solution
The global supply chain crisis that began in 2021 was primarily caused by disruptions related to the COVID-19 pandemic.
Correct Answer:
C
— COVID-19 Pandemic
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Q. What was the main reason for the supply chain crisis that affected global economies in 2021?
A.
Labor Shortages
B.
Natural Disasters
C.
COVID-19 Pandemic
D.
Trade Wars
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Solution
The COVID-19 pandemic was the main reason for the supply chain crisis that affected global economies in 2021.
Correct Answer:
C
— COVID-19 Pandemic
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Q. What was the primary focus of the G20 summit held in Indonesia in 2022?
A.
Climate Change
B.
Global Health
C.
Digital Economy
D.
Food Security
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Solution
The G20 summit in Indonesia in 2022 focused on food security, especially in the context of the global supply chain disruptions.
Correct Answer:
D
— Food Security
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Q. What was the primary focus of the G20 summit held in Rome in October 2021?
A.
Climate Change
B.
Global Health
C.
Economic Recovery
D.
Trade Agreements
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Solution
The G20 summit in Rome in October 2021 primarily focused on economic recovery from the COVID-19 pandemic.
Correct Answer:
C
— Economic Recovery
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Q. What was the primary goal of the European Union's NextGenerationEU recovery plan launched in 2021?
A.
Digital Transformation
B.
Green Transition
C.
Economic Recovery
D.
All of the above
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Solution
The primary goal of the EU's NextGenerationEU recovery plan launched in 2021 was to support economic recovery, digital transformation, and green transition.
Correct Answer:
D
— All of the above
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Q. Which Asian country announced a new economic stimulus package in 2023 to support its post-pandemic recovery?
A.
India
B.
Japan
C.
South Korea
D.
Indonesia
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Solution
South Korea announced a new economic stimulus package in 2023 to aid its recovery from the pandemic.
Correct Answer:
C
— South Korea
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Q. Which country announced a new economic plan in 2022 aimed at achieving net-zero emissions by 2050?
A.
United States
B.
United Kingdom
C.
France
D.
Japan
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Solution
The United Kingdom announced a new economic plan in 2022 aimed at achieving net-zero emissions by 2050.
Correct Answer:
B
— United Kingdom
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Q. Which country announced a plan to phase out coal by 2030 as part of its climate commitments in 2021?
A.
United Kingdom
B.
Australia
C.
India
D.
South Africa
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Solution
The United Kingdom announced a plan to phase out coal by 2030 as part of its climate commitments in 2021.
Correct Answer:
A
— United Kingdom
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Q. Which country announced a plan to phase out coal by 2030 as part of its commitment to combat climate change?
A.
Germany
B.
China
C.
India
D.
Australia
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Solution
Germany announced a plan to phase out coal by 2030 as part of its climate change commitments.
Correct Answer:
A
— Germany
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Q. Which country announced a plan to phase out coal by 2030 as part of its commitment to combat climate change in 2021?
A.
Germany
B.
China
C.
India
D.
United Kingdom
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Solution
The United Kingdom announced a plan to phase out coal by 2030 as part of its climate change commitments in 2021.
Correct Answer:
D
— United Kingdom
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Q. Which country announced a significant economic stimulus package worth $1.9 trillion in March 2021?
A.
United Kingdom
B.
Canada
C.
United States
D.
Australia
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Solution
The United States announced a $1.9 trillion economic stimulus package in March 2021 to aid recovery from the pandemic.
Correct Answer:
C
— United States
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Q. Which country announced a significant increase in its military budget in 2022, citing economic growth and security concerns?
A.
China
B.
Germany
C.
India
D.
Russia
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Solution
Germany announced a significant increase in its military budget in 2022, driven by economic growth and security concerns.
Correct Answer:
B
— Germany
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Q. Which country announced a significant increase in its military budget in 2022, citing economic threats?
A.
Germany
B.
China
C.
Russia
D.
India
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Solution
Germany announced a significant increase in its military budget in 2022, responding to economic and security threats.
Correct Answer:
A
— Germany
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Q. Which country became the first to adopt Bitcoin as legal tender in September 2021?
A.
El Salvador
B.
Venezuela
C.
Japan
D.
United States
Show solution
Solution
El Salvador adopted Bitcoin as legal tender in September 2021, making it the first country to do so.
Correct Answer:
A
— El Salvador
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Q. Which country experienced a significant inflation rate exceeding 80% in 2021, leading to economic turmoil?
A.
Turkey
B.
Venezuela
C.
Zimbabwe
D.
Argentina
Show solution
Solution
Venezuela experienced a significant inflation rate exceeding 80% in 2021, contributing to its ongoing economic crisis.
Correct Answer:
B
— Venezuela
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Q. Which country launched a digital currency pilot program in 2022 to explore the use of central bank digital currencies (CBDCs)?
A.
China
B.
United States
C.
Canada
D.
India
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Solution
China launched a digital currency pilot program in 2022 to explore the use of central bank digital currencies (CBDCs).
Correct Answer:
A
— China
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Q. Which country launched a new digital currency called the 'e-krona' in 2022?
A.
Sweden
B.
Norway
C.
Finland
D.
Denmark
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Solution
Sweden launched a new digital currency called the 'e-krona' in 2022 as part of its efforts to modernize its payment system.
Correct Answer:
A
— Sweden
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Q. Which country recently announced a significant increase in its interest rates to combat inflation in 2023?
A.
United States
B.
United Kingdom
C.
Turkey
D.
Brazil
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Solution
The United States Federal Reserve raised interest rates multiple times in 2023 to address rising inflation.
Correct Answer:
A
— United States
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Q. Which economic term refers to a prolonged period of inflation combined with stagnant economic growth?
A.
Stagflation
B.
Recession
C.
Deflation
D.
Hyperinflation
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Solution
Stagflation refers to a prolonged period of inflation combined with stagnant economic growth.
Correct Answer:
A
— Stagflation
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Q. Which international organization projected a global economic growth rate of 2.9% for 2023?
A.
World Bank
B.
International Monetary Fund
C.
World Economic Forum
D.
OECD
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Solution
The International Monetary Fund (IMF) projected a global economic growth rate of 2.9% for 2023.
Correct Answer:
B
— International Monetary Fund
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