CBSE Class 10 Social Science Economics MCQs Set 02

Social Science Objective Questions and Answers: Economics

Access targeted multiple-choice questions for Economics designed to align with the latest CBSE academic syllabus for Class 10 Social Science. These objective practice sets help students evaluate their conceptual understanding and improve exam readiness.

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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: Industries whose finished products are raw materials for other industries are called
(a) Basic industries
(b) Consumer industries
(c) Cottage industries
(d) Light industries
Show Answer & Explanation

Answer: (a) Basic industries

Explanation:
1. Iron and steel is an example.

Question 2: The sugar industry in Maharashtra is an example of a
(a) Co-operative industry
(b) Public sector industry
(c) Private sector industry
(d) Joint sector industry
Show Answer & Explanation

Answer: (a) Co-operative industry

Explanation:
1. Many mills are farmer-owned.

Question 3: Coins in India are minted at Mumbai, Kolkata, Hyderabad and
(a) Noida
(b) Nashik
(c) Dewas
(d) Chennai
Show Answer & Explanation

Answer: (a) Noida

Explanation:
1. There are four mints.

Question 4: “Gresham’s Law” relates to which of the following?
(a) Supply and demand
(b) Circulation of currency
(c) Consumption and supply
(d) Distribution of goods and services
Show Answer & Explanation

Answer: (b) Circulation of currency

Explanation:
1. Gresham’s law states that bad money drives out good money in circulation. For example, if there are two forms of commodity money in circulation, having similar face value, the more valuable commodity will gradually disappear from circulation.

Question 5: What is “narrow money” ?
(a) The sum of currency in circulation and the demand deposits in banks
(b) The sum of MI money and the time deposits
(c) The sum of currency in circulation with the public and the cash reserves held by banks
(d) The market value of the stocks held by all the holders excluding the promoters
Show Answer & Explanation

Answer: (a) The sum of currency in circulation and the demand deposits in banks

Explanation:
1. Narrow money (M1) is currency with the public plus demand deposits.

Question 6: The ratio of money held by the public in currency to that held in deposits is called
(a) the currency deposit ratio
(b) the reserve deposit ratio
(c) the cash reserve ratio
(d) the cash deposit ratio
Show Answer & Explanation

Answer: (a) the currency deposit ratio

Explanation:
1. Currency-deposit ratio = currency held by the public / deposits held by the public.

Question 7: Paper currency was first started in India in
(a) 1861
(b) 1542
(c) 1601
(d) 1880
Show Answer & Explanation

Answer: (a) 1861

Explanation:
1. The Paper Currency Act of 1861 gave the government control of note issue.

Question 8: Open market operation refers to
(a) borrowing by commercial banks from the R.B.I.
(b) lending by scheduled banks to non-scheduled banks
(c) purchase and sale of Government securities by the RB.
(d) purchase and sale of bonds and securities by the Central Govt.
Show Answer & Explanation

Answer: (c) purchase and sale of Government securities by the RB.

Explanation:
1. Open market operations are the purchase and sale of Government securities by the central bank.

Question 9: Which one of the following is not a quantitative credit control measure of a Central Bank ?
(a) Bank Rate Policy
(b) Open Market Operations
(c) Cash Reserve Ratio
(d) Moral Suasion
Show Answer & Explanation

Answer: (d) Moral Suasion

Explanation:
1. Moral suasion is a qualitative, not quantitative, credit control measure.

Question 10: The Chairman of the RBI Central Board is the
(a) Governor
(b) Finance Minister
(c) Prime Minister
(d) Deputy Governor
Show Answer & Explanation

Answer: (a) Governor

Explanation:
1. He is also the Chief Executive.

Question 11: The base year of India's new national income series is
(a) 2011-12
(b) 2004-05
(c) 1999-2000
(d) 2017-18
Show Answer & Explanation

Answer: (a) 2011-12

Explanation:
1. The new series shifted from 2004-05 to 2011-12.

Question 12: The preparation of National Income Estimates is the responsibility of the
(a) Planning Commission
(b) National Development Council
(c) National Sample Survey Organisation
(d) Central Statistical Organisation
Show Answer & Explanation

Answer: (d) Central Statistical Organisation

Explanation:
1. National income estimates are prepared by the Central Statistical Organisation.

Question 13: The difference between GNP and NNP equals
(a) corporate profits
(b) personal taxes
(c) transfer payments
(d) depreciation
Show Answer & Explanation

Answer: (d) depreciation

Explanation:
1. The difference between GNP and NNP is depreciation.

Question 14: National Income is the money value of all
(a) Final goods and services produced in a country in one year
(b) Intermediate goods only
(c) Exports only
(d) Imports only
Show Answer & Explanation

Answer: (a) Final goods and services produced in a country in one year

Explanation:
1. It is measured over a year.

Question 15: GDP is the money value of all final goods and services produced
(a) Within the geographical boundary of a country
(b) By nationals anywhere
(c) By the government only
(d) In the service sector only
Show Answer & Explanation

Answer: (a) Within the geographical boundary of a country

Explanation:
1. It includes the production of foreigners within the country.

Question 16: Disposable Personal Income equals Personal Income minus
(a) Direct taxes
(b) Indirect taxes
(c) Subsidies
(d) Depreciation
Show Answer & Explanation

Answer: (a) Direct taxes

Explanation:
1. It is available for spending or saving.

Question 17: Which agency of the Indian Government implements the Price Support Scheme (PSS) for oilseeds and pulses?
(a) FCI
(b) NAFED
(c) Agriculture Pricing Agency of India
(d) None of the above
Show Answer & Explanation

Answer: (b) NAFED

Explanation:
1. NAFED is the central nodal agency for procurement under the Price Support Scheme.

Question 18: Where is the headquarters of ‘BIMSTEC’ located?
(a) New Delhi
(b) Colombo
(c) Dhaka
(d) Jakarta
Show Answer & Explanation

Answer: (c) Dhaka

Explanation:
1. Bay of Bengal Initiative for Multi- Sectoral Technical and Economic Cooperation (BIMSTEC) is headquartered in Dhaka, Bangladesh.

Question 19: Which of the following is an OPEC country?
(a) Russia
(b) Kazakhstan
(c) Brazil
(d) Nigeria
Show Answer & Explanation

Answer: (d) Nigeria

Explanation:
1. Nigeria is a member of OPEC.

Question 20: Where is the headquarters of the International Civil Aviation Organisation (ICAO)?
(a) Geneva
(b) Montreal
(c) Paris
(d) New York
Show Answer & Explanation

Answer: (b) Montreal

Explanation:
1. ICAO is headquartered in Montreal, Canada.

Question 21: Where is the headquarters of OPEC?
(a) Vienna
(b) Geneva
(c) Paris
(d) London
Show Answer & Explanation

Answer: (a) Vienna

Explanation:
1. OPEC is based in Vienna.

Question 22: Where is the headquarters of the International Labour Organisation (ILO)?
(a) Geneva
(b) Vienna
(c) New York
(d) Rome
Show Answer & Explanation

Answer: (a) Geneva

Explanation:
1. The ILO is based in Geneva.

Question 23: Where is the headquarters of the OECD?
(a) Paris
(b) Geneva
(c) Washington
(d) Brussels
Show Answer & Explanation

Answer: (a) Paris

Explanation:
1. The OECD is headquartered in Paris.

Question 24: Where is the headquarters of the International Monetary Fund?
(a) Washington D.C.
(b) New York
(c) Geneva
(d) Basel
Show Answer & Explanation

Answer: (a) Washington D.C.

Explanation:
1. The IMF is based in Washington D.C.

Question 25: Where is the headquarters of the United Nations Environment Programme (UNEP)?
(a) Nairobi
(b) Geneva
(c) Vienna
(d) New York
Show Answer & Explanation

Answer: (a) Nairobi

Explanation:
1. UNEP is headquartered in Nairobi, Kenya.

Question 26: Poverty is generally categorised as
(a) absolute and relative
(b) primary and secondary
(c) urban and rural only
(d) seasonal and permanent
Show Answer & Explanation

Answer: (a) absolute and relative

Explanation:
1. Poverty is measured as absolute or relative.

Question 27: Unemployment linked to the structure of the economy, like rapid population growth, is called
(a) structural unemployment
(b) seasonal unemployment
(c) cyclical unemployment
(d) frictional unemployment
Show Answer & Explanation

Answer: (a) structural unemployment

Explanation:
1. Structural unemployment arises from economic structure and technology.

Question 28: According to India‘s Report of 2001 percentage of population living in rural areas is
(a) 70
(b) 72
(c) 74
(d) 80
Show Answer & Explanation

Answer: (b) 72

Explanation:
1. About 72 per cent of India's population lived in rural areas according to the 2001 Census.

Question 29: As per 2011 Census data, the child sex ratio has come down from 927 to:
(a) 904
(b) 920
(c) 917
(d) 914
Show Answer & Explanation

Answer: (d) 914

Explanation:
1. The 2011 Census child sex ratio (0-6 years) fell from 927 to 914.

Question 30: A high growth rate of population is characterised by
(a) high birth and high death rates
(b) high birth and low death rates
(c) low birth and low death rates
(d) low birth and high death rates
Show Answer & Explanation

Answer: (b) high birth and low death rates

Explanation:
1. A high growth rate of population is characterised by high birth rates and low death rates.

Question 31: According to Census 2011, the density of population of India was
(a) 382 persons per sq km
(b) 325 persons per sq km
(c) 400 persons per sq km
(d) 250 persons per sq km
Show Answer & Explanation

Answer: (a) 382 persons per sq km

Explanation:
1. The population was 1,210,193,422.

Question 32: Poverty in which basic necessities cannot be fulfilled is called
(a) Absolute poverty
(b) Relative poverty
(c) Structural poverty
(d) Transient poverty
Show Answer & Explanation

Answer: (a) Absolute poverty

Explanation:
1. Relative poverty compares income groups.

Question 33: Under-employment means workers
(a) Work below their capability
(b) Have no work
(c) Work for the government
(d) Work overseas
Show Answer & Explanation

Answer: (a) Work below their capability

Explanation:
1. It is common in agriculture.

Question 34: Which of the following taxes was subsumed in GST?
(a) Central excise duty
(b) Income tax
(c) Wealth tax
(d) Customs duty
Show Answer & Explanation

Answer: (a) Central excise duty

Explanation:
1. GST subsumed central excise, service tax and state VAT among others.

Question 35: Which of these is an indirect tax levied by the Centre?
(a) Customs duty
(b) Income tax
(c) Wealth tax
(d) Professional tax
Show Answer & Explanation

Answer: (a) Customs duty

Explanation:
1. Income tax is direct.

Question 36: Under GST, the Centre collects tax on inter-state supplies called
(a) IGST
(b) CGST
(c) SGST
(d) UTGST
Show Answer & Explanation

Answer: (a) IGST

Explanation:
1. IGST equals CGST plus SGST.

Question 37: The GST rate slabs introduced in 2017 were 5%, 12%, 18% and
(a) 28%
(b) 20%
(c) 25%
(d) 30%
Show Answer & Explanation

Answer: (a) 28%

Explanation:
1. Some goods also attract a cess.

Question 38: ELSS means
(a) Entry Load Shares Scheme
(b) Entry Load Starting Shares
(c) Equity Linked Savings Scheme
(d) Equity Linked Shares Sold
(e) Employee Level Salary Scheme
Show Answer & Explanation

Answer: (c) Equity Linked Savings Scheme

Explanation:
1. ELSS is Equity Linked Savings Scheme, a tax-saving equity mutual fund with a 3-year lock-in.

Question 39: ASBA accounts are ______.
(a) Loan accounts
(b) Credit card facilities
(c) Savings accounts
(d) Export-Import remittances
(e) Internet banking
Show Answer & Explanation

Answer: (c) Savings accounts

Explanation:
1. ASBA (Application Supported by Blocked Amount) blocks the IPO application money in the investor's savings account until allotment.

Question 40: An Equity share is also commonly referred to as
(a) ordinary share
(b) debenture
(c) convertible share
(d) security receipt
(e) preferred stock?
Show Answer & Explanation

Answer: (a) ordinary share

Explanation:
1. The correct answer is option (a): ordinary share.

Question 41: When was the SEBI act passed in parliament?
(a) 1990
(b) 1992
(c) 1993
(d) 1989
Show Answer & Explanation

Answer: (b) 1992

Explanation:
1. The Securities and Exchange Board of India (SEBI) is the regulator of the securities and commodity market in India.

Question 42: One function of SEBI is to check
(a) Insider trading
(b) Income tax evasion
(c) Currency counterfeiting
(d) Smuggling
Show Answer & Explanation

Answer: (a) Insider trading

Explanation:
1. It protects investors' interests.

Question 43: The Bombay Stock Exchange, established in 1875, is the oldest stock exchange in
(a) Asia
(b) Europe
(c) Africa
(d) North America
Show Answer & Explanation

Answer: (a) Asia

Explanation:
1. BSE is Asia's oldest stock exchange.

Question 44: SEBI was given statutory powers by an ordinance in
(a) 1992
(b) 1988
(c) 1956
(d) 1991
Show Answer & Explanation

Answer: (a) 1992

Explanation:
1. SEBI got statutory status in January 1992.

Question 45: The head office of SEBI is in
(a) Mumbai
(b) Delhi
(c) Kolkata
(d) Chennai
Show Answer & Explanation

Answer: (a) Mumbai

Explanation:
1. SEBI is headquartered in Mumbai.

Question 46: The Securities Contracts (Regulation) Act was passed in
(a) 1956
(b) 1992
(c) 1934
(d) 1988
Show Answer & Explanation

Answer: (a) 1956

Explanation:
1. SCRA 1956 regulates securities trading.

Question 47: The Ahmedabad Stock Exchange was established in
(a) 1894
(b) 1875
(c) 1908
(d) 1920
Show Answer & Explanation

Answer: (a) 1894

Explanation:
1. The Madras Stock Exchange was established in 1920.

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