CBSE Class 11 Economics Economic Indian Economy

Multiple Choice Questions

Question. In which year was Planning Commission abolished?
a) 2014
b) 2015
c) 2016
d) 2017
Answer : B

Question. Which of the following is the primary objective of economic planning in India?
a) Abolition of poverty
b) Removing unemployment
c) Growth with social justice
d) Reducing inequality of income
Answer : C

Question. Main features of IPR 1956 are:
a) Protection to cottage and small scale industries.
b) Specific and all important role assigned to public sector.
c) Cautions approach towards foreign capital
d) All of these.
Answer : D

Question. Which of the states got success in Land Reform?
a) Kerala and West Bengal
b) Punjab and Haryana
c) Rajasthan and Assam
d) None of these.
Answer : A

Question. The need for planning emerges from which of the following weaknesses of the free market system?
a) Inequalities
b) Exploitation of workers
c) Instability
d) All of these.
Answer : D

Question. Who was the chairman of India’s First Five Year Plans”
a) P. C. Mahalanobis
b) Mahatma Gandhi
c) Jawaharlal Nehru
d) None of these.
Answer : C

Question. Which plan was suspended one year before the time schedule?
a) First Plan (1951-56)
b) Third Plan (1961-66)
c) Sixth Plan (1980-85)
d) Fifth Plan (1974-79)
Answer : D

Question. The starting of land reforms programmer was set up in the right direction but it could not be successful because of:
a) Lack of political will
b) inadequate data of tenants
c) Both (a) and (b)
d) None of these.
Answer : C

Question. What do you mean by tariffs?
a) Tax imposed on imported goods
b) Tax imposed on exported goods
c) Tax imposed on starting an Industry
d) None of these.
Answer : A

Question. Schedule C industries development were left to:
a) Public sector
b) Private sector
c) Both (a) and (b)
d) None of these.
Answer : B

Question. What do you mean by Quotas?
a) The quantity of goods which can be exported.
b) The quantity of goods which can be imported.
c) Both (a) and (b)
d) None of these.
Answer : B

Question. Which of the following sectors contribute highest to India’s National Income?
a) Service Sector
b) Agriculture Sector
c) Secondary Sector
d) Foreign Trade
Answer : A

Question. Legally stipulated maximum size beyond which no individual farmer can hold any land:
a) Tenancy reforms
b) Land consolidation
c) Abolition of Intermediaries
d) Land Ceiling.
Answer : D

Question. Green revolution resulting from:
a) Traditional Irrigation facilities
b) Use of manures
c) HYV seeds
d) None of these.
Answer : C

Question. National Income in India is estimated by:
a) Planning Commission
b) Reserve Bank of India
c) Rajasthan and Assam
d) Central Statistical Organisation.
Answer : D

Question. There were some areas where the economic planning in India has failed:
a) Failure to reduce inequalities of income and wealth.
b) Inadequate growth in production sector.
c) Failure to eradicate poverty
d) All of these.
Answer : D

Question. Indian Green Revolution is most successful in:-
a) Wheat and Rice
b) Wheat and Vegetables
c) Rice and Pulses
d) Tea and Coffee
Answer : A

Question. Who developed HYV seeds?
a) Normal Borlaug
b) Norten Borlaug
c) Norah Jones
d) Normal Jones
Answer : A

Question. The strategy to earn foreign exchange by promoting domestic exports and making domestic industry competitive in the international market is called:
a) export promotion
b) import substitution
c) export liberalization
d) import restriction.
Answer : A

Question. An economy in which there is private as well as public ownership of the means of production is called:
a) Capitalist economy
b) Socialist economy
c) Mixed economy
d) None of these.
Answer : C

Assertion and Reason Based Question

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 (A): Subsidies were, needed to encourage farmers.
Reason (R): Any new technology is looked upon as being risky by farmers
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 Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Question. ASSERTION (A): Public sector was given leading role in industrialization during the period of planning.
REASON (R) Private sector was not having enough capital and also market was not so big to encourage industrialists to undertake big projects even if they had capital to do so. Alternatives:
a) Both (A) and (R) are true (R) is correct explanation of (A)
b) Both (A) and (R) are true (R) is not correct explanation of (A)
c) (A) is true (R) is false.
d) (A) is false (R) is true.
Answer : (a) Both (A) and (R) are true (R) is correct explanation of (A)

Question. Assertion (A) The year 1921 is described as the year of Great Divide.
Reason (R) It was from this year, population started increasing continuously.
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 (A): Tariffs and quotas in the economic policy post-independence were used to assist domestic industries.
Reason (R) : Our planners wanted to use foreign exchange for importing luxury goods.
a) Both Assertion and Reason are true, and Reason is the correct explanation of Assertion.
b) Both Assertion and Reason are true and Reason is not the correct explanation of Assertion.
c) Assertion is true, but Reason is false
d) Assertion is false but Reason is true.
Answer : c) Assertion is true, but Reason is false

Question. Assertion: The need to obtain a license to start an industry was misused by big industrial houses.
Reason: A big industrialist would get a license not for starting new firm but to prevent competitors from starting new firms.
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 Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Question. Assertion (A): A good indicator of economic growth is steady increase in Gross domestic product (GDP).
Reason(R): GDP is the market value of all goods and services produced in a country during a year
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 Assertion (A)

Question. Assertion: Only a handful of states benefited from green revolution in India
Reason: Success of green revolution depends on policy implementation by state government.
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 Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Question. Assertion (A): One of the pillars of IPR 1956 was to check concentration of economic power in few individuals, groups, or business houses.
Reason(R): It established the public sector as epicentre of industrialization.
a) Both (A) and (R) are true (R) is correct explanation of (A)
b) Both (A) and (R) are true (R) is not correct explanation of (A)
c) (A) is true (R) is false.
d) (A) is false (R) is true.
Answer : b) Both (A) and (R) are true (R) is not correct explanation of (A)

Question. Assertion- The developing countries (like India) can progress only if they have a good industrial sector.
Reason-. Industry provides employment, which is more stable than the employment in agriculture.
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)

Case Study

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

The Green Revolution started in 1965 with the first introduction of HYV seeds in India agriculture. This was coupled with better and efficient irrigation and the correct use of fertilizers to boost the crop. The result of the Green Revolution was to make India self-sufficient when it came to food grains.
After 1997 India had to rebuild its economy. Over three-quarters of the population depended on agriculture in some way. But agriculture in India was faced with several problems. Firstly, the productivity of grains was very low, and India was still monsoon dependent because of lack of irrigation and other infrastructure.
There was also an absence of modern technology. And India had previously faced severe famines during the British Raj, who has only promoted cash crops instead of food crops. The idea was to never depend on any other country for food sufficiency.
So in 1965, the government with the help of Indian geneticists M.S.Swaminathan, known as the father of Green Revolution, launched the Green Revolution. The movement lasted from 1967 to 1978 and was a great success.

Question. Green revolution is related with ____________.
a) Modern technology.
B) Better irrigation facilities
c) HYV seeds
d) All of the above.
Answer : D

Question. Britishers encouraged Indian farmers to grow food crops. (true/false)
Answer : False

Question. What was the need of green revolution to make India ________?
a) Sufficient production
b) Modernisation
c) Self- sufficient
d) None of these.
Answer : C