Which of the following is a major challenge for the Indian economy? MCQ with Answer and Explanation

Which of the following is a major challenge for the Indian economy?
A. Absence of informal sector
B. Complete self-sufficiency in all goods
C. High level of human development across all states equally
D. Regional disparities and unemployment
Answer: Option D
Solution (By JKSSB Mock Tests)
Regional disparities in development and persistent unemployment (especially youth and disguised unemployment) remain significant challenges for the Indian economy.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a feature of the 'Uncovered Interest Parity' puzzle or forward-premium puzzle?
A. Forward rates are perfect predictors of future spot rates
B. Interest differentials are always zero
C. High-interest currencies always depreciate as predicted
D. High-interest currencies tend to appreciate rather than depreciate as uncovered interest parity would predict

Correct Answer: Option D


Explanation:
Empirical evidence often shows that currencies with high interest rates tend to appreciate, contrary to the prediction of uncovered interest parity that they should depreciate; this is known as the forward-premium puzzle.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'International Solar Alliance' is headquartered in:
A. New York
B. Gurugram, India
C. Paris
D. Geneva

Correct Answer: Option B


Explanation:
The International Solar Alliance is headquartered in Gurugram, India.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a feature of the monopolistic competition market structure?
A. Product differentiation and selling costs
B. Homogeneous product
C. Single seller
D. Perfect knowledge and no advertising

Correct Answer: Option A


Explanation:
Monopolistic competition is characterised by product differentiation, a large number of firms, free entry and exit, and significant selling costs.

This question belongs to: Economy GK Economy Set 1