790+ Indian Economy Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Arts (BA) , Bachelor of Arts in Economics (BA Economics) , Union Public Service Commission (UPSC) .

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1.	National Development Council was set up in:
A.	1948
B.	1950
C.	1951
D.	1952
Answer» D. 1952

2.	Economic Planning is a subject: [Asstt Grade 1991]
A.	in the Union List
B.	in the State List
C.	in the Concurrent List
D.	unspecified in any special list
Answer» A. in the Union List

3.	For internal financing of Five Year Plans, the government depends on: [NDA 1991]
A.	taxation only
B.	taxation and public borrowing
C.	public borrowing and deficit financing
D.	taxation, public borrowing and deficit financing
Answer» A. taxation only

4.	The National Development Council gets its administrative support from:
A.	Planning Commission
B.	Finance Commission
C.	Administrative Reforms Commission
D.	Sarkaria Commission
Answer» A. Planning Commission

5.	The Five Year Plans of India intend to develop the country industrially through: [NDA 1991]
A.	the public sector
B.	the private sector
C.	the public, private, joint and Cooperative sectors
D.	increasing collaboration with non-resident Indians
Answer» C. the public, private, joint and Cooperative sectors

6.	The Planning Commission is : [UP PCS 1994]
A.	a Ministry
B.	a Government department
C.	an Advisory body
D.	an Autonomous Corporation
Answer» C. an Advisory body

7.	Which of the following statements is correct? [AAO 1993]
A.	Planning Commission is a constitutional body
B.	The Prime Minister is the Chairman of the Planning Commission
C.	The Minister of Planning is always necessarily the Deputy Chairman of Planning Commission
D.	The draft plan is prepared by the National Development Council
Answer» B. The Prime Minister is the Chairman of the Planning Commission

8.	The principal reason why national economic planning is still being pursued inspite of embracing a market economy since 1991 is that: [IAS 1994]
A.	the vast quantity of capital already deployed in the public sector needs to be nurtured
B.	the market economy is mainly confined to industry and commerce and central planning in agriculture is necessary
C.	it is a constitutional requirement
D.	Five Year Plans can continue to provide a long-term perspective to the economy in market friendly fashions
Answer» D. Five Year Plans can continue to provide a long-term perspective to the economy in market friendly fashions

9.	'Take off stage' in an economy means: [CBI 1990]
A.	steady growth begins
B.	economy is stagnant
C.	economy is about to collapse
D.	all controls are removed
Answer» A. steady growth begins

10.	Planning in India derives its objectives from:
A.	Fundamental Rights
B.	Directive Principles of State policy
C.	Fundamental Duties
D.	Preamble
Answer» B. Directive Principles of State policy

11.	70% of working population of India is engaged in:
A.	public sector
B.	primary sector
C.	secondary sector
D.	tertiary sector
Answer» B. primary sector

13.	Who is called the 'Father of Economics' ?
A.	Max Muller
B.	Karl Marx
C.	Adam Smith
D.	None of these
Answer» C. Adam Smith

14.	The concept of Five Year Plans in India was introduced by
A.	Lord Mountbatten
B.	Jawaharlal Nehru
C.	Indira Gandhi
D.	Lal Bahadur Shastri
Answer» B. Jawaharlal Nehru

15.	India has: [CDS 1992]
A.	Socialistic economy
B.	Gandhian economy
C.	Mixed economy
D.	Free economy
Answer» C. Mixed economy

16.	India opted for 'Mixed Economy' in :
A.	Framing of the Constitution
B.	Second Five Year Plan
C.	Industrial Policy of 1948
D.	None of the above
Answer» C. Industrial Policy of 1948

12.	Economic survey is published by :[IAS 1998]
A.	Ministry of Finance
B.	Planning Commission
C.	Govt. of India
D.	Indian Statistical Institute
Answer» A. Ministry of Finance

17.	Mixed economy means an economy where [CDS 2009]
A.	both agriculture and industry are equally promoted by the state
B.	there is co-existence of public sector along with private sector
C.	there is importance of small scale industries along with heavy industries
D.	economy is controlled by military as well as civilian rulers
Answer» B. there is co-existence of public sector along with private sector

18.	India's economic planning CANNOT be said to be : [NDA 2002]
A.	indicative
B.	imperative
C.	limited
D.	democratic
Answer» B. imperative

19.	Which of the following could be said to have prevented the 'trickle down' effects in Indian economy? 1. Increased dependence of agriculture on purchased inputs and privately managed irrigation 2. More employment of labour by larger landholding farmers 3. Lowered participation of women in agricultural workforce due to new technology 4. The failure of the Green Revolution
A.	1 and 2
B.	2 and 3
C.	1 and 3
D.	2 and 4
Answer» C. 1 and 3

20.	Which of the following are not correct assessments of the decades of India's Five-Year Plans? 1. There has been very low capital formation 2. Growth has favoured the better off 3. Production has increased substantially though often falling short of targets 4. The public sector has contributed nothing to economic growth
A.	1 and 4
B.	2 and 3
C.	1, 2 and 3
D.	3 and 4
Answer» A. 1 and 4

21.	Who is the Deputy Chairman of Planning Commission?
A.	Prime Minister
B.	Finance Minister
C.	Commerce Minister
D.	None of the above
Answer» D. None of the above

22.	The deputy chairman of the Planning Commission: [UP PCS 1994]
A.	is the Prime Minister
B.	is the Planning Minister
C.	holds the rank of a cabinet minister
D.	is an economist of repute
Answer» C. holds the rank of a cabinet minister

23.	Who was the first Deputy Chairman of Planning Commission of India?
A.	Shri Jawaharlal Nehru
B.	Dr.Rajendra Prasad
C.	Shri V.T.Krishnamachari
D.	Shri C.Rajagopalachari
Answer» C. Shri V.T.Krishnamachari

24.	The Planning Commission of India: I. was set up in 1950 II. is a constitutional body III. is an advisory body IV. is a government department
A.	I and II
B.	II and III
C.	I and III
D.	III only
Answer» C. I and III

25.	Put in chronological order 1. Constitution of National Planning Committee -by the Indian National Congress under Jawaharlal Nehru 2. Planned Economy for India by Visvesvaraya published 3. Bombay Plan 4. Setting up of the National Development Council
A.	1, 2, 3, 4
B.	3, 2, 4, 1
C.	2, 3, 1, 4
D.	2, 1, 3, 4
Answer» D. 2, 1, 3, 4

790+ Indian Economy Solved MCQs

National Development Council was set up in:

Economic Planning is a subject: [Asstt Grade 1991]

For internal financing of Five Year Plans, the government depends on: [NDA 1991]

The National Development Council gets its administrative support from:

The Five Year Plans of India intend to develop the country industrially through: [NDA 1991]

The Planning Commission is : [UP PCS 1994]

Which of the following statements is correct? [AAO 1993]

The principal reason why national economic planning is still being pursued inspite of embracing a market economy since 1991 is that: [IAS 1994]

'Take off stage' in an economy means: [CBI 1990]

Planning in India derives its objectives from:

70% of working population of India is engaged in:

Economic survey is published by :[IAS 1998]

Who is called the 'Father of Economics' ?

The concept of Five Year Plans in India was introduced by

India has: [CDS 1992]

India opted for 'Mixed Economy' in :

Mixed economy means an economy where [CDS 2009]

India's economic planning CANNOT be said to be : [NDA 2002]

Who is the Deputy Chairman of Planning Commission?

The deputy chairman of the Planning Commission: [UP PCS 1994]

Who was the first Deputy Chairman of Planning Commission of India?

The Planning Commission of India: I. was set up in 1950 II. is a constitutional body III. is an advisory body IV. is a government department

Put in chronological order 1. Constitution of National Planning Committee -by the Indian National Congress under Jawaharlal Nehru 2. Planned Economy for India by Visvesvaraya published 3. Bombay Plan 4. Setting up of the National Development Council

Microeconomics is concerned with: 1. behaviour of industrial decision-makers 2. the level of employment 3. changes in the general level of prices 4. determination of prices of goods and services

The basic objectives of Indian planning are: 1. economic growth 2. self-reliance 3. employment generation 4. population growth

An underdeveloped economy is generally characterised by : 1. Iow per capita income 2. Iow rate of capital formation 3. Iow dependency figure 4. working force largely in the tertiary sector

Which of the following gives an accurate measurement of economic development through Five Year Plans?

In India, the Public Sector is most dominant in : [IAS 1993]

The first attempt to initiate economic planning in India was made by:

The decentralisation system was recommended by :

The main objective of First Five-year Plan was:

India had a plan holiday: [CPO AC 2003]

Rolling plan was designed for the period: [IAS 2003]

'The strategy of Rolling plan was adopted during the Prime Ministership of: [Railways 1994]

A rolling plan was a plan for:

The basic feature of the Rolling Plans was that:

The growth rate of agricultural production was negative in the:

Which one of the following is the task of the Planning Commission? [NDA 1991]

Who wrote the book 'Planned Economy for India'?

'Globalisation of Indian Economy' means:

The contribution of agriculture to India's' economy is:

Which of the following bodies finalises the Five Year Plan proposals? [IAS 2002]

Which one of the following is NOT with in the duties of the Planning Commission? [NDA 2003]

The basic difference between imperative and indicative planning is that: [IAS 1993]

Among the achievements of Indian planning, we may include: 1. development of strong infrastructure 2. diversification of industry and exports 3. high growth of national income 4. strong control over prices

The Planning Commission of India:
I. was set up in 1950
II. is a constitutional body
III. is an advisory body
IV. is a government department

Put in chronological order
1. Constitution of National Planning Committee -by the Indian National Congress under Jawaharlal Nehru
2. Planned Economy for India by Visvesvaraya published
3. Bombay Plan
4. Setting up of the National Development Council

Microeconomics is concerned with:
1. behaviour of industrial decision-makers
2. the level of employment
3. changes in the general level of prices
4. determination of prices of goods and services

The basic objectives of Indian planning are:
1. economic growth
2. self-reliance
3. employment generation
4. population growth

An underdeveloped economy is generally characterised by :
1. Iow per capita income
2. Iow rate of capital formation
3. Iow dependency figure
4. working force largely in the tertiary sector

Among the achievements of Indian planning, we may include:
1. development of strong infrastructure
2. diversification of industry and exports
3. high growth of national income
4. strong control over prices

27.	Indicative Planning being pursued in India since the 8th Plan aims at ensuring that: 1. Planning mechanism plays a facilitatory role 2. Planning mechanism brings about a balance between need and supply 3. Planning mechanism concerns itself with optima! utilisation of resources 4. Planning concerns itself with laying down broad directions in which the economy should move Choose the correct answer from:
A.	1, 2 and 4
B.	1 and 2
C.	1, 2, 3 and 4
D.	2, 3 and 4
Answer» C. 1, 2, 3 and 4

28.	Consider the following statements: [IAS 2004] 1. The highest deciding body for planning in India is the Planning Commission of India. 2. The Secretary of the Planning Commission of India is also the Secretary of National Development Council 3. The Constitution includes economic and social planning in the Concurrent List in the Seventh Schedule of the Constitution of India. Which of the statements given above is/are correct?
A.	1 and 2
B.	2 only
C.	2 and 3
D.	3 only
Answer» B. 2 only

31.	Self-reliance in the economic context implies that a country: 1. meets its demands for all goods and services from its domestic production 2. exports some of its goods but does not need to import anything 3. has sufficient foreign exchange reserves to buy all its needs 4. meets its demand for certain vital goods and services from its domestic production
A.	1 and 3
B.	2 and 4
C.	1, 2 and 3
D.	3 and 4
Answer» D. 3 and 4

32.	Which of the following gives an accurate measurement of economic development through Five Year Plans?
A.	Development of education and health services
B.	Development of railways and roadways
C.	Rise in national income and per capita income
D.	Development of industrial towns and industrial estates
Answer» C. Rise in national income and per capita income

33.	In India, the Public Sector is most dominant in : [IAS 1993]
A.	transport
B.	steel production
C.	commercial banking
D.	organised term-lending financial institutions
Answer» C. commercial banking

34.	The first attempt to initiate economic planning in India was made by:
A.	Balwantrai Mehta
B.	Vallabhbhai Patel
C.	M. Visvesvaraya
D.	Jawaharlal Nehru
Answer» C. M. Visvesvaraya

35.	The decentralisation system was recommended by :
A.	C.Rajagopalachari
B.	J.B. Kripalan
C.	Balwant Rai Mehta
D.	Ashok Mehta
Answer» C. Balwant Rai Mehta

36.	The main objective of First Five-year Plan was:
A.	industrial growth
B.	economic growth
C.	development of agriculture including irrigation and power projects
D.	self-reliance
Answer» C. development of agriculture including irrigation and power projects

37.	India had a plan holiday: [CPO AC 2003]
A.	after the China-India War of 1962
B.	after the drought of 1966
C.	after the liberation of Bangladesh in 1971
D.	after the India-Pakistan War in 1965
Answer» B. after the drought of 1966

38.	Rolling plan was designed for the period: [IAS 2003]
A.	1978-83
B.	1980-85
C.	1985-90
D.	1974-97
Answer» A. 1978-83