Multiple Choice Quiz Questions (MCQs) on Indian Economy for General Studies and GK preparation of SSC, NDA, CDS, UPSC and State PSC Exams

31. In which year Setu Bharatam was launched?

[A] 2018

[B] 2017

[C] 2016

[D] 2919

Answer: C [2016]

Notes:

Setu Bharatam was launched in 2016. It aimed to make all national highways free of rail crossing by 2019.

32. Which country is the top coal exporter in the world?

[A] Japan

[B] Australia

[C] USA

[D] China

Answer: B [Australia]

Notes:

The top 5 coal exporting countries in the world are Australia, Indonesia, Russia, USA, and Colombia.

33. What is India’s rank in gas production in the world?

[A] 29

[B] 23

[C] 26

[D] 25

Answer: A [29]

Notes:

India’s rank in gas production in the world is 29. India is ranked 22 in gas reserves it holds.

34. What is the share of hydroelectricity in the total electricity produced in the world?

[A] 25%

[B] 16%

[C] 20%

[D] 10%

Answer: B [16%]

Notes:

Hydroelectricity has a share of 16% in the total electricity produced in the world.

35. Which of the following is not an economic activity?

[A] A labourer working in a factory

[B] A CRPF jawan guarding the country’s borders

[C] A teacher teaching his own son

[D] A farmer tilling his own land

Answer: C [A teacher teaching his own son]

Notes:

An activity which is done for the purpose of monetary return is called an economic activity, whereas an activity which is not done for the purpose of monetary return is called a non-economic activity. Example When a teacher teaches students in a school, he is doing economic activity. When the same teacher teaches his son, he is doing non-economic activity.

36. Which statement is true for a public sector unit?

[A] Most of the assets is owned by a group of people

[B] Most of the assets is owned by big companies

[C] Most of assets is owned by government

[D] Most of the assets is owned by an individual

Answer: C [Most of assets is owned by government]

Notes:

The government-owned corporations are termed as Public Sector Undertakings (PSUs) in India. In a PSU majority (51% or more) of the paid up share capital is held by central government or by any state government or partly by the central governments and partly by one or more state governments.

37. Parallel economy emerges because of what?

[A] Tax Estimation

[B] Tax Compliance

[C] Tax Avoidance

[D] Tax Evasion

Answer: D [Tax Evasion]

Notes:

When economic activities are not reported or measured by the current techniques of society to monitor economic activities then it comes under parallel economy.

38. The __ sector is characterized by small and scattered units that are largely outside the control of the government.

[A] Unorganised

[B] Organised

[C] Disguised

[D] Seasonal

Answer: A [Unorganized]

Notes:

The unorganized or informal sector is characterized by small and scattered units which are largely outside the control of the government. It mainly includes small scale workers, casual workers in construction, trade, transportation etc. The workers in the unorganized sector also include street vendors, rag pickers, garment makers etc.

39. Himayat is a training cum placement program for unemployed youth of which state?

[A] Haryana

[B] Punjab

[C] Jammu and Kashmir

[D] Himachal Pradesh

Answer: C [Jammu and Kashmir]

Notes:

Himayat is a training-cum-placement program for unemployed youth in Jammu and Kashmir. Under the programme, the youth of the state will be provided short-term training for at least 3 months in a range of skills for which there is a good demand in the market. The objective of this scheme is to train 1,00,000 youth in 5 years and provide employment to at least 75% of them.

40. Who pays the entertainment tax on cinema?

[A] By producer

[B] By finance-manager

[C] By Director

[D] By Audience

Answer: D [By Audience]

Notes:

Entertainment comes in List 2 of the Seventh Schedule to the Constitution of India and is exclusively reserved as a source of revenue for the State Governments. It is paid by the audience as indirect tax. However, like various indirect taxes, entertainment tax has also been subsumed under the Goods and Services Tax (GST).

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