Economics Question Answer in English : If you are preparing for competitive exams like SSC, UPSC, Banking, Railways, or State-level exams, then Economics Questions and Answers play a crucial role in your success. This post provides a well-structured collection of 100 important economics questions Answers covering both basic and advanced concepts.
These questions are designed based on exam trends and frequently asked topics to help you improve your knowledge and score better.
Economics Question Answer in English
Economics is not just about money and markets—it helps us understand how resources are used, how decisions are made, and how economies grow. In competitive exams, economics questions are often concept-based as well as current-affairs-oriented. A strong understanding of topics like inflation, GDP, banking system, demand and supply, and government policies can significantly boost your performance.
Economics is a scoring subject if prepared strategically. Questions are usually direct and based on fundamental concepts. These cover Microeconomics, Macroeconomics, the Indian Economy, and Banking—specifically curated for competitive exams.
100 Most Important Economics Question Answer
Basic Concepts & Microeconomics-
Q. 1 Who is known as the ‘Father of Economics’? – Adam Smith.
Q. 2 Who wrote the book ‘The Wealth of Nations’? – Adam Smith (1776).
Q. 3 What is ‘Microeconomics’? – The study of individual units like consumers, firms, or markets.
Q. 4 Who gave the ‘Laws of Demand’? – Alfred Marshall.
Q. 5 What is the relationship between Price and Demand? – Inverse (Inverse relationship).
Q. 6 What is an ‘Inferior Good’? – A good whose demand decreases when consumer income increases.
Q. 7 What is ‘Giffen Good’? – A non-luxury product that defies standard economic and consumer theory.
Q. 8 What is ‘Opportunity Cost’? – The value of the next best alternative foregone.
Q. 9 Who defined Economics as a ‘Science of Scarcity’? – Lionel Robbins.
Q. 10 What is ‘Utility’ in economics? – The want-satisfying power of a commodity.
Q. 11 Who introduced the ‘Indifference Curve’ analysis? – J.R. Hicks and R.G.D. Allen.
Q. 12 What is ‘Monopoly’? – A market structure with a single seller and no close substitutes.
Q. 13 What is ‘Oligopoly’? – A market structure with a few large sellers.
Q. 14 Which market has ‘Product Differentiation’ as a key feature? – Monopolistic Competition.
Q. 15 What is ‘Equilibrium Price’? – The price where demand equals supply.
Macroeconomics & National Income–
Q. 16 Who is known as the ‘Father of Modern Macroeconomics’? – John Maynard Keynes.
Q. 17 What is the full form of GDP? – Gross Domestic Product.
Q. 18 What is ‘Net National Product’ (NNP)? – GNP minus Depreciation.
Q. 19 What is ‘Personal Disposable Income’? – Personal Income minus Direct Taxes.
Q. 20 Which organization calculates National Income in India? – National Statistical Office (NSO).
Q. 21 What is ‘Inflation’? – A persistent increase in the general price level of goods and services.
Q. 22 What is ‘Deflation’? – A persistent decrease in the general price level.
Q. 23 What is ‘Stagflation’? – High inflation combined with high unemployment and stagnant demand.
Q. 26 What is ‘Hyperinflation’? – Extremely rapid or out-of-control inflation.
Q. 25 The ‘Phillips Curve’ shows the relationship between? – Inflation and Unemployment.
Q. 26 What is ‘Real GDP’? – GDP adjusted for inflation (calculated at constant prices).
Q. 27 What is ‘Nominal GDP’? – GDP calculated at current market prices.
Q. 28 Who calculated the first National Income in India? – Dadabhai Naoroji (1867-68).
Q. 29 What is ‘Per Capita Income’? – Total National Income divided by the total population.
Q. 30 What is ‘Closed Economy’? – An economy that does not trade with other countries.
Banking & Monetary Policy-
Q. 31 When was the Reserve Bank of India (RBI) established? – 1 April 1935.
Q. 32 When was the RBI nationalized? – 1 January 1949.
Q. 33 Who is the head of the RBI? – The Governor.
Q. 34 Where is the headquarters of the RBI? – Mumbai.
Q. 35 What is ‘Repo Rate’? – The rate at which RBI lends money to commercial banks.
Q. 36 What is ‘Reverse Repo Rate’? – The rate at which RBI borrows money from commercial banks.
Q. 37 What is ‘CRR’ (Cash Reserve Ratio)? – The share of net demand and time liabilities that banks must keep with RBI in cash.
Q. 38 What is ‘SLR’ (Statutory Liquidity Ratio)? – The liquid assets banks must maintain with themselves (Gold, Cash, Securities).
Q. 39 What is ‘Bank Rate’? – The rate at which RBI provides long-term loans to commercial banks.
Q. 40 What is ‘Open Market Operations’ (OMO)? – Buying and selling of government securities by the central bank.
Q. 41 What is ‘Fiat Money’? – Money that has no intrinsic value but is backed by government decree.
Q. 42 What is ‘Plastic Money’? – Credit cards and Debit cards.
Q. 43 What is ‘Inflation Accounting’? – Adjusting financial statements for the effects of inflation.
Q. 44 Which was the first bank established in India? – Bank of Hindustan (1770).
Q. 45 When were 14 major Indian banks nationalized? – 19 July 1969.
Q. 46 What is ‘NABARD’? – National Bank for Agriculture and Rural Development.
Q. 47 When was NABARD established? – 12 July 1982.
Q. 48 Which committee recommended the establishment of NABARD? – Shivaraman Committee.
Q. 49 What is ‘FDI’? – Foreign Direct Investment.
Q. 50 What is ‘Sensex’? – The index of the Bombay Stock Exchange (BSE).
Indian Economy & Planning-
Q. 51 Who is the ex-officio Chairman of NITI Aayog? – The Prime Minister.
Q. 52 When was NITI Aayog established? – 1 January 2015.
Q. 53 NITI Aayog replaced which body? – The Planning Commission.
Q. 54 What was the duration of the First Five-Year Plan? – 1951 to 1956.
Q. 55 The First Five-Year Plan was based on which model? – Harrod-Domar Model.
Q. 56 The Second Five-Year Plan was based on which model? – Mahalanobis Model.
Q. 57 Which Five-Year Plan focused on ‘Garibi Hatao’? – Fifth Five-Year Plan.
Q. 58 Who is known as the ‘Architect of Indian Planning’? – P.C. Mahalanobis.
Q. 59 What is ‘Mixed Economy’? – Co-existence of both public and private sectors.
Q. 60 What type of economy does India have? – Mixed Economy.
Q. 61 In which year were the Economic Reforms (LPG) introduced in India? – 1991.
Q. 62 What does LPG stand for in economics? – Liberalization, Privatization, and Globalization.
Q. 63 Who was the Finance Minister during the 1991 reforms? – Dr. Manmohan Singh.
Q. 64 What is ‘Green Revolution’ related to? – Increase in agricultural production (especially Wheat and Rice).
Q. 65 Who is known as the ‘Father of Green Revolution’ in India? – M.S. Swaminathan.
Public Finance & Taxation-
Q. 66 What is a ‘Budget’? – An annual financial statement of estimated receipts and expenditures.
Q. 67 Which Article of the Constitution deals with the ‘Annual Financial Statement’? – Article 112.
Q. 68 What is ‘Fiscal Deficit’? – Total Expenditure minus Total Receipts (excluding borrowings).
Q. 69 What is ‘Direct Tax’? – A tax paid directly by an individual to the government (e.g., Income Tax).
Q70 What is ‘Indirect Tax’? – A tax collected by an intermediary from the person who bears the ultimate economic burden (e.g., GST).
Q. 71 When was GST (Goods and Services Tax) implemented in India? – 1 July 2017.
Q. 72 GST is what type of tax? – Destination-based consumption tax.
Q. 73 Which Constitutional Amendment Act introduced GST? – 101st Amendment Act.
Q. 74 What is ‘Progressive Taxation’? – Tax rate increases as the taxable amount increases.
Q. 75 What is ‘Laffer Curve’? – Shows the relationship between tax rates and tax revenue.
Q. 76 Who presents the Union Budget in Parliament? – The Finance Minister.
Q. 77 What is ‘Capital Expenditure’? – Spending on assets like roads, buildings, and machinery.
Q. 78 What is ‘Revenue Expenditure’? – Spending on day-to-day government operations (Salaries, Interest payments).
Q. 79 What is ‘Black Money’? – Income on which taxes have not been paid.
Q. 80 What is ‘Demoneitisation’? – Stripping a currency unit of its status as legal tender.
International Economics & Miscellaneous–
Q. 81 Where is the headquarters of the World Bank? – Washington D.C.
Q. 82 Where is the headquarters of the IMF? – Washington D.C.
Q. 83 What is ‘Special Drawing Rights’ (SDR)? – Supplementary foreign exchange reserve assets defined by the IMF.
Q. 84 Where is the headquarters of the World Trade Organization (WTO)? – Geneva, Switzerland.
Q. 85 WTO replaced which organization? – GATT (General Agreement on Tariffs and Trade).
Q. 86 What is ‘Balance of Trade’ (BOT)? – The difference between the value of a country’s exports and imports.
Q. 87 What is ‘Devaluation’? – Deliberate reduction in the value of a country’s currency relative to another currency.
Q. 88 What is ‘Bulls and Bears’ related to? – Stock Market.
Q. 89 What is ‘Blue Chip’ company? – A large, well-established, and financially sound company.
Q. 90 What is ‘Human Development Index’ (HDI)? – A composite index of life expectancy, education, and per capita income.
Q. 91 Who developed the HDI? – Mahbub ul Haq (with Amartya Sen).
Q. 92 Where are the headquarters of the Asian Development Bank (ADB)? – Manila, Philippines.
Q. 93 What is ‘Micro Finance’? – Financial services for small businesses and low-income individuals.
Q. 94 What is ‘Invisible Trade’? – Trade in services (Banking, Insurance, Tourism).
Q. 95 What is ‘Engel’s Law’? – As income rises, the proportion of income spent on food decreases.
Q. 96 What is ‘Laissez-faire’? – An economic system with minimum government intervention.
Q. 97 What is the ‘Primary Sector’ of the economy? – Agriculture, Forestry, Fishing, and Mining.
Q. 98 What is the ‘Tertiary Sector’? – Service sector (Transport, Communication, Banking).
Q. 99 Which sector contributes the most to India’s GDP? – Tertiary (Service) Sector.
Q. 100 What is ‘Lorenz Curve’ used to measure? – Inequality in income or wealth distribution