Fundamentals of Indian Economy and Planning Set 3

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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This set of Indian Economy Multiple Choice Questions & Answers (MCQs) focuses on Fundamentals of Indian Economy and Planning Set 3

Q1 | The Nehru-Mahalanobis strategy of development guided the planning practice in India from the [CDS 2012]
  • First Five-Year Plan to the Sixth Five-Year Plan
  • Fourth Five-Year Plan to the Eighth Five-Year Plan
  • Second Five-Year Plan to the Seventh Five-Year Plan
  • First Five-Year Plan to the Eighth Five-Year Plan
Answer: Second Five-Year Plan to the Seventh Five-Year Plan
Q2 | 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]
  • I and II
  • I and III
  • II and III
  • I, II, III and IV
Answer: I and III
Q3 | A "closed economy" is an economy in which [CSAT 2011]
  • the money supply is fully controlled
  • deficit financing takes place
  • only exports take place
  • neither exports nor imports take place
Answer: neither exports nor imports take place
Q4 | In which Plan was the growth rate target exceeded?
  • First
  • Fifth
  • Sixth
  • None of these
Answer: First
Q5 | 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
  • 1,2,3,4
  • 2,1,3,4
  • 1,3,2,4
  • 3,4,1,2
Answer: 1,3,2,4
Q6 | In India, the concepts of "minimum heeds" and "directed anti-poverty programmes" were the innovations of: [CDS 2004]
  • Fourth Five-year Plan
  • Fifth Five-year Plan
  • Sixth Five-year Plan
  • Seventh Five-year Plan
Answer: Fifth Five-year Plan
Q7 | During which Plan did prices show a decline?
  • First
  • Third
  • Fifth
  • None of the above
Answer: First
Q8 | Success of 4th plan was obstructed by :
  • poor monsoon
  • war with Pakistan
  • problem of Bengal refugees
  • All of the above
Answer: All of the above
Q9 | The 'Slack Season' in the Indian Economy is:
  • March - April
  • Sept. - Dec.
  • Jan. - June
  • Feb. – April
Answer: Jan. - June
Q10 | 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]
  • 1 only
  • 2 only
  • Both 1 and 2
  • Neither 1 nor 2
Answer: Both 1 and 2
Q11 | Which of the following groups of states has the largest concentration of rural poor and people living below the poverty line?
  • Karnataka, Maharashtra, Goa
  • Goa, Andhra Pradesh, Maharashtra
  • Tamil Nadu, Kerala, Goa
  • Andhra Pradesh, Karnataka, Tamil Nadu
Answer: Andhra Pradesh, Karnataka, Tamil Nadu
Q12 | India's wage policy is based on : [Railways 1994]
  • cost of living
  • standard of living
  • productivity
  • None of the above
Answer: cost of living
Q13 | Unemployment which occurs when workers move from one job to another job is knownas : [IAS 1992]
  • seasonal unemployment
  • frictional unemployment
  • cyclical unemployment
  • technological unemployment
Answer: frictional unemployment
Q14 | The type of unemployment mostly found in India can be characterised as :
  • structural
  • frictional
  • cyclical
  • disguised
Answer: disguised
Q15 | Disguised unemployment in India is mainly related to : 1. agricultural sector 2. rural area 3. factory sector 4. urban area
  • 1 and 2
  • 1 and 3
  • 2 and 4
  • 3 and 4
Answer: 1 and 2
Q16 | One of the reasons for India's occupational structure remaining more or less the same over the years has been that: [IAS 1995]
  • productivity in agriculture has been high enough to induce people to stay with agriculture
  • people are largely unaware of the significance of transition from agriculture to industry for economic development
  • investment pattern has been directed towards capital intensive industries
  • ceilings on land holdings have enabled more people to- own land and hence their preference to stay with agriculture
Answer: people are largely unaware of the significance of transition from agriculture to industry for economic development
Q17 | 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
  • I and II
  • I, II and III
  • I only
  • II and III
Answer: I and II
Q18 | Among the reasons for disguised unemployment in the rural areas is :
  • choice of a heavy industry model for economic development
  • low levels of technological development in the country
  • heavy pressure of population along with slow implementation of land reforms
  • high illiteracy rate
Answer: low levels of technological development in the country
Q19 | Unemployment in a developing country generally takes place due to :
  • switch over from one job to another
  • lack of effective demand
  • seasonal factors
  • lack of complementary factors of production
Answer: lack of complementary factors of production
Q20 | Cyclical unemployment refers to:
  • seasonal unemployment
  • disguised unemployment
  • voluntary unemployment
  • unemployment during recessionary phase of a trade cycle
Answer: unemployment during recessionary phase of a trade cycle
Q21 | Persons below the poverty line in India are classified as such based on whether: [IAS 1999]
  • they are entitled to a minimum prescribed food basket
  • they get work for a prescribed minimum number of days in a year
  • they belong to agricultural labourer household and the scheduled caste/tribe social group
  • their daily wages fall below the prescribed minimum wages
Answer: they are entitled to a minimum prescribed food basket
Q22 | Which Committee's recommendations are being followed for estimating Poverty Line inIndia?
  • Dutt Committee
  • Chelliah Committee
  • Chakravorty Committee
  • Lakdawala Committee
Answer: Lakdawala Committee
Q23 | Consider the following statements: Regional disparities in India are high and have been rising in recent years because: 1. There is persistent investment over time only in Select locales 2. Some areas are agro climatically less conducive to development 3. Some are as continue to face little or no aqrarian transformation and the consequent lack of social and economic opportunities 4. Some areas have faced continuous political instability. Which of the above statements are correct?
  • 1, 2 and 3
  • 1, 2 and 4
  • 1, 3 and 4
  • 2, 3 and 4
Answer: 1, 2 and 3
Q24 | Absolute Poverty means:
  • poverty in terms of absolute number of people
  • poverty in terms of the basic minimum calorie requirements
  • poverty in terms of the prevailing price level
  • poverty in terms of the absolute level of unemployment
Answer: poverty in terms of the basic minimum calorie requirements
Q25 | Among the following who are eligible to benefit from the "Mahatma Gandhi National Rural Employment Guarantee Act" ? [CSAT 2011]
  • Adult members of only the scheduled Caste and scheduled tribe households
  • Adult members of below poverty line (BPL) households
  • Adult members of households of all backward communities
  • Adult members of any household
Answer: Adult members of any household
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