CBSE Class 12 Economics Development Experience (1947-90) and Economic Reforms

1. _________ is one of the main positive contribution made by the British in India.

Ans. Introduction of Railways

2. Opening of __________ Canal significantly reduced the cost of transportation of goods between Britain and India.

Ans. Suez

3. India entered the ____________ stage of Demographic Transition after the year 1921.

(a) fourth

(b) second

(c) third

(d) first

Ans. (b) second

4. Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): India became an exporter of primary products and an importer of finished consumer and capital goods produced in Britain. Reason (R): Restrictive policies of commodity production, trade and tariff pursued by the colonial government adversely affected the structure, composition and volume of India’s foreign trade.

Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.

Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

5. Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): Britishers destroyed indigenous handicraft market in India Reason (R) : India was made market for British manufactured products

Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.

Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

6. Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): During British rule, India saw huge drain of wealth. Reason (R): India generated large export surplus during the period.

Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.

Ans. (b) Both Assertion (A) and Reason (R) are true but Reason (R)
is not the correct explanation of Assertion (A).

7. Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): During the British colonial rule in India, Britishers built roads extensively to cover the nation.

Reason (R): Roads were built by Britishers primarily to mobilise army.

Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason

(R) is the correct explanation of Assertion (A).

(b) Both Assertion (A) and Reason (R) are true and Reason

(R) is not the correct explanation of Assertion (A).

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.

Ans. (d) Assertion (A) is false but Reason (R) is true.

8. Read the following statements relating to industrial sector during British rule and choose the correct sequence of these statements.

(i) Cheap imports of British manufactured goods increased in the country.

(ii) The growth rate of Industrial sector was very small.

(iii) India was reduced to be mere exporter of raw material.

(iv) India faced shortage of locally made goods.

Alternatives:

(a) (i), (ii), (iii), (iv) (b) (iv), (iii), (ii), (i)

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

Ans. (d) (iii), (iv), (i), (ii)

9. Read the following statements relating to foreign trade during British rule and choose the correct sequence of these statements.

(i) India was exporter of products like raw silk, cotton etc.

(ii) Britain maintained monopoly control over India’s foreign trade.

(iii) India generated large export surplus

(iv) Exports did not result in any flow of wealth into the country.

Alternatives:

(a) (i), (ii), (iii), (iv) (b) (iv), (iii), (ii), (i)
(c) (ii), (i), (iii), (iv) (d) (iv), (i), (ii), (iii)

Ans. (c) (ii), (i), (iii), (iv)

10. Read the following statements relating to demographic condition of India during British Rule and choose the correct sequence of these statements.

(i) Overall mortality rate was very high

(ii) Water and airborne diseases were rampant

(iii) Public health services were either unavailable or were inadequate

(iv) Infant mortality was at alarming level

Alternatives:

(a) (i), (ii), (iii), (iv)

(b) (iii), (ii), (i), (iv)

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

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

Ans. (b) (iii), (ii), (i), (iv)

11. Arrange the following events of India before the independence in chronological order:

(i) The opening of the Suez Canal

(ii) Introduction of the railways

(iii) Second stage of demographic transition

(iv) Incorporation of the Tata Iron and Steel Company

Ans. (ii), (i), (iv), (iii)

12. The opening of the Suez Canal in 1869:

(a) Raised the cost of transportation between Britain and India.

(b) Intensified British control over India’s foreign trade.

(c) Reduced the cost of transportation and made access to the Indian market easier.

(d) Both (b) and (c)

Ans. (d) Both (b) and (c)

13. Under the British colonial rule, the agricultural production decreased. True/False? Give reason.

Ans. False: in absolute terms, the agricultural sector experienced some growth due to the expansion of the aggregate area under cultivation.

14. One of the significant drawbacks of the industrial policy pursued by the British colonial administration was the very limited area of operation of the public sector. This sector remained confined only to the ____________.

Ans. railways, power generation, communications, ports and some other departmental undertakings.

15. India’s demographic condition on the eve of independence was characterised by:

(a) High level of literacy, high mortality rates, high life expectancy and high level of poverty.

(b) Low level of literacy, low mortality rates, low life expectancy and Low level of poverty.

(c) Low level of literacy, low mortality rates, high life expectancy and high level of poverty.

(d) Low level of literacy, high mortality rates, low life expectancy and high level of poverty.

Ans. (d) Low level of literacy, high mortality rates, low life expectancy and high level of poverty.

16. Name some notable economists who estimated India’s per capita income during the colonial period.

Ans. Dadabhai Naoroji, William Digby, V.K.R.V Rao and R.C Desai (Rao’s estimates was considered very significant).

17. Name some modern industries which were in operation in our country at the time of independence.

Ans. Cotton and Jute textile industries iron and steel industries;sugar, cement, paper industries etc.

18. When was India’s first official census operation undertaken?

Ans. 1881

19. Which is regarded as the defining year to mark the demographic transition from its first to the second decisive stage?

Ans. 1921

6.2 Indian Economy 1950-1990 

1. In the Industrial Policy Resolution of 1956, industries were classified in _________ (two/three) categories.

Ans. three

2. Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): The major policy initiatives i.e. land reforms and green revolution helped India to become self-sufficient in food grains production. Reason (R): The proportion of people depending on agriculture did not decline as expected

Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason

(R) is the correct explanation of Assertion (A).

(b) Both Assertion (A) and Reason (R) are true and Reason

(R) is not the correct explanation of Assertion (A).

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.

Ans. (b)

3. During India’s first seven five-year plans, the Government of India adopted ______ policy to protect domestic industries.

Ans. Import Substitution

4. Policy of ‘Import Substitution’ was targeted to protect ______ industries.

Ans. Domestic

5. In 1955, Karve committee was constituted for aiming the ______.

Ans. Development of small scale industries

6. Why, despite the implementation of green revolution, 65 per cent of our population continued to be engaged in the agriculture sector till 1990?

Ans. This is so because the industrial sector and the service sector did not absorb the people working in the agricultural sector. (Many economists call this an important failure of our policies followed during 1950-1990)

7. Just a year after independence, steps were taken to abolish intermediaries and to make the tillers the owners of land. The idea behind this move was:

(a) to reduce the concentration of land ownership in a few hands.

(b) that ownership of land would give incentives to the tillers to invest in making improvements.

(c) fixing the maximum size of land which could be owned by an individual.

(d) to reduce the vast inequality in land holding.

Ans. (b)

8. Which of the following is not included in land reforms?

(a) Use of high yielding variety (HYV)seeds

(b) The abolition of intermediaries

(c) The change in ownership of landholdings

(d) Land ceiling

Ans. (a)

9. In the first phase of the green revolution (approximately mid 1960s, up to mid 1970s), the use of HYV seeds primarily benefited the growing regions only. True/False? Give reason.

Ans. True

10. In the second phase of the green revolution (mid 1970s to mid 1980s), the HYV technology benefited only the more affluent states and the wheat growing regions. True/False? Give reason.

Ans. False: In the second phase of the green revolution, the HYV technology spread to a larger number of states and benefited more variety of crops.

11. The annual growth rate of the industrial sector during 1950- 1990 was:

(a) 5 per cent (b) 6 per cent

(c) 8 per cent (d) 10 per cent

Ans. (b)

12. Land reforms primarily refer to:

(a) fixing the maximum size of land which could be owned by individual.

(b) change in the ownership of landholdings.

(c) use of new technology in agriculture sector.

(d) abolition of intermediaries.

Ans. (b) change in the owners hip of landholdings

6.3 Economic Reforms since 1991

1. _______________ was the Indian Finance Minister in 1991,acknowledged for his capabilities to steer away the economic crisis looming large on the erstwhile Indian Economy.

(a) Dr. Subramanian Swamy (b) Dr. Manmohan Singh

(c) Pranab Mukherjee (d) Dr. Urjit Patel

Ans. (b)

2. Read the following statements - Assertion (A) and Reason

(R). Choose one of the correct alternatives given below:

Assertion (A): Every year government fixes a target for disinvestment of Public Sector Enterprises (PSEs).

Reason (R): Disinvestment is an excellent tool for discarding the loss incurring Public Sector Enterprises (PSEs).

Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason

(R) is the correct explanation of Assertion (A)

(b) Both Assertion (A) and Reason (R) are true and Reason

(R) is not the correct explanation of Assertion (A)

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true.

Ans. (b)

3. State any one outcome of implementation of EconomicReforms in India In 1991.

Ans. Greater inflow of investment

4. State, whether the following statement is true or false: “GATT was established in 1923 with 48 member countries.”

Ans. False

5. State whether the following statement is true or false: ‘World Bank is known as International Bank for Registration and Delimitation (BRD)’.

Ans. False

6. _________ is one of the taxes eliminated after implementation of Goods and Services Tax (GST.)

Ans. Value Added Tax

7. World Trade Organisation (WTO) established in 1995, as a successor organisation to _______.

Ans. General Agreement on Trade and Tariff (GATT)

8. Name any one Maharatna Company.

Ans. Indian Oil Corporation Limited (IOCL) or Steel Authority of India Ltd.

9. Name any one Navratana Company.

Ans. Mahanagar Telephone Nigam Limited (MTNL)

10. Name any two taxes which were subsumed in Goods and Services Tax (GST).

Ans. Value added tax, service tax, excise duty, sales tax. (any two)

11. IBRD stands for ___________ .

Ans. International Bank for Reconstruction and Development (popularly known as World Bank)

12. In 1991, an immediate measure to resolve the balance of payments crisis was:

(a) to free the determination of rupee value in the foreign exchange market from government control.

(b) devaluation of rupee against foreign currencies.

(c) removing the trade barriers –quotas and tariffs.

(d) simplification of export and import procedures.

Ans. (b)

13. Rising prices have been kept under control in the reform period.

Ans. True