CBSE Class 10 Social Science Economics MCQs Set 01

Multiple Choice Questions (MCQs) for Class 10 Social Science: Economics

Review structured MCQ sets for Class 10 Social Science Economics. Built according to official CBSE guidelines, these downloadable questions support daily revision and core concept reinforcement.

Practice Economics MCQs for Class 10 Social Science

Navigate directly to the 50 objective questions for Economics using the digital viewer below. Each practice set includes verified answer keys, allowing students to instantly cross-check their work and identify areas requiring further revision.

Multiple Choice Questions

Question 1: Which of the following does not form part of the current account of the Balance of Payments?
(a) Export and import of goods
(b) Export and import of services
(c) Income receipts and payments
(d) Capital receipts and payments
Show Answer & Explanation

Answer: (d) Capital receipts and payments

Explanation:
1. Capital receipts and payments belong to the capital account.

Question 2: The 'official reserve transactions' are seen as which items in the Balance of Payments?
(a) Autonomous
(b) Accommodating
(c) Above the line
(d) None of these
Show Answer & Explanation

Answer: (b) Accommodating

Explanation:
1. Official reserve transactions are accommodating (below-the-line) items that settle the BoP gap.

Question 3: Which among the following is the difference in value between a country's imports and exports?
(a) Balance of Trade
(b) Balance of Payment
(c) Balance of power
(d) Credit Balance
(e) None of the above
Show Answer & Explanation

Answer: (a) Balance of Trade

Explanation:
1. The correct answer is option (a): Balance of Trade.

Question 4: Official reserve transactions are seen as which items in the Balance of Payments?
(a) Autonomous
(b) Accommodating
(c) Above the line
(d) None of these
Show Answer & Explanation

Answer: (b) Accommodating

Explanation:
1. Official reserve transactions accommodate the deficit or surplus, so they are accommodating items.

Question 5: The difference in the value of visible exports and visible imports is called :
(a) Balance Sheet of items
(b) Balance of Payments
(c) Balance of Trade
(d) Balance of Account
Show Answer & Explanation

Answer: (c) Balance of Trade

Explanation:
1. The difference between visible exports and visible imports is the balance of trade.

Question 6: As we all know Ministry of Finance every year prepares Union Budget and presents it to the Parliament. Which of the following is / are the elements of the Union Budget? (1) Estimates of revenue and capital receipts. (2) Ways and Means to raise the revenue. (3) Estimates of expenditure.
(a) Only 1
(b) Only 2
(c) Only 3
(d) All 1, 2 & 3
(e) None of these
Show Answer & Explanation

Answer: (d) All 1, 2 & 3

Explanation:
1. The Union Budget contains estimates of receipts, the ways and means of raising revenue and estimates of expenditure, so all three.

Question 7: Fiscal deficit in the Union Budget means
(a) The difference between crucial expenditure and current revenue.
(b) The sum of budgetary deficit and net increase in internal and external borrowings
(c) Net increase in union government borrowings from Reserve Bank of India
(d) The sum of monetized deficit and budgetary deficit.
(e) None of these
Show Answer & Explanation

Answer: (b) The sum of budgetary deficit and net increase in internal and external borrowings

Explanation:
1. Fiscal deficit = total expenditure − (revenue receipts + non-debt capital receipts), which equals the government's total borrowing need.

Question 8: 'Effective Revenue Deficit' refers to:
(a) Revenue deficit minus grants for creation of capital assets
(b) Revenue deficit minus capital expenditure from the Centre's own funds
(c) Revenue deficit minus net interest liability
(d) Fiscal deficit minus grants to states for capital asset generation
Show Answer & Explanation

Answer: (a) Revenue deficit minus grants for creation of capital assets

Explanation:
1. Effective revenue deficit = revenue deficit − grants for creation of capital assets.

Question 9: The term 'Zero Based Budgeting' refers to __________.
(a) A specified sum of money authorized by the Legislature for a specific period of time
(b) To ensure that every rupee spent is result oriented
(c) A statutorily mandated form of reimbursement or up- front payment for state expenditures
(d) A cost item for which payment is made by one state agency to another
(e) A shortfall in an existing appropriation, or an additional amount needed to accomplish a new or expanded purpose
Show Answer & Explanation

Answer: (b) To ensure that every rupee spent is result oriented

Explanation:
1. The correct answer is option (b): To ensure that every rupee spent is result oriented.

Question 10: The Union Budget in India is divided into two parts: Revenue Account and
(a) Capital Account
(b) Current Account
(c) Fiscal Account
(d) Trade Account
Show Answer & Explanation

Answer: (a) Capital Account

Explanation:
1. The budget has a revenue account and a capital account.

Question 11: The first attempt at economic planning in India was made by Sir M. Visvesvaraya in
(a) 1934
(b) 1944
(c) 1938
(d) 1950
Show Answer & Explanation

Answer: (a) 1934

Explanation:
1. His book was Planned Economy for India.

Question 12: The National Planning Committee was set up in 1938 under the chairmanship of
(a) Jawaharlal Nehru
(b) M. Visvesvaraya
(c) M. N. Roy
(d) J. P. Narayan
Show Answer & Explanation

Answer: (a) Jawaharlal Nehru

Explanation:
1. Subhas Bose, as Congress President, set it up.

Question 13: The Bombay Plan was presented in
(a) 1944
(b) 1934
(c) 1945
(d) 1950
Show Answer & Explanation

Answer: (a) 1944

Explanation:
1. It was prepared by eight leading industrialists.

Question 14: The Planning Commission was set up on
(a) 15 March 1950
(b) 26 January 1950
(c) 1 April 1951
(d) 15 August 1947
Show Answer & Explanation

Answer: (a) 15 March 1950

Explanation:
1. It was set up by a Cabinet resolution.

Question 15: The Planning Commission was replaced by NITI Aayog in
(a) January 2015
(b) March 2012
(c) April 2017
(d) August 2014
Show Answer & Explanation

Answer: (a) January 2015

Explanation:
1. It was by a Cabinet resolution.

Question 16: A combination of businesses formed to control prices and enjoy monopoly is called a
(a) cartel
(b) trust fund
(c) cooperative
(d) franchise
Show Answer & Explanation

Answer: (a) cartel

Explanation:
1. OPEC is an example of a cartel.

Question 17: Official reduction in the external value of the domestic currency is called
(a) devaluation
(b) depreciation
(c) inflation
(d) deflation
Show Answer & Explanation

Answer: (a) devaluation

Explanation:
1. Devaluation is a deliberate government reduction.

Question 18: One basis point equals
(a) 1/100th of 1 percent
(b) 1 percent
(c) 1/10th of 1 percent
(d) 10 percent
Show Answer & Explanation

Answer: (a) 1/100th of 1 percent

Explanation:
1. 100 basis points make 1 percent.

Question 19: Selling a commodity at a lower price in a foreign market than at home is called
(a) dumping
(b) devaluation
(c) subsidy
(d) embargo
Show Answer & Explanation

Answer: (a) dumping

Explanation:
1. Dumping is price discrimination across markets.

Question 20: Theoretically trade between two countries lakes place on account of
(a) differences in costs
(b) scarcity of goods
(c) comparative differences in costs
(d) need for exports
Show Answer & Explanation

Answer: (c) comparative differences in costs

Explanation:
1. International trade takes place theoretically because of comparative differences in costs.

Question 21: In the law of demand, the statement “Other things remain constant” means
(a) income of consumer should not change
(b) price of other goods should not change
(c) taste of consumer should not change
(d) All of the above
Show Answer & Explanation

Answer: (d) All of the above

Explanation:
1. In the law of demand, "other things remain constant" covers income, prices of other goods and tastes.

Question 22: The demand for which of the following commodity will not rise in spite of a fall in its price?
(a) Television
(b) Refrigerator
(c) Salt
(d) Meat
Show Answer & Explanation

Answer: (c) Salt

Explanation:
1. The demand for a necessity like salt does not rise much even when its price falls.

Question 23: Under PM-SYM, the entry age group is
(a) 18-40 years
(b) 21-45 years
(c) 18-60 years
(d) 25-50 years
Show Answer & Explanation

Answer: (a) 18-40 years

Explanation:
1. Monthly income should be Rs 15,000 or less.

Question 24: The Pradhan Mantri Ujjwala Yojana was originally targeted at how many LPG connections?
(a) 5 crore
(b) 8 crore
(c) 1 crore
(d) 10 crore
Show Answer & Explanation

Answer: (a) 5 crore

Explanation:
1. It was later increased to 8 crore.

Question 25: DDU-GKY is mainly focused on skills training for rural youth aged
(a) 15 to 35 years
(b) 18 to 40 years
(c) 21 to 45 years
(d) 10 to 25 years
Show Answer & Explanation

Answer: (a) 15 to 35 years

Explanation:
1. It is a Skill India programme.

Question 26: The Stand Up India scheme facilitates bank loans between Rs 10 lakh and
(a) Rs 1 crore
(b) Rs 50 lakh
(c) Rs 5 crore
(d) Rs 2 crore
Show Answer & Explanation

Answer: (a) Rs 1 crore

Explanation:
1. It is for SC/ST and women entrepreneurs.

Question 27: The Stand Up India scheme is meant to promote entrepreneurship among
(a) Women and SC/ST
(b) Farmers
(c) Students
(d) Exporters
Show Answer & Explanation

Answer: (a) Women and SC/ST

Explanation:
1. It is for greenfield enterprises.

Question 28: Startup India aims to build a strong ecosystem for
(a) Startup businesses
(b) Large corporates
(c) Farm cooperatives
(d) State PSUs
Show Answer & Explanation

Answer: (a) Startup businesses

Explanation:
1. It has a 19-point action plan.

Question 29: Fiscal Policy is related to
(a) Issue of currency
(b) Credit creation
(c) Public revenue and expenditure
(d) All of these
(e) None of these
Show Answer & Explanation

Answer: (c) Public revenue and expenditure

Explanation:
1. Fiscal policy is the government's policy on public revenue (taxes) and expenditure.

Question 30: The excess of total expenditure of Government over its total receipts, excluding borrowmgs, is known as
(a) Primary deficit
(b) Fiscal deficit
(c) Current deficit
(d) Capital deficit
Show Answer & Explanation

Answer: (b) Fiscal deficit

Explanation:
1. Fiscal deficit = total expenditure − total receipts excluding borrowings.

Question 31: The increase in private investment spending induced by the increase in Government spending is known as
(a) Crowding in
(b) Deficit financing
(c) Crowding out
(d) Pumping out
Show Answer & Explanation

Answer: (a) Crowding in

Explanation:
1. Crowding in is the rise in private investment induced by higher government spending.

Question 32: Fiscal policy in India is formulated by:
(a) the Reserve Bank of India
(b) the Planning Commission
(c) the Finance Ministry
(d) the Securities and Exchange Board of India
Show Answer & Explanation

Answer: (c) the Finance Ministry

Explanation:
1. Fiscal policy (taxation and government spending) is framed by the Ministry of Finance; the RBI frames monetary policy.

Question 33: When did the rules under the Fiscal Responsibility and Budget Management Act come into force?
(a) July 2004
(b) August 2004
(c) August 2003
(d) July 2003
Show Answer & Explanation

Answer: (a) July 2004

Explanation:
1. The Fiscal Responsibility and Budget Management Act came into force on 5 July, 2004.

Question 34: What is the full form the term 'FDIs' as used in the economic world?
(a) Fixed Duration Investments
(b) Financial and Debt Instruments
(c) Foreign Deployment Index
(d) Foreign Direct Investments
(e) Formal Direct Issues
Show Answer & Explanation

Answer: (d) Foreign Direct Investments

Explanation:
1. FDI stands for Foreign Direct Investment: investment by a foreign entity that gives lasting interest and control in an Indian business.

Question 35: A direct investment made by a multinational by acquiring an existing foreign firm is called
(a) brownfield investment
(b) greenfield investment
(c) portfolio investment
(d) bluefield investment
Show Answer & Explanation

Answer: (a) brownfield investment

Explanation:
1. Acquisition of an existing firm is brownfield; creating a new enterprise is greenfield.

Question 36: A multinational enterprise setting up a new foreign enterprise through direct investment is called
(a) greenfield investment
(b) brownfield investment
(c) portfolio investment
(d) joint venture only
Show Answer & Explanation

Answer: (a) greenfield investment

Explanation:
1. New creation abroad is greenfield investment.

Question 37: A greenfield investment means a multinational enterprise
(a) Creates a new foreign enterprise
(b) Acquires an existing firm
(c) Lends money to a firm
(d) Buys shares on the stock exchange
Show Answer & Explanation

Answer: (a) Creates a new foreign enterprise

Explanation:
1. Buying an existing firm is a brownfield investment.

Question 38: A brownfield investment is made by
(a) Acquiring an existing foreign firm
(b) Creating a new enterprise
(c) Buying government bonds
(d) Lending abroad
Show Answer & Explanation

Answer: (a) Acquiring an existing foreign firm

Explanation:
1. Greenfield means a new setup.

Question 39: Foreign Direct Investment means investment in a business by an investor from another country with
(a) Control over the company
(b) No control
(c) Only government bonds
(d) Only shares of 1%
Show Answer & Explanation

Answer: (a) Control over the company

Explanation:
1. It differs from portfolio investment.

Question 40: What is External commercial borrowing?
(a) Borrowings of Indian government
(b) Foreign investments in India
(c) Indian investments abroad
(d) Indian corporations accessing foreign funds
Show Answer & Explanation

Answer: (d) Indian corporations accessing foreign funds

Explanation:
1. ECB- External commercial borrowing is the borrowing of Indian companies from abroad.

Question 41: Devaluation of money means :
(a) decrease in the internal value of money
(b) decrease in the external value of money
(c) decrease in both internal and external value of money
(d) the government takes back currency notes of any denominations
Show Answer & Explanation

Answer: (b) decrease in the external value of money

Explanation:
1. Devaluation means a decrease in the external value of the currency.

Question 42: Which one of the following approaches of human development was initially proposed by the International Labour Organisation (ILO) and emphasised on health, education, food, water supply, sanitation and housing?
(a) Welfare approach
(b) Basic needs approach
(c) Income approach
(d) Capability approach
Show Answer & Explanation

Answer: (b) Basic needs approach

Explanation:
1. The basic needs approach, first put forward by the ILO, stressed health, education, food, water, sanitation and housing.

Question 43: Disinvestment in Public Sector is called
(a) Liberalisation
(b) Globalisation
(c) Industrialisation
(d) Privatisation
Show Answer & Explanation

Answer: (d) Privatisation

Explanation:
1. Disinvestment in public sector enterprises is called privatisation.

Question 44: The Yellow Revolution relates to the production of
(a) oilseeds
(b) milk
(c) fish
(d) fertiliser
Show Answer & Explanation

Answer: (a) oilseeds

Explanation:
1. The Yellow Revolution is about oilseeds.

Question 45: The Pink Revolution relates to
(a) shrimp (prawn)
(b) milk
(c) horticulture
(d) fertiliser
Show Answer & Explanation

Answer: (a) shrimp (prawn)

Explanation:
1. The Pink Revolution refers to prawn production.

Question 46: The Golden Revolution relates to
(a) horticulture
(b) milk
(c) fish
(d) oilseeds
Show Answer & Explanation

Answer: (a) horticulture

Explanation:
1. The Golden Revolution is about horticulture.

Question 47: The Grey Revolution relates to
(a) fertiliser
(b) wool
(c) fish
(d) milk
Show Answer & Explanation

Answer: (a) fertiliser

Explanation:
1. The Grey Revolution is about fertiliser production.

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