UPSC Indian Economic Service (IES) MCQs - Page 2
Prepare effectively for the UPSC Indian Economic Service (IES) exam with a focused collection of multiple-choice questions (MCQs). These MCQs cover essential topics like Economics, General Studies, and Statistics, designed to match the actual exam pattern. Practicing these questions will help aspirants strengthen their understanding of economic concepts, improve problem-solving skills, and manage time efficiently during the exam. Whether you're revising key topics or testing your knowledge, these IES MCQs are a valuable resource to guide you toward success in the UPSC Indian Economic Service exam and a rewarding career in economic policy-making.
Q21. GDP at market prices includes:
A. Net exports
B. Gross fixed capital formation
C. Indirect taxes less subsidies
D. All of the above
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Q22. The “Human Development Index” measures:
A. Economic growth alone
B. Social progress alone
C. Health, education and income
D. Employment rate
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Q23. The Laffer curve illustrates the relationship between:
A. Tax rates and tax revenue
B. Inflation and unemployment
C. GDP and consumption
D. Savings and investment
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Q24. Which of the following is NOT a fiscal policy tool?
A. Government spending
B. Taxation
C. Interest rate setting
D. Transfer payments
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Q25. In the Keynesian model, aggregate demand is:
A. Total supply in the economy
B. Sum of consumption, investment, government spending, and net exports
C. Total output
D. Total production
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Q26. Which is the largest component of India’s GDP?
A. Agriculture
B. Services
C. Industry
D. Manufacturing
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Q27. Inflation targeting in India is done by:
A. Finance Ministry
B. Prime Minister Office
C. Reserve Bank of India
D. NITI Aayog
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Q28. Which is NOT part of the Indian Planning Commission’s tasks?
A. Formulating five-year plans
B. Allocating Central Assistance
C. Conducting general elections
D. Monitoring plan implementation
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Q29. What is “Public Finance”?
A. Government revenue and expenditure management
B. Private sector investment
C. Capital markets
D. Banking regulation
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Q30. Which is the most widely used method to calculate national income?
A. Income method
B. Expenditure method
C. Production method
D. Value added method
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Q31. Which institution publishes the “Economic Survey” of India?
A. RBI
B. Ministry of Finance
C. NITI Aayog
D. Union Budget Office
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Q32. The term “GNP” stands for:
A. Gross National Product
B. Gross National Purchase
C. General National Product
D. Global National Product
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Q33. Which type of unemployment is due to seasonal variations?
A. Structural unemployment
B. Frictional unemployment
C. Cyclical unemployment
D. Seasonal unemployment
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Q34. What does “Monetary Policy” primarily regulate?
A. Government spending
B. Money supply and interest rates
C. Tax collection
D. Public debt
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Q35. Which of the following is an example of a direct tax?
A. Sales tax
B. Excise duty
C. Income tax
D. Custom duty
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Q36. Which indicator measures economic inequality?
A. Human Development Index
B. Gini coefficient
C. GDP
D. Consumer Price Index
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Q37. India’s first Five Year Plan focused on:
A. Agriculture and Irrigation
B. Heavy Industries
C. Education and Health
D. Transport and Communication
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Q38. In economics, “marginal cost” means:
A. Total cost divided by quantity
B. Cost of producing one additional unit
C. Average cost
D. Fixed cost
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Q39. Which sector contributes the most to India's GDP?
A. Agriculture
B. Manufacturing
C. Services
D. Mining
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Q40. Which term means a situation with many buyers and sellers but no single entity controls the market?
A. Monopoly
B. Oligopoly
C. Perfect Competition
D. Monopolistic Competition
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