(MCQ) NCERT Books Class-11 : Indian Economic Development (New)

1. In 1991 India met with an economic crisis. Which of the following can be quoted as a reason for the same?
1. The high level of external debt.
2. High level of foreign exchange reserve.
3. Rising prices of essential goods.
4. Import substitution policy of India.
5. Political instability.
Code:
a) 1 and 2
b) Only 1
c) 2, 3 and 4
d) All the above
Ans. B

2. Consider the following statements about India’s approach in dealing with 1991 crisis.
1. India approached the international bank for reconstruction and development popularly known as IMF for loan to manage the crisis.
2. India came up with new economic policies which were based on the conditionality of international institutions.
3. Conditionality of international institutions was not as a punishment but were towards creating more competitive environment in the economy.
Select the correct ones.
a) All the above
b) 2 and 3
c) 1 and 2
d) 1 and 3
Ans. B

3. Which of the following is not a part of changes in industrial sector post 1991 reform?
1. Industrial licensing under which every entrepreneur had to get permission from government officials to start a firm was abolished except in some sector.
2. Private sector was allowed in many industries.
3. Some goods could be produced only in small scale industries.
4. Controls on price fixation and distribution of selected industrial products.
Code:
a) 1, 3 and 4
b) 1, 2, 3 and 4
c) 1 and 4
d) 3 and 4
Ans. A

4. There are many ways to categorize poverty. Consider the following statements in this regard.
1. ‘The people who are always poor’ and those whose are usually poor but who may sometimes have a little more money are called chronic poor.
2. The people who regularly move in and out of poverty are called churning poor.
3. People who are rich most of the time but may sometimes have a patch of bad luck are called occasionally poor.
Select the correct ones.
a) 1 and 2
b) 2 and 3
c) All the above
d) 1 and 3
Ans. C

5. Most of the economies including India are mixed economies. Consider the following statements.
1. In mixed economies government and the market together answer what and how to produce and how to distribute what to produce.
2. The government will provide whatever goods and services it can produce well.
3. The market will produce to the goods and services the government fails to do.
Select the correct ones.
a) Only 1
b) 1 and 3
c) All the above
d) 2 and 3
Ans. A

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6. India followed a planned economy from the time of independence. Consider the following statements.
1. India‘s plans were of five years and lacked a perspective approach.
2. Directive principles of Indian constitution reflect the planned outlook of India.
3. Our five year plans do not spell out how much of each and every good and service is to be produced.
Select the correct statements using codes below.
a) Only 2
b) 2 and 3
c) 1 and 3
d) All the above
Ans. B

7. In case of India we have unemployment in rural and urban areas. Consider the following statements about types of unemployment in India.
1. Disguised unemployment happens when people are not able to find jobs during some months of the year due to agricultural patterns.
2. Educated unemployment is a result of improper management of Human resources.
3. In case of India, statistically, the unemployment rate is low.
Select the correct statements using codes below.
a) 1 and 2
b) 1 and 3
c) 2 and 3
d) All of the above
Ans. C

8. Poverty has many facets and is looked through various social Indicators. Consider the following statements in this regard:
1. Social Exclusion describes the greater probability of being more adversely affected than other people.
2. Vulnerability is a process through which individuals or groups are not able to access facilities, benefits and opportunities that others enjoy.

Which of the statements given above is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) None of these
Ans. D

9. Although there has been a substantial reduction in global poverty, it is marked with great regional differences. Consider the following statements related to this.
1. In Sub-Saharan Africa, poverty in fact rose from 41 per cent in 1981 to 46 per cent in 2001.
2. Number of poors in South Asia has come down from 606 million in 1981 to 212 million in 2001.
3. Poverty has also resurfaced in some of the former socialist countries like Russia after their opening up.
Select the correct statements using codes given below.
a) 1 and 2
b) 1 and 3
c) 2 and 3
d) All of the above
Ans. B

10. Economy of a country is classified into various sectors based on different types of economic activity undertaken in each. Consider the following statements related to some of them.
1. All Agricultural activities are included in Primary sector
2. All Industrial activities are included in secondary sector.
3. Service sector includes only those activities that help in production of goods.
Select the incorrect statements using codes given below.
a) 1 and 2
b) 1 and 3
c) 2 and 3
d) All of the above
Ans. C

11. Human Development Report published by UNDP compares countries based on the educational levels of the people, their health status and per capita income. Consider the following statements related to this.
1. In HDR Per Capita Income is calculated in dollars adjusted by purchasing power for all countries so that it can be compared.
2. Nepal has half the per capita income of India, yet it is not far behind India in life expectancy and literacy levels.
3. Health, education and skill indicators are used along with income as a measure of development in HDI.
Select the correct statements using codes below.
a) 1 and 2
b) 1 and 3
c) 2 and 3
d) All of the above
Ans. A

12. India is a planned ‘socialist’ society with a strong public sector but also with private property and democracy. What were the goals of five year plans in the years after India’s Independence?
1. Growth
2. Modernisation
3. Self Reliance
4. Nationalisation
5. Equity
Code:
a) 1, 3 and 5
b) 2, 3 and 5
c) 1, 2, 3 and 5
d) All of the above
Ans. C

13. The economic justification of subsidies in agriculture is, at present, a hotly debated question. Consider the following statements related to this.
1. A substantial amount of fertiliser subsidy also benefits the fertiliser industry, not only farmers.
2. The subsidy largely benefits the farmers in the more prosperous regions.
3. Most farmers in India are very poor and they will not be able to afford the required inputs without subsidies.
Select the correct statements using codes below.
a) 1 and 2
b) 1 and 3
c) 2 and 3
d) All of the above
Ans. D

14. Liberalisation was introduced to put an end to restrictions and open up various sectors of the economy. Which of the following liberalisation measures were taken up before 1990s?
1. Industrial licensing
2. Export-import policy
3. Tax reforms
4. Foreign investment
5. Technology upgradation,
Code:
a) 1 and 3 only
b) 2 and 5 only
c) 1, 2 and 5 only
d) All of the above
Ans. D

15. The financial sector in India is primarily controlled by the Reserve Bank of India (RBI). Which of the following institutions are a part of financial sector?
1. Commercial banks
2. Money Lenders
3. Investment banks
4. Stock exchange operations
5. Insurance
6. Foreign exchange market
Code:
a) 1, 2, 3 and 6
b) 1, 3, 4, 5 and 6
c) 1, 3, 4 and 6
d) All of the above
Ans. D

16. Infrastructure provides supporting services in the main areas of industrial and agricultural production, domestic and foreign trade and commerce. Consider the following statements about infrastructure.
1. Infrastructure associated with energy, transportation, housing and communication are included in the economic Infrastructure.
2. Agriculture does not depend on infrastructure as it is labour intensive.
3. Infrastructure contributes to economic development of a country by improving the quality of life of its people.
Which of the statements given above is/are not correct?
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) All of the above
Ans. A

17. Over the years, India has built up a vast health infrastructure and manpower at different levels. Consider the following statements related to Health infrastructure in India.
1. More than 70 per cent of the hospitals in India are run by the private sector.
2. Nearly 60 per cent of dispensaries are run by the public sector.
3. More than 80 per cent of the medical service providers in private sector are single person owned
Select the correct statements using the codes given below.
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) All of the above
Ans. B

18. An important form in which people hold money is deposits with banks. Consider the following statements related to this.
1. Since the deposits in the bank accounts can be withdrawn anytime, these deposits are called fixed deposits.
2. Banks mediate between those who have surplus funds and those who are in need of these funds.
3. Credit refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment.
Select the correct statements using the code below.
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) All of the above
Ans. C

19. The terms of credit vary substantially from one credit arrangement to another. Consider the following statements related to various credit arrangements.
1. Loans from Money lenders, traders and cooperatives are informal loans.
2. Informal sector is largest credit lender outperforming commercial banks.
3. The Reserve Bank of India supervises the functioning of formal sources of loans.
Select the correct statements using the codes given below.
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) All of the above
Ans. C

20. Cheap and affordable credit is crucial for the country’s development. Consider the following statements related to credit availability in India.
1. Rich households in urban area has more accessibility to formal credit in India.
2. The cost to the borrower of informal loans is much higher than formal loans.
3. The formal sector still meets only about half of the total credit needs of the rural people.
Select the correct statements using the code below.
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) All of the above
Ans. D

21. The health status of a country can be assessed through indicators such as infant mortality rate, maternal mortality rates, life expectancy and nutritional levels along with incidence of communicable and non-communicable diseases. Consider the following about indicators of health in comparison with other countries?
1. The expenditure of India to Health as percentage of GDP is slightly better than Sri Lanka and China
2. Infant mortality rate in India is higher than China, Sri Lanka and US
3. India stands far ahead than China in giving birth by skilled attendants
Select the correct statements using codes given below:
a) 1 and 2
b) 2 and 3 only
c) 2 only
d) 1, 2 and 3
Ans. C

22. NABARD is the apex institution in the country which looks after the development of the cottage industry, small industry, village industry, and other rural industries. NABARD also reaches out to allied economies and supports and promotes integrated development. Consider the following about the functions of NABARD
1. Co-ordinate the activities of all institutions involved in rural financing system
2. Refinance
3. Accepting deposits from public
Select the correct answer from the code given below:
a) 1 and 3
b) 1 and 2
c) 1, 2 and 3
d) 3 only
Ans. B

23. Currency is accepted as medium of exchange because the currency is authorized by the government of the country? Consider the statements about issue of currency.
1. In India, the Reserve Bank of India and an institution recommended by Parliament can issue currency notes on behalf of the central government.
2. In India, the law legalizes the use of rupee as a medium of payment that cannot be refused in settling transaction in India.
3. Some Indians can legally refuse a payment made in rupees
Select the correct answer from the code given below.
a) 1 only
b) 1 and 2
c) 2 and 3
d) 2 only
Ans. D

24. In accordance with the goal of the state controlling the commanding heights of the economy, the industrial policy resolution of 1956 was adopted consider the following statements about 1956- industrial policy resolution?
1. This resolution formed the basis of the second five year plan, the plan which tried to build the basis for a capitalist pattern of society.
2. This policy was used for promoting industries in backward regions.
3. License to expand production achieved easily.
Select the correct answer from the code given below:
a) 1 and 2 b) 2 only
c) 2 and 3 d) 1 and 3
Ans. b

25. Activities which contribute to the gross national product are called economic activities. Consider the following statements about activities which contribute to GNP?
1. Income of Ambassadors of other countries in India
2. Women working at home also contribute to gross national product.
3. Income of people working abroad also contributes to gross national product.
Select the correct answer from the code given below:
a) 1 and 2
b) 2 and 3
c) 3 only
d) None
Ans. C

26. One of India’s competitive advantages is its demographic dividend. Demographic dividend occurs when the proportion of working people in the total population is high because this indicates that more people have the potential to be productive and contribute to growth of the economy. To obtain full benefits of demographic dividend what should our country do?
a) Introducing social security schemes.
b) Promoting skill development.
c) Reducing maternal mortality rate.
d) Privatization of higher education.
Ans. B

27. Gross national product can be defined as.
a) Total value of goods and services produced in the country.
b) Total value of all transaction in the country.
c) Depreciation in the total value of goods and services produced in the country.
d) Total value of goods and services produced in the country and net factor income from abroad.
Ans. D

28. Participation of women in workforce is crucial for economic development. Consider the following statements regarding participation of women?
1. Women work force was more in urban areas compared to rural areas.
2. Women workers account for one-third of the rural work force.
Select the correct answer from the code given below:
a) 1 and 2
b) 1 only
c) 2 only
d) None
Ans. c

29. There is a deterioration in the child sex ratio in the country. What are the possible reasons for it?
1. Low fertility rate
2. Female foeticide
3. Incentives for boy child from government
Select the correct answer from the code given below:
a) 1 and 2
b) 2 only
c) 1 only
d) All the above
Ans. b

30. In India, which of the following is having highest share in the disbursement of credit to agriculture and allied activities?
a) Cooperative Banks
b) Regional Rural Banks
c) Commercial Banks
d) Microfinance institutions
Ans. C

31. Buffer stock is created by the government to cater the future need. Considers the following statements about buffer stock?
1. Buffer stock is created to increase the income of the government at the time of crisis.
2. Price stability
3. This is done to distribute food grains in the deficit areas and among the poorer strata of society.
4. Buffer stock helps to resolve the problem of shortage of food during adverse weather conditions or during the periods of calamity.
Select the correct answer from the code given below:
a) 1, 2 and 3
b) 2, 3 and 4
c) 2 and 3
d) 1, 3 and 4
Ans. B

32. The consumption of Chemical fertilizers was an important factor in the success of Green Revolution in the late 1960’s. Consider the following statements.
1. Chemical fertilizers dissolve in water and are immediately available to plants.
2. Chemical fertilizers can kill bacteria and other micro-organisms in soil.
3. The use of Chemical fertilizers caused the rise in cost of production in the long term.
Select the correct ones.
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All are correct
Ans. D

33. In case of India, we have unemployment in rural as well as urban areas. Consider the following statements in this regard.
1. Sometimes, the people will remain unemployed even in the peak of farming seasons, and is called the seasonal unemployment.
2. In case of disguised unemployment, people appear to be unemployed, and is a pseudo unemployment.
3. Educated unemployment is a common phenomenon in urban areas owing to the high levels of education.
Select the incorrect ones.
a) Only 3
b) 1 and 2
c) Only 1
d) 2 and 3
Ans. B

34. In case of India, statistically, the unemployment rate is low. Consider the following statements about unemployment.
1. The unemployment ratio is calculated only from the working age population, who are in the age group of 15 years to 59 years.
2. Unemployment is said to exist, when any of the persons in the workforce population cannot find jobs.
3. The main reason for the unemployment is the people who are not interested in working outside the domestic domain.
Select the incorrect ones
a) Only 3
b) 2 and 3
c) Only 2
d) All of these
Ans. B

35. The poverty line is revised periodically taking into consideration the rise in prices. Consider the following statements.
1. The poverty line is estimated periodically by conducting sample surveys normally every five years.
2. The surveys are carried out by the National Sample Survey Organisation.
3. For making comparisons between developing countries, the international organizations like World Bank use uniform standards.
Select the correct ones.
a) Only 2
b) All the above
c) Only 1
d) 1 and 2
Ans. B

36. Buffer stock is the stock of foodgrains procured by the government through Food Corporation of India (FCI). Consider the following statements in relation to the FCI procurements.
1. The FCI purchases wheat and rice from the states where there is a surplus.
2. Minimum support price is the price announced by the FCI before the sowing season.
3. Issue price is the price issued by the FCI for their procurements based on the market price.
Select the correct ones.
a) 1 and 2
b) Only 2
c) Only 1
d) All the above
Ans. C

37. Occupational structure of India in colonial period was completely different from the present systems. Consider the following statements.
1. There were hardly any service sectors in the colonial period.
2. The regional variations were not visible in the colonial era.
3. Agricultural sector accounted for the largest share of work force.
Select the incorrect ones.
a) Only 3
b) Only 1
c) All of these
d) 1 and 2
Ans. D 

38. One of the main task post independence was to decide on the type of economic system most suitable for India. Consider the following statements.
1. Jawaharlal Nehru was in favour of the socialism as established in the former Soviet Union.
2. India moved with the mixed economy mainly due to the opposition from other leader.
3. With mixed economy India sought an alternative to the capitalism and socialism concepts.
Select the incorrect ones.
a) 1 and 2
b) Only 3
c) All of these
d) Only 2
Ans. C

39. Marketed Surplus was the most important fruit of Green Revolution period. Consider the following statements.
1. The portion of the agricultural produce which is sold in the market by the farmers is called the marketed surplus.
2. With the increase in supply, the price of food grains also increased relative to the other items of consumption.
3. The increase in food prices caused worsening the conditions of the low income groups.
Select the incorrect ones.
a) Only 1
b) None of these
c) 2 and 3
d) Only 2
Ans. D.

40. An important approach to addressing poverty is to provide minimum basic amenities to the people. Consider the following statements about schemes to provide basic amenities.
1. National Social Assistance Programme is a programme to give pension to elderly people who do not have anyone to take care of them.
2. Pradhan Mantri Gramodaya Yojana aims to provide better connectivity in the villages by improving roads.
Select the correct statements using codes below.
a) 1 only
b) 2 only
c) Both 1 and 2
d) None of the above
Ans. C

(E-Book) GIST OF NCERT BOOKS MCQ PDF with Answers

GIST OF NCERT BOOKS STUDY NOTES PDF for UPSC IAS Exams

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