CBSE Class 10 Economics · Objective

MCQs with Answers

15 multiple-choice questions with answers & explanations, chapter-wise. Try each, then tap Show answer.

Economics MCQs reward clean definitions — sectors, per-capita income, collateral, the WTO. Attempt each before revealing the answer.

DevelopmentSectors of the Indian EconomyMoney and CreditGlobalisation and the Indian EconomyConsumer Rights

Development

  1. In the context of development, what does Per Capita Income mean?

    1. AThe total income of a country in a year
    2. BThe total income of a country divided by its total population
    3. CThe income of the richest person in a country
    4. DThe average income of only the working population
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    Answer: B) The total income of a country divided by its total population — Per Capita Income is the total (national) income divided by the total population.

  2. Which of the following is used by the World Bank as the main criterion to classify countries?

    1. ALiteracy rate
    2. BLife expectancy
    3. CPer capita income (average income)
    4. DNet Attendance Ratio
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    Answer: C) Per capita income (average income) — The World Bank classifies countries mainly on the basis of average (per capita) income.

  3. The Human Development Report (UNDP) compares countries based on which combination of factors?

    1. AIncome, exports and inflation
    2. BEducational levels, health status and per capita income
    3. CPopulation, area and resources
    4. DIndustrial output and agriculture alone
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    Answer: B) Educational levels, health status and per capita income — HDR ranks countries on educational levels, health status and per capita income together.

Sectors of the Indian Economy

  1. Activities that produce goods by exploiting natural resources, like farming and mining, belong to which sector?

    1. APrimary sector
    2. BSecondary sector
    3. CTertiary sector
    4. DService sector
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    Answer: A) Primary sector — The primary sector produces goods by directly using natural resources.

  2. Which sector has emerged as the largest producing sector in India over the years?

    1. APrimary sector
    2. BSecondary sector
    3. CTertiary sector
    4. DPublic sector
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    Answer: C) Tertiary sector — The tertiary (service) sector has become the largest producer of value in India.

  3. Workers who do not get the benefit of job security or paid leave are said to be in which type of employment?

    1. AOrganised sector
    2. BUnorganised sector
    3. CPublic sector
    4. DFormal sector
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    Answer: B) Unorganised sector — The unorganised sector lacks job security, regular hours and benefits like paid leave.

Money and Credit

  1. Money acts as a medium of exchange mainly because it removes the need for:

    1. AA central bank
    2. BDouble coincidence of wants
    3. CCollateral
    4. DForeign trade
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    Answer: B) Double coincidence of wants — Money eliminates the double coincidence of wants required under the barter system.

  2. An asset that the borrower owns and uses as a guarantee to a lender until a loan is repaid is called:

    1. AInterest
    2. BCollateral
    3. CDeposit
    4. DTerms of credit
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    Answer: B) Collateral — Collateral is an asset pledged as security against a loan.

  3. In India, who issues currency notes on behalf of the government?

    1. AState Bank of India
    2. BThe Reserve Bank of India
    3. CThe Ministry of Finance
    4. DCommercial banks
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    Answer: B) The Reserve Bank of India — The Reserve Bank of India issues currency notes on behalf of the central government.

Globalisation and the Indian Economy

  1. The process of rapid integration or interconnection between countries is known as:

    1. ALiberalisation
    2. BPrivatisation
    3. CGlobalisation
    4. DInvestment
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    Answer: C) Globalisation — Globalisation is the rapid integration and interconnection among countries.

  2. Removing barriers or restrictions set by the government on foreign trade and investment is called:

    1. ALiberalisation of trade
    2. BForeign investment
    3. CPrivatisation
    4. DDisinvestment
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    Answer: A) Liberalisation of trade — Liberalisation means removing government-imposed restrictions on trade and investment.

  3. Which organisation's aim is to liberalise international trade among its member countries?

    1. AWorld Bank
    2. BWorld Trade Organisation (WTO)
    3. CInternational Monetary Fund
    4. DUnited Nations
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    Answer: B) World Trade Organisation (WTO) — The WTO seeks to liberalise and set rules for international trade among member nations.

Consumer Rights

  1. Under the right to be informed, a consumer has the right to know which of the following about a product?

    1. AOnly the price
    2. BOnly the brand name
    3. CDetails such as price, quantity, ingredients and expiry date
    4. DOnly the manufacturer's address
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    Answer: C) Details such as price, quantity, ingredients and expiry date — The right to be informed covers price, quantity, ingredients, and dates of manufacture and expiry.

  2. The ISI mark is used to certify the quality of which type of products?

    1. AAgricultural products
    2. BIndustrial / manufactured goods
    3. CGold jewellery
    4. DFood products only
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    Answer: B) Industrial / manufactured goods — The ISI mark certifies the quality of industrial / manufactured goods.

  3. The right that allows a consumer to approach a consumer court against unfair trade practices is the right to:

    1. ASeek redressal
    2. BChoose
    3. CBe informed
    4. DSafety
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    Answer: A) Seek redressal — The right to seek redressal lets consumers approach consumer courts against exploitation.