This quiz works best with JavaScript enabled. Home > General Knowledge > Indian Economy > Planning > Indian Economic Development Policy – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Indian Economic Development Policy Quiz 2 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of these is not a component of operating surplus? A) Royalty. B) Interest. C) Wages. D) Rent. Show Answer Correct Answer: C) Wages. 2. ..... is not the process of Agricultural Marketing. A) Packaging the produce according to buyers' preference. B) Selling the produce when the price is lucrative. C) Arranging credit. D) Storing the produce for future sale. Show Answer Correct Answer: C) Arranging credit. 3. Agriculture marketing does not comprise of ..... A) Transportation of the produce to the marketplace for sale. B) Grading of the produce according to the quality. C) Storage of the produce for sale in future. D) Credit has been taken to meet expenditure on agricuture. Show Answer Correct Answer: D) Credit has been taken to meet expenditure on agricuture. 4. A person who starts a business to produce a new product in the marketplace is known as: A) Consumer. B) An entrepreneur. C) A bureaucrat. D) A manager. Show Answer Correct Answer: B) An entrepreneur. 5. Which of the following is an example of micro Economics study A) National Income. B) Consumer behavior. C) Foreign trade. D) Unemployment. Show Answer Correct Answer: B) Consumer behavior. 6. Which of the following will be included in national income of India A) Scholarship. B) Old age pension. C) Subsidies. D) Salaries. Show Answer Correct Answer: D) Salaries. 7. ISI policy aimed to develop ..... industries A) Domestic. B) Manufacturing. C) Agriculture. D) Foreign. Show Answer Correct Answer: A) Domestic. 8. What is the potential benefit of increasing female labor force participation for a country's economy? A) It may lead to higher unemployment rates among men. B) It can contribute to economic growth and higher GDP. C) It often results in wage stagnation for both men and women. D) It primarily benefits multinational corporations. Show Answer Correct Answer: B) It can contribute to economic growth and higher GDP. 9. Which social sector encompasses programs and services related to healthcare, medical facilities, and public health? A) Education sector. B) Environmental sector. C) Housing sector. D) Health sector. Show Answer Correct Answer: D) Health sector. 10. Which of the following is long period objective of five year plans in India A) Increase in national income and PCI. B) Full employment. C) Equitable distribution. D) All of these. Show Answer Correct Answer: D) All of these. 11. What does the term "jobless growth" refer to in the context of India's economic development? A) Economic growth without any impact on employment. B) The creation of new jobs without any increase in economic output. C) A decline in both economic growth and employment. D) The rapid growth of the informal sector in the economy. Show Answer Correct Answer: A) Economic growth without any impact on employment. 12. Which of the following is NOT a function of money? A) Medium of exchange. B) Store of value. C) Liquidity value. D) Unit of Account. Show Answer Correct Answer: C) Liquidity value. 13. What is Head count ratio? A) Total number of people in a country. B) Proportion of people below poverty line. C) Percentage of people above poverty line. D) Total number of poor in a country. Show Answer Correct Answer: B) Proportion of people below poverty line. 14. In which year PMEGP formed? A) 2005. B) 2019. C) 2000. D) 2008. Show Answer Correct Answer: D) 2008. 15. If the reserve requirement is 10% and I put in $ 100, what is the amount a bank can loan out? A) .9. B) $ 80. C) $ 72. D) $ 90. Show Answer Correct Answer: D) $ 90. 16. In which year was the planning commission abolished A) 2017. B) 2015. C) 2914. D) 2016. Show Answer Correct Answer: B) 2015. 17. Urban poor includes ..... A) Street cobblers. B) Road side vendors. C) Push cart vendors. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. When was the first census data collected during British rule? A) 1880. B) 1981. C) 1882. D) 1881. Show Answer Correct Answer: D) 1881. 19. ..... is the social security programme initiated by the Central government to help a few specific groups A) National Social assistance Programme. B) Pradhan Mantri Gramodaya Yojana. C) Integrated Child Development Scheme. D) Midday Meal Scheme. Show Answer Correct Answer: A) National Social assistance Programme. 20. What is the Cash Reserve Ratio (CRR)? A) The fraction of the deposits that commercial banks lend to the customers. B) The fraction of the deposits that RBI must keep with commercial banks. C) The fraction of the deposits that commercial banks must keep with RBI. D) None of above. Show Answer Correct Answer: C) The fraction of the deposits that commercial banks must keep with RBI. 21. Tariffs and quotas adopted under foreign trade policy during 1950-1990 was to: A) Increase exports. B) Increase foreign competition. C) Restrict imports and protect domestic industries from foreign competition. D) Make exported goods cheaper. Show Answer Correct Answer: C) Restrict imports and protect domestic industries from foreign competition. 22. What is fiscal development? A) The growth of government expenditures. B) The improvement of a country's financial sector. C) The process of achieving economic stability through taxation and government spending. D) The expansion of a nation's industrial base. Show Answer Correct Answer: C) The process of achieving economic stability through taxation and government spending. 23. What does a trade surplus indicate in a country's external sector? A) A declining economy. B) Imports exceeding exports. C) Stable trade relations. D) Exports exceeding imports. Show Answer Correct Answer: D) Exports exceeding imports. 24. Which sector of the Indian economy has traditionally been a major source of employment for the majority of the workforce? A) Financial services. B) Agriculture. C) Manufacturing. D) Information technology. Show Answer Correct Answer: B) Agriculture. 25. Identify the incorrect statement.( A) Green Revolution was the result of technological and institutional reforms. B) Green Revolution took place in all major states of India. C) Green Revolution was due to use of HYV Seeds. D) Green Revolution was limited to few crops. Show Answer Correct Answer: B) Green Revolution took place in all major states of India. 26. What part of GDP was earned by agricultural sector A) 70. B) 60. C) 50. D) 20. Show Answer Correct Answer: C) 50. 27. Assume the total population of a country is 200 crores and the people below poverty line is 44 crores. What is the Head Count ratio? A) 22 percent. B) 20 percent. C) 25 percent. D) 26 percent. Show Answer Correct Answer: A) 22 percent. 28. The main objective of the first five-year plan of India was? A) Development of agriculture. B) Development of the industries. C) Development of ports. D) Development of infrastructure. Show Answer Correct Answer: A) Development of agriculture. 29. Under which scheme each bank account holder is entitled to Rs.1 lakh accident insurance Rs.30, 000 insurance cover? A) PMRY. B) Jan Dhan Yojana. C) Prime Minister's Rozgar Yojana. D) MGNREGA. Show Answer Correct Answer: B) Jan Dhan Yojana. 30. Accepting deposits from individuals or firms and providing loans to the public are the basic function of ..... A) Insurance company. B) Commercial banks. C) Bank Negara Malaysia. D) Financial institution. Show Answer Correct Answer: B) Commercial banks. 31. Which of the following is not the subject matter of macroeconomics? A) National Income Accounting. B) Business cycle. C) Laws of demand and supply. D) General price level. Show Answer Correct Answer: C) Laws of demand and supply. 32. Which of the following is an example of transfer income A) Bonus. B) Unemployment allowance. C) Compensation of employees. D) All of above. Show Answer Correct Answer: B) Unemployment allowance. 33. The government imposed strict controls and licenses on ..... sector enterprise A) Government. B) Production. C) Private. D) Manufacturing. Show Answer Correct Answer: C) Private. 34. Poverty is the inability in secure the ..... consumption requirements for life, health and efficiency. A) Constant. B) Maximum. C) Stable. D) Minimum. Show Answer Correct Answer: D) Minimum. 35. Depreciation of fixed capital assets refers to? A) Normal wear and tear. B) Foreseen obsolescence. C) Normal wear and tear and foreseen obsolescence. D) None of these. Show Answer Correct Answer: C) Normal wear and tear and foreseen obsolescence. 36. The concept of normal residents applies to A) Individuals only. B) Institutions only. C) Both. D) None of them. Show Answer Correct Answer: C) Both. 37. Final goods refer to those goods which are used either for ..... or for ..... A) Resale, investment. B) Consumption, resale. C) Consumption, investment. D) Resale, further production. Show Answer Correct Answer: C) Consumption, investment. 38. Which of the following is a characteristic of people below the poverty line? A) Debt trap. B) Gender inequality. C) Poor health. D) All of the above. Show Answer Correct Answer: D) All of the above. 39. "Ariana Rose purchases a new computer from the MYT Computer and paid by credit card." Based on the statement, choose the appropriate money function. A) A store of value. B) A measure of value. C) A medium of exchange. D) A standard of deferred payment tools. Show Answer Correct Answer: D) A standard of deferred payment tools. 40. Which of the following is wage employment Programme? A) Prime Minister Rozgar Yojana. B) Swarna Jayanti Gram Swarozgar Yojana. C) Swarna Jayanti Shahari Rozgar Yojana. D) Mahatma Gandhi National Rural Employment Guarantee Act. Show Answer Correct Answer: D) Mahatma Gandhi National Rural Employment Guarantee Act. 41. The colonial government never made any sincere attempt to estimate India's national and per capita income. Who among the following were the Indian estimators who attempted to measure such incomes?i) Dadabhai Naoroji ii) William Digby iii) V.K.R.V. Rao iv) Motilal Nehru A) I and ii. B) I and iii. C) I, iii and iv. D) None of above. Show Answer Correct Answer: B) I and iii. 42. What is the term for the condition in which an individual who is willing and able to work is unable to find suitable employment? A) Underemployment. B) Wage stagnation. C) Unemployment. D) Labor force participation. Show Answer Correct Answer: C) Unemployment. 43. The term Green Revolution has been used to indicate higher production through ..... A) Creation of grasslands. B) Planning more tree. C) Creation of gardens in urban areas. D) Enhanced agricultural productivity per hectare. Show Answer Correct Answer: D) Enhanced agricultural productivity per hectare. 44. Which of the following neighbouring countries has better performance in terms of human development than India? A) Bangladesh. B) Nepal. C) Pakistan. D) Sri Lanka. Show Answer Correct Answer: D) Sri Lanka. 45. The opening of suez canal in 1869: A) Raised the cost of goods transportation between Britain and India. B) Reduced exports of goods from India to foreign countries. C) Reduced the cost of transportation between Britain and India. D) Adversely affected Britain's monopoly control of india's trade. Show Answer Correct Answer: C) Reduced the cost of transportation between Britain and India. 46. India liberalized its trade policies reducing ..... and removing import licensing requirement A) Wage. B) Income. C) Tax. D) Tariffs. Show Answer Correct Answer: D) Tariffs. 47. What is the primary goal of closing the gender gap in labor force participation rates? A) To reduce women's economic independence. B) To ensure equal employment opportunities and economic empowerment for women. C) To increase the retirement age for women. D) To prioritize men's employment over women's. Show Answer Correct Answer: B) To ensure equal employment opportunities and economic empowerment for women. 48. What percentage of Indian population was engaged in agriculture A) 72. B) 50. C) 40. D) 84. Show Answer Correct Answer: A) 72. 49. Depreciation means: A) Destruction of a factory due to fire. B) Loss in fixed assets due to normal wear and tear. C) Loss in fixed assets due to earthquake. D) Shut-down of a factory due to strike. Show Answer Correct Answer: B) Loss in fixed assets due to normal wear and tear. 50. Real flow is also known as A) Nominal flow. B) Physical flow. C) Money flow. D) Both a and b. Show Answer Correct Answer: B) Physical flow. 51. Competition and free enterprise are most common in which type of economic system? A) D planned. B) B market. C) C communist. D) A traditional. Show Answer Correct Answer: B) B market. 52. Which of the following is poverty estimation tool A) Sen index. B) Poverty gap index. C) Squared poverty index. D) All of the above. Show Answer Correct Answer: D) All of the above. 53. British policies transformed the country into a ..... of raw material and ..... of finished goods from Britain. A) Supplier, consumer. B) Consumer, supplier. Show Answer Correct Answer: A) Supplier, consumer. 54. Which regulatory body plays a central role in overseeing India's financial sector? A) Securities and Exchange Board of India (SEBI). B) Reserve Bank of India (RBI). C) Ministry of Finance. D) Competition Commission of India (CCI). Show Answer Correct Answer: B) Reserve Bank of India (RBI). 55. One of the following is not associated with a socialist economy identify the feature A) The economy has no private property and everything is owned by the state. B) The government provides free health care to those who need it. C) Incomes are more or less equally distributed. D) It is called a free market economy. Show Answer Correct Answer: D) It is called a free market economy. 56. The sector under which activities involves exploitation of the natural resources is ..... A) Primary sector. B) Secondary sector. C) Tertiary sector. D) Quaternary sector. Show Answer Correct Answer: A) Primary sector. 57. The first poverty line line in India was discussed by A) Amartya Sen. B) Dadabhai Naoroji. C) PC Mahalanobis. D) VKRV Rao. Show Answer Correct Answer: B) Dadabhai Naoroji. 58. Which of the following implies use of advanced technology? A) Modernisation. B) Liberailisation. C) Gloabalisation. D) Privatisation. Show Answer Correct Answer: A) Modernisation. 59. How were the third category of industries allocated to private sector kept under state control? A) Allocation of capital goods. B) Industrial licensing. C) State distribution of goods. D) Procurement of goods by government only. Show Answer Correct Answer: B) Industrial licensing. 60. The economic term used to rank countries according to human development is ..... A) HDI. B) Gini. C) GNP. D) GDP Per Capita. Show Answer Correct Answer: A) HDI. ← PreviousNext →Related QuizzesIndian Economy QuizzesGeneral Knowledge QuizzesIndian Economic Development Policy Quiz 1Indian Economic Development Policy Quiz 3Fiscal System Of India QuizIndian Economy And Planning Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books