1) Which of the following is/are the benefits of Financial Inclusion

for the government?

1. It will help in removing leakages and inefficiencies in the system.
2. It will reduce transaction cost of welfare schemes as the amount can be
directly disbursed to beneficiaries.
3. It may provide a better possibility of unlocking the economic potential of
the people residing in the region.
Select the correct answer using the code given below:
(a) 1 only
(b) 1 and 2 only
(c) 1, 2 and 3
(d) 2 and 3 only
Answer: C
Explanation:
Financial inclusion will help state and central government in following ways:
● Remove inefficiency from the system.
● Possibility of making social security transfers such as old age pensions,
widow pensions, etc directly into the bank account of beneficiaries
through electronic transfer.
● This will help in minimizing transaction costs.
● Better possibility of unlocking the economic potential of the people
residing in urban centers.
2) According to the Union Budget 2023-24, consider the following
statements.
1. Atmanirbhar Clean Plant Program will be launched to boost availability of
disease-free, quality planting material for high value horticultural crops at an
outlay of 200 crore.
2. To enhance the productivity of extra-long staple cotton, the government
will adopt a cluster- based and value chain approach through Public Private
Partnerships (PPP).
Which of the above statements is/are not correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (a)
Explanation:
● Enhancing productivity of cotton crop: To enhance the productivity of
extra-long staple cotton, we will adopt a cluster-based and value chain
approach through Public Private Partnerships (PPP). This will mean
collaboration between farmers, state and industry for input supplies,
extension services, and market linkages.
● Atma Nirbhar Horticulture Clean Plant Program to boost availability of
disease-free, quality planting material for high value horticultural crops
at an outlay of 2,200 crore.

3) According to the Union Budget 2023-24, consider the following

statements.
1. We are the largest producer and second largest exporter of ‘Shree Anna’
in the world.
2. These have a number of health benefits, and have been an integral part
of our food for centuries.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (c)
Explanation:
Para 21 of the Budget: We are the largest producer and second largest
exporter of ‘Shree Anna’ in the world. We grow several types of 'Shree Anna'
such as jowar, ragi, bajra, kuttu, ramdana, kangni, kutki, kodo, cheena, and
sama. These have a number of health benefits, and have been an integral
part of our food for centuries. I acknowledge with pride the huge service
done by small farmers in contributing to the health of fellow citizens by
growing these ‘Shree Anna’.

4) Consider the following pairs Plan given by

A. Bombay plan : Industrialists of Bombay
B. Gandhian plan : Jaiprakash Narayan
C. Sarvodaya plan : MK Gandhi
Which of the above pairs is/are correctly matched?
(a) 1 and 2 only
(b) 1 only
(c) 1 and 3 only
(d) None
Answer: B
Explanation:
● A small group of influential business leaders in Bombay drew up and
published in January 1944, a plan for the economic development of
India. The Bombay Plan, as it is now popularly called, did not
represent the opinion of the whole business community. But it claimed
public attention because it set forth the considered views of some of
the front-rank businessmen and captains of Indian industry.
● Mr. J. R. D. Tata and Mr. G. D. Birla were primarily responsible for the
initiation of the study. The other industrialists who were part of the
Bombay plan were P. Thakurdas, Kasturbhai Lalbhai and Sir Shri Ram,
Ardeshir Dalal, Mr. A. D. Shroff and Dr. John Matthai.
● ‘Gandhian Plan’ was given by Shriman Narayan Agarwal.
● The sarvodaya plan: It was drafted by Jaiprakash Narayan. The plan
was mainly inspired by the Gandhian Plan provided by S N Agarwal &
the Idea of Sarvodaya presented by another Gandhian leader Vinoba
Bhave.

5) Which of the following is not a component of revenue receipts of

the union government?
(a) Corporate tax receipts
(b) Dividends and profits
(c) Disinvestment receipts
(d) Interest receipts
Answer: C
Explanation:
Disinvestments are the part of Capital Receipts.

6) Every year the economic survey is compiled by:

(a) Department of Expenditure.
(b) Central Statistical office (CSO)
(c) National Sample Survey Organisation (NSSO)
(d) Department of Economic Affairs.
Answer: D
Explanation:
The Department of Economic Affairs, Finance Ministry of India presents the
Economic Survey in the parliament every year, just before the Budget. It is
prepared under the guidance of the Chief Economic Adviser, Finance
Ministry.

7) Which of the following items are included in revenue receipts?

1. Tax revenue
2. Non-tax revenue
3. Recovery of loans
4. Borrowing and other liabilities
Select the correct answer using the codes given below:
(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 3 and 4 only
(d) 1, 3 and 4 only
Answer: A
Explanation:
● Revenue Receipt & Expenditure: Revenues Receipts include tax
revenue and non- tax revenue while expenditure consists of salaries,
subsidies and interest payments. These revenue receipts and
expenditure—which generally do not lead to sale or creation of
assets—come under the revenue account.
● Capital receipt & expenditure: Capital receipt is the amount received
from the recovery of loans, borrowing and other liabilities sale of
assets, shares and debentures. Capital account includes all receipts
from liquidating (for

8) Which of the following is /are examples of capital payment by the

government?
1. Loan repayment
2. Interest payment on loan
3. Purchase of defence technology
Select the correct answer using the codes given below:
(a) 1 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: B
Explanation:
Capital Expenditure:
● An expenditure which either creates an asset (e.g., school building) or
reduces liability (e.g., repayment of loan) is called capital expenditure.
 ● Repayment of a loan is a capital expenditure because It reduces
liability. These expenditures are met out of capital receipts of the
government including capital transfers from the rest of the world.
● Capital expenditure which leads to creation of assets are (a)
expenditure on purchase of land, buildings, machinery, purchase of
defense technology (b) investment in shares, loans by Central
government to state government, foreign governments and
government companies, cash in hand and (c) acquisition of valuables.
Such expenditures are incurred on long period development
programmes, real capital assets and financial assets. This type of
expenditure adds to the capital stock of the economy and raises its
capacity to produce more in future.
● Interest payments on loans are included in the revenue exp. of the
govt. og India.

9) Fiscal consolidation can be achieved by

1. Reducing inefficient subsidies
2. Borrowing from domestic market rather than relying on foreign grants
3. Improve tax base
4. Enhancing the resource base of state governments to reduce their
financial dependency on the Centre
Which of the above statements are correct?
(a) 1 and 4 only
(b) 1, 3 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4
Answer: B
Explanation:
Fiscal consolidation can be achieved by the following:
● By reducing wasteful government expenditure and inefficient
subsidies.
● By improving the tax base. A better tax base yields more revenue and
thus less revenue deficit.
● A major part of the Union receipts go to states to fulfil their plan
expenditure. Market borrowing will reduce such transfers and make
states self reliant.
● Borrowing, if replaced with grants, will further inflate the fiscal deficit
because it comes with an interest payment obligation.

10) Consider the following statements about P.C. Mahalanobis:

1. The second Five Year Plan was based on the ideas of Mahalanobis.
2. The Indian Statistical Institute (ISI) in Calcutta was established by him.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: C
Explanation:
● Planning, in the real sense of the term, began with the Second Five
Year Plan. The Second Plan, a landmark contribution to development
planning in general, laid down the basic ideas regarding goals of
Indian planning; this plan was based on the ideas of Mahalanobis.
● In that sense, he can be regarded as the architect of Indian planning.
 ● Mahalanobis established the Indian Statistical Institute (ISI) in
Calcutta and started a journal, Sankhya, which still serves as a
respected forum for statisticians to discuss their ideas.

11) Consider the following statements:

1. Perspective planning is used by socialist countries where each and every
aspect of planning is controlled by the state.
2. Indicative planning is a feature of ‘Mixed Economy’.
Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: B
Explanation:
● Comprehensive or imperative planning is used by socialist countries
and each and every aspect of planning is controlled by the State.
● Indicative planning is flexible. It is peculiar to a mixed economy and
both the public and private sector co-exist.

12) During which Five Year Plan, the price level in the Indian
economy showed a decline?
(a) First Plan
(b) Second Plan
(c) Fourth Plan
(d) Annual plans
Answer: A
Explanation:
During the first Five Year Plan (1951–56) the price level in the Indian
economy showed a decline because of rapid agricultural development and
measures to control inflation as there was disequilibrium due to the second
world war and partition of the economy.

13) The government introduced an agricultural strategy which gave

rise to Green Revolution in India under the plan
(a) Third Five Year Plan
(b) Fourth Five Year Plan
(c) Fifth Five Year Plan
(d) Sixth Five Year Plan
Answer: A
Explanation:
Under the Third Five Year Plan, the government introduced an agricultural
strategy which gave rise to the green revolution in India. Under the Third
Plan the goal was to establish self reliance and a self generating economy.

14) The major emphasis on the first five year plan of India was
(a) Agriculture
(b) Employment
(c) Industry
(d) Export promotion
Answer: A
Explanation:
The major emphasis in the First Five Year plan was on the agriculture sector.
At the time of first plan (1951–56), India faced severe food shortage and
inflation. Accordingly the first plan emphasized on rapid agricultural
development so as to achieve food self sufficiency and control inflation.
Target Growth rate was 201% annual GDP Achieved growth Rate was 3.6%
& the Net domestic product went up by 15%.

15) Which one of the following plans is also known as ‘Gadgil

Yojana’?
(a) Third Five Year Plan
(b) Fourth Five Year Plan
(c) Fifth Five Year Plan
(d) Sixth Five Year Plan
Answer: B
Explanation:
The Fourth Five-Year Plan is also called “Gadgil Yojana”. The aim of this
plan was to make the economy independent and to reach self active take
off position. It was named after the then deputy chairman of the Planning
Commission Dr. D R Gadgil.

16) The period of plan holiday in India was

(a) 1962 – 65
(b) 1966 – 69
(c) 1970 – 73
(d) 1973 – 76
Answer: B
Explanation:
Due to the miserable failure of the 3rd plan, the government was forced to
declare plan holidays (from 1966-67, 1967-68, 1968-69), the target growth
rate was 5.6%, but the actual growth rate was 2.4%.

17) The final authority in India to adopt the five year plan for the
country vests in:
(a) NITI Aayog
(b) The National Development Council
(c) The Union Cabinet
(d) The parliament
Answer: B
Explanation:
The National Development Council (NDC) or the Rashtriya Vikas Parishad
is the apex body for decision-making and deliberations on development
matters in India, presided over by the Prime Minister. The National
Development Council is the final authority to adopt the Five Year Plan for
the country.
18) In the context of Indian Five Year Plans, a shift in the pattern of
industrialization, with lower emphasis of heavy industries and more
on infrastructure being in:
(a) Fourth plan
(b) Sixth plan
(c) Eighth plan
(d) Tenth plan
Answer: B
Explanation:
The Sixth five year plan started in 1980-85 marked the beginning of
economic liberalization in India. In the Sixth Five year plan, a shift in the
pattern of Industrialisation with lower emphasis on the heavy industry and
move on infrastructure begins.

19) Consider the following statements about the Indian Economy?

(1) During the 11th Five Year Plan, the foodgrain production steadily
increased.
(2) During the 11th Five Year Plan, the average inflation on the wholesale
price Index is above 10%.
Which of the statements given above is/are correct?
(a) only 1
(b) only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: C
Explanation:
During The eleventh plan (2007-12) the food grain production steadily
increased and the average inflation on the wholesale price Index was above
10%.

20) Under which five year plan did the government introduce an
agricultural strategy which gave rise to the Green Revolution in
India?
(a) Second Five Year Plan
(b) Third Five Year Plan
(c) Sixth Five Year Plan
(d) Seventh Five Year Plan
Answer: B
Explanation:
Under the third five year plan, the government introduced an agricultural
strategy which gave rise to the green revolution in India. Under the third
plan the goal was to establish self-reliance and a self generating
economy.But the earlier plans had shown that the agricultural production
was the limiting factor; so agriculture was given top priority.

21) Consider the following statements:

(1) MNREGA was launched in the 11th five year plan.
(2) Indira Awas Yojana was launched in the 9th Five Year Plan.
Which of the statements given above is/are correct?
(a) only 1
(b) only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: D
Explanation:
The Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA)
is an Indian law that aims to guarantee the ‘right to work’ and ensures
livelihood security in rural areas by providing at least 100 days of
guaranteed wage employment in a financial year to every household whose
adult members volunteer to do unskilled manual work. MNREGA was
launched in 200 select districts in 2006. However, Indira Awas Yojana was
launched in 1996.

22) In India, the concept of minimum needs and directed anti-

poverty programmes were the innovation of :
(a) Fourth Five Year Plan
(b) Fifth Five Year Plan
(c) Sixth Five Year Plan
(d) Seventh Five Year Plan
Answer: B
Explanation:
In the fifth five year plan, the concept of ‘minimum needs’ and directed anti-
poverty programmes were innovated. The Minimum needs Programme
aimed to establish a network of basic services to raise living standards and
in reducing the regional disparities in development. The basic needs of the
people identified for this programme are Elementary Education, Adult
Education, Rural Health, Rural Roads, Rural Electrification, Rural Housing.
Moreover, during the plan, the slogan of ‘Garibi hatao’ was given to remove
poverty.
23) Consider the following statements:
(1) The Ninth Five Year Plan was launched in the 50th year of India’s
independence.
(2) For the first time in the Indian economy the GDP growth rate of the
Ninth Five Year Plan was set at 7%.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: C
Explanation:
The Ninth Five Year Plan was launched in the 50th year of India’s
independence. Under the plan for the first time in the Indian Economy the
GDP growth rate was set at 7%.

24) Which one of the following is correct about the Twelfth Five Year
Plan recently approved by the Indian Government?
(a) 12th Five Year Plan of Indian Economy is from 2011 to 2016.
(b) 12th Five Year Plan aims to grow GDP at the rate of 10%.
(c) 12th Five Year Plan aims to sustain the inclusive growth which started in
11th plan.
(d) Both (b) and (c) are correct about the 12th Five Year Plan.
Answer: C
Explanation:
The Twelfth Five Year Plan approved by the government aims to sustain the
inclusive growth which started in the 11th plan. The 12th Five Year Plan is
from 2012 to 2017 and it aims to grow GDP at the rate of 9%.

25) Consider the following statements:

(1) Jawahar Rozgar Yojana was launched in the Seventh Five Year Plan.
(2) Small-scale and food processing industries were given new impetus in
the Seventh Five Year Plan.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: C
Explanation:
Jawahar Rozgar Yojna was launched on April 1, 1989 by merging National
Rural Employment Program (NREP) and Rural Landless Employment
Guarantee Programme (RLEGP). In the Seventh Five Year Plan the small-
scale and food processing industries were given new impetus as the plan laid
stress on improving the productivity level of industries by upgrading
technology.

26) Consider the following statements:

(1) The Fourth Five Year Plan period is from 1966-71.
(2) The Fourth Five Year Plan sought to raise the standard of living through
programmes designed to promote equality and social justice.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: D
Explanation:
The Fourth Five Plan was formed for the years 1969 to 1974. It was the first
plan that the government of Ms Indira Gandhi launched. The plan was put
forward when the country was under the pressure of inflationary recession
and devaluation. The plan aimed for a 5.5 percent growth but ended up
achieving a mere 3.3 percent growth.

27)

28) Which of the following statements is incorrect about the Indian

economy?
(a) The capital expenditure of the Union government has increased
approximately four times since Fiscal year 2016.
(b) The NPAs of banks have been falling for the last 2 years.
(c) There has been constant increase in forex reserves.
(d) None
Answer: C
Explanation:
There has been a decline in forex reserves in recent quarters.

29) Consider the following statements about the budget estimates of

fiscal year 2023-24.
1. The share of subsidies is more than the share of defense in Union budget
allocations.
2. Interest payment on borrowings is about 25% of total expenditure.
3. Centrally sponsored schemes have higher allocation of funds than Central
sector schemes.
Which of the above statements are incorrect
(a) 1 only
(b) 2 only
(c) 1 and 2
(d) 1, 2 and 3
Ans. (d)
Explanation:
● Finance Minister Nirmala Sitharaman has enhanced the allocation to
India's defense budget for fiscal 2023-24 by 13 percent to INR 5.94
lakh crore, up from INR 5.25 lakh crore in fiscal 2022-23.
● Interest payment on borrowings is about 25% of total expenditure.
● Centrally sponsored schemes have higher allocation of funds than
Central sector schemes.

30) Consider the following statements about Fiscal Policy

statements mandated under FRBM Act.
1. Macroeconomic Framework Statement contains an assessment of the
growth prospects of the economy along with the statement of specific
underlying assumptions.
2. The Medium term Fiscal Policy cum Fiscal Policy Strategy Statement sets
out three year rolling targets for fiscal deficit, revenue deficit, primary
deficit, tax revenue, non-tax revenue and debt of the Central government.
Which of the above statements are correct
(a) 1 only
(b) 2 only
(c) Both of the above
(d) None of the above
Answer: (c)
Explanation:
● Macroeconomic Framework Statement contains an assessment of the
growth prospects of the economy along with the statement of specific
underlying assumptions.
● The Medium term Fiscal Policy cum Fiscal Policy Strategy Statement
sets out three year rolling targets for fiscal deficit, revenue deficit,
primary deficit, tax revenue, non-tax revenue and debt of the Central
government.

31) According to the Union Budget 2023-24, consider the following

statements.
1. Our current year’s economic growth i.e. FY23 is estimated to be at 7
percent in nominal terms.
2. This is the highest among all economies.
Which of the above statements is/are not correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans. (c)
Explanation:
In the 75th year of our Independence, the world has recognised the Indian
economy as a ‘bright star’. Our current year’s economic growth is estimated
to be at 7 per cent. It is notable that this is the highest among all the major
economies. This is in spite of the massive slowdown globally caused by
Covid-19 and a war. The Indian economy is therefore on the right track, and
despite a time of challenges, heading towards a bright future.

32) Which among the following Five Year Plans of the Indian
Economy adopted the indicative planning model?
(a) Fourth Five Year Plan
(b) Sixth Five Year Plan
(c) Eight Five Year Plan
(d) Tenth Five Year Plan
Answer: C
Explanation:
During the Eighth Five Year Plan, the Indian Economy adopted the indicative
planning model. Indicative planning is a form of economic planning
implemented by a state in an effort to solve the problem of imperfect
information in market and mixed economies in order to increase economic
performance. When utilizing indicative planning, the state employs
“influence, subsidies, grants, and taxes.

33) During which plan was the National Bank for Agriculture and
Rural Development (NABARD) established to facilitate rural credit
and agriculture development?
(a) Third Five Year Plan
(b) Fifth Five Year Plan
(c) Sixth Five Year Plan
(d) Eighth Five Year Plan
Answer: C
Explanation:
National Bank for Agriculture and Rural Development (NABARD) is an apex
development bank in India having headquarters in Mumbai. It was
established on 12 July 1982 in the sixth five year plan by a special act by the
Parliament and its main focus was to uplift rural India by increasing the
credit flow for elevation of agriculture and rural non-farm sector.

34) Which among the following plans adopted the policy for the
universalization of elementary education in India?
(a) Sixth Plan
(b) Eighth Plan
(c) Ninth Plan
(d) Eleventh Plan
Answer: C
Explanation:
The Ninth Plan treats education as the most crucial investment in human
development. The plan had the national goal of providing primary education
as a universal basic service, and the Supreme Court also declared education
to be a fundamental right for children upto 14 years of age

35) The term “Hindu rate of growth” refers to the 3.70% per annum
growth rate achieved by the Indian economy over the first six Five -
Year Plans” The term was coined by:
(a) J.N. Bhagwati
(b) K.N. Raj
(c) Raj Krishna
(d) Sukhamoy Chakravarty
Answer: C
Explanation:
The Hindu rate of growth is a derogatory term referring to the low annual
growth rate of the planned economy of India before the liberalizations of
1991, which stagnated around 3.5% from 1950s to 1980s, while per capita
income growth averaged 1.3%. The term was coined by Indian economist
Raj Krishna.

36) In which five year plan in Indian Economy, the targets for the
crop function were not fixed for the first time-
(a) Seventh five year plan
(b) Eighth five year plan
(c) Ninth five year plan
(d) Tenth five year plan
Answer: D
Explanation:
In Tenth year five plan: the target for the crop functions were not fixed for
the first time.

37) Which one of the following five year plans has the highest GDP
growth rate in the Agriculture sector in India?
(a) Sixth Five Year Plan
(b) Seventh Five Year Plan
(c) Eighth Five Year Plan
(d) Ninth Five Year Plan
Answer: C
Explanation:
The growth performance of the agriculture sector has been fluctuating across
the plan periods . It witnessed a growth rate of 4.8 per cent during the
Eighth plan period (1992–97).

38) Consider the following statements about the second Five Year
Plan:
1. Priorities were given in the production of iron and steel and heavy
engineering and machine building industries.
2. Strengthening oil exploration and coal in India.
Which of the statements given above are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: C
Explanation:
According to the Second Five Year Plan the priorities were given in the
production of iron and steel and heavy engineering and also to strengthen oil
exploration and coal.

39) Which one of the Five Year Plans had a high priority to bring
inflation under control and to achieve stability in the economic
situation?
(a) Fourth Plan (1969-74)
(b) Fifth Plan (1974-79)
(c) Sixth Plan (1980-85)
(d) Seventh Plan (1985-90)
Answer: B
Explanation:
The Fifth Five Year Plan (1974-79) had a high priority to bring inflation under
control and to achieve stability in the economic situation.

40) In India, mergers and acquisition of firms are regulated by

(a) National Manufacturing Competitiveness Council
(b) Competition Commission of India
(c) Security and Exchange Board of India
(d) Department of Industrial Policy and Promotion
Answer: B
Explanation:
The Competition Act, 2002 prohibits anti-competitive agreements, abuse of
dominant position by enterprises and regulates combinations (acquisition,
acquiring of control and Merger and acquisition), which causes or likely to
cause an appreciable adverse effect on competition within India. Competition
Commission of India was established on 14 October 2003 and became fully
functional in May 2009. It is a body of the Government of India responsible
for enforcing the Competition Act, 2002 throughout India and to prevent
activities that have an adverse effect on competition in India

41) ‘Inclusive growth’ is a phrase used in India’s

1. 9th Plan
2. 10th Plan
3. 11th Plan
4. 12th Plan
Select the correct answer using the codes given below.
(a) 1, 2 and 3
(b) 2 and 4
(c) 3 and 4
(d) Only 4
Answer: C
Explanation:
Inclusive growth is a phrase used in India for 11th (2007-2012) and 12th
(2012-2017) Five year plans.
42) As against a target of 4 per cent, the average annual growth rate
of first four years of the 12th Five Year Plan period (2012-17) in
agriculture and allied sector was—
(a) 3.0%
(b) 1.6%
(c) 3.5%
(d) 2.5%
Answer: B
Explanation:
Agriculture sector grew by an average 1.6 per cent per annum in first four
years of the ongoing Five Year Plan (2012-17) as against the targeted 4 per
cent annual growth due to lower production.

43) First Five Year Plan of India was based on the—

(a) Harrod Domar Model
(b) Mahalanobis Model
(c) Dadabhai Naoroji Model
(d) J.L. Nehru Model
Answer: A
Explanation:
The First Five-year Plan was launched in 1951 which mainly focused on
development of the primary sector, and was based on the Harrod– Domar
model with few modifications.
44) Which programme is given the slogan of Garibi Hatao?
(a) 7th five-year plan
(b) 3rd five year plan
(c) 6th five year plan
(d) 5th five-year plan
Answer: D
Explanation:
Indira Gandhi’s political opponents campaigned on the slogan “Indira Hatao,“
(Remove Indira). But Indira Gandhi tweaked it and renamed it as “Garibi
Hatao,“ (Remove Poverty). Indira Gandhi ji used the slogan of 'Garibi Hatao
Desh Bachavo' (meaning ’Abolish Poverty rescue the country’) in the 1971
election. The duration of the fourth Five Year Plan was from 1969 to 1974.
So the correct answer would be the fourth Five Year Plan.

45) In which five-year plan India opted for a mixed economy?

(a) First
(b) Second
(c) Third
(d) Fourth
Answer: B
Explanation:
A mixed economy means the co-existence of the government and the
Private sector in an economy.
46) Jawahar Rojgar Yojna was launched in:
(a) 5th five year plan
(b) 6th five year plan
(c) 8th five year plan
(d) 7th five year plan
Answer: D
Explanation:
Jawahar Rozgar Yojna was launched on April 1, 1989. It was launched in the
Seventh Five Year Plan.

47) Consider the following statements about the budget allocations

of fiscal year 2023-24 across the ministries and choose which is the
correct answer.
(a) Ministry of Defence has the largest share in budget allocations
(b) Ministry of Railways has largest share in budget allocations
(c) Ministry of Agriculture and Farmers Welfare has received highest
allocation amongst the ministries
(d) None of the above
Answer: (a)
Explanation:
Finance Minister Nirmala Sitharaman has enhanced the allocation to India's
defense budget for fiscal 2023-24 by 13 percent to INR 5.94 lakh crore, up
from INR 5.25 lakh crore in fiscal 2022-23.
48) With reference to the NITI Aayog, consider the following
statements:
1. It is established with the aim to achieve Sustainable Development Goals
and to enhance cooperative federalism .
2. Its Governing Council is composed of Chief Ministers and governors of all
the States.
3. The Prime Minister acts as the Ex-officio chairman and the Finance
Minister as the vice chairman of NITI Aayog.
Which of the above statement is/are incorrect?
(a) 3 only
(b) 2 and 3 only
(c) 1, 2 and 3
(d) None
Answer: B
Explanation:
● The NITI Aayog also National Institution for Transforming India, is a
policy think tank of the Government of India, established with the aim
to achieve Sustainable Development Goals and to enhance cooperative
federalism by fostering the involvement of State Governments of India
in the economic policy-making process using a bottom-up approach.
● It was established in 2015, by the NDA government, to replace the
Planning Commission which followed a top-down model. The Prime
Minister is the Ex-officio chairman. The permanent members of the
governing council are all the state Chief Ministers, along with the Chief
Ministers of Delhi and Puducherry, the Lieutenant Governor of
Andaman and Nicobar, and a vice chairman nominated by the Prime
Minister. In addition, temporary members are selected from leading
universities and research institutions. These members include a chief
 executive officer, four ex-official members and two part-time
members.

49) With reference to planning, consider the following statements:

1. Objective of the fourth Five Year Plan was to attain economic self-
reliance.
2. The Sixth Plan accorded much importance on the reduction of incidence of
unemployment.
3. Modernization of industries was a major highlight of the Tenth Plan.
Which of the above statements is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: B
Explanation:
● One of the very important objectives of Indian Planning is to attain
economic self-reliance. But this objective attained its importance only
after the Fourth Plan, when the plan aimed at elimination of the import
of food-grains under PL480. The Fifth Plan also laid much importance
on the attainment of self-reliance.
● The Fifth Plan in its employment policy laid special emphasis in
absorbing increments in the labor force during this Fifth Plan Period.
The Sixth Plan accorded much importance on the reduction of
incidence of unemployment. It has been estimated that employment
 will grow at the rate of 4.17 per cent per annum as against the annual
growth of the labor force at 2.54 per cent.
● Modernization of industries was a major highlight of the Eighth Plan.
Under this plan, the gradual opening of the Indian economy was
undertaken to correct the burgeoning deficit and foreign debt.
Meanwhile, India became a member of the World Trade Organization
on 1 January 1995.

50) Consider the following statements:

1. In Imperative planning economic decisions are made through a central
planning authority instead of a market system.
2. In Imperative planning the market mechanism is entirely replaced by a
command hierarchy.
3. Indicative planning is found only in capitalist countries.
Which of the above statement is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 2 only
(d) 1, 2 and 3 only
Answer: C
Explanation:
● Under Imperative planning economic decisions are made through a
central planning authority instead of a market system. Allocation of
resources, the mix of output and the distribution of output among the
people (i.e., ‘What, How and For Whom’ problems) are determined
centrally in accordance with the predetermined plans and targets.
● In the case of 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.
● Indicative planning or planning by inducement is found in capitalist
countries as well as in mixed economies, like India. After the
termination of the Second World War (1939-45), an indicative method
of planning was advocated in capitalist countries.
● Indicative planning was attempted first in France. French planning had
some sort of success as it attempted to fulfill the desires and
expectations of the people with no force or compulsion.