Which Article of the Constitution provides for the Finance Commission?
Correct answer C. Article 280
Topic / 50 questions
Indian Economy Basics MCQs
Indian Economy Basics MCQs are multiple-choice questions on national income, sectors of the economy, economic planning, public finance and GST. They suit UPSC, SSC and bank exam preparation, and every question on MCQs360 shows its correct answer instantly so you can check your understanding as you revise.
The all-India Consumer Price Index (Rural, Urban and Combined) is released by which body?
Correct answer A. National Statistics Office
The Consumer Price Index for Industrial Workers (CPI-IW) is compiled by which organisation?
Correct answer C. Labour Bureau
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The National Statistics Office was formed in 2019 by merging the Central Statistics Office with which body?
Correct answer B. National Sample Survey Office
The Periodic Labour Force Survey (PLFS), launched in 2017, is conducted by which body?
Correct answer A. National Statistics Office
Which committee, reporting in 2009, revised India’s poverty line methodology and is associated with the ‘Tendulkar line’?
Correct answer A. Expert Group chaired by Suresh Tendulkar
Disguised unemployment in India is most commonly found in which sector?
Correct answer A. Agriculture
Who chaired the National Income Committee set up in 1949 to estimate India’s national income?
Correct answer B. P. C. Mahalanobis
Who made one of the earliest estimates of India’s per capita income, in ‘Poverty and Un-British Rule in India’?
Correct answer A. Dadabhai Naoroji
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The phrase ‘Hindu rate of growth’, describing India’s slow growth before the 1980s, was coined by which economist?
Correct answer D. Raj Krishna
On which date was the Pradhan Mantri Jan Dhan Yojana launched?
Correct answer B. 28 August 2014
The National Rural Employment Guarantee Act was enacted in 2005 and first implemented in how many districts in February 2006?
Correct answer B. 200
As enacted in 2005, MGNREGA guaranteed how many days of wage employment per rural household in a financial year?
Correct answer B. 100 days
The ‘Make in India’ initiative was launched in which year?
Correct answer B. 2014
The Digital India programme was launched on which date?
Correct answer C. 1 July 2015
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The Industrial Policy Resolution of 1956 divided industries into how many categories or schedules?
Correct answer C. Three
Which Article gives both Parliament and state legislatures the power to make laws on GST?
Correct answer C. Article 246A
Which organisation compiles the Wholesale Price Index (WPI) in India?
Correct answer B. Office of the Economic Adviser, DPIIT
From 2017, the Railway Budget was merged with the Union Budget, and the Union Budget date was moved to which day?
Correct answer B. 1 February
Under which Article of the Constitution is the Union Budget presented as the ‘Annual Financial Statement’?
Correct answer D. Article 112
About Indian Economy Basics MCQs
This topic starts with core concepts such as GDP, GNP and net factor income from abroad, the primary, secondary and tertiary sectors, and early estimates of national income. It then covers economic planning in India: the Planning Commission and National Development Council, the aims and models of the Five-Year Plans, and the move to NITI Aayog in 2015. Questions often ask which plan stressed which sector, or which model a plan followed.
Public finance questions cover the constitutional basis of the Union Budget and the Finance Commission, the merger of the Railway Budget and the change of Budget date, and the Goods and Services Tax, including its amendment, the GST Council and its voting rules. Other questions cover poverty estimation committees, statistical bodies and the 1991 economic reforms that opened the economy to greater private and foreign investment.
Key facts to remember
- The Union Budget is presented as the Annual Financial Statement under Article 112 of the Constitution.
- The Finance Commission is constituted under Article 280 of the Constitution.
- In the GST Council the Centre has one-third of the voting weight and the states together have two-thirds, and decisions need a three-fourths majority.
- The Second Five-Year Plan (1956-61), which stressed heavy industry, was based on the Mahalanobis model.
- The Twelfth Five-Year Plan (2012-17) was the last Five-Year Plan.
- From 2017 the Railway Budget was merged with the Union Budget, which is now presented on 1 February.
Exams that include Indian Economy Basics MCQs
India
- SSC CGL
- SSC CHSL
- IBPS PO
- SBI PO
- RBI Grade B
- UPSC CSE Prelims
- State PSCs
How to prepare for Indian Economy Basics MCQs
- Draw up a table of the Five-Year Plans with their years, focus and model, and note any plan holidays in between.
- Learn the formulae linking GDP, GNP, NDP and NNP so you can answer concept questions without guessing.
- Group constitutional Articles on finance together, such as 112, 246A, 279A and 280, and revise them as a set.
- Associate each committee with its subject and year, for example the Tendulkar committee of 2009 on poverty estimation.
Frequently asked questions
What is the difference between GDP and GNP?
GDP is the value of all final goods and services produced within a country's borders in a period. GNP adds net factor income from abroad, that is income earned by residents from abroad minus income earned by non-residents within the country.
Which exams ask Indian Economy Basics MCQs?
These questions appear in SSC CGL and CHSL, the UPSC Civil Services prelims, state PSC exams and the general awareness sections of IBPS, SBI and RBI exams. Planning, Budget and GST questions are especially common.
Which amendment introduced GST in India?
GST was introduced by the Constitution (101st Amendment) Act, 2016. It inserted Article 246A, which lets both Parliament and state legislatures make laws on GST, and Article 279A, which provides for the GST Council. GST came into effect on 1 July 2017.
Last reviewed October 2026