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B.COM (4thSEMESTER)

INDIAN ECONOMY

COMPLETE
MCQ. NOTES

MARKS - 40

SANDIP KUMAR

NOTE: ANSWER IS UNDERLINE

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CHAPTER – 1.BASIC ISSUE IN ECONOMIC

DEVELOPMENT

1 – marks
1. Development reflects :
(a) social progress (b) economic progress
(c) social and economic progress (d) none

2. Underdevelopment is characterized by:

(a) low real per capita income (b) wide-spread poverty
(c) lower level of literacy (d) all

3. Indian accommodates nearly ……… Percent of world's population:

(a) 10 (b) 17.5 (c) 50 (d) 19

4. How do we measure human well being human development Index :

(a) Through life expectancy at birth (b) Through standard of education
(c) Through real GDP per capital (d) All of these

5. A gini Index of zero represents perfect:

(a) Equality (b) Inequality (c) Profit (d) Loss

6. To measure the inequality of income and wealth generally which of these is

used:
(a) Human development index (b) Gini index
(c) Per capital income (d) National income

7. Indian Railways has been world's …….…………...largest rail network:

(a) First (b) Second (c) Third (d) Fourth

8. HDI does not consists of:

(a) Longetivity (b) Knowledge
(c) Life expectancy (d) Standard of living

9. The main objective of RRB [Regional Rural Bank] is to provide credit to :

(a) Weaker section of rural areas (b) Weaker sections
(c) Industrial areas (d) Agriculture sector

10. Over the years, per capita income is:

(a) Increasing (b) Decreasing (c) Constant (d) Galloping

11. Which of the following states has the largest number of schedule casts?
(a) UP (b) Orissa (c) Bihar (d) Madhya Pradesh

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12. Which of there are responsible for measuring inequalities of income and
wealth?
(a) Gini Index (b) HDI (c) Both (a) and (b) (d) None

13. Right of children to Free and Compulsory Education Act, (RTE Act), 2009,
has made free education for all children between the age of:
(a) 5 and 15 years (b) 6 and 16 years
(c) 6 and 14 years (d) 7 and 18 years

14. Which among the following is not a feature of an underdeveloped

economy?
(a) Wide-spread inequalities of income
(b) Dominance of mass consumption
(c) Over population
(d) Unemployment and Poverty

15. Currently in India WPI series, which base

year is being used to assess price changes.
(a) 2004-05 (b) 2005-06 (c) 2006-07 (d) 2008-09

16. Who is the chairman of planning commission?

(a) Prime minister (b) Finance minister
(c) Minister of planning (d) Secretary, Ministry of Planning

17. Who is responsible for collecting and presenting statistics in India?

(a) ISI (b) CSO (c) ICAER (d) NCERT

18. National Manufacturing Policy 2011, has an objective to enable

manufacturing sector to contribute atleast ……. percent of GDP by 2022.
(a) 20 (b) 25 (c) 28 (d) 30

19. Product method of calculating national income is also known as:

(a) Income method (b) Value added method
(c) Expenditure method (d) Distribution method

20. Transfer payments refer to payments, which are made:

(a) Without any exchange of goods and services
(b) To workers on transfer from one job to another
(c) As compensation to employees
(d) None

21. National Income differs from Net National Product at market price by the
amount of:
(a) Current transfers from rest of the world
(b) Net Indirect Taxes
(c) National debt interest

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(d) If does not differ

22. GNP = GDP + ............ ;

(a) Depreciation (b) Indirect Tax (c) NFIA (d) Subsidies

23. Which of the following is not correct?

(a) NNPMP = GNPMP - depreciation
(b) NNPMP = NNPFC + net indirect taxes
(c) GDPMP = GDPMP + NFIA
(d) NDPFC = GDPFC – depreciation

24. Net national product at factor cost is also known as:

(a) Net Domestic product (b) Gross National product
(c) National Income (d) Personal Income

25. Goods and services for final consumption are:

(a) Produced goods (b) Consumer goods
(c) Giffer goods (d) None of these

26. GDP at factor cost is equal to GDP at market price minus ...... plus subsidies.
(a) Direct taxes (b) Indirect taxes
(c) Foreign loans (d) Depreciation

27. Transfer payments are

(a) Payments transferred from Central Government account to State
Government account.
(b) Payments made to factors of production by the organizer.
(c) Payments made for no return service
(d) None of the above

28. GNP is equal to .... Plus Net foreign income from abroad.
(a) NNP at factor cost (b) GDP
(c) NNP at market price (d) National Income

29. National Income estimation in India is done by:

(a) Reserve Bank of India (b) Planning Commission
(c) Central Statistical Organization (d) Ministry of Finance

30. NNPFC minus....... = NDPFC

(a) NFIA (b) Net indirect taxes (c) Depreciation (d) None

31. GNP at factor cost minus depreciation is equal to ......

(a) NNP at factor cost (b) NDP at factor cost
(c) GDP at factor cost (d) NNP at market price

32. Net Domestic Product (NDP) = Gross Domestic Product (GDP) minus …….

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(a) NFIA (b) IT (c) Depreciation (d) Transfer payment

33. GDP at Factor Cost = GDP at Market Price minus indirect taxes plus.........
(a) Income from abroad (b) Subsidies
(c) Transfer payments (d) Operating surplus

34. GDP at factor cost = GDP at market price - (minus)......+ (plus) subsidies
(a) Direct taxes (b) Indirect taxes
(c) Income from abroad (d) Foreign debts

35. National Income differs from Net National Product at market price by the
amount of
(a) Current transfers from the rest of the world
(b) Net indirect taxes
(c) National debt interest
(d) Subsidies

36. Value added method is used to measure..

(a) National Income (b) Domestic Income
(c) Gross Income (d) Per capita Income

37. Product method of calculating national income is also known as

(a) Income method (b) Value added method
(c) Expenditure method (d) None of the above

38. GD at market price is:

(a) GNP at market price – depreciation
(b) GNP at market price - net income from abroad
(c) GNP at market price - net indirect taxes
(d) GNP at factor cost – depreciation

39. Which one of the following is correct?

(a) GNPFC = GNPMP +Subsidies
(b) GNPFC = GNPMP + Subsidies – indirect taxes
(c) GNPFC = GNPMP - Subsidies + indirect taxes
(d) GNPFC = GNPMP + Subsidies + indirect taxes

40. GNP at market price minus......... is equal to GDP at market price.

(a) depreciation (b) direct taxes
(c) subsidies (d) net income from abroad

41. Per Capita national income means:

(a) NNP divided by population
(b) Total capital divided by population
(c) Population divided by NNP
(d) None of the above

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42. In the definition of Gross Domestic Product in India, which of the following
is not included in the definition of Domestic Territory?
(a) Ships and aircrafts operated by the residents of the country.
(b) Fishing vessels operated by the residents of the country.
(c) Embassies and military establishments of the country located abroad.
(d) Corporate offices of the residents of the country living abroad.

2 – marks

1. Which index is used to measure the inequality of income and wealth?

(a) Ginni index (b) Cost index
(c) Growth index (d) Economic Index

2. The basic reason for considering the Indian Economy as an underdeveloped

economy is:
(a) Wide spread poverty (b) High rate of population
(c) Wide spread income inequalities (d) All of the above

3. ………….. is the best indicator of economic development of any country.

(a) Agriculture (b) Transport
(c) Gross production (d) Per Capita income

4. The difference between value of output and value added is :

(a) Depreciation (b) Intermediate consumption
(c) Net indirect taxes (d) NFIA

5. GDPMP = GDPFC
(a) Depreciation (b) NIFA
(c) Net Indirect Tax (d) Subsidies

6. National Income doesn't include:

(a) Interest on unproductive national debt
(b) Income for government expenditure
(c) The payments by the household to firm for the purchase of goods and
services
(d) Undistributed profit

7. In GNP calculation which of the following should be excluded?

(a) Rental Incomes (b) Interest payments
(c) Dividends (d) Government transfer payment

8. The most important problem of estimating National Income is

(a) Unorganized Market (b) Double Counting
(c) Population rise (d) Income Inequalities

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9. Real National Income means national income measured at

(a) Constant Prices (b) Current Prices
(c) Wholesale Prices (d) Retail Prices

10. Which one of the following is correct?

(a) NNPFC = NNPMP -NIT
(b) NNP MP= MP = NNPFC - NIT
(c) NNPMP = NNPFC - Depreciation
(d) NNPMP = NNPFC + Depreciation

11. Which of the following represents National Income?

(a) GDP at factor cost (b) NDP at factor cost
(c) NNP at market price (d) NNP at factor cost

12. Real national income means the national income measured in terms of.
(a) Constant prices. (b) Current prices.
(c) Wholesale prices. (d) Retail prices

13. Personal disposable income means:

(a) Personal income - personal direct tax
(b) Personal income - Net Indirect taxes
(c) Personal income + personal direct tax
(d) Personal income + Net Indirect taxes

14. The most important problem in Estimating GNP is:

(a) Double counting (b) Smuggling
(c) Black marketing (d) Unorganized

15. As per the Value Added Method of measuring national income identify
which of the following item is excluded?
(a) Brokerage and Commission earned by dealers of second hand goods
(b) Sale of second hand machines
(c) Production for Self-Consumption
(d) Imputed rent of owner occupied houses

16. The difference between the GDPMP and GNPMP is................

(a) Net income (b) Subsidies
(c) Net factor income from abroad (d) Depreciation

17. Which of the following statement is incorrect?

(a) GNP at market price - depreciation = NNP at market price
(b) GNP at market price net income from abroad = GDP at market price
(c) GNP at market price - net indirect takes = GNP at factor cost
(d) None of the above

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18. National dividend is sum of the money value of all.... goods & services
produced by the residents of a country during a period of one year including
income derived from abroad.
(a) Producer's (b) Consumer's (c) Intermediate (d) Final

19. In country 'X', if NNP at market price remained constant and depreciation
increased compared to the previous year, then GNP at market prices will...........
(a) Increase
(b) Decrease
(c) Increase by an amount equal to rise in depreciation
(d) Decrease by an amount equal to rise in depreciation

20. What is Net National Product?

(a) The money value of final goods and services produced annually in the
economy.
(b) The money value of annual service generation in the economy.
(c) The money value of tangible goods
produced annually to the economy.
(d) The money value of tangible goods available in the economy

21. NNP at factor cost plus is equal to NNP at market price.

(a) subsidies
(b) indirect taxes minus subsidies
(c) subsidies and indirect taxes
(d) indirect taxes

22. Economic development of a country cannot be achieved without

(a) Foreign aid (b) Profit making
(c) Domestic savings (d) External borrowing

23. An economy achieve productive efficiency when:

(a) Resources are employed in their most highly valued uses
(b) The best resources are employed
(c) The total number of goods produced is greatest
(d) Goods and services are produced at the least cost and no resources are
wasted

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CHAPTER – 2. BASIC FEATURE OF INDIAN

ECONOMY

1 – marks
1. Indian economy bags the .......... position among the other strongest and
largest economies among the world
(a) first (b) third (c) sixth (d) seventh

2. Indian economy bags the....... in terms of Purchasing Power Parity among the
world:
(a) first (b) third (c) sixth (d) seventh

3. The primary occupations include:

(a) essential activities (b) normal activities
(c) natural activities (d) none

4. Secondary activities include:

(a) manufacturing industries (b) processing industries
(c) service industries (d) none

5. Tertiary activities include:

(a) essential activities (b) normal activities
(c) natural activities (d) other activities

6. Changes in occupational structure are very much associated with:

(a) economic development (b) economic growth
(c) economic activities (d) none

7. Which of the following statements is correct?

(a) India's global ranking in Human Development Index (HDI) is higher than
the China and Sri Lanka
(b) Inequalities of income & wealth in India have declined during 1994-2011
(c) The rate of increase in per capita income in India is lower than the rate of
increase in National Income
(d) Presently, the planning commission lays down targets for the Indian
Economy as a whole

8. India is a ......... economy

(a) capitalist (b) socialist (c) mixed (d) federal

9. Water supply and construction falls in the category of......... sector.

(a) primary (b) secondary (c) tertiary (d) social

10. The share of tertiary sector in GDP in 2013-14 was: [updated]

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(a) 51.4% (b) 45.1% (c) 42.3% (d) 59.9%

11. In occupational structure of India which sectors contribution is increasing?
(a) Agriculture (b) Industries (c) Services (d) Animal husbandry

12. Maximum contribution in India's national income is from

(a) Agricultural sector (b) Industrial sector
(c) Service sector (d) None of the above

13. Which of the following pair is not correctly matched?

(a) IBRD: Gives short term loans for development
(b) IMF: Provides finance to correct disequilibrium in balance of payments
(c) RBI: Controls-credit in India
(d) WTO: Generally forbids the use of quantitative restrictions on trade

14. Point out the correct one from the following:

(a) The share of agriculture in India's National Income is consistently rising
(b) NABARD is a leading Commercial Bank
(c) RBI formulates country's fiscal policy
(d) Service Sector makes the highest contribution to India's National Income

15. BPO stands for:

(a) Bharat Petro Organizations
(b) Business Process Outstanding
(c) Big Portfolio Outsourcing
(d) Business Partners Organization

16. Occupational structure refers to :

(a) Distribution of working force among the different occupations
(b) The nature of different occupations
(c) Size of working force in a country
(d) Number of people living in a country

17. Hydel power contributes ...... of the total generation:

(a) 10% (b) 17% (c) 20% (d) 25%

18. Presently.... of the villages are electrified :

(a) 45% (b) 51% (c) 23% (d) 15%

19. NLM stands for:

(a) National Leprosy Mission (b) National Logistic Mission
(c) National Literacy Mission (d) National Law Mission

20. At present, nearly ........ ... percent of the energy consumed is obtained from
non-commercial sources:
(a) 45% (b) 51% (c) 23% (d) 15%

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21. In terms of generation of power energy's contribution, is the

maximum............
(a) Hydel (b) Nuclear (c) Thermal (d) Solar

22. Which of the following statement is incorrect?

(a) The Indian Road Network is second longest in the world
(b) The Rural road network connects around 65% of all weather roads
(c) Most of the state Road Transport corporations are running on profits
(d) The national highways carry more than 40% of the total road traffic

23. NIXI stands for:

(a) National Institute of exchange of Ideas
(b) National Internet exchange of India
(c) National Internet education for India
(d) All of these

24. The telephone penetration rate in India per 100 population is ....... ....:
(a) 11.32 (b) 16.8 (c) 25.56 (d) 19.22

25. ……… measures the operational efficiency of a thermal plant :

(a) Power load factor (b) Power leakage factor
(c) Plant road factor (d) Plant leakage factor

26. The Indian Railways have a route length about.......... Kms :

(a) 62.5 thousand (b) 64.6 thousand
(c) 70 thousand (d) 72 thousand

27. Import of oil and lubricants constitute about......... of our Import Bill:
(a) 20% (b) 24% (c) 27% (d) 35%

28. NLM aimed at imparting functional literacy to non-literates in the age group
of:
(a) 15-39 years (b) 25-35 years (c) 15-35 years (d) 20-40 years

29. What is the major source of energy:

(a) Coal (b) Petroleum (c) Biogas (d) All of these

30. VSAT stands for:

(a) Value salable aperture terminal (b) Very small aperture terminal
(c) Very sleek aperture terminal (d) All of these

31. PLF is lowest in:

(a) Southern region (b) Northern region
(c) Western region (d) North-eastern

32. Out of 12 major ports, ........ is true top traffic handler:

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(a) Kolkata (b) Cochin (c) Mumbai (d) Vishakhapatnam

33. On an estimate electricity generation is about........ in 2011-12:

(a) 137500MW (b) 236000MW (c) 33300MW (d) 74700MW

34. TRAI is the regulatory authority for........ in India:

(a) Railways (b) Telecom (c) Banking (d) Secondary market

35. Our postal Network is ........ in the world:

(a) Largest (b) Smallest (c) Tenth largest (d) Second largest

36. The all India power grid is estimated to be developed by:

(a) 2010 (b) 2012 (c) 2015 (d) 2020

37. India has long coastline of:

(a) 7,515 Km (b) 7,516 Km (c) 7,517 Km (d) 7,518 Km

38. AMPC stands for:

(a) Automatic mail processing centre
(b) Automated mail processing centre
(c) Automatic mail providing centre
(d) None

39. The creation of Indian Postal Department happened in:

(a) 1837 (b) 1857 (c) 1951 (d) 1751

40. The major user of commercial energy is :

(a) Agriculture (b) Transport (c) Household (d) Industry

41. VPT stands for:

(a) Village public telephone (b) Village police telephone
(c) Vidyut pariyojna telephone (d) None

42. India's largest leading partner is …………

(a) U.S.A (b) U.K. (c) Germany (d) China

43. ….......... provides crop storage facility in India.

(a) IDBI (b) ICICI (c) FCI (d) IFCI

44. When was Personal Identification Number (PIN) introduced:

(a) 1970 (b) 1972 (c) 1974 (d) 1976

45. In order to provide access to electricity to all villages........ was launched.

(a) Mahatama Gandhi Grameen
(b) Indira Gandhi Grameen Vidutikaran Programme.
(c) Rajeev Gandhi Grameen

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46. Sarva Siksha Abhiyan was launched in the year......... in India.

(a) 1986-87 (b) 2001-02 (c) 2002-03 (d) 2003-04

47. Which is the Regulatory authority for telecom in India

(a) BSNL (b) MTNL (c) SEBI (d) TRAI

48. Pradhan Mantri Bharat Jodo Yojna is associated with:

(a) Rivers (b) Communication (c) Highways (d) Social Integration

49. On an average one Post Office in India serves.

(a) 100 persons (b) 500 persons (c) 6,174 persons (d) 7,814 persons

50. Economic Infrastructure Comprises of ....

(a) Banking and financial institutions (b) Sanitation
(c) Drinking water facilities (d) None

51. …………. port handles the maximum traffic amongst the major ports in India
for last 5 years.
(a) Kandla (b) Kochi (c) Mumbai (d) Vishakapatnam

52. Indian Railway network is the.......... in the word.

(a) Largest (b) Smallest (c) Second largest (d) Second smallest

53. TRAI is regulatory authority for ...

(a) Railways (b) Transport (c) Taxation (d) Telecommunications

2 – marks
1. The occupational structure indicated the distribution as well as absorption of
...... into these various types of ………
(a) consumption, occupations
(b) population, occupations
(c) savings, investment
(d) demand, supply

2. In occupational structure of India, which sector has the lowest share?

(a) Agriculture (b) Service (c) Industry (d) Construction

3. Primary sector also includes.............

(a) Transport and shipping
(b) Banking and financial institution
(c) Mining and quarrying
(d) Insurance

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4. India's economy can best be described as:

(a) Capitalistic economy (b) Socialistic economy
(c) Traditional economy (d) Mixed economy

5. Which of the following statement is correct:

(a) In India the tertiary sector contributes the maximum to the GDP
(b) India is a socialist economy
(c) The distribution of Income and wealth is quite equitable in India
(d) None of the above.

6. Animal husbandry comes under which sector?

(a) Primary sector (b) Secondary sector
(c) Tertiary sector (d) None of the above

7. Which of the following is the largest contributor of GDP in India?

(a) Agriculture (b) Tourism (c) Industry (d) Service Sector

8. Tourism is an example of:

(a) Primary Sector (b) Secondary Sector
(c) Tertiary Sector (d) None of the above

9. An economy achieves "productive efficiency" when :

(a) Resources are employed in their most highly valued uses.
(b) The best resources are employed
(c) The total number of goods produced is largest
(d) when goods and services are produced at least cost and no resources are
wasted

10. The share of which one of the following sector has increased rapidly in
recent years in the GDP of India?
(a) Agriculture (b) Industry (c) Service (d) All of the above

11. Which of the following reasons may be attributed for the last growth of
service sector in India?
(i) Technical and structural changes have made it more efficient to outsource
certain services that were once produced within the industry.
(ii) It has been noticed that income elasticity of demand for services is greater
than one.
(iii) Revolution in information technology has made possible to deliver services
over a long distance at a reasonable cost.
(iv) Reforms in certain segments of infrastructure services have contributed to
the growth of services.

(a) (i) and (ii) (b) (i) and (iii)

(c) (i), (ii) and (iii) (d) (i), (ii), (iii) and (iv)

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12. Major from of energy supply in India is

(a) Hydro-power (b) Nuclear-power
(c) Thermal-power (d) Solar-power

13. Tertiary sector includes

(a) Agro based industries (b) Aviation companies
(c) Manufacturing companies (d) Agriculture

14. Pradhan Mantri Bharat Jodo Pariyojna is related to......

(a) Communications (b) Social integration
(c) Linking of rivers (d) Development of highways

15. Plant load Factor, a measure of operational efficiency of a thermal plant

varies across the regions in India. In which of the following regions it has been
lowest in the year 2012-2013?
(a) Eastern (b) Western (c) Central (d) Southern

16. With a view to attract new technology and arrangement expertise,

government has permitted upto ......... Foreign Direct Investment (FDI) by
foreign airlines to Indian airline companies.
(a) 31% (b) 49% (c) 51% (d) 74%

17. In order to Enhance access to secondary education and improve its quality
……… was launched in 2009.
(a) Rashtriya Uchchatar Shiksha Abhiyan
(b) National Programme for Universal Education.
(c) Bhartiya Shiksha Shiksha Sudhar Yojna
(d) Rashtriya Madhyamik Shiksha Abhiyan

18. Which programme was launched in Rural India to provide accessible,

affordable and quality health services in 2005?
(a) National health programme
(b) Pradhan Mantri Swasthya Yojana
(c) National Rural health mission
(d) National programme for health care of the elderly

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CHAPTER – 3. SECTORAL TRENDS AND

ISSUES: AGRICULTURAL SECTOR

1 – marks
1. Impact of Social atmosphere on agriculture
(a) Favourable (b) Unfavourable (c) Normal (d) No

2. Heavy pressure of population is the main cause of........... productivity of

Indian agriculture.
(a) high (b) low (c) Normal (d) surplus

3. Traditional methods of Cultivation....... agricultural produce.

(a) decrease (b) increase (c) maintain (d) encourage

4. In Green Revolution, the Government initially introduced

(a) IADP (b) IAAP (c) HYVP (d) ADT-17

5. In Green Revolution, the second step, the Government introduced.

(a) IADP (b) IAAP (c) HYVP (d) ADT-17

6. India adopted High Yielding Varieties Programme (HYVP) for the first time in
(a) 1947 (b) 1956 (c) 1966 (d) 1977

7. Green Revolution has brought agriculture to a......... scale.

(a) massive (b) low (c) medium (d) normal

8. As a result of Green Revolution, there is ........ in import of food-grains

(a) increase (b) reduction (c) no change (d) normal

9. Land tenure refers to the conditions under which:

(a) land is held (b) agriculture is held
(c) industry is held (d) fishery is held

10. The problems of Rural Credit in India is:

(a) adequate amount of sanction
(b) inadequate amount of sanction
(c) excessive amount of sanction
(d) no amount of sanction

11. Nearly............. percent of population is dependent on agriculture presently

in India:
(a) 72% (b) 53% (c) 22% (d) None

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12. The Indian Council of Agriculture Research and Development was

established in
(a) 1947 (b) 1935 (c) 1929 (d) 1949

13. The share of agriculture in India's national income has........ over the years.
(a) Increased (b) Decreased
(c) Remained constant (d) First decreased and then increased

14. After Independence in order to stop exploitation of actual tillers of the land
reforms was introduced for which........ Measures were undertaken?
(a) Abolition of intermediaries (b) Tenancy Reforms
(c) Reorganization of agriculture (d) All of these

15. TRYSEM is a programme of:

(a) Rural development (b) Industrial development
(c) Urban development (d) Defence preparedness

16. AGMARK is related to:

(a) Industrial Production (b) Service sector
(c) Agricultural Production (d) Egg Production

17. ........ provide food storage facility in India

(a) IDBI (b) FCI (c) ICICI (d) IFCI

18. Green Revolution was started in

(a) 1996 (b) 1966 (c) 1977 (d) 1965

19. National Bank for Agriculture and rural development is

(a) A commercial Bank
(b) A cooperative bank
(c) An apex bank set up for Rural and agricultural credit
(d) A subsidiary of State Bank of India.

20. Green Revolution is also known as.

(a) Wheat Revolution (b) Rice Revolution
(c) Maize Revolution (d) All of the above

21. …………… provides crop storage facility in India.

(a) IDBI (b) FCI (c) ICICI (d) IFCI

22. FCI (Food Corporation of India) is the Nodal agency for which of the
following activities relating to food management in the country?
(a) Procurement (b) Distribution (c) Storage (d) All of the above

23. Which of the following statements correct?

(a) India is basically a socialist economy

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(b) The distribution of income and wealth is quite equitable in India

(c) The contribution of Tertiary Sector has been increasing in the GDP of India
(d) India has not been benefited by Green Revolution

24. The share of agriculture in India's national Income has...... ....... over the
years.
(a) Increased (b) Decreased
(c) Remained constant (d) First decreased & then increased

25. Which of the following is not a Kharif Crop?

(a) Jowar (b) Maize (c) Groundnut (d) Wheat

26. .......... is the Apex Bank for agriculture credit in India.

(a) RBI (b) NABARD (c) SIDBI (d) SBI

27. Given revolution was restricted to....... crops.

(a) 2 (b) 3 (c) 5 (d) 4

28. Land productivity means....

(a) production of land
(b) production of farm labourers
(c) production of food grains
(d) average output per hectare of land

29. NABARD was set up in........

(a) 1981 (b) 1982 (c) 1983 (d) 1984

30. …………… is the apex bank for agriculture credit.

(a) RBI (b) SIDCI (c) NABARD (d) ICICI

31. Which of the following statements is incorrect?

(a) About 80% of agricultural area has irrigation facilities
(b) About 60% area is rain fed in India
(c) Productivity per worker in agriculture is much lower than that in industry
(d) Cropping pattern is quite skewed in India

32. Agricultural sector contributes to the revenue of the central and state
governments.
(a) directly (b) indirectly (c) directly and indirectly (d) none of these

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2 – marks
1. Which of the following is associated with the land reforms introduced in
India after independence?
(a) Abolition of intermediaries.
(b) Tenancy reforms.
(c) Re-organization of agriculture.
(d) All of the above

2. Indian Agricultural is characterized

(a) Gamble of monsoon
(b) Disguised unemployment
(c) Subdivision and fragmentation of land holdings
(d) All of the above

3. Annual production of 250 million tones off good grains is a goal of

(a) National Nutrition policy, 1993
(b) Applied Nutrition project
(c) Special Nutrition programme
(d) Mid day meal programme

4. NABARD was established on there commendation of:

(a) Public Accounts Committee
(b) Shivaraman Committee
(c) Narasimhan Committee
(d) None of the above

5. Which of the following is not a tenancy reforms :

(a) Regulation of rent
(b) Security of tenure
(c) Conferment of ownership rights on tenants
(d) Consolidation of holdings

6. Which of the following type of land tenure systems were prevailing in India
at the time of independent?
(a) Mahalwari System (b) Ryotwari System
(c) Zamidari System (d) All of the above

7. Which among the following pairs mismatch

(a) National Telecom Policy 2012
(b) Electricity Act 2003
(c) National Policy on Skill Development 2009
(d) Green Revolution 1991

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8. Match the following

1. Green Revolution
2. Blue Revolution
3. White Revolution
4. Yellow Revolution
(a) 1B, 2C, 3A, 4D
(c) 1D, 2C, 3A, 4B
A. Milk Production
B. Agricultural Production
C. Fisheries Production
D. Oil Seeds Production
(b) 1C, 2B, 3D, 4A
(d) 1A, 2B, 3C, 4D

9. Which among the following is a problem 1 faced by agricultural sector in

India?
(a) Slow and uneven growth (b) Overdose of fertilizers
(c) Over irrigation (d) Very few people engaged in it

10. At present, the responsibility for the provision of finance for Agriculture
trade and small scale industries has been handed over to...
(a) SBI (b) NABARD
(c) NABARD and SIDBI (d) NABARD, EXIM BANK & SIDBI

11. Reorganization of agriculture means........

(a) residual of land (b) consolidated of holdings
(c) cooperative farming (d) all of these

12. Which of the following statements is correct?

(a) Under zamindari system, farmers directly paid land revenue to the state
(b) At present, income tax revenue from the agriculture sector are negligible
(c) Commercial banks provide loans to the agriculture sector at zero interest rate
(d) None of these

13. We can say Indian agriculture has become modern since

(a) there has been an increase in the use of high-yielding varieties of seeds,
fertilizers, pesticides and so on
(b) there has been noticeable positive change in the attitude of farmers
towards new techniques of production
(c) farmers are increasingly resorting to intensive cultivation, multiple cropping,
scientific water management
(d) all of these

14. Which of the following has been specifically established to meet the
requirements of credit of the farmers and villagers?
(a) ICICI Bank (b) Regional Rural Banks
(c) State Bank of India (d) EXIM Bank

15. High Yielding Variety Programme stressed upon the use of

(a) high yielding varieties of seeds
(b) proper use of irrigation facilities, pesticides and insecticides
(c) extensive use of fertilizers
(d) all of these

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16. Which one of the following is feature of agrarian structure of India?

(a) Tenants have little incentive
(b) Tenant scan not afford to provide capital investment
(c) Tenants get no benefit by working with better equipment
(d) All of these.

CHAPTER – 4. SECTORAL TRENDS AND

ISSUES: INDUSTRY AND SERVICE SECTOR

1 – marks
1. One of the main causes of industrial recovery during the 1980s was:
(a) privatization (b) liberalisation
(c) both privatization & liberalisation (d) none

2. Public sector in India has been playing a role in generating income in the
economy.
(a) positive (b) negative (c) normal (d) no

3. ………….. sector has been playing an important role in the gross domestic
capital formation of the country.
(a) Public (b) private (c) Both public & private (d) no

4. Disinvestment is the …………. of capital from a country or corporation.

(a) contribution (b) withdrawal (c) savings (d) investment

5. Disinvestment involves ....... of only part of equity holdings held by the

government.
(a) purchase (b) sale (c) exchange (d) conversion

6. Who is the nodal agency for disinvestment in India?

(a) Department of Economic Affairs
(b) Department of Financial Services
(c) Department of Revenue
(d) Department of Investment and Public Asset Management

7. Where do proceeds from disinvestment of public sector enterprises is

credited
(a) Consolidated Fund of India (b) Contingency Fund of India
(c) National Investment Fund (d) Both in (a) and (b) option

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8. Capital goods industries mean :

(a) Machinery, machine tools etc (b) iron & steel, cement etc
(c) chemicals, rubber, plastics, etc (d) watches, perfumes, etc

9. The Reserve bank of India was nationalized in:

(a) 1947 (b) 1948 (c) 1949 (d) 1950

10. Iron and steel are the examples of goods

(a) Capital (b) Intermediary (c) Durable (d) None of these

11. The largest contribution to GDP comes from:

(a) Agriculture (b) Manufacturing (c) Construction (d) Services

12. Labour force engaged in Industry in India in 2009-10:

(a) 12% (b) 15% (c) 21.5% (d) 20%

13. Mahalanobis model stressed upon the establishment of:

(a) Consumer goods industries
(b) Expert oriented industries
(c) Agro-based industries
(d) Capital and basic goods industries

14. Three steel plants in Bhilai Rourkola and Durgapur were set up in the :
(a) First Plan (b) Second Plan (c) Third Plan (d) Forth Plan

15. Small Scale Sector contributes to.......% of total exports (updated).

(a) 35% (b) 40% (c) 48% (d) 10%

16. The tenth plan aims at achieving a growth rate of.... percent in industrial
sector :
(a) 5 (b) 8 (c) 10 (d) 6

17. In 2011-12, Service sector's contribution in GDP was...... (updated):

(a) 56% (b) 44.15% (c) 45.7% (d) 54.1%

18. Mahalanobis model was started in which plan?

(a) First plan (b) Second plan (c) Third plan (d) Tenth Plan

19. Which is the apex body in industrial finance in India?

(a) Industrial Development Bank of India
(b) Reserve Bank of India
(c) State Bank of India
(d) Ministry of Industries

20. The main object of Regional Rural Banks is to provide credit to :

(a) Rural people

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(b) Weaker sections of the society

(c) Weaker sections of the rural population
(d) All of the people of society

21. The annual growth rate of the Industrial Sector has remained at...... percent
over the Eleventh Plan Period.
(a) 8.2 (b) 7.4 (c) 8.9 (d) 6.8

22. Which of the following industries is not reserved for public sector?
(a) Atomic energy (b) Rail transport
(c) Defence production (d) None of the above

23. Which of the following industries are not reserved for public sector
presently?
(a) Atomic energy
(b) Railways
(c) Defence
(d) Substances specified in the schedule to the notification of the government
of India in the department of atomic energy

24. At present, licensing is compulsory for how many industries?

(a) 5 (b) 8 (c) 20 (d) 23

25. Financial sector reforms mainly relate to.

(a) Banks (b) Capital market
(c) Insurance (d) All of the above

26. Which is the apex bank in India for Industrial Financing?

(a) Industrial Development Bank of India
(b) Reserve Bank of India
(c) State Bank of India
(d) Ministry of Industries

27. Industrial sickness is found in………..

(a) small industries (b) medium industries
c) large industries (d) all of these

28. India has the......... largest scientific and technical manpower in the world.
(a) second (b) third (c) fourth (d) fifth

29. Three steel plants in Bhilai, Roulkela and Durgapur were set up under
the.............
(a) First plan (b) Second plan (c) Third plan (d) Fourth Plan

30. Iron ore extraction relates to segment of large-scale industries.

(a) mining and quarrying (b) manufacturing

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(c) electricity, gas and water supply (d) all of these

31. Production of machine tools relates to ……….. segment of large-scale

industries.
(a) mining and quarrying (b) manufacturing
(c) electricity, gas and water supply (d) all of these

32. Hydel electricity plant relates to ……. segment of large-scale industries

(a) mining and quarrying (b) manufacturing
(c) electricity, gas and water supply (d) all of these

33. In the second five-year plan, steel plants were setup at......
(a) Rourkela (b) Bhilai (c) Durgapur (d) all of these

34. The industrial sector faced the process of retrogression and deceleration
during.
(a) 1950-1965 (b) 1990-2005 (c) 1980-1995. (d) 1965-1980

35. Which of the following has resulted in failure to achieve targets of industrial
production?
(a) Poor planning
(b) Power, finance and labour problems
(c) Technical complications
(d) All of these

36. The tenth plan aimed at achieving a growth .............. in the industrial sector.
rate of .............
(a) 5% (b) 8% (c) 10% (d) 6%

37. Over the planning period, the share of industrial sector in the GDP of India
has...
(a) increased (b) decreased (c) remained (d) remained above 50%

38. Services constitute........... sector of an economy.

(a) primary (b) secondary (c) tertiary (d) all of these

39. What is India's rank in the list of exporters of services?

(a) First (b) Twelfth (c) Seventh (d) None of these

40. Nearly ............of the working population is engaged in the service

sector.
(a) 25% (b) 45% (c) 80% (d) 50%

41. Which of these is not included in the service sector?

(a) Advertising (b) Education (c) Petroleum refining (d) Engineering

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42. Service sector contributes about........... to the country's GDP

(a) Nil (b) 1% (c) 57% (d) 25%

43. The service sector in India now accounts for ……

(a) more than 80% of GDP (b) more than 70% of GDP
(c) more than 50% of GDP (d) more than 90% of GDP

2 – marks
1. Disinvestment process leads only to….. of ownership and not transfer of .....
ownership.
(a) dilution, full (b) anti-dilution, any
(c) fixation, 100% (d) permanent, 50%

2. ............ is the apex bank for agriculture credit in India :

(a) RBI (b) SIDBI (c) NABARD (d) ICICI

3. Causes of Industrial sickness are:

(a) Financial mismanagement (b) Demand Recession
(c) Working Capital Shortage (d) All of the above

4. Sick units are in which sector?

(a) Agricultural Sector (b) Industrial Sector
(c) Service Sector (d) None of the above

5. Basic and capital goods industries are in ....... plan.

(a) First (b) Second (c) Third (d) None

6. In which plan, maximum development took place in the industrial sector?

(a) First plan (b) Second plan (c) Third plan (d) Fourth plan

7. Tourism industry comes under .............

(a) Primary sector (b) Secondary sector
(c) Tertiary sector (d) Foreign sector

8. Which five year plan accorded highest priority to the establishment of basic
and heavy industries in India
(a) First plan (b) Second plan (c) Third plan (d) Fourth plan

9. Commercial Banks are the part of

(a) Primary sector (b) Secondary sector
(c) Tertiary sector (d) None of the above

10. Objective of Regional Rural Bank is :

(a) To provide credit and deposit facilities for agriculture and other productive
activities in rural areas

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(b) To monitor the activities of all the banks in rural areas

(c) To act as a link between rural banks and RBI
(d) To sponsor the rural development programmes of government

11. Which of the following is the correct definition of a micro enterprise

according to Micro, Small and Medium Enterprise Development (MSMED) Act,
2006?
(a) Upto 20 lakh investment (b) Upto 25 lakh investment
(c) Upto 30 lakh investment (d) Upto 35 lakh investment

12. A sick industrial unit is one :

(a) Where most of the employees are sick
(b) Which is unable to perform its normal functions and activities of production
of goods and services at a reasonable profit on a sustained basis
(c) Which is unable to make profits more than 10% of its capital employed
(d) Which borrows money from bank for its fixed assets

13. The principal problems of Micro, Small and Medium Enterprises in India is:
(a) Non-availability of cheap and adequate capital
(b) Difficulties in marketing their products (c) Inadequate supply of raw
materials
(d) All of the above

14. On the basis of end-use of output, industries are divided into:

(a) Primary goods industries and final goods industries
(b) Basic goods industries and capital goods industries
(c) Basic, intermediate and consumer goods industries
(d) Basic, goods capital goods, intermediate goods and consumer goods
industries.

15. Large industries which mostly form the basis of countries index of industrial
production include:
(a) Manufacturing Electricity and Mining (b) Mining and Electricity
(c) Electricity and Manufacturing (d) Manufacturing and Mining

16. Which of the following statement is correct about the new industrial policy,
1991?
(a) It made it compulsory for industry to obtain license for all project
(b) It over dominant position to published sector
(c) It abolished licencing for all projects except 18 industries of strategic and
security importance
(d) None of these

17. Before financial reforms, the banking sector was characterized by all of the
following features except.
(a) High revenue requirements

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(b) Quantitative credit restrictions

(c) Administrated interest rate structure
(d) Keeping very less lendable resources for the priority sector

18. Before financial reforms, banking sector was ………..

(a) highly regulated (b) not regulated
(c) independent (d) None

19. Programme of industrialization was started in the second five-year plan

based on....
(a) British model (b) Gandhian model
(c) Mahalanobis model (d) all of these

20. Mahalanobis model stressed upon the established of...

(a) consumer goods industries
(b) export-oriented industries
(c) agro-based industries
(d) capital and basic goods industries

21. The Indian industry faced the process of retrogression and declaration
because of.....
(a) unsatisfactory performance of agriculture
(b) slackening of real investment in public sector
(c) narrow market for industrial goods, especially in rural areas
(d) all of these

22. All of the following can cause sickness to an industrial unit except…….
(a) demand recession
(b) uneconomic size
(c) high productivity of labour and capital
(d) financial mismanagement

23. Which of these is a problem relating to the service sector in India?

(a) Poor infrastructure
(b) Poor support for tourism
(c) Lack of inter-sectoral support
(d) All of these

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CHAPTER – 5. SECTORAL TRENDS AND

ISSUES: EXTERNAL SECTOR

1 – marks
1. ............ is a systematic record of all the economic transaction between one
country and rest of the world :
(a) Balance of Trade (b) Balance of Transaction
(c) Budget (d) Balance of payments

2. As per IMF balance of payment manual, import of goods should be presented

on:
(a) FOB basis (b) FOR basis (c) CIF basis (d) All of these

3. OECD stands for:

(a) Organization for export co-operation & development
(b) Organization for economic commission & development
(c) Organization for export commission & development
(d) Organization for economic co-operation & development

4. India has witnessed a surplus for the third successive year in which account
of the balance of payment?
(a) Trade account of BOP (b) Current account of BOP
(c) Both (a) and (b) (d) None of these

5. Devaluation Means :
(a) To reduce the value of home currency in other currency
(b) To appreciate the value of home currency
(c) To increase the value of home currency in other currency
(d) To constant the value of home currency

6. In India which authority takes the purview of import & export:

(a) EXIM (b) RBI (c) Ministry of Finance (d) Ministry of commerce

7. The difference between the value of a nations visible exports and visible
import is:
(a) Balance of trade (b) Balance of payments
(c) Balance of Current Account (d) Balance of Capital Account

8. A systematic record of all receipts and payments of a country in international

transactions in one year is called:
(a) Balance of trade (b) Balance of payment
(c) Balance of current account (d) Balance of capital account

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9. If foreign exchange rate changes from 1$ = ₹46 to 1$ = ₹36, the money is

..........
(a) Depreciated (b) Appreciated (c) Devalued (d) None

10. In the Balance of Payments which of the following does not belong to
Current Account.
(a) Balance of Trade
(b) Balance of Services
(c) Balance of Unilateral Transfers
(d) Balance of Private Direct Investment

11. Deficit budget is linked with:

(a) Deficit is revenue account (b) Deficit is capital account
(c) Both (a) and (b) (d) None of the above

12. A systematic record of all the transactions between one country and the
rest of the world is :
(a) Balance of trade (b) Balance of transactions
(c) Budget (d) Balance of payment

13. A balance of payment deficit can be removed through

(a) Devaluation of currency
(b) Vigorous export promotion
(c) Import substitution
(d) All of the above

14. The difference between the value of a nation's visible exports and visible
imports is called :
(a) Balance of Trade (a) Balance of Trade
(c) Balance of Current Account (d) Balance of Capital Account

15. Adverse balance of payments can be corrected through:

(a) Devaluation of currency (b) Vigorous exports promotion
(c) Import substitution (d) All of the above

16. Which one of the following was not the immediate cause of 1991 economic
crisis?
(a) Rapid growth of population (b) Severe inflation
(c) Expanding fiscal deficit (d) Rising current account deficit

17. Current account in Balance of Payments (BOPS) does not include:

(a) Balance of trade (b) Balance of services
(c) Balance of unilateral transfers (d) Foreign investments

18. Balance of trade is

(a) The difference between current account and capital account

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(b) The difference between merchandize exports and imports

(c) Same as the balance of current account
(d) Same as the balance of capital account

19. ……. is a systematic record of all the economic transactions between one
country and rest of world.
(a) balance of trade (b) balance of transaction
(c) balance of payment (d) budget

20. The Balance of Payments shows a country's transactions with the ..........
(a) country (b) rest of the world
(c) developing country (d) underdeveloped country

21. Disequilibrium in Balance of Payment occurs when

(a) debit exceeds credit (b) credit exceeds debit
(c) debit & credit are unequal (d) debit & credit are equal

22. Exchange depreciation will be suitable to a

country desiring a ……... exchange rate system:
(a) fixed (b) fluctuating (c) semi-fixed (d) semi- fluctuating

23. Devaluation is successful only when the demand for exports and imports is
(a) elastic (b) inelastic (c) unit elastic (d) none

24. Non-Monetary Measures for Correcting the Balance of Payments are:

(a) Tariffs & Quotas (b) Export Promotion
(c) Import Substitution (d) all

2 – marks
1. ............. is a systematic record of all transactions of a country in a year.
(a) Balance of payment
(b) Balance of Trade
(c) Current Account of Balance of Payment
(d) None

2. The current account of Balance of Payment includes trade balance and

(a) Settlement account (b) Capital account
(c) Invisibles (d) Errors and omissions

3. Balance of payment deficit can be removed through:

(a) Devaluation of currency (b) Vigorous export promotion
(c) Import substitution (d) All of the above

4. The current account of Balance of payment includes trade balance and ......
(a) Settlement account (b) Capital account

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(c) Invisibles (d) Errors and omissions

5. If a country is having more Exports than imports in value terms it can be said
that country is having:
(a) Deficit under BOP (b) Deficit under BOT
(c) Surplus under BOT (d) Surplus under BOP

6. Change in exchange rate from $1 = ₹66 to $1 = ₹69 implies.........

(a) Appreciation of rupee (b) Depreciation of rupee
(c) Devaluation of rupee (d) None of the above

7. Invisible terms are part of.........

(a) Balance of Trade Account (b) Balance of Payment Account
(c) Official Reserve Account (d) Reserve Bank of India Account

8. Which one of the following is not a current account transaction?

(a) Exports receivables (b) Insurance
(c) Dividend (d) External commercial borrowings

9. Which among the following items will not be included in the balance of
current account?
(a) Balance of unilateral transfers (b) Balance of invisible items
(c) Balance of trade (d) External commercial borrowings

10. The balance of payment comprises:

(a) A current account of goods and services only
(b) A capital account of financial assets only
(c) Official settlement accounts only
(d) All of the above

11. Current Account represents:

(a) Trade in goods or services (b) investment incomes
(c) transfers (d) all

12. Financial (Capital) account represents:

(a) Foreign direct investment (b) capital flows
(c) portfolio investment (d) all

13. Causes of Unfavourable Balance of Payment are:

(a) Development Programmes (b) Demonstration Effect
(c) Natural Factors (d) all

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14. Problems of Unfavourable Balance of Payment are :

(a) Paying high interest rates
(b) Danger of withdrawing money by foreigners
(c) Adversely affect domestic industry
(d) all

15. Monetary Measures for Correcting the Unfavourable Balance of Payments

are:
(a) Deflation (b) Exchange Depreciation
(c) Devaluation (d) all

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CHAPTER – 6. SOCIAL ISSUES IN

INDIAN ECONOMY

1 – marks
1. Our population is below poverty line:
(a) Nearly half (b) More than one-fourth
(c) Less than one-fourth (d) Nearly one-fourth

2. The percentage of population living below the poverty line has been
estimated in the 2011-12 at:
(a) 20% (b) 21.9% (c) 30% (d) 36%

3. Employment guarantee scheme was launched in:

(a) 1999 (b) 2000 (c) 1995 (d) 2006

4. are often used for measuring poverty in relative sense:

(a) HDI (b) Gini co-efficient
(c) Planning Commission (d) All of these

5. NFFWP was launched in:

(a) December, 2000 (b) April, 1999
(c) November, 2005 (d) April, 2002

6. Scheme for construction of house to be given to the poor free of cost was :
(a) Jawahar Awas yojna
(b) Indira awas yojna
(c) Rajeev awas yojna
(d) Valmiki Ambedkar awas yojna

7. Which plan set a target of reduction in poverty ratio to 19.3 percent by

2007?
(a) Fifth plan (b) Second plan (c) Eight plan (d) Tenth plan

8. EAS stands for:

(a) Education Assurance Scheme
(b) Employment Assurance Scheme
(c) Electrification Assurance Scheme
(d) Education Assurance Services

9. According to the planning commission, how many average daily calories per
person define the poverty line in urban areas?
(a) 2,100 (b) 2,400 (c) 2,700 (d) 3,000

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10. JGSY programme of poverty alleviation was submerged into...

(a) SGRY (b) NFFWP (c) PMGSY (d) All of above

11. .......... Co-efficient is used to measure income inequalities.

(a) Gini-Co-efficient (b) HDI (c) Both (d) None

12. A person in urban India is considered below the poverty line if his daily
intake of calories is less than
(a) 2,000 (b) 2,100 (c) 2,400 (d) 2,500

13. Which of the following Statements is correct

(a) The concept of absolute poverty is used for measuring poverty in India
(b) The concept of relative poverty is more relevant for the less developed
countries
(c) The concept of Absolute poverty is more relevant for the developed
countries
(d) None of the above

14. The Integrated Rural Development Programme (IRDP).stated in India in

which plan period?
(a) Fifth (b) Sixth (c) Seventh (d) Eighth

15. In which plan period, the Integrated Rural Development Programme (IRDP)
was started in India
(a) Fifth (b) Sixth (c) Seventh (d) Eighth

16. According to Tendulkar Committee, the population below poverty line in

2011-12 was estimated at:
(a) 45.3% (b) 37.2% (c) 34.8% (d) 21.9%

17. The multidimensional poverty index is to measure poverty. Used by...............

to
(a) national sample survey organization
(b) planning commission of India
(c) human development report
(d) tendulkar committee

18. According to Multidimensional Poverty Index (MPI) which shows the share
of population multi dimensionally poor in terms of living standards, health and
education, India has a Poverty Index of:
(a) 0.324 (b) 0.567 (c) 0.235 (d) 0.283

19. Employment assurance scheme & Jawahar Gram Samridhi Yojna have been
submerged into
(a) NFFWP (b) SGRY (c) SGSY (d) IAY

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20. People who are unwilling to work at the existing wage rate are:
(a) Voluntary unemployed. (b) Frictional unemployed
(c) Casual unemployed (d) Seasonal unemployed

21. The measure of National rural Employment Guarantee Bill is applicable to

whole of India except..........
(a) J & K (b) Bihar (b) Mizoram (d) U.P

22. Due to introduction of new technology, workers may be replaced by

machines leading to:
(a) Technological unemployment (b) Frictional unemployment
(c) Seasonal unemployment (d) Disguised unemployed

23. Most of the unemployment in India is:

(a) Voluntary (b) Structural (c) Frictional (d) Technical

24. According to measure a person is said to be employed for a week even if he

is employed only for a day during the week:
(a) Usual status (b) Current weekly status
(c) Current daily status (d) Current yearly status

25. Measure which generally gives the lowest estimated of unemployment

especially for poor economy:
(a) Usual status (b) CWS (c) CDS (d) CMS

26. ....... is defined as the number of persons in the labour force per 1,000
persons:
(a) WPF (b) LFPR (c) CWS (d) CDS

27. Structural unemployment is due to:

(a) Inflationary conditions (b) Heavy industry bias
(c) Shortage of Raw materials (d) Inadequate production capacity

28. The measures for unemployment in India are following, except:

(a) Usual status (b) Current daily status
(c) Labor hour method (d) Current weekly status

29. A situation of employment in which a person is apparently employed but

his contribution to the production is almost nil is called .... ...... unemployment:
(a) Structural (b) Chronic (c) Disguised (d) Cyclical

30. SJSRY stands for:

(a) Swarna Jayanti Shahari Rojgar Yojana
(b) Shahari Jeewan Sudhar Rashtriya Yojana
(c) Sampoorna Jeewan Shahari Rojgar Yojana
(d) None

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31. The age group which belongs to working population is

(a) 5 years-45 years (b) 10 years - 55 years
(c) 15 years - 60 years (d) 21 years-65 years

32. The unemployment which is caused by the introduction of new machinery,

improvement of production techniques, labour saving devices etc. is called :
(a) Frictional unemployment (b) Casual unemployment
(c) Structural unemployment (d) Technological unemployment

33. Which type of unemployment is more in India?

(a) Disguised (b) Open (c) Cyclical (d) Educational

34. In which type of unemployment workers are temporarily out of work while
changing jobs.
(a) Frictional (b) Cyclical (c) Structural (d) Technological

35. Most of the unemployment in India is :

(a) Voluntary (b) Structural (c) Frictional (d) Technical

36. Disguised unemployment is a common phenomenon in India especially in :

(a) Industrial sector (b) Agriculture sector
(c) Service sector (d) All of the above

37. In disguised unemployment marginal productivity of labour becomes.

(a) Zero (b) One (c) Infinite (d) Double

38. In rural areas in India, the nature of unemployment is :

(a) Disguised (b) Seasonal (c) Both A & B (d) Voluntary

39. A situation of employment in which some workers have zero marginal

productivity is termed as :
(a) Frictional unemployment (b) Structural unemployment
(c) Disguised unemployment (d) Chronic unemployment

40. Work force refers to that part of

(a) Labour force which is employed
(b) Population which is unemployed
(c) Population which is forced to work
(d) Labour force which is unemployed

41. Name the type of unemployment from the following which occurs due to
decline in demand for production in a particular industry:
(a) Chronic unemployed (b) Technological unemployed
(c) Structural unemployed (d) Frictional unemployed

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2 – marks
1. When poverty is taken in relative term and is related to the distribution of
income consumption expenditure it's called:
(a) Law line poverty (b) Absolute poverty
(c) Relative poverty (d) None

2. According to the planning commission how many average daily calories per
person define the poverty line in urban and rural areas.
(a) 2,400, 2,100 (b) 2,100, 2,400 (c) 4,100, 4,200 (d) 4,200, 4,100

3. Identify the correct statements:

(a) The problem of unemployment and poverty are not inter-related
(b) The birth rate in India is high because of low incidence of poverty
(c) The problem of poverty has been solved in India
(d) None of these

4. Integrated Rural Development Programme (IRDA) and Allied Programmes

and Million Wells Scheme were integrated into one in 1999 and since then it is
known as .......
(a) Swaran Jayanti Gram Swarojgar Yojna
(b) Sampoorna Grameen Rojgar Yojna
(c) National Food for Work Programme
(d) None of these.

5. Which of the following cannot remove poverty in India?

(a) Population control (b) Increase in production
(c) Equitable distribution (d) Government subsidies

6. Which of the following poverty eradication scheme is presently operational

in India?
(a) Mahatma Gandhi National Rural Employment Guarantee Scheme
(b) Ajeevika
(c) Swaran Jayanti Shahari Rozgar Yojna
(d) All of the above

7. Which one of the following is not a scheme to reduce poverty in India?

(a) SGSY (Swaran Jayanti Gram Swarojgar Yojana)
(b) SJSRY (Swaran Jayanti Shahri Rozjar Yojana)
(c) MGNREGS (Mahatma Gandhi National Rural Employment Guarantee
Scheme)
(d) SGRY (Sampooran Grameen Rozgar Yojana)

8. Jan Dhan Yojana has the main objective of:

(a) Banking development (b) Deposit mobilization
(c) Financial inclusion (d) Helping the weaker sections

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9. Which of the following scheme is not related to reduce poverty in India?

(a) Mahatma Gandhi National Rural Employment Guarantee Scheme
(b) Swaran Jayanti Gram Swarozgar Yojana now called Aajeevika
(c) The Swaran Jayanti Shahari Rozgar Yojana, now replaced by National
Unban Livelihood Mission (NULM)
(d) Indira Gandhi Vidhutikaran Yojana

10. What is the average calories required in rural areas for measuring poverty?
(a) 2,400 calories per person per day
(b) 2,100 calories per person per day
(c) 2,800 calories per person per day
(d) None of the above

11. Disguised Unemployment is found in

(a) Manufacturing sector (b) Agricultural sector
(c) Service sector (d) All of the above

12. You are a factory owner and have given employment to 400 workers if 10
workers are dismissed by you without loss of production then this situation will
be described as.
(a) Casual unemployment (b) Disguised unemployment
(c) Structural unemployment (d) Seasonal unemployment

13. Which one is the cause of unemployment in India.

(a) Defective educational system (b) Rising prices
(c) Increasing public expenditure (b) Defective monetary policy

14. You are a factory owner and have given employment to 400 workers. If 10
workers are retrenched by you without loss of production then this situation
will be described as:
(a) Open Unemployment (b) Disguised Unemployment
(c) Frictional Unemployment (d) Seasonal Unemployment

15. Out of 1,000 persons in the population, 400 persons are in the labour force
according to usual status. Out of 400, 392 were working and 8 were
unemployed. What will be the unemployment rate according to usual status?
(a) 2 percent (b) 8 percent (c) 6 percent (d) 4 percent

16. Disguised unemployment commonly refers to

(a) A situation of employment with surplus manpower in which some worker
have zero marginal productivity
(b) A situation due to vicious circle of poverty
(c) A situation due to a decline in demand for production in a particular
industry
(d) A situation caused by imperfect mobility of labour.

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17. If we consider the nature of unemployment in India, we find that most of

the unemployed is.......... In nature.
(a) seasonal (b) technological (c) structural (d) cyclical

18. If in a population of 1,000 people, 400 people are in labour force, 392 are
employed, what is the unemployment ratio?
(a) 2 percent (b) 8 percent (c) 6 percent (d) 4 percent

19. Problems of Poverty are on children are:

(a) Chances of Mal-nutrition (b) Life threatening diseases
(c) Illiteracy & Lack of education (d) all

20. Problems of Poverty are on society are

(a) Corruption (b) Criminal activities
(c) Lack of health & happiness (d) all

21. Poverty alleviation measures are:

(a) Population Control
(b) Increase in Employment
(c) Equal distribution of Income
(d) all

22. Problems of unemployment on economy are:

(a) Unemployment financial costs (b) Spending power
(c) Reduced spending power of the employed (d) all

23. The Problems of unemployment on society are:

(a) Tension at home (b) Political issues
(c) Insecurity amongst employees (d) all

24. Government measures for tackling unemployment are :

(a) Incentivising jobseekers with children
(b) Starting your own business
(c) Improving education and skill levels
(d) all

BY: SANDIP KUMAR CONT.NO- 8617716211