Chapter Wise Economy MCQ’s With Explanation

Today’s Topic: Social Plans

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Tuesday- General Science

Wednesday- Indian Polity and Governance

Thursday- History of India and Indian National Movement

Friday- Economic and Social Development

Saturday-Current Affairs Concepts


Today’s Topic: Social Plans


Q1. Assertion (A): Though India’s national Income has gone up several fold since 1947, there has been no marked improvement in the per capita income level.

Reason (R): Sizeable proportion of the population of India is still living below the poverty line.

a) A is true but R is False

b) A is false but R is true

c) A and R both are true but R is the not correct explanation of A

d) Both A and R true but R is the correct Explanation of A.

Ans:     C

Explanation:    Option (C) is correct because there has not been improvement in per capita incomes even there has been increasing trends in national income, because of persistence rise in the country’s population. (Per capita income is referred to nation population)

Q2. Match the following

List I                                                      List II:

a. Development Programme                    1. India Development Report

b. National Council                                   2. World Development bank

c. Indira Gandhi institute for                     3. Human Development Report Development Research

d. World bank Development                     4. UN Indian Human Reports

Ans:     answer given in the explanation


Development Programme         Human Development Report Development Research

National Council                        UN Indian Human Reports

Indira Gandhi institute for          India Development Report

World Bank Development          World Development bank

Q3. Assertion (A): Information technology is fast becoming in India a very important field of activity.

Reason (R): Software is one of the major export of the country and india has very strong base in hardware.

a) A is true but R is False

b) Both A and R ar false

c) A and R both is true but R is the correct explanation of A

d) Both A and R true but R is the not correct Explanation of A.

Ans:     A

Explanation:    Assertion (A) is true but R is False

India does not have a strong base in hardware section. Information technology is an increasing field due to high English Speaking Population and a service aptitude.

Q4. Indian Farmers are unhappy over the introduction of terminator seed technology” because the seeds produced by this technology are expected to:

a) Show poor Germination

b) Give rise to plants incapable of forming viable seeds

c) Give rise to sexually sterile Plants

d) None of the above

Ans:     B

Explanation:    The Indian farmers are unhappy over the introduction of Terminators seed technology because the seeds give rise to plants incapable of forming viable seeds.

Q5. The Employments assurance schemes envisage financial assistance to rural areas for guaranteeing employment to at least:

a) One person in rural landless house hold below the poverty live.

b) 50 percent of the men and women seeking jobs in the rural areas.

c) One man and one woman in rural family living below the poverty line.

d) None of these.

Ans:     C

Explanation:    Employments Assurance Scheme was started from 2 Oct 1993 in most backward 1778 blocks of country after 1997-98 it has been included in all the developments blocks in country. This scheme guaranteed the employment for scheme guaranteed the employment for two people of the family

Q6. Economic liberation in India started with:

a) Significant reduction in tax rates

b) The Convertibility of Indian rupees

c) Substantial changes in industrials licensing policy

d) None of these

Ans:     C

Explanation:    The economic liberalization in India started with the industrial de-licensed-ing, foreign investment, public sector related policy and policy related to the foreign technology and RTP act. So the option C is correct

Q7. Consider the following financial institutions of India:

  1. National bank and agriculture and rural development (NABARD)
  2. Industrial finance corporation of India (IFCI) .
  3. Industrial development bank of India
  4. Industrial credit and Investment Corporation of India (ICICI)

The correct chronological sequence of the establishment of these institutions is:

a) 1,2,3,4               b) 2,4,3,1                 c) 1,4,3,2                     d) 1,3,4,2

Ans:     B


IFCI                 –           1 July 1940

ICICI               –           5 Jan, 1955

IDBI                –           1 July, 1964

NABARD        –           19july, 1982

Q8. Consider the following schemes launched by the union government:

  1. Sarvapriya
  2. Jawahar gram samridhi yojana-1st April 1989
  3. Anyodaya yojana
  4. Gram sadak yojana

Which of these were announced in the year 2000?

a) 1 and 3              b) 1 and 2                    c) 3 and 4                    d) 1,2,3 and 4

Ans:     C


Sarvapriya -1 Jan 2001

Jawahar gram samridhi yojana -1st April 1989

Anyodaya yojana 25 Dec, 2000

Gram sadak yojana 25 Dec, 2000

Q9. Which of the following are among non-plan expenditures of the government of India?

  1. Interest payment
  2. Defense expenditure
  3. Subsidies
  4. All expenditures linked with the previous plan periods.

a) 1 and 2           b) 1 and 3           c) 2 and 3          d) 1, 2, 3 and 4

Ans:     D

Explanation:    Non-plan expenditures include subsidies, defense and interest payments, Expenditure which is incurred by the government on the non-development issues called non-plan expenditures.

Q10. Consider the following statements:

The Indian rupee is fully convertible:

  1. In respect of capital accounts of balance of payments.
  2. Into gold
  3. In respect of current account of balance of payment.

Which of these statements is/are correct?

a) Only 1          b) Only 3        c) 1, 2 and 3                d) 2 and 3

Ans:     B

Explanation:    The Indian rupee is fully convertible in respect of current account of balance of payments as per Tarapor Committee the recommendation to make fully convertible of rupee.


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