Indian Economy Questions and Answers – CDS NDA AFCAT Exam

Indian Economy Questions and Answers for various exam like CDS NDA AFCAT is provided below which student can use to test their preparation. After proper analyses of previous year question papers, it has been noted that around 5-6 questions are asked from the Economy section. Concepts which are asked in the paper include national income, demographic dividend, important scheme related to welfare, health, housing, concept related to poverty and unemployment etc. Some questions are also asked based on current economy and international organisations.

Indian Economy Questions and Answers – CDS NDA AFCAT Exam


  1. India has
    (a) socialistic economy
    (b) gandhian economy
    (c) mixed economy
    (d) free economy
  2. India opted for ‘mixed economy’ in
    (a) Framing of the Constitution
    (b) Second Five Year Plan
    (c) Industrial Policy of 1948
    (d) None of the above
  3. Which one of the following was the task of the Planning Commission?
    (a) Preparation of the plan
    (b) Implementation of the plan
    (c) Financing of the plan
    (d) Both ‘a’ and ‘b’
  4. Who wrote the book ‘Planned Economy for India’?
    (a) M Visvesvaraya
    (b) Sardar Vallabhbhai Patel
    (c) Jawaharlal Nehru
    (d) Mahatma Gandhi
  5. The contribution of agriculture to India’s economy is
    (a) increasing (b) decreasing
    (c) constant (d) None of these
  6. Planning in India drew on
    (a) the New Economic Programme of Lenin
    (b) the Fabian Socialism of Sidney and Beatrice Web
    (c) the British welfare mechanism
    (d) new democratic development packages
  7. National Development Council was set-up in
    (a) 1948 (b) 1950 (c) 1551 (d) 1952
  8. Economic Planning is a subject
    (a) in the Union List
    (b) in the State List
    (c) in the Concurrent List
    (d) unspecified in any Special List
  9. Economic survey is published by
    (a) Ministry of Finance
    (b) Planning Commission
    (c) Government of India
    (d) Indian Statistical Institute
  1. Rolling plan was designed for the period
    (a) 1978-80 (b) 1980-85
    (c) 1985-90 (d) 1974-97
  1. Which one of the following statements is/are correct about the Pradhan Mantri Gram Sadak Yojana (PMGSY)?
    (a) It provides connectivity to all the unconnected habitations of more than 1000 persons in the rural areas by good quality all-weather roads
    (b) It was launched in 2005 as a fully funded centrally sponsored scheme
    (c) It provides connectivity to all unconnected habitations of more than 250 persons in the hilly and desert areas by good quality all-weather roads
    (d) Both ‘a’ and ‘c’
  1. Inflation implies
    (a) rise in budget deficit
    (b) rise in money suply
    (c) rise in general price index
    (d) rise in prices of consumer goods
  1. Hard Currency is defined as currency
    (a) which can hardly be used for international transactions
    (b) which is used in times of war
    (c) which loses its value very fast
    (d) traded in foreign exchange market for which demand is persistently relative to the supply
  2. A Scheduled Bank is one which is included in the
    (a) Second Schedule of Banking Regulation Act
    (b) Second Schedule of Constitution
    (c) Second Schedule of Reserve Bank of India Act
    (d) None of the above
  3. When was the Reserve Bank of India taken over by the Government?
    (a) 1945 (b) 1949
    (c) 1952 (d) 1956
  1. Which one of the following is the correct sequence of economic sectors in terms of their contribution to the GDP of India in decreasing order?
    (a) Service—Industry—Agriculture
    (b) Agriculture—Industry—Service
    (c) Industry—Service—Agriculture
    (d) Agriculture—Service—Industry
  2. Which one of the following is not an ASEAN member?
    (a) Cambodia (b) Laos
    (c) Myanmar (d) Taiwan
  3. Which one among the following countries was the top contributor to India’s FDI for the year 2013-14?
    (a) Mauritius (b) Singapore
    (c) USA (d) Japan
  1. The Concept of Demographic Transition provides a model for
    (a) analysing government responses to changing pattern of population growth
    (b) explaining major patterns of global population movement throughout the history
    (c) analysing spatial variations in the distribution, growth and movement of population overtime
    (d) examining the relationship between economic development and natural population change
  2. The Second Five Year Plan that called for the establishment of socialist pattern of society was commonly referred to as the
    (a) Harrod-Domar Plan
    (b) Mahalanobis Plan
    (c) Nehru Plan
    (d) People’s Plan
  1. Which one of the following continents accounts for the maximum share in exports from India?
    (a) Asia (b) Europe
    (c) Africa (d) North America
  2. During the Eleventh Five Year Plan, agriculture sector in India witnessed a growth rate of 3.3% per annum which is higher than 2.4% per annum in the previous Five Year Plan. This is largely due to better performance of
    (a) crops and livestock
    (b) oilseeds and fibres
    (c) fishing and oilseeds
    (d) fibres and fishing
  1. The First Five Year Plan (1951-56) was drafted by
    (a) PC Mahalanobis (b) KN Raj
    (c) JC Kumarappa (d) Jawaharlal Nehru
  1. Areas which are engines for economic growth supported by quality infrastructure and complemented by an attractive fiscal package are known as
    (a) Export Processing Zones
    (b) Duty Free Tariff Zones
    (c) Special Economic Zones
    (d) Technology Parks
  2. Which one of the following is not a feature of the Nehru-Mahalanobis model of development strategy?
    (a) Development of capital goods industries
    (b) Major involvement of the state in the economy
    (c) Industrial deregulation and disinvestment in the public sector
    (d) Enhancing the scope and importance of the public sector
  1. The principal source of revenue to the State Government in India is
    (a) Income tax
    (b) Sales tax
    (c) State Excise duties
    (d) Land revenue
  2. Which of the following is an indirect tax?
    (a) Corporation tax
    (b) Excise duty
    (c) Wealth tax
    (d) Capital Gains tax
  3. Customs duties, export duties, corporation taxes, taxes on capital value of assets (excluding agricultural land of individuals and companies) are
    (a) taxes and duties levied by the Centre but collected by the States
    (b) taxes and duties levied by the Centre but wholly appropriated by the States
    (c) taxes levied and collected by the Union but shared with the States
    (d) taxes and duties that accrue wholly to the Union Government
  4. The largest contribution in India’s National Income is from
    (a) primary sector
    (b) secondary sector
    (c) tertiary sector
    (d) Any of the above
  5. What are ‘Open Market Operations’?
    (a) Activities of SEBI-registered brokers
    (b) Selling of securities by the RBI
    (c) Selling of gilt-edged securities by the Government
    (d) Sale of shares by FIIs

NDA Indian polity questions answers below :

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