MCQs of B.COM 201- INDIAN ECONOMY

INDIAN ECONOMY

B.COM 201

QUESTION BANK

1. India is a:

(a)Developed country (b)Under developed Country

(c)Developing country (d) None

2. The growth rate of Indian economy in 2012-13is:

(a)5% (b)9% (c)6.5% (d)8.2%

3. Among the following states which has the highest PCI?

(a)Goa (b)Punjab (c)Kerala (d) Maharashtra

4. The Gross Domestic Saving as percent of GDP in 2011-12 in Indian economy is:

(a)32.3% (b)35.1% (c)34.5% (d)30.8%

5. Which sector is considered as the work horse of Indian economy?

(a)Primary (b)Secondary (c)Tertiary (d)None

6. According to 2011 census the rate of urbanisation in India is:

(a)72.2% (b)31.16% (c)32.5% (d)45.2%

7. Among the Indian states which has the highest density?

(a)Bengal (b)Punjab (c)Kerala (d) Bihar

8. The crude literacy rate in India according to 2011 census is:

(a)64.83% (b)82.14% (c)65.46% (d)74.04%

9. Relative poverty is basically related with

(a)Poor (b)Rich (c)Both (d)None

10. In 2008 Planning commission appointed a committee to estimate the poverty in India under:

(a)Jain (b)Sengupta (c)Saxena (d)Tendulkar

11. Which is the Year of Great Divide?

12. According to Mixed Recall period India’s Poverty in 2009-10 is

(a)36% (b)27.5% (c)29.8% (d)None

13. The sex ratio of Kerala in 2011is:

(a)1084 (b)1080 (c)1040 (d)1041

14. Which of the following committee was appointed by the Ministry of rural development to recommend a suitable methodology for identification of BPL families in rural areas

	(a)N.C.Saxena (b) Tendulkar (c)Sengupta	(d)Jain
15.	The sex ratio of India in 2011 is:
	(a)961 (b) 940 (c)980	(d)None
16.	The child sex ratio of India in 2011 is:
	(a)913 (b) 940 (c) 961	(d)None
17.	TRYSEM was started in
	(a)1996 (b)1990 (c)1980	(d)1979

18. For a rural person the minimum calorie needed to reach above poverty line is:

19. Which is an urban poverty eradication Programme?

(a)JRY (b)NREGP (c)RLEGP (d)NRY

20. Which of the following is an urban employment generation programme?

(a)MGNREGS (b)SGSY (c)SJSRY (d)PMGSY

21. The type unemployment more prominent in India is:

(a)Seasonal (b) Cyclical (c)Structural (d) Open

22. India’s unemployment is estimated by the agency:

(a)NSSO (b)RBI

(c)Finance Ministry (d)Both (a)&(b)

23. The long term unemployment is measured by

(a)Usual Status (b)Current Weekly Status

24. The most faithful measure of unemployment is:

(a)Usual Status (b)Current Weekly Status

25. The ratio of unemployment in India in 2009-10 is:

(a) 5.8 (b)6.6 (c)8.2 (d)None

26. India’s rank according to HDI in 2012 is

(a) 127 (b)134 (c)136 (d)124

27. The Gini coefficient of India in 2011is:

(a) 36.8 (b)33.4 (c)32.10 (d)38.1

28. The average MPCE of rural people in India according to 68 th round of NSSO is:

(a)Rs.1281.45 (b)Rs.2401.68 (c)Rs.2105 (d)Rs.455

29. Among the following states which has the highest HDI value?

(a)Goa (b)Punjab (c)Kerala (d)Tamil Nadu

30. The annual growth rate of India’s population according to 2011census is:

(a) 1.9% (b)1.76% (c)2% (d)None

31. What is the percentage of agricultural population in India in 2012.

(a) 66 per cent (b) 35 percent (c) 70 percent (d) 90 percent

32. What was the contribution of the primary sector to net domestic product ofIndia in 2011.

(a) 80% (b) 18% (c) 53% (d) 25%

33. In which year New Agricultural strategy was introduced in India.

34. Which state of India has derived the maximum benefit from GreenRevolution.

(a) Kerala (b) Maharashtra (c) U.P (d) Punjab

35. Land reform includes:

(a) New idea of irrigation (b) Fertilizers

36.Which are kharif crop(s)

(a) Maize (b) Cotton (c) Sugar Cane (d) All of these

37. Which is the main wheat production State of India

(a) Punjab (b) Orissa (c) Goa (d) None of there
38. Which is the Commercial crop
(a) Tea (b) Rice 39. Tenancy reform is related to.	(c) Wheat (d) None of there
(a) Regulation of rent	(b) Security of tenure
(c) Conferment of ownership rights 40. PDS Stands for:	(d) All of the above
(a) Public Distribution System	(b) Public Division System
(c) Price Distribution System 41. Agricultural Credit is given by.	(d) All of these
(a) Co-operatives (b) RRBs	(c) NABARD (d) All of the above

42. India’s Green revolution was most successful in …………Production:

(a) Wheat (b) Rice (c) Maize (d) Cotton

43. Regional Rural Bank were started in ………………..

44. The worst form of land tenurs system was…………………….

(a)Zamindary (b) Riotwary (c) Mahalwari (d) Malguzari

45. When the first industrial policy was introduced ?

46. How many industries are reserved for the public sector in the new Industrial policy 1991.

(a) 60 (b) 8 47. SSI stands for	(c) 10 (d) 12
(a) Small scale industries ,	(b) small saving interest ,
(c) Saving social of India , 48. SAIL was set up in	(d) All the three
(a) 1980. (b) 1970 .	(c) 1974. (d) 1989.

49. IISCO came under the control of :

(a) RBI (b) SAIL (c) UTI

(d) PNB

50. MARTP Act is related to …………….

(a) Industry (b) Service (c) Bank (d) Shipping

51. Small –scale industries contributed …………% towards total production of manufacturing :

(a) 20.43 (b) 5.83 (c) 10.3 (d) 16.79

52. Indian Iron and Steel company was established in ……………

53. …………… is known as the father of Iron and Steel company in India.

(a) Jamshedji Tata (b) Ratan Tata

54. Bockaro Steel plant was started during ……………. plan .

(a) First (b) Second (c) Third (d) Fourth

55. WTO prescribes export subsidies as:

(a) Competition

b)Unfair competition

c) Monopolistic competition

d)Exploitation

56. Export promotion is an:

(a) Inward looking strategy

(b) Outward looking strategy

(d) Political strategy

57. Since March 1973, the world, more or less, had a:

(a) Free floating exchange rate system

(b) Fixed exchange rate system

(d) Adjustable peg system

58. Net National gains from trade is measurable function of:

(a) Volume of trade

(b) Relative prices in two countries

(d) Volume of trade credited and change in prices caused by trade

59. Outward looking development policies are not associated with:

(a) Open system of communications

(b) Free movement of capital

(d) Learning by doing

60. Import quota is :

(a) Tariff

(b) Non-tariff trade barrier

(d) International obligation

61. Balance of payments must always balance because:

(a) Trade deficit is cancelled by invisible credits

(b) Import always equals exports

(d) What a country gets, it must either pay or save

62. Trade Policy measures for correction of balance of payments disequilibrium include of export promotion:

(a) Export promotion

(b) Import control

(d) Import substitution

63. In calculating India’s balance of payments position, we must:

(a) Omit invisible items

(b) Omit exports and imports of gold

(d) Include long term loans abroad as debit

64. The convertibility of dollar was formally abandoned in:

(a) 1971

(b) 1966

(d) 1962

65. Each member of IMF is assigned a quota expressed in:

(a) Member country’s currency

(b) Dollar

(d) None of the above

66. The international monetary system that existed from 1947 to 1971 isgenerally known as:

(a) Par value system

(b) Pegged exchange rate system

(d) Fewer rupees in the spot market than in the home market

67. The fundamental cause for the collapse of the Bretton woods system was:

(a) Liquidity problem

(b) The Adjustment problem

(d) All of the above

68. The direction of trade indicates:

(a) The nature of goods that are exported and imported

(b) The value of goods that are exported and imported

from which commodities are imported

(d) The terms at which exports exchanges for imports

69. The important component of foreign trade:

(a) Terms of trade, balance of trade and balance of payment

(b) The volume of trade, the composition of trade and direction of trade

(d) Terms of trade and Direction of trade

70. The balance of payment in unfavorable:

(a) When value of export is greater than import

(b) When value of import is greater than export

(d) Only when there is much greater difference between exports andimports

71. In which of the plan period, the Balance of payment position had surplus:

a) First plan

b) Second plan

c) Third plan

d) Fifth plan

72. The Mudaliar Committee was related to:

(a) Export-Import policy

(b) EXIM Bank

(d) Banking sector

73. EXIM Bank was set up in:

(a) 1980

(b) 1982

(d) 2000

74. The balance of payment on current account shows:

(a) The record of the current position of the country in transfer of bothvisible and invisible items

(b) The record of the financial position of the country

(d) The record of the current position of visible items.

ANSWER KEYS

1. (c) Developing country

2. (a)6.9%

3. (a)Goa

4. (d)30.8%

5. (c)Tertiary

6. (b)31.16%

7. (d)Bihar

8. (d)74.04%

9. (b)Rich

10. (d)Tendulkar

11. (d)1921

12. (c)29.8%

13. (a)1084

14. (a)N.C.Saxena

15. (b)940

16. (a)913

17. (d)1979

18. (a)2400 calorie

19. (d)NRY

20. (c)SJSRY

21. (c)Structural

22. (a)NSSO

23. (a)Usual Status

24. (c) Current daily Status

25. (b)6.6

26. (c)136

27. (a)36.8

28. (a)Rs.1281.45

29. (c)Kerala

30. (b)1.76%

31. (a)66 per cent

32. (b)18 percent

34. (d)Punjab

35. (d)All of the above

36. (d)All of these

37. (a)Punjab

38. (a)Tea

39. (d)All of the above

40. (a)Public Distribution System

41. (d)All of the above

42. (a)Wheat

44. (a)Zamindari system

46. (b)8

47. (a)Small Scale Industries

49. (b) SAIL

50. (a) Industry

51. (b)5.83 %

52. (b)1909

53. (a) Jamshedji Tata

54. (d) Fourth plan

55. (b) Unfair competition

56. (b) Outward looking strategy

57. (c) Managed floating exchange rate system

58. (d) Volume of trade credited and change in prices caused by trade

59. (d) Learning by doing

60. (b) Non-tariff trade barrier

61. (c) Of an accounting connection

62. (c) Both a & b

63. (b) Omit exports and imports of gold

64. (a) 1971

65. (c) Special Drawing rights

66. (a) Par value system

67. (d) All of the above

68. (c) The countries to which commodities are exported and the countries from which commodities are imported

69. (b) The volume of trade, the composition of trade and direction of trade

70. (b) When value of import is greater than export

71. (d) Fifth plan

72. (a) Export-Import policy

73. (b) 1982

74. (a) The record of the current position of the country in transfer of both visible and invisible items

Sheet 1

(a) In which among the following years, a new “Liberalized Industrial Policy” in India was announced for the first time?

1. 1986 2. 1991

3. 1992 4. 1993

(b) In the Industrial Policy of 1991, how many industries were reserved only for Public Sector?

1. 7 2. 8

3.11 4.13

1. MGNREGS 2. SGSY

3. SJSRY 4. PMGSY

(d) To boost economic growth the government is most likely to

1. Increase interest rates 2. Increase taxation rates

3. Provide incentives to invest 4. Provide incentives to save

(e) Approximate……………% of Indian population is still Agriculturist.

1. 46% 2. 50%

3. 58% 4. 64%

(f) Contribution of agriculture to Gross National Product is approximately?

1. 14% 2. 15%

3. 16 4. 17.5%

(g) Agricultural Credit is given by:

1. Cooperatives 2. RRBs

3. NABARD 4. All of the above

(h) Which of the following was a part of the green revolution strategy?
1. High yielding variety seeds 2. Chemical fertilizers and pesticides
3. Irrigation 4. All the above

(i) The value of ‘intermediate goods’ are excluded from GDP calculation because:

1. It will increase the GDP unduly

2. It results in multiple counting of same value

3. Intermediate goods are not important

4. All the above

(j) Green Revolution started in

1. 1964-65 2. 1965-66

3. 1966-67 4. 1967-68

(k) First five year plan was based on?

1. Harold -Domar Model 2. P.C. Mahalanobis Model

3. Both of above 4. None of above

(l) Which five year plan focused on "Growth with social justice and equity".

1. Ninth Five Year Plan 2. Eight Five Year Plan

3. Seventh Five Year Plan 4. Sixth Five Year Plan

(m) Water for irrigation can come from ____________ sources.
1. 3 2.2 3. 4 4. 5

(n) Small Industries Development Bank of India (SIDBI) was established in:

1. 1986 2. 1987

3.1988 4. 1989

(o) Gross domestic capital formation is defined as

1. flow of expenditure devoted to increased or maintaining of the capital stock

2. expenditure incurred on physical assets only

production exceeding demand
net addition to stock after depreciation

(p) In the state of India, the State Financial Corporation have given assistance mainly to develop

1. Irrigation projects 2. small-scale industries

3. medium-scale industries 4. medium and small-scale industries

(q) Which of the following denotes an underdeveloped economy?
1. High level of inequalities 2. Low level of capital productivity
3. A relatively closed economy 4. All the above

(r) Scarcity of capital, technological backwardness and unemployment are generally found in
1. Developed countries 2.Underdevelopedcountries
3. Both 4. None of the above

(s)Tube wells are not used in:
1. UP 2. Haryana
3. Gujarat 4. Rajasthan

(t) Which of the following was included as part of the land reforms initiated in India?
1. Abolition of intermediaries 2. Tenancy reforms
3. Reorganization of agriculture 4. All the above

(A) Potential growth measures

1. The growth of the fastest economy in the world

2. The fastest growth an economy has ever achieved

3. The present rate of growth of an economy

4. The rate of growth that could be achieved if resources were fully employed

(B) Relative poverty is basically related with:

1. Poor 2. Rich

3. Both 4. None.

1. The CPI 2. The CBI

3. GDP 4.MCI

(D) In which year New Agricultural strategy was introduced in India.

1. 1960 2. 1950

3. 1966 4. 1991

(E)Which state of India has derived the maximum benefit from Green Revolution.

1. Kerala 2. Maharashtra

3. U.P 4. Punjab

(F) Land reform includes:

1. New idea of irrigation 2. Fertilizers

3. New Seeds 4. All of the above

(G) The best indicator of economic development of any country is?

1. It’s agriculture 2. It’s transport

3. It’s gross production 4. It’s per capita income

(H) SSI stands for

1. Small scale industries 2. Small saving interest

3. Saving social of India 4. All the three

(I) The data of estimation of India's National income is issued by?

1. Planning Commission 2. National Data Centre

3. Central Statistical Organization 4. None of above

(J) Who heads the NITI Aayog as its chairperson?

1. President of India 2. Prime Minister

3. Finance Minister 4. Minister of Planning

(Q) GDP measures

1. A country’s income 2. A country’s wealth

3. Consumer spending 4. Net trade income

(a) Public Distribution System is associated with

1. Fair price shops 2. Cooperative stores

3. Super Bazars 4. None of the above

(b) Economic growth can be seen by an outward shift of:

1. The Production Possibility Frontier 2. The Gross Domestic Barrier

3. The Marginal Consumption Frontier 4. The Minimum Efficient Scale

1. Zero 2. Negative

3. Where the marginal social benefit = the marginal social cost

4. Total social costs are minimized

(d) How much population is living below poverty line in India ?

1. Approx 24% 2. Approx 25%

3. Approx 26% 4. Approx 27%

(e) What is the mainstay of Indian economy?

1. Manufacturing 2. Business

3. Public sector 4. Agriculture

(f) Which state is the biggest tea producer in the country?

1. Andhra Pradesh 2. Sikkim

3. Assam 4. West Bengal

(g) National Agriculture Insurance Scheme was implemented on

1. Oct. 1997 2. Oct. 1998

3. Oct. 1999 4. Oct. 2000

(h) The data of estimation of India's National income is issued by?

1. Planning Commission 2. National Data Centre

3. Central Statistical Organisation 4. None of above

(i) Which five year plan focused on "Growth with social justice and equity".

1. Ninth Five Year Plan 2. Eight Five Year Plan

3. Seventh Five Year Plan 4. Sixth Five Year Plan

(j) The concept of Economic Planning in India is derived from?

1. USA 2. UK

3. Australia 4. Russia

(k) Gross domestic capital formation is defined as

1. flow of expenditure devoted to increased or maintaining of the capital stock

2. expenditure incurred on physical assets only

3. production exceeding demand

4. net addition to stock after depreciation

(l)Micro-irrigation is also called:
1. Nano-irrigation 2. Petite irrigation
3. Localized irrigation 4. Flood irrigation

(m) Industrial Development Bank of India (IDBI) established in

1. 1964 2. 1965

3. 1966 4. 1967

(n) Which of the following was not a measure under the tenancy reforms?
1. Regulation of rent 2.Security of tenure
3. Ownership rights to tenants 4. None of the above

(o) Who took over as the new Vice Chairman of NITI Aayog in Sept 2017?

1. Arvind Panagriya 2. RaghuramRajan
3. Rajiv Kumar 4. Rajiv Singh

(p) If people are made unemployed because of a fall in aggregate demand this is known as:

1. Frictional unemployment 2. Seasonal Unemployment

3. Cyclical Unemployment 4. Structural Unemployment

(q) Which strategic nation building initiative is NITI Aayog set to launch to mentor students?

1.Mentor India Campaign 2. Student India Campaign

3.Teacher India Campaign 4. Coach India Campaign

(r) Which one of these is not a cause of poverty in India?

1. Low level of economic development

2. Migration of people from rural to urban India

3. Income inequalities

4. Unequal distribution of land.

(s) In which of the Five year plans, preference was given to the weaker sections of the society?

1. Second 2. Third

3. Fourth 4. Fifth

(t) Which sector is considered as the work horse of Indian economy?

1. Primary sector 2. Secondary sector

3. Tertiary sector 4. None of these.

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