Indian Economy Question and Answer – Economic and commercial developments for competitive examinations are an important subject, especially for examinations like banks, UPSC and IAS. There are a number of questions based on Indian Economy, Monetary Policy, Agriculture, Five Year Plan, Mixed Economy, Latest Economy Current Affairs, which are here to keep you updated and get success in the interview.

1. The Law of Demand is based on
Question Asked : SSC (10+2) Level DEO & LDC Exam 2013

(A) Manufacturer’s preference
(B) Seller’s preference
(C) Supplier’s preference
(D) Consumer’s preference

2. Expenditure on advertisement and public relations by an enterprise is a part of its
Question Asked : SSC (10+2) Level DEO & LDC Exam 2013

(A) consumption of fixed capital
(B) final consumption expenditure
(C) intermediate consumption
(D) fixed capital

3. Elasticity (e) expressed by the formula 1 > e > 0 is
Question Asked : SSC Multi-Tasking Staff Exam 2013

(A) Perfectly elastic
(B) Relatively elastic
(C) Perfectly inelastic
(D) Relatively inelastic

4. A market in which there are a few number of large firms is called as
Question Asked : SSC Multi-Tasking Staff Exam 2013

(A) Duopoly
(B) Competition
(C) Oligopoly
(D) Monopoly

5. Microeconomics is also called
Question Asked : SSC Multi-Tasking Staff Exam 2013

(A) Income theory
(B) Investment theory
(C) Price theory
(D) Expenditure theory

6. A refrigerator operating in a chemist shop is an example of
Question Asked : SSC CPO Sub-Inspector Exam 2008

(A) free good
(B) final good
(C) producers good
(D) consumer’s good

7. According to modern thinking the law of diminishing returns applies to
Question Asked : SSC Section Officer (Commercial Audit) Exam 2006

(A) agriculture
(B) Industry
(C) mining
(D) all fields of production

8. If the marginal returns increases at a diminishing rate, the total return
Question Asked : SSC CGL Tier-I Exam 2014

(A) increases
(B) decreases
(C) remains constant
(D) becomes income

9. Small farmers in the country have been defined as those farmers having land holding of
Question Asked : SSC CHSL (10+2) DEO & LDC Exam 2014

(A) below one hectare
(B) one to two hectare
(C) two to three hectare
(D) three to four hectare

10. Agriculture should serve as an instrument of income, livelihood and opportunity to the local community – this statement was given by
Question Asked : SSC CAPFs SI, CISF ASI & Delhi Police SI Exam 2014

(A) Dr Madhavan Nair
(B) Dr Manmohan Singh
(C) Dr Abdul Kalam
(D) Dr M S Swamlnathan