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This set of Indian Economy Multiple Choice Questions & Answers (MCQs) focuses on Fundamentals of Indian Economy and Planning Set 2

Q1 | The basic difference between imperative and indicative planning is that: [IAS 1993]
  • it is easier to achieve targets in imperative type of planning
  • in the case of imperative planning, all economic activities belong to public sector, while in the other type they belong to the private sector
  • in the case of the imperative planning, the market mechanism is entirely replaced by a command hierarchy, while in the case of indicative planning, it is looked upon as a way to improve the functioning of the market system
  • in the case of indicative planning, there is no need to nationalise any industry
Q2 | 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
  • 1 and 2
  • 1, 2 and 3
  • 1, 2 and 4
  • 2 and 3
Q3 | Which of the following features indicate that Indian economy is of the developingcategory? I. Occupation mainly agricultural II. Chronic unemployment III. Poor quality of human capital IV. Low per capita intake of proteins
  • I, II and III
  • I and IV
  • II and III
  • I, II, III and IV
Q4 | Dadabhai Naoroji theorised on the drain of wealth from India in his book:
  • Poverty under British Rule in India
  • Poverty in British Rule in India
  • Poverty and Un-British Rule in India
  • Poverty of Economic Drain in British India
Q5 | 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
  • 1 and 2
  • 3 and 4
  • 1, 2 and 4
  • 2, 3 and 4
Q6 | Which one of the following Five-Year Plans recognised human development as the coreof all developmental efforts? [IAS 1995]
  • The Third Five-Year Plan
  • The Fifth Five-Year Plan
  • The Sixth Five-Year Plan
  • The Eighth Five-Year Plan
Q7 | In which of the Five Year Plans, preference was given to the weaker sections of the society ?
  • Second
  • Third
  • Fourth
  • Fifth
Q8 | The Second Five Year Plan laid more stress upon:
  • agriculture
  • industrialisation
  • removing poverty
  • self-reliance
Q9 | The steel plants at Durgapur, Bhilai and Rourkela were established during the period of: [NDA 1990]
  • First Five Year Plan
  • Second Five Year Plan
  • Third Five Year Plan
  • Fourth Five Year PIan
Q10 | What is the correct sequence of the following strategies used for Five Year Plans inIndia? 1. Balanced growth 2. Rehabilitation of the economy 3. Industrial development
  • 1, 3, 2
  • 2, 1, 3
  • 2, 3, 1
  • 3, 2, 1
Q11 | During which Five Year Plan was the total expenditure on agriculture the highest?
  • First Five Year Plan
  • Second Five Year Plan
  • Third Five Year Plan
  • Fourth Five Year Plan
Q12 | The objective of self-reliance and zero net foreign aid was declared in :
  • Second 5-Yr Plan
  • Third 5-Yr Plan
  • Fourth 5-Yr Plan
  • Fifth 5-Yr Plan
Q13 | Who of the following was the author of the chapter on "Objectives of Planned Development" for the Third Five Year Plan? [IAS 2008]
  • Morarji Desai
  • C.D. Deshmukh
  • Jawaharlal Nehru
  • Lal Bahadur Shastri
Q14 | 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]
  • Sixth five year plan
  • Seventh five year plan
  • Eighth five year plan
  • Ninth five year plan
Q15 | 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]
  • 1 and 2 only
  • 2 and 3 only
  • 1, 2 and 3
  • 2 and 4 only
Q16 | 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.
  • 1 only
  • 2 only
  • Both 1 and 2
  • Neither 1 nor 2
Q17 | Who among the following was the first Chairman of the Planning Commission? [CDS 2008]
  • Dr. Rajendra Prasad
  • Pt. Jawahar Lal Nehru
  • Sardar Vallabhbhai Patel
  • J.B. Kripalani
Q18 | Which of the following statements about the Indian Economy is correct? [RBI Grade B Officer 2011]
  • Indian economy is as developed as that of China.
  • About 70% Indians are involved in some type of self-employment and are the owners of some or the other micro or small enterprise.
  • In India, single biggest employment is agriculture and allied activities.
  • About 48% Indian workforce is employed in foreign countries or in organizations assisted by foreign capital.
Q19 | Which of the following is NOT a function of the Planning Commission of India? [RBI Grade B Officer 2011]
  • Assessment of the material, capital and human resources of the country
  • Formulation of plans for the most effective and balanced utilization of country's resources
  • Public cooperation in national development
  • Preparation of annual budget of the country and collection of taxes to raise capital for the implementation of the plans
Q20 | 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]
  • Services-Industry-Agriculture
  • Services-Agriculture-Industry
  • Industry-Services-Agriculture
  • Industry-Agriculture-Services
Q21 | ____ is the ex-officio chairman of Planning Commission and National Development Council.
  • Prime Minister
  • President
  • Finance Minister
  • Commerce Minister
Q22 | Which statement is correct for Indian Planning Commission?
  • It is not defined in Indian Constitution
  • Members and Vice-Chairman of it do not have fixed working duration
  • Members do not require any minimum education
  • All of the these
Q23 | Which one of the following is a driving force influencing the industrial growth of an economy? [Corporation' Bank PO 2011]
  • Economic Factors only
  • Investment only
  • Innovation/Market Base only
  • All (1), (2) & (3)
Q24 | 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]
  • fourth Plan
  • sixth Plan
  • eighth Plan
  • tenth Plan
Q25 | 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]
  • 1 only
  • 2 and 3 only
  • 1 and 3 only
  • 1, 2 and 3