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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51.	Which of the following features indicate that Indian economy is of the developing category? I. Occupation mainly agricultural II. Chronic unemployment III. Poor quality of human capital IV. Low per capita intake of proteins
A.	I, II and III
B.	I and IV
C.	II and III
D.	I, II, III and IV
Answer» D. I, II, III and IV

52.	Dadabhai Naoroji theorised on the drain of wealth from India in his book:
A.	Poverty under British Rule in India
B.	Poverty in British Rule in India
C.	Poverty and Un-British Rule in India
D.	Poverty of Economic Drain in British India
Answer» C. Poverty and Un-British Rule in India

53.	Which of the following may be termed as long-term objectives of Indian planning? 1. Self-reliance 2. Productive employment generation 3. Growth of 7 per cent per annum 4. Growth in infrastructure
A.	1 and 2
B.	3 and 4
C.	1, 2 and 4
D.	2, 3 and 4
Answer» A. 1 and 2

54.	Which one of the following Five-Year Plans recognised human development as the core of all developmental efforts? [IAS 1995]
A.	The Third Five-Year Plan
B.	The Fifth Five-Year Plan
C.	The Sixth Five-Year Plan
D.	The Eighth Five-Year Plan
Answer» D. The Eighth Five-Year Plan

55.	In which of the Five Year Plans, preference was given to the weaker sections of the society ?
A.	Second
B.	Third
C.	Fourth
D.	Fifth
Answer» D. Fifth

56.	The Second Five Year Plan laid more stress upon:
A.	agriculture
B.	industrialisation
C.	removing poverty
D.	self-reliance
Answer» B. industrialisation

57.	The steel plants at Durgapur, Bhilai and Rourkela were established during the period of: [NDA 1990]
A.	First Five Year Plan
B.	Second Five Year Plan
C.	Third Five Year Plan
D.	Fourth Five Year PIan
Answer» B. Second Five Year Plan

58.	What is the correct sequence of the following strategies used for Five Year Plans in India? 1. Balanced growth 2. Rehabilitation of the economy 3. Industrial development
A.	1, 3, 2
B.	2, 1, 3
C.	2, 3, 1
D.	3, 2, 1
Answer» C. 2, 3, 1

59.	During which Five Year Plan was the total expenditure on agriculture the highest?
A.	First Five Year Plan
B.	Second Five Year Plan
C.	Third Five Year Plan
D.	Fourth Five Year Plan
Answer» D. Fourth Five Year Plan

60.	The objective of self-reliance and zero net foreign aid was declared in :
A.	Second 5-Yr Plan
B.	Third 5-Yr Plan
C.	Fourth 5-Yr Plan
D.	Fifth 5-Yr Plan
Answer» C. Fourth 5-Yr Plan

61.	Who of the following was the author of the chapter on "Objectives of Planned Development" for the Third Five Year Plan? [IAS 2008]
A.	Morarji Desai
B.	C.D. Deshmukh
C.	Jawaharlal Nehru
D.	Lal Bahadur Shastri
Answer» A. Morarji Desai

62.	In which one of the following five year plans the actual growth performance in India in respect of GDP (at factor cost) was less than the target set? [NDA 2008]
A.	Sixth five year plan
B.	Seventh five year plan
C.	Eighth five year plan
D.	Ninth five year plan
Answer» D. Ninth five year plan

63.	The 11th Five Year Plan strategy to raise agricultural output envisages which of the following? 1. Greater attention to land reforms. 2. Double the rate of growth of irrigated area. 3. Promote animal husbandry and fishery. 4. Interest free credit to the farmers. Select the correct answer [CDS 2008]
A.	1 and 2 only
B.	2 and 3 only
C.	1, 2 and 3
D.	2 and 4 only
Answer» C. 1, 2 and 3

64.	Which of the statements given below is/are correct? [CDS 2008] 1. Food for Work Programme was launched in India during the 10th Five Year Plan. 2. The Planning Commission in India is a constitutional body.
A.	1 only
B.	2 only
C.	Both 1 and 2
D.	Neither 1 nor 2
Answer» A. 1 only

65.	Who among the following was the first Chairman of the Planning Commission? [CDS 2008]
A.	Dr. Rajendra Prasad
B.	Pt. Jawahar Lal Nehru
C.	Sardar Vallabhbhai Patel
D.	J.B. Kripalani
Answer» B. Pt. Jawahar Lal Nehru

66.	Which of the following statements about the Indian Economy is correct? [RBI Grade B Officer 2011]
A.	Indian economy is as developed as that of China.
B.	About 70% Indians are involved in some type of self-employment and are the owners of some or the other micro or small enterprise.
C.	In India, single biggest employment is agriculture and allied activities.
D.	About 48% Indian workforce is employed in foreign countries or in organizations assisted by foreign capital.
Answer» C. In India, single biggest employment is agriculture and allied activities.

67.	Which of the following is NOT a function of the Planning Commission of India? [RBI Grade B Officer 2011]
A.	Assessment of the material, capital and human resources of the country
B.	Formulation of plans for the most effective and balanced utilization of country's resources
C.	Public cooperation in national development
D.	Preparation of annual budget of the country and collection of taxes to raise capital for the implementation of the plans
Answer» D. Preparation of annual budget of the country and collection of taxes to raise capital for the implementation of the plans

68.	Which one of the following is the correct sequence in the decreasing order of contribution of different sectors to the Gross Domestic Product of India ? [IAS 2007]
A.	Services-Industry-Agriculture
B.	Services-Agriculture-Industry
C.	Industry-Services-Agriculture
D.	Industry-Agriculture-Services
Answer» A. Services-Industry-Agriculture

69.	____ is the ex-officio chairman of Planning Commission and National Development Council.
A.	Prime Minister
B.	President
C.	Finance Minister
D.	Commerce Minister
Answer» A. Prime Minister

70.	Which statement is correct for Indian Planning Commission?
A.	It is not defined in Indian Constitution
B.	Members and Vice-Chairman of it do not have fixed working duration
C.	Members do not require any minimum education
D.	All of the these
Answer» D. All of the these

71.	Which one of the following is a driving force influencing the industrial growth of an economy? [Corporation' Bank PO 2011]
A.	Economic Factors only
B.	Investment only
C.	Innovation/Market Base only
D.	All (1), (2) & (3)
Answer» D. All (1), (2) & (3)

72.	In the context of India's Five Year Plans, a shift in the pattern of industrialization, with lower emphasis on heavy industries and more on infrastructure begins in [IAS 2010]
A.	fourth Plan
B.	sixth Plan
C.	eighth Plan
D.	tenth Plan
Answer» C. eighth Plan

73.	In the context of Indian economy, consider the following pairs: Term Most appropriate description 1. Melt down Fall in stock prices 2. Recession Fall in growth rate 3. Slow down Fall in GDP Which of the pairs given above is/are correctly matched? [IAS 2010]
A.	1 only
B.	2 and 3 only
C.	1 and 3 only
D.	1, 2 and 3
Answer» A. 1 only

74.	The Nehru-Mahalanobis strategy of development guided the planning practice in India from the [CDS 2012]
A.	First Five-Year Plan to the Sixth Five-Year Plan
B.	Fourth Five-Year Plan to the Eighth Five-Year Plan
C.	Second Five-Year Plan to the Seventh Five-Year Plan
D.	First Five-Year Plan to the Eighth Five-Year Plan
Answer» C. Second Five-Year Plan to the Seventh Five-Year Plan

75.	Consider the following about the 'Rolling Plan': I. A plan for the current year which includes the annual budget II. A plan for a fixed number of years, say 3, 4 or 5 III. It is revised every year as per requirements of the economy IV. A perspective plan for 10, 15 or 20 years Which of the above are correct? [BPSC 2011]
A.	I and II
B.	I and III
C.	II and III
D.	I, II, III and IV
Answer» B. I and III

790+ Indian Economy Solved MCQs

Which of the following features indicate that Indian economy is of the developing category? I. Occupation mainly agricultural II. Chronic unemployment III. Poor quality of human capital IV. Low per capita intake of proteins

Dadabhai Naoroji theorised on the drain of wealth from India in his book:

Which of the following may be termed as long-term objectives of Indian planning? 1. Self-reliance 2. Productive employment generation 3. Growth of 7 per cent per annum 4. Growth in infrastructure

Which one of the following Five-Year Plans recognised human development as the core of all developmental efforts? [IAS 1995]

In which of the Five Year Plans, preference was given to the weaker sections of the society ?

The Second Five Year Plan laid more stress upon:

The steel plants at Durgapur, Bhilai and Rourkela were established during the period of: [NDA 1990]

What is the correct sequence of the following strategies used for Five Year Plans in India? 1. Balanced growth 2. Rehabilitation of the economy 3. Industrial development

During which Five Year Plan was the total expenditure on agriculture the highest?

The objective of self-reliance and zero net foreign aid was declared in :

Who of the following was the author of the chapter on "Objectives of Planned Development" for the Third Five Year Plan? [IAS 2008]

In which one of the following five year plans the actual growth performance in India in respect of GDP (at factor cost) was less than the target set? [NDA 2008]

The 11th Five Year Plan strategy to raise agricultural output envisages which of the following? 1. Greater attention to land reforms. 2. Double the rate of growth of irrigated area. 3. Promote animal husbandry and fishery. 4. Interest free credit to the farmers. Select the correct answer [CDS 2008]

Which of the statements given below is/are correct? [CDS 2008] 1. Food for Work Programme was launched in India during the 10th Five Year Plan. 2. The Planning Commission in India is a constitutional body.

Who among the following was the first Chairman of the Planning Commission? [CDS 2008]

Which of the following statements about the Indian Economy is correct? [RBI Grade B Officer 2011]

Which of the following is NOT a function of the Planning Commission of India? [RBI Grade B Officer 2011]

Which one of the following is the correct sequence in the decreasing order of contribution of different sectors to the Gross Domestic Product of India ? [IAS 2007]

____ is the ex-officio chairman of Planning Commission and National Development Council.

Which statement is correct for Indian Planning Commission?

Which one of the following is a driving force influencing the industrial growth of an economy? [Corporation' Bank PO 2011]

In the context of India's Five Year Plans, a shift in the pattern of industrialization, with lower emphasis on heavy industries and more on infrastructure begins in [IAS 2010]

In the context of Indian economy, consider the following pairs: Term Most appropriate description 1. Melt down Fall in stock prices 2. Recession Fall in growth rate 3. Slow down Fall in GDP Which of the pairs given above is/are correctly matched? [IAS 2010]

The Nehru-Mahalanobis strategy of development guided the planning practice in India from the [CDS 2012]

A "closed economy" is an economy in which [CSAT 2011]

In which Plan was the growth rate target exceeded?

Put in chronological order the following Special features/objectives of different Five Year Plans as they were first formulated: 1. Mahalanobis strategy 2. Modernisation 3. Removal of Poverty 4. Emphasis on employment generation

In India, the concepts of "minimum heeds" and "directed anti-poverty programmes" were the innovations of: [CDS 2004]

During which Plan did prices show a decline?

Success of 4th plan was obstructed by :

The 'Slack Season' in the Indian Economy is:

Consider the following statements: 1. The nation-wide scheme of the National Child Labour Projects (NCLP) is run by the Union Ministry of Social Justice and Empowerment. 2. Gurupadswamy Committee dealt with the issues of child labour. Which of the statements given above is/are correct? [IAS 2007]

Which of the following groups of states has the largest concentration of rural poor and people living below the poverty line?

India's wage policy is based on : [Railways 1994]

Unemployment which occurs when workers move from one job to another job is known as : [IAS 1992]

The type of unemployment mostly found in India can be characterised as :

Disguised unemployment in India is mainly related to : 1. agricultural sector 2. rural area 3. factory sector 4. urban area

One of the reasons for India's occupational structure remaining more or less the same over the years has been that: [IAS 1995]

Which of the following is/are correct? I. Bulk of unemployment in India is in rural areas II. The disguised unemployment in agricultural sector is perennial III. Industrialisation has rendered several people job-less in India

Among the reasons for disguised unemployment in the rural areas is :

Unemployment in a developing country generally takes place due to :

Cyclical unemployment refers to:

Persons below the poverty line in India are classified as such based on whether: [IAS 1999]

Which Committee's recommendations are being followed for estimating Poverty Line in India?

Absolute Poverty means:

Among the following who are eligible to benefit from the "Mahatma Gandhi National Rural Employment Guarantee Act" ? [CSAT 2011]

Poverty Gap is :

Which of the following features indicate that Indian economy is of the developing category?
I. Occupation mainly agricultural
II. Chronic unemployment
III. Poor quality of human capital
IV. Low per capita intake of proteins

Which of the following may be termed as long-term objectives of Indian planning?
1. Self-reliance
2. Productive employment generation
3. Growth of 7 per cent per annum
4. Growth in infrastructure

The 11th Five Year Plan strategy to raise agricultural output envisages which of the following?
1. Greater attention to land reforms.
2. Double the rate of growth of irrigated area.
3. Promote animal husbandry and fishery.
4. Interest free credit to the farmers.
Select the correct answer [CDS 2008]

Which of the statements given below is/are correct? [CDS 2008]
1. Food for Work Programme was launched in India during the 10th Five Year Plan.
2. The Planning Commission in India is a constitutional body.

In the context of Indian economy, consider the following pairs:
Term Most appropriate description
1. Melt down Fall in stock prices
2. Recession Fall in growth rate
3. Slow down Fall in GDP
Which of the pairs given above is/are correctly matched? [IAS 2010]

Put in chronological order the following Special features/objectives of different Five Year Plans as they were first formulated:
1. Mahalanobis strategy
2. Modernisation
3. Removal of Poverty
4. Emphasis on employment generation

Consider the following statements:
1. The nation-wide scheme of the National Child Labour Projects (NCLP) is run by the Union Ministry of Social Justice and Empowerment.
2. Gurupadswamy Committee dealt with the issues of child labour.
Which of the statements given above is/are correct? [IAS 2007]

Disguised unemployment in India is mainly related to :
1. agricultural sector
2. rural area
3. factory sector
4. urban area

Which of the following is/are correct?
I. Bulk of unemployment in India is in rural areas
II. The disguised unemployment in agricultural sector is perennial
III. Industrialisation has rendered several people job-less in India

76.	A "closed economy" is an economy in which [CSAT 2011]
A.	the money supply is fully controlled
B.	deficit financing takes place
C.	only exports take place
D.	neither exports nor imports take place
Answer» D. neither exports nor imports take place

77.	In which Plan was the growth rate target exceeded?
A.	First
B.	Fifth
C.	Sixth
D.	None of these
Answer» A. First

78.	Put in chronological order the following Special features/objectives of different Five Year Plans as they were first formulated: 1. Mahalanobis strategy 2. Modernisation 3. Removal of Poverty 4. Emphasis on employment generation
A.	1,2,3,4
B.	2,1,3,4
C.	1,3,2,4
D.	3,4,1,2
Answer» C. 1,3,2,4

79.	In India, the concepts of "minimum heeds" and "directed anti-poverty programmes" were the innovations of: [CDS 2004]
A.	Fourth Five-year Plan
B.	Fifth Five-year Plan
C.	Sixth Five-year Plan
D.	Seventh Five-year Plan
Answer» B. Fifth Five-year Plan

81.	Success of 4th plan was obstructed by :
A.	poor monsoon
B.	war with Pakistan
C.	problem of Bengal refugees
D.	All of the above
Answer» D. All of the above

82.	The 'Slack Season' in the Indian Economy is:
A.	March - April
B.	Sept. - Dec.
C.	Jan. - June
D.	Feb. – April
Answer» C. Jan. - June

84.	Which of the following groups of states has the largest concentration of rural poor and people living below the poverty line?
A.	Karnataka, Maharashtra, Goa
B.	Goa, Andhra Pradesh, Maharashtra
C.	Tamil Nadu, Kerala, Goa
D.	Andhra Pradesh, Karnataka, Tamil Nadu
Answer» D. Andhra Pradesh, Karnataka, Tamil Nadu

85.	India's wage policy is based on : [Railways 1994]
A.	cost of living
B.	standard of living
C.	productivity
D.	None of the above
Answer» A. cost of living

86.	Unemployment which occurs when workers move from one job to another job is known as : [IAS 1992]
A.	seasonal unemployment
B.	frictional unemployment
C.	cyclical unemployment
D.	technological unemployment
Answer» B. frictional unemployment

87.	The type of unemployment mostly found in India can be characterised as :
A.	structural
B.	frictional
C.	cyclical
D.	disguised
Answer» D. disguised