Indian Economy PYQ – Nature of Indian Economy | Online Quiz

1.

ADGS 2021 · Jailor 2022

Mixed Economy implies

Correct Answer: B [Co-existence of Public and Private sectors]

Explanation:

A mixed economy combines the public (government-owned) and private sectors working side by side, which is the system India follows.

2.

ADGS 2021

The best indicator of economic development is

Correct Answer: D [Rising the standard of living]

Explanation:

Economic development is best measured by a rise in people's standard of living, including welfare, health and education, not just higher output, savings or investment.

3.

GSCE 2021

Assertion (A) : Ramachandra Guha calls Kumarappa as "Green Gandhian".

Reason (R) : Kumarappa was the founder of modern environmentalism in India.

Correct Answer: B [Both (A) and (R) are true and (R) is the correct explanation of (A)]

Explanation:

J.C. Kumarappa's Economy of Permanence stressed non-exploitation of nature, so he is called the Green Gandhian and regarded as a founder of modern environmentalism in India.

4.

Group 1 2021

Choose the correct statements related to "Black money".

(a) These are assets not reported to the Government at the time of their generation.

(b) Estimate of black money in India for the year 1983-84 is 95% of GDP.

(c) "Tax havens" are typically big countries which impose high tax on the foreigners who decide to settle down.

Correct Answer: A [(a) only]

Explanation:

Black money is income or assets hidden from tax authorities when generated, so (a) is correct; NIPFP estimated it at about 18-21% of GDP in 1983-84, not 95%, so (b) is wrong.

5.

Group 1 2021

What are the facts related to defining GDP?

(a) It is not for a specific period of time.

(b) It measures only goods and not services.

(c) It is a non monetary measure.

Correct Answer: C [(a), (b), (c) are wrong]

Explanation:

GDP is the market value of all final goods and services produced within a country in a specific period, so statements saying it has no time period or excludes services are wrong.

6.

Group 1 2021

Child Development Index takes into account of the following factors

I. Education

II. Income

III. Health

IV. Nutritional status

Correct Answer: B [I, III and IV]

Explanation:

Save the Children's Child Development Index uses education, health and nutritional status; income is not one of its components.

7.

Group 1 2021

According to Nobel Laureate Abhijit Banerjee (Economist), what is the only solution to overcome the economic pain in the short run in the wake of Covid-induced economic crisis?

Correct Answer: C [Putting more money in the hands of poor]

Explanation:

Abhijit Banerjee argued the crisis was a demand shortfall, so putting more money in the hands of the poor, who spend it immediately, is the way to revive consumption.

8.

Group 1 2021

Regarding the Indian economy, which of the following reflect unprecedented suspension of economic activity in the first quarter of this fiscal (April – June) due to the Covid pandemic?

(a) Contraction of around 50.3% in the construction sector

(b) Contraction of around 39.3% in the manufacturing sector

(c) Contraction of around 10% in the agri, forestry and fishing sector

(d) Contraction of around 5% in the Trade, hotels, transport sector

Correct Answer: A [(a) and (b) only]

Explanation:

In April-June 2020 construction (-50.3%) and manufacturing (-39.3%) contracted sharply, while agriculture still grew about 3.4%.

9.

CAGS 2022

______ sector contributes the most income to Indian Economy.

Correct Answer: C [Tertiary sector (Service)]

Explanation:

The tertiary (service) sector contributes more than half of India's gross value added, the largest share of national income.

10.

Group 2 2022

India ranks ______ in terms of nominal GDP among the world economy (2016-17).

Correct Answer: B [Seventh]

Explanation:

In 2016-17 India was the seventh largest economy by nominal GDP and third largest by purchasing power parity.

11.

PSY 2022

Match List I (variable) with List II (measures):

(a) Rapid growth of income – 1. Gini coefficient

(b) Greater inequality in income distribution – 2. Gross state domestic product per capita

(c) Greater regional imbalance – 3. GDP

(d) High level of aggregate output and income – 4. Average annual rates of growth of GDP

Correct Answer: B [4 1 2 3]

Explanation:

Income growth is measured by annual GDP growth rate, income inequality by the Gini coefficient, inter-state inequality by per capita GSDP and output size by GDP, giving the matching 4 1 2 3.

12.

CBT 2022

Knowledge Economy Mission was launched by ______ government on June 4th 2021.

Correct Answer: D [Kerala]

Explanation:

The Kerala government, through K-DISC, launched the Kerala Knowledge Economy Mission on 4 June 2021 to create jobs for educated youth.

13.

Reporter 2022 · CBT 2022

Identify the sectors of the Indian Economy which are the most affected by the Covid Pandemic.

1. MSME sector

2. Aviation sector

3. Tourism and hospitality sector

4. Telecommunication sector

Correct Answer: D [1, 2 and 3 only]

Explanation:

MSMEs, aviation, and tourism and hospitality were hit hardest by lockdowns and travel curbs, while telecom saw rising demand.

14.

SD 2022

'India will be a global player in the digital economy' – who said this?

Correct Answer: C [Sundar Pichai]

Explanation:

Google CEO Sundar Pichai said India will be a global player in the digital economy, citing its fast-growing internet use and digital services.

15.

Group 1 2022

PM Gatishakti is a transformative approach for economic growth and sustainable development which focuses on

Correct Answer: B [Multimodal Connectivity]

Explanation:

PM Gati Shakti, launched on 13 October 2021, is a national master plan that integrates road, rail, port, air and waterway projects for multimodal connectivity.

16.

Group 1 2022

Indian economy is marked by the existence of

(i) Low per capita income

(ii) High proportion of the working population is engaged in industries

(iii) Improving rate of capital formation

(iv) Problems in the employment

Correct Answer: B [(i) and (iii) are correct]

Explanation:

Most of India's workforce depends on agriculture, not industry, so (ii) is false; low per capita income and a large agricultural workforce characterise the economy.

17.

Bursar 2023

During the great depression ______ system failed to respond to the needs of the people.

Correct Answer: A [Capitalist System]

Explanation:

During the Great Depression from 1929, free-market capitalist economies failed to revive output or employment, exposing the weakness of capitalism.

18.

Health Officer 2023

Match correctly the expenditure with their corresponding items:

(a) Capital expenditure – 1. Energy and Transport development

(b) Revenue expenditure – 2. Bridges and Hospitals construction

(c) Sectoral expenditure – 3. Salaries, Pension and interest

(d) Deferred expenditure – 4. Advance payment for goods and services

Correct Answer: B [2 3 1 4]

Explanation:

Asset-creating spending such as bridges and hospitals is capital expenditure, while salaries, pensions and interest are recurring revenue expenditure, giving the matching 2 3 1 4.

19.

Health Officer 2023

______ Economy is completely incorporated into the principles of Karl Marx.

Correct Answer: A [Socialist]

Explanation:

A socialist economy rests on Karl Marx's ideas of social or state ownership of the means of production and an end to class exploitation.

20.

Fisheries Dept. 2023

Match List I (Types of Investment) with List II (Nature of Investment):

(a) Direct Foreign Investment – 1. Purchase of the country's stocks, bonds and currencies by foreigners

(b) Foreign Portfolio Investment – 2. Investments in product assets of the country by foreigners

(c) Commercial loans – 3. Raising loans from foreign financial institutions

(d) Foreign institutional assistance – 4. Provision of financial assistance by a foreign institution

Correct Answer: C [2 1 3 4]

Explanation:

FDI is long-term ownership in productive assets (2), while portfolio investment is buying a country's stocks and bonds (1), giving the matching 2 1 3 4.

21.

ACF 2023

Based on A.V. Kneese (1988), the concept of circular economy is to

Correct Answer: D [Use and reuse efficiently the resources]

Explanation:

A.V. Kneese's circular economy replaces the take-make-dispose model by using and reusing resources efficiently to cut waste.

22.

Road Inspector 2023

Choose the incorrect statement about the strengths of Indian Economy.

Correct Answer: B [Industries play the key role]

Explanation:

India's strengths are its mixed economy, agriculture and fast-growing services; saying industries play the key role is incorrect because services and agriculture lead in output and jobs.

23.

JSO 2023

Economic development will be sustainable only if it is pursued in a manner which protects

Correct Answer: D [The Environment]

Explanation:

Sustainable development, per the Brundtland Report, meets present needs without harming future generations, which requires protecting the environment.

24.

Group 4 2024

Assertion [A] : Cement production and consumption continue to grow despite the general recession in the economy.

Reason [R] : India is one of the largest cement producers and ranked first in the world.

Correct Answer: A [[A] is true but [R] is false]

Explanation:

Cement output keeps growing on infrastructure and housing demand, so A is true, but India is the second-largest producer after China, so R is false.

25.

Group 1B/1C 2024

The Economist who received the Malcolm Adiseshiah Award for 2023

Correct Answer: C [Utsa Patnaik]

Explanation:

The 2023 Malcolm Adiseshiah Award went to economist Utsa Patnaik; Adiseshiah founded the Madras Institute of Development Studies in 1971.

26.

Group 1B/1C 2024

Choose the right matches:

(a) Hicks J.R. – 1. General Theory of Employment, Interest and Money

(b) John Maynard Keynes – 2. A Contribution to the Theory of the Trade Cycle

(c) James Duesenberry – 3. An Introduction to the Theory of Macro Economic Policy

(d) Shaw G.K. – 4. Income, Saving and the Theory of Consumer Behaviour

Correct Answer: B [2 1 4 3]

Explanation:

Hicks wrote A Contribution to the Theory of the Trade Cycle, Keynes wrote The General Theory of Employment, Interest and Money, and Duesenberry wrote the work on income and saving, giving 2 1 4 3.

27.

Asst. Public Prosecutor Gr. II 2025

India has listed 10 important dimensions for India's Development till 2030. Among the 10 dimensions, 'Blue Economy' is ______ dimension.

Correct Answer: B [6th]

Explanation:

In India's Vision 2030 list of ten development dimensions announced in 2019, the Blue Economy is the sixth.

28.

Group 1 & 1A 2025

"Over half of India's GDP comes from rural India and almost two thirds of rural GDP comes from non-farm activities. Despite this, there are too many people engaged in low productivity occupations, and a lot more work of better, predictable nature is needed to enable a better life for rural India's inhabitants, especially the young." What can be inferred from the above statement about the economic contribution of rural India to the overall GDP?

Correct Answer: D [Rural India contributes more than half of India's GDP, and a significant portion comes from non-farm activities]

Explanation:

The passage says over half of GDP comes from rural India and two-thirds of rural GDP is from non-farm activities, so only that statement matches it.

29.

CTS (Interview Posts) 2025

Rural economics encompasses

Correct Answer: C [Both rural agricultural and non-agricultural activities]

Explanation:

Rural economics covers both agricultural activities and non-agricultural ones such as cottage industry, crafts, trade and services.

30.

CTS (ITI Posts) 2025 · CTS (Non-Interview Posts) 2025

Assertion [A] : India follows a Liberalization Policy.

Reason [R] : The new economic policy of 1991 introduced LPG.

Correct Answer: A [Both [A] and [R] are true, and [R] is the correct explanation of [A]]

Explanation:

India follows a liberalisation policy because the 1991 New Economic Policy introduced liberalisation, privatisation and globalisation (LPG), so R explains A.

31.

CTS (ITI Posts) 2025

According to Economic Survey 2023-24, India's position in Micro Finance Sector was

Correct Answer: C [Second largest]

Explanation:

The Economic Survey 2023-24 states that India has the second largest microfinance sector in the world.

32.

Group 2A Mains (Re-exam) 2026

Consider the following statements and choose the correct answer.

(1) Public procurement in India reached up to 20-25% of the GDP.

(2) Government e-Marketplace (GeM) was conceptualised as a special purpose vehicle.

(3) Government e-Marketplace promotes inclusive development, corruption-free governance.

(4) Government e-Marketplace digital portal was set up in August 2006.

Correct Answer: B [(3), (2) and (1) are correct]

Explanation:

GeM, the government e-marketplace under the Commerce Ministry, and public procurement of about 20-25% of GDP make statements (1), (2) and (3) correct.

? Full explanations with tables – Indian Economy PYQ book (₹149): www.shanmugamiasacademy.in/study-materials/tnpsc-indian-economy-pyq