Tag: economics

Questions Related to economics

All economic progress gets neutralized against heavy population pressure.

economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

  1. True

  2. False

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Correct Option: A
Explanation:

All economic progress or rise in production in an economy gets neutralized because of population pressure as more population utilized the extra increase in production from the previous accounting year and hence the progress of the economy gets hindered.

India possesses huge natural resources but most of the resources are under-utilised.

economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

  1. True

  2. False

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Correct Option: A
Explanation:

India consists of a vast variety of natural resources but most of the resources are under-utilized,that is, 'excess capacity' exists in the Indian economy and India still settles in the low level equilibrium trap.

Which of the following set of wars was mainly responsible for failure of the Third 5 year Plan?

economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

  1. Indo-China war of 1962 and Indo-Pak war of 1947

  2. Indo-China war of 1962 and Indo-Pak war of 1965

  3. Indo-Pak war of 1971 and Kargil war of 1999

  4. Indo -china war of 1962 and Indo-Pak war of 1971

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Correct Option: B
Explanation:

The term of the third five year plan was from 1960 to 1965 in between which these two wars broke out the devastated the Indian economy and led to the failure of this plan.

Dependence of agriculture is one of the features of the Indian economy.

economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

  1. True

  2. False

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Correct Option: A
Explanation:

Indian agricultural sector accounts for 18 percent of total GDP of India  and creates employment for 50 percent of the total countries' workforce. Hence, dependence of agriculture is one of the features of the Indian economy.

Which industry was India well known for during the British rule?

economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

  1. Cotton and Silk

  2. Metal

  3. Precious Stone Work

  4. All of the above

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Correct Option: D

Match the following:

A B
1. RBI 1. Increase in CRR
2. Inflation 2. Factor of production
3. Elasticity 3. Central Bank
4. Labour 4. Responsiveness to change
economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

  1. (1,4) (2,3) (3,2) (4,1)

  2. (1,2) (2,3) (3,4) (4,1)

  3. (1,4) (2,2) (3,4) (4,3)

  4. (1,3), (2,1), (3,4), (4,2)

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Correct Option: D
Explanation:
1) Reserve Bank Of India is the only Central bank of India. It is the apex bank.
2) In order to check Inflation, that is, rising general level of prices, cash reserve ration is increased by the central bank to reduce the credit creation capacity of the commercial banks.
3) Elasticity is the term which means responsiveness to change. For example, elasticity of demand refers to the ratio of the proportionate change in quantity demanded of a product to the proportionate change in the price of the product.
4) Labour is a factor of production. Labour is known as the human efforts which help to produce goods and services in an economy.

Census takes place in India __________.

economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

  1. every 20 years

  2. every 10 years

  3. every 15 years

  4. every 5 years

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Correct Option: B
Explanation:

The decennial Census of India has been conducted 15 times, As of 2011.It has been conducted every 10 years, beginning in 1872.

Both private and public sectors exist side by side in ______.

economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

  1. China

  2. U.S.A.

  3. India

  4. Russia

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Correct Option: C
Explanation:

India is a mixed economy. Means of production are owned by both private and public sector. Thus, both private and public sectors exist side by side.

When India attained independence in 1947, its economy was ?

economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

  1. Underdeveloped

  2. Developed

  3. Developing

  4. Partially developed

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Correct Option: A

Which of the following statements is true of agriculture in Indian economy between 1973 and 2003? 

economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

  1. The sectoral share of agriculture in employment has decreased far more than its share in total output.

  2. The sectoral share of agriculture in total output has decreased, but its share in employment has increased.

  3. The sectoral share of agriculture in total output had increased, but its share in employment had decreased.

  4. The sectoral share of agriculture in output has decreased far more than its share in total employment

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Correct Option: D
Explanation:

Over the thirty years between 1973 and 2003, while production in all the three sectors has increased, it has increased the most in the tertiary sector. Since this sector generates services rather than goods, the share in total employment increased.