Basic Features of Indian Economy MCQs and Answers

If you’re looking for an overview of the basics of India’s economy, you’ve come to the right place. In this blog post, we’ll be discussing some of the most important aspects of India’s economy, including its GDP, inflation, and unemployment rates. We’ll also be answering some common questions about Indian economics, such as what the rupee is worth and how the government regulates the economy. So if you’re looking to learn more about India’s economy, read on!

Basic Features of Indian Economy MCQs and Answers

1. Which among the following is the basic feature of the Indian economy?

a. Socialistic

b. Capitalistic

c. Mixed

d. None of the above

Answer: c

Explanation: A mixed economy is an economic system that combines elements of both a free market economy and a command economy. This type of economy includes a variety of private and public sector organizations that work together to produce goods and services. The mixed economy is the basic feature of the Indian economy. It is a mix of both the private and the public sector. The Indian economy is a free market economy. The government does not control the economy. The government does not own the means of production. The government does not control the prices of goods and services. The government does not control the distribution of wealth. The government does not control the level of employment. The government does not control the level of economic activity. The government does not control the level of inflation.


2. Which among the following is not the basic feature of Indian economy?

a. Private sector

b. Public sector

c. Mixed

d. None of the above

Answer: d

Explanation: The Indian economy is the third largest in the world in terms of purchasing power parity (PPP), and is expected to be the second largest by 2030. India is also the fastest-growing economy in the world.

The Indian economy is characterized by a large and vibrant service sector, a strong and rapidly growing manufacturing sector, and a vast countryside with a large agricultural sector. The service sector is the largest and most important sector of the economy, accounting for more than 60% of GDP. It includes activities such as trade, tourism, transport, communication, banking, insurance, and real estate.

The manufacturing sector is the second largest sector of the economy and is expected to grow at an even faster rate than the service sector in the coming years. It includes activities such as textiles, chemicals, pharmaceuticals, engineering, and food processing.


3. What is the basic characteristic of Indian economy?

a. Low per capita income

b. High per capita income

c. Medium per capita income

d. None of the above

Answer: c

Explanation: The per capita income in India has been growing steadily over the past few years. In fact, according to the World Bank, the country’s per capita income is expected to reach 1850 USD by the end of 2022. This growth is essential for the country’s continued economic development. There are a number of factors behind this growth in per capita income.

Firstly, the country’s population is expanding. This means that there are more people available to work and contribute to the economy. Secondly, India’s GDP is growing. This is thanks to a number of factors including favourable government policies, a growing service sector, and an expanding manufacturing sector.

Thirdly, India’s working-age population is also growing. This is thanks to the country’s large population of young people. In fact, over 60% of the population is below the age of 35. This provides a large pool of potential workers for the country’s economy.

Fourthly, India’s population is becoming increasingly educated. This is leading to more people being employed in high-skilled occupations. Finally, India is becoming more integrated into the global economy. This is providing new opportunities for the country’s workers.


4. What is the another feature of Indian economy?

a. High population

b. Low population

c. Medium population

d. None of the above

Answer: a

Explanation: India is the second most populous country in the world with over 1.3 billion people, and its population is growing rapidly. This population growth is both a blessing and a curse for the Indian economy.

On the one hand, a large population provides a large workforce that can drive economic growth. On the other hand, a large population also places a strain on resources and infrastructure, which can limit economic growth.


5. Which among the following is not the basic feature of Indian economy?

a. Agricultural

b. Industrial

c. Service

d. Oil & Gas Sector

Answer: d

Explanation: The oil and gas sector is not the basic feature of Indian economy, but it is an important sector nonetheless. The sector provides employment to millions of people and contributes to the country’s GDP.


6. Which of the following is the largest contributor to the Indian economy?

a. agriculture

b. industry

c. services

d. None of these

Answer: c

Explanation: The service sector is the largest contributor to the Indian economy, accounting for more than 53% of the country’s GDP. The sector includes a wide range of activities such as trade, communication, transport, finance, healthcare, tourism, and so on.

The sector has been growing rapidly in recent years, thanks to the government’s push to develop the infrastructure and policy environment needed to support its growth. For instance, the government has been investing heavily in the development of transportation and communication infrastructure, which has helped the sector to grow.


7. What is the primary sector of the Indian economy?

a. agriculture

b. industry

c. services

d. construction

Answer: a

Explanation: The primary sector of the Indian economy is the sector that is closest to the natural resources. The sector includes agriculture, forestry, fishing, mining, and quarrying. The sector is the most important sector in the economy as it provides the raw materials for other sectors to use in their production process. The sector employs a large number of people and is the main source of livelihood for many people in the country. The sector is also the largest contributor to the country’s GDP.


8. Which of the following is not a part of the secondary sector of the Indian economy?

a. manufacturing

b. mining

c. electricity

d. information technology

Answer: d

Explanation: The secondary sector of the Indian economy comprises of industries that process or transform raw materials into finished goods. This sector includes manufacturing, mining, construction, and power generation.

The secondary sector plays a vital role in the economic development of India. It contributes significantly to the country’s GDP and provides employment to a large section of the population. The sector has witnessed rapid growth in recent years, owing to the government’s initiatives to boost industrialization.

The secondary sector is a key driver of the Indian economy and is expected to continue growing at a rapid pace in the coming years.


9. What is the tertiary sector of the Indian economy?

a. transportation

b. communication

c. insurance

d. mining

Answer: d

Explanation: The tertiary sector of the Indian economy refers to the service industry. This sector includes a wide range of businesses, from transportation and communication to banking and insurance. The tertiary sector plays a vital role in the Indian economy, contributing significantly to the country’s GDP. In recent years, the tertiary sector has been growing at a rapid pace, creating millions of jobs and contributing to the development of the economy. The tertiary sector is an important part of the Indian economy and will continue to play a vital role in the country’s development.


10. What is the current GDP of India?

a. $2.6 trillion

b. $2.9 trillion

c. $3.2 trillion

d. $3.5 trillion

Answer: d

Explanation: The current GDP of India is $3.5 trillion US dollars. This makes it the fifth largest economy in the world. India has a population of over 1.3 billion people, making it the second most populous country in the world. The Indian economy is expected to continue to grow at a rapid pace in the coming years.

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