CBSE Class 11 Economics Indian Economy Worksheet

Indian Economy 1950 - 1991

→ Very Short Answer questions – (1 Mark each)

1. Define GDP

2. What is meant by structural changes?

3. Define quantitative restrictions?

4. Give the meaning of devaluation of rupee?

5. What are small scale industries?

→ Short Answer questions – I (3 Marks each)

1. Why the public sector was assigned greater importance than private sector?

2. Why and how was private sector regulated under industrial policy resolution of 1956?

3. How were the industries classified according to the industrial policy resolution of 1956?

4. What are were the different ways adopted for trade protection during the planning period?

5. Why and how were small scale industries promoted during the plan period?

→ Very Short Answer questions – II (4 Marks each)

1. Discuss the green revolution and its consequences.

2. Should subsidies be given to farmers? Discuss the usefulness of subsidies.

3. Explain how the government protected the domestic products from foreign competition during 1950 – 1990.

→ Long Answer questions – (6 Marks each)

1. Discuss the common features of all Five year plans.

2. Discuss the achievements and the shortcomings of the development policies followed by India during the planning period.

Assertion And Reason Based Questions

Question. Assertion(A) Economic planning rules out the free play of market force.
Reason (R). it does not rule out free play of market forces rather it is dependent on model of economic planning.
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.
Answer : d) Assertion is false and Reason is true.

Question. Assertion (A) GDP indicates the size of an economy. Reason (R): A higher GDP indicates higher economic activity.
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.
Answer : b). Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of (A)

Question. Assertion (A) : Industry provides employment which is more stable than the employment in agriculture. It promotes modernisation and overall prosperity.
Reason(R): Economists have found that poor nations can progress only if they have a good industrial sector.
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.
Answer : a) Both Assertion (A) and Reasoning (R) are true and Reason (R) is the correct explanation of Assertion (A).

Question. Assertion: The small-scale industries generate more employment than the large-scale industries.
Reason: Small scale industries are more 'Capital intensive industries '. Therefore, generate more employment.
a) Both A and R are true but R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
Answer : c). A is true but R is false.

Question. Assertion (A): NITI Aayog is a policy think-tank of Government of India that aims to involve the states in economic policy making in India.
Reason (R): Planning commission was replaced on January 1, 2015 due to its traditional top-down approach.
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) Both Assertion (A) and Reason (R) is false
d) Assertion (A) is false but Reason (R) is true.
Answer : a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Question. Assertion (A): Growth and social justice is the central objective of Indian plans.
Reason (R): India opted for planning to utilize available resources efficiently and to establish social justice.
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
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
Answer : a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Question. Assertion: The progress of the Indian economy during the first seven plans was impressive indeed.
Reason: PSUs earned a huge profit during first five-year plans.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A
c) A is true but R is false
d) A is false but R is true.
Answer : c) Assertion is correct but reason is wrong.

Question. Assertion: Because of India’s rapidly growing population the country's traditional agricultural practices yielded insufficient food production.
Reason : (R ) Agricultural technological advancements offered opportunities to increase productivity.
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) Both Assertion (A) and Reason (R) is false.
D) Assertion (A) is false but Reason (R) is true.
Answer : b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Question. Assertion : The contribution made by Primary, secondary and tertiary sectors in the GDP of a country is called sectoral composition of the economy.
Reason: In some countries growth in agriculture contributes more to GDP, while in some countries growth in the service contributes more to GDP.
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) Both Assertion (A) and Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
Answer : b) Both Assertion (A) and Reason (R) are true, and Reason (R) is not the correct explanation of Assertion (A).

Question. Assertion (A): The land reforms helped in establishing a relationship between the farmers and the government.
Reason (R): Land reforms ensured that the farmers benefitted from their own labour and promoted equality of wealth.
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) Both Assertion (A) and Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
Answer : a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Question. 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.
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) Both Assertion (A) and Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
Answer : b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Case Study

Read the following case study paragraph carefully and answer the questions based on the same.

A plan spells out how the resources of a nation should be use. It should have some general goals as well as specific objectives which are to be achieved within a specified period. In India plans were of five years duration and were called five-year plans (we borrow this from the former Soviet Union, the pioneer in national planning). Our plan documents up to the year 2017 not only specify the objectives to be attained in the five years of a plan but also what is to be achieved over a period of twenty years. This long-term plan is called ‘perspective plan’. The five-year plans were supposed to provide the basis for the perspective plan.

Question. When did India give its first five-year plan ___________?
a) 1950
b) 1951
c) 1947
d) 1949
Answer : B

Question. Government decides what goods are to be produced in accordance with the needs of society’. Under what type of economic system does this take place _________
a) Capitalistic economy
b) socialist economy
c) Both (a) and (b)
d) None of these.
Answer : B

Question. Planning commission, the erstwhile central planning authority in the country, has been replaced by ________
a) NITI Aayog
b) UGC
Answer : National institution for transforming India Aayog

Question. When was Indian planning commission constituted?
a) 6th August 1952
b) 15th March 1950
c) 15th August 1947
d) 1st April 1997
Answer : B

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