Economy Q&A for all competitive exams

✅ Answer: C) Goods and Services Tax (GST)
Explanation: GST is an indirect tax levied on consumption of goods and services, whereas the rest are direct taxes paid directly by individuals or entities to the government.

✅ Answer: B) Banking

Explanation: Repo rate is the rate at which the RBI lends money to commercial banks. 

✅ Answer: C) Services
Explanation: The service sector (like IT, banking, education) contributes the highest share to India’s GDP.

✅ Answer: B) Increase in prices

Explanation: Inflation refers to the general rise in the prices of goods and services over a period of time. 

✅ Answer: C) Selling shares of public sector undertakings

Explanation: Disinvestment means the government selling its shares in public sector enterprises to raise funds or reduce its control. 

✅ Answer: A) Wheat and Rice Production

Explanation: Green Revolution led to a major increase in wheat and rice production using HYV seeds, fertilizers, and irrigation. 

✅ Answer: D) Inflation Rate
Explanation: HDI includes health (life expectancy), education, and standard of living (income).

✅ Answer: B) Ministry of Finance
Explanation: The Department of Economic Affairs under the Ministry of Finance prepares the Union Budget.

✅ Answer: B) Industrial development
Explanation: The initiative aims to encourage companies to manufacture in India and boost employment and innovation.

✅ Answer: D) All of the above

Explanation: GST subsumed multiple indirect taxes including VAT, Excise Duty, and Service Tax. 

✅ Answer: B) 2015
Explanation: NITI Aayog (National Institution for Transforming India) replaced the Planning Commission in 2015.

✅ Answer: C) Defense equipment purchase

Explanation: Capital expenditure leads to asset creation, like buying defense equipment. 

✅ Answer: C) Daily calorie intake
Explanation: Traditionally, the poverty line in India was determined by calorie intake and consumption expenditure.

✅ Answer: C) Fifth
Explanation: The Fifth Five-Year Plan (1974–79) aimed at poverty eradication with the slogan “Garibi Hatao”.

✅ Answer: B) CSO

Explanation: The Central Statistical Office (now merged under NSO) publishes the CPI. 

✅ Answer: A) Difference between exports and imports of goods
Explanation: Balance of Trade is the net difference between a country's exports and imports.

✅ Answer: B) SEBI

Explanation: SEBI (Securities and Exchange Board of India) is the regulatory body for stock markets. 

✅ Answer: C) MGNREGA

Explanation: Mahatma Gandhi National Rural Employment Guarantee Act provides legal guarantee for 100 days of employment. 

✅ Answer: B) Total expenditure minus total receipts (excluding borrowings)
Explanation: Fiscal deficit shows the gap between what the government earns and spends, excluding borrowings.

✅ Answer: D) P.C. Mahalanobis

Explanation: P.C. Mahalanobis formulated the Second Five-Year Plan and is considered the architect of India’s planning model.