Top Indian Economy MCQs: Sectors, Policies & Reforms Explained
MCQs on Indian Economy are objective questions that test your understanding of basic and advanced economic concepts related to India. These MCQ sets help you prepare efficiently for school exams, competitive entrance tests, and develop a robust understanding of economic systems in real-world situations.
| Major Indian Economy MCQ Topics | Example Questions |
|---|---|
| Five-Year Plans | Which model was used for the Second Five-Year Plan? |
| Sectors of Economy | Dairy farming belongs to which sector? |
| Economic Reforms (LPG) | Liberalisation began in which year? |
| Current Economic Affairs | What is the motif on the ₹20 note? |
| Banking & Budget | What is fiscal deficit? |
MCQs on Indian Economy: Importance and Application
MCQs on Indian Economy assess your knowledge of key concepts such as planning, reforms, and the structure of the Indian economy. Practicing objective questions improves your retention and prepares you for exams like Class 12 boards, CA Foundation, SSC, and UPSC.
Common Types of Indian Economy MCQs
- History and features of the Indian economy
- Five-Year Plans and economic planning
- Primary, secondary, and tertiary sectors
- Liberalisation, privatisation, and globalisation reforms
- Important government schemes and policies
- Recent changes and current affairs
Top 10 MCQs on Indian Economy with Explanations
| No. | Question | Options | Answer | Explanation |
|---|---|---|---|---|
| 1 | The Second Five-Year Plan in India was based on which model? |
A) Harrod-Domar B) Mahalanobis C) Keynesian D) Gandhian |
B) Mahalanobis | The Mahalanobis model emphasized heavy industries. It was adopted for the Second Five-Year Plan (1956-61). |
| 2 | Which sector does dairy farming belong to? |
A) Primary B) Secondary C) Tertiary D) Quaternary |
A) Primary | Primary sector involves extraction and collection of natural resources, including agriculture and dairy. |
| 3 | When did economic liberalization (LPG) begin in India? |
A) 1980 B) 1991 C) 2000 D) 1975 |
B) 1991 | Liberalization, Privatisation, and Globalisation (LPG) reforms began in 1991 to open up the Indian economy. |
| 4 | Which organization was replaced by NITI Aayog in 2015? |
A) Planning Commission B) RBI C) FCI D) SEBI |
A) Planning Commission | NITI Aayog replaced the Planning Commission for more flexible policy planning. |
| 5 | What is the motif on the ₹200 Indian banknote? |
A) Red Fort B) Sanchi Stupa C) Ellora Caves D) Rani ki Vav |
B) Sanchi Stupa | The ₹200 note features the Sanchi Stupa on its reverse side. |
| 6 | The term 'Golden Revolution' refers to the increase in production of: |
A) Milk B) Horticulture C) Fish D) Oilseeds |
B) Horticulture | Golden Revolution is associated with the rapid growth in horticulture and honey. |
| 7 | Custom duty is a tax imposed on: |
A) Import and export of goods B) Purchase within state C) Property D) Corporate profits |
A) Import and export of goods | Custom duties apply to international trade, affecting imports and exports. |
| 8 | Which Five-Year Plan had the goal of ‘Garibi Hatao’? |
A) Second B) Fourth C) Fifth D) Sixth |
C) Fifth | The Fifth Five-Year Plan (1974–1978) targeted poverty removal with the 'Garibi Hatao' slogan. |
| 9 | Who acts as the chairman of the Planning Commission (till 2014)? |
A) President of India B) Prime Minister C) Finance Minister D) Speaker of Lok Sabha |
B) Prime Minister | The Prime Minister was the ex-officio chairman of the Planning Commission. |
| 10 | Which plan targeted the development of heavy industries? |
A) First Five-Year Plan B) Second Five-Year Plan C) Third Five-Year Plan D) Tenth Five-Year Plan |
B) Second Five-Year Plan | The Second Five-Year Plan focused on the rapid industrialization of the economy, especially on heavy and basic industries. |
Tips for Solving Indian Economy MCQs
- Read each question carefully to understand what is being asked.
- Learn concept details, not just facts—explanation-based learning helps.
- Revise key economic terms like GDP, deficit, sectors, reforms.
- Review topics like Five-Year Plans and policies regularly.
- Use authentic MCQ PDFs and credible sources like Vedantu.
Download Free Indian Economy MCQ PDF
For offline revision, Vedantu provides free Indian Economy MCQs with answers in PDF format. These resources contain topic-wise questions ideal for school and competitive exam preparation.
Download MCQs on Indian Economy PDF for easy practice on any device.
Enhance Your Preparation: Vedantu’s Advanced Resources
- Understand Characteristics of Indian Economy for Class 12 and beyond.
- Study Indian Economy During Reforms to strengthen your grasp on LPG and economic planning.
- Visit related topics like Sectors of Indian Economy and National Income for deeper understanding.
Summary
MCQs on Indian Economy offer a comprehensive way to master core economics topics, including planning, reforms, and sectoral structures. By practicing these objective questions, you equip yourself for school exams, competitive tests, and real-world economic applications. Access high-quality practice sets and explanations with Vedantu for effective and smart revision.
FAQs on Indian Economy MCQs: Important Questions, Answers & Practice
1. What are important MCQs on the Indian Economy for exams?
Important MCQs on the Indian Economy cover key concepts like economic policies, five-year plans, sectoral structures (primary, secondary, tertiary), and major economic reforms (LPG). They also assess knowledge of historical milestones and current economic events. Focus on understanding these areas to excel in exams.
2. Where can I download Indian economy MCQ PDFs with answers?
Many websites and educational platforms offer Indian economy MCQ PDFs. Look for reputable sources aligned with your syllabus (e.g., NCERT, state boards, or competitive exam materials). Ensure the PDFs include detailed answers and explanations to aid your learning.
3. Which topics are most commonly asked in Indian economy multiple choice questions?
Common Indian economy MCQ topics include: Five-Year Plans, economic reforms (LPG), national income accounting, sectors of the economy, poverty and unemployment, budgetary policies, and current economic events. Prioritize these areas in your preparation.
4. How can I practice Indian economy MCQs online for free?
Several websites and educational apps offer free Indian economy MCQs. Some provide quizzes and practice tests, while others might offer chapter-wise quizzes or topic-specific tests. Use these resources for additional practice and test your understanding.
5. What is the syllabus coverage of Indian economy MCQ for Class 12/CA Foundation?
The Indian economy MCQ syllabus for Class 12 and CA Foundation varies. Check your specific syllabus for topics like economic development, planning, monetary policy, fiscal policy, and international trade. The emphasis may differ between school and professional exams.
6. Are current affairs included in Indian economy MCQ sets?
Yes, many Indian economy MCQ sets include current affairs, particularly for competitive exams. Recent economic policies, budget announcements, and major economic events are often incorporated to assess up-to-date knowledge.
7. Indian economy MCQ with answers?
Indian economy MCQs with answers are valuable tools for assessing understanding and preparing for exams. Look for resources that provide not only the correct option but also detailed explanations, enhancing learning and retention.
8. Sample MCQ for Indian economy competitive exams?
Sample MCQs for Indian economy competitive exams often focus on application of concepts. They may involve analyzing data, interpreting economic indicators, or applying economic theories to real-world scenarios. Practice with a variety of question types.
9. What are important Indian economy MCQs for UPSC?
Important Indian economy MCQs for UPSC cover a wide range of topics, emphasizing deeper understanding and analytical skills. Focus on economic history, policy analysis, and current economic challenges. Refer to previous years' UPSC question papers for guidance.
10. Where to download Indian economy MCQs PDF?
You can download Indian economy MCQs PDFs from various educational websites and online resources. Ensure you choose reputable sources that align with your exam syllabus and provide accurate and detailed answers.
11. What is the pattern of Indian economy MCQ questions?
The pattern of Indian economy MCQ questions varies across exams. Some focus on factual recall, while others emphasize application and analysis. Review past papers to understand the common question types and difficulty levels for your specific exam.
