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Download in pdf multiple choice questions(mcqs) & answers on Indian Economy. These general awareness quiz objective questions answers include mcqs on Indian Planning Commission, take off stage economy, closed economy etc.
(31)
‘Globalisation of Indian Economy’ means:
[A]
Stepping up external borrowings
[B]
Establishing Indian Shopping Malls in abroad
[C]
Giving up programmes of import substitution
[D]
Having minimum possible restrictions on economic relations with other countries
Comment
Answer: Option [D]
‘Globalisation of Indian Economy’ means having minimum possible restrictions on economic relations with other countries. Globalisation means integrating the Indian economy with the world economy. It is the outcome of the policies of liberalisation and privatisation. It attempts to establish links in such a way that the events or happenings in India can be influenced by the events happening miles away.
(32)
National Development Council was set up in:
[A]
1952
[B]
1950
[C]
1949
[D]
1948
Comment
Answer: Option [A]
National Development Council was set up on 6 August 1952 to strengthen and mobilize the effort and resources of the nation in support of the Five Year Plans made by Planning Commission, to promote common economic policies in all vital spheres, and to ensure the balanced and rapid development of all parts of the country.
(33)
‘Take off stage’ in an economy means:
[A]
Economy is stagnant
[B]
Steady growth begins
[C]
Economy is about to collapse
[D]
All controls are removed
Comment
Answer: Option [B]
‘Take off stage’ in an economy means Steady growth begins. Rostow's (1960) 'Stages of Economic Growth' has introduced five stages that all countries must go through in order to develop: 1) traditional society, 2) preconditions to take-off, 3) take-off, 4) drive to maturity, and 5. ) age of high mass consumption. Take-off is a short period of great growth when industrial development begins, and workers and institutions focus on the new industry.
(34)
Which of the following indicates economic growth through Five Year Plans ?
[A]
Rise in national income and per capita income
[B]
Development of railways and roadways
[C]
Development of education and health services
[D]
Development of industrial towns and industrial estate
Comment
Answer: Option [A]
The correct answer is Rise in national income and per capita income.
(35)
Which one of the following Five-Year Plans recognised human development as the core of the developmental efforts ?
[A]
The Fourth Five-Year Plan
[B]
The Fifth Five-Year Plan
[C]
The Sixth Five-Year Plan
[D]
The Eighth Five-Year Plan
Comment
Answer: Option [D]
The correct answer is The Eighth Five-Year Plan. All efforts now have to be devoted to mobilizing resources to finance such Plan investments and expenditure within a framework of macroeconomic stability. The Eighth Five Year Plan was launched on 1st April, 1992. The Plan recognizes "human development" as the core of all developmental efforts.
(36)
Which of the following statements about the Indian Economy is correct ?
[A]
In India, single biggest employment is agriculture and allied activities
[B]
No physical targets were visualized
[C]
About 48% Indian workforce is employed in foreign countries or in organizations assisted by foreign capital
[D]
About 70% Indians are involved in some type of self- employment and are the owners of some or the other micro or small enterprise
Comment
Answer: Option [A]
The correct answer is In India, single biggest employment is agriculture and allied activities. Agriculture is the main source of employment generation in India. It still provides more than 50% employment. In absolute terms, the working population engaged in the agriculture sector increased from 97.2 million to 234.1 million during 1950-2011.
(37)
In the context of India’s Five Year Plans, a shift in the pattern of industrialization, with lower emphasis on heavy industries and more on infrastructure begins in
[A]
Tenth Plan
[B]
Eighth Plan
[C]
Sixth Plan
[D]
Fourth Plan
Comment
Answer: Option [C]
The correct answer is Sixth Plan. Sixth five year plan started in 1980-85 marked the beginning of economic liberalization in India. In Sixth Five year plan, a shift in pattern of Industrialization with lower emphasis on the heavy industry and move on infrastructure begins.
(38)
A “closed economy” is a kind of economy in which
[A]
Only exports take place
[B]
The money supply is fully controlled
[C]
Deficit financing takes place
[D]
Neither exports nor imports take place
Comment
Answer: Option [D]
The correct answer is Neither exports nor imports take place. The closed economy is that economy in which neither imports nor exports take place in that particular country. As the name suggests the country provides the consumers with everything they need from within the country’s economy.
(39)
Which statement is correct for Indian Planning Commission ?
[A]
Members do not require any minimum education
[B]
It is not defined in Indian Constitution
[C]
Members and Vice-Chairman of it do not have fixed working duration
[D]
All of the these
Comment
Answer: Option [D]
The correct answer is All of the these. The functions of Planning Commission includes formulation of five-year plans, finalisation of plan discussions of the Central Ministries and States/UTs annually and conveying the plan requirement to the Ministry of Finance, clearance/grant of In-Principle approval for starting Central Sector/Centrally Sponsored Schemes, hence above all statements are all correct regarding planning commission.
(40)
The author of the chapter on “Objectives of Planned Development” for the Third Five Year Plan was:
[A]
Jawaharlal Nehru
[B]
Morarji Desai
[C]
C.D.Deshmukh
[D]
Lal Bahadur Shastri
Comment
Answer: Option [B]
The author of the chapter on “Objectives of Planned Development” for the Third Five Year Plan was Morarji Desai. Third Plan (1961–1966) The Third Five-year Plan stressed agriculture and improvement in the production of wheat, but the brief Sino-Indian War of 1962 exposed weaknesses in the economy and shifted the focus towards the defence industry and the Indian Army. Morarji Desai wrote a book on ‘Objective of Planned Development’ for Third Five Year Plan.
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