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Choose the Correct Answers:

1.Which one of the following is not a characteristic of a developing economy?
a Self-sufficiency in capital
b Low per capita income
c Backward technology
d Excessive dependence on agriculture
2. With the advancement of the economy
a The share of industry in national product rises
b The share of agriculture in national product falls
c The share of agriculture in national product rises
d None of the above
3. The Indian economy in the pre-British period consisted of isolated villages which were
a Deficient                     b Surplus
c Self-sufficient              d None of the above
4. The dominant occupation of the Indians is
a Trade                                                 b Industry
c Transport                                           
d Agriculture
5. Predominance of agriculture in a country’s economy both in terms of employment and income generation shows that the economy is
a Developed                   b Developing
c Highly developed         d None of the above
6. The best choice for the developing country is
a Stable growth              b Slow growth
c Fast growth                d None of the above
7. The structural changes in the composition of national income  is the consequence of the process of planned programme of economic development
a Agriculture origin         b Industrial origin
c Transport origin           d Trade origin
8. In the Indian context, the study of poverty were made by
.1 Dandekar & Rath        2. P.K. Bardhan
3. B.S. Minhas              4. M. Ahluwalia
5. I.J. Ahluwalia
a 1 and 2 only                b 2 and 3 only
c 1, 2, 3, 4 only             d 3, 4, 5 only

  1. Where is the headquarters of State Bank of India?

a.  Chennai        b. New Delhi      c. Mumbai         d.  none of these.

10. In which one of the following sectors was Co-operative Movement in India initiated?
a Agricultural credit                    b Farming activities
c Agricultural marketing              d Consumer co-operation
11. The apex body for formulating plans and co-coordinating agriculture, animal husbandry, fisheries, education and research in India is
a National Commission on Agriculture
b Directorate Marketing and Inspection
c Bureau of Indian Standards
d Indian Council of Agricultural Research
12. Central Warehousing Corporation was set up in India in the year
a 1947              b 1952              c 1959              d 1960

13. What are the economic factors that causes high birth rate in India?
  1. Predominance of agriculture
  2.  Slow urbanization and predominance of village
  3. Poverty
a 1 only                   b 1 and 2 only
c 2 and 3 only          d 1, 2, and 3
14. The unemployment is caused primarily by
a High population growth
b High birth rates in the rural area
c The defective manpower planning
d None of the above
15. A country can hope to overcome the problem of population explosion
a Urbanisation               b Education
c Both a and b               d None of the above
16. In India, present trend of rapid urbanization is due to
a Influence of cinema and electronic media
b Break up of joint family system
c Abolition of zamindari system
d Lack of employment opportunities in rural areas
17. Indian farmers insurance against crop failure is the process of one of
a Share cropping            b Relay cropping
c Mixed cropping           d Dry farming
18. What is the minimum permissible age for employment in any factory or mine?
a Twelve years               b Fourteen years
c Sixteen years             d Eighteen years
19. The modern State is
a Laissez faire State      b Aristocratic State
c Welfare State              d Police State
20. Welfare State is the aim of
a Individualism                                       b Anarchism
c Democratic Socialism                          d Scientific Socialism
21. In a free economy inequalities of income are mainly due to
a Free competition
b Private property only
c Differences in the marginal productivity of labour
d. Private property and inheritance
22. Change in demand refers to
a Increase in quantity demanded on the same demand curve
b Changing relation of demand and supply
c Shift in demand curve
d Decrease in quantity demanded on the same demand curve
23. According to the law of demand, when price
a Increases demand decreases
b Increases demand increases
c Decreases demand decreases
d Decreases demand does not change
24. Which of the following is at present the largest power using sector of the Indian economy?
a Agriculture
b Domestic consumers and street lighting
c Industry
d Transport and communications, including Railways
25. On which of the following do people of India spend most of their income?
a Clothing                      b Food
c Fuel and Light             d Household durables
26. For which of the following is the largest area (in acres) used in India?
a Growing tillage crops               b Grazing and grasslands
c Forestry                                 d Villages, towns and cities
27. Demands for goods is elastic if
a The demand for the goods increases when the price fails
b The quantity demanded increases less than proportionately with the decrease in price level
c A decrease in price results in a decrease in total expenditure on the commodity
d All the above situations exist
28. Which of the following is not viewed as national debt?
a Life insurance policies
b Long-term Government bonds
c National savings certificates
d Provident Fund
29. Which one of the following is not an infrastructure industry?
a Electricity       b Coal
c Petroleum       d Sugar
30. Economic growth means
a An increased output of goods and services
b Increase in Gross National Product over a long period of time
c Increase in Gross Domestic Product over time
d All of the above
31. Under developed countries export trade is highly biased towards
a Primary products         b Capital goods
c Manufactured goods    d Consumer goods
32. Which among the following was not a characteristic of our economy at the time of independence?
a We were exporting capital goods
b We were self-sufficient before facing the chaos of partition
c Indian economy was partially stagnant
d None of the above
33. Which one of the above following is not included in the primary occupation?
a Agriculture                  b Fishing
c Plantation                   d Trading
34. Indian economy prior to independence remained under-developed due to
a Economic reasons      b Social institutions
c Foreign rule                d All of the above
35. Economic development can be measured in terms of changes in
a Real per capita income
b Average cost of living of the working class
d None of the above
36. The characteristic of underdeveloped country is
a Low rate of raving        b Lack of technology
c Lower productivity        d None of the above
37. Indian economy is
a Developing economy    b Mixed economy
c Federal country                       d All of the above
38. Socialist Pattern comes through
a Free economy b Public sector
c Mixed economy          d Laissez-faire
39. Secondary occupations in a country do not include the following occupations. Which one?
a Communications
b Manufacturing
c Small scale cottage industries
d Workshops
40. One among the following is not included in the tertiary occupation. Which one?
a Banking          b Industry
c Trade             d Transport
41. Annual growth rate of National Income was recorded lowest during
a Second Plan               b Third Plan
c Fifth Plan                    d Sixth Plan
42. When was the New Liberalised Industrial Policy announced in India?
a 1989  b 1990
c 1991  d 1992
43. Equilibrium price is that which
a Equates consumers and producers surplus
b Maximises consumers satisfaction
c Equates supply and demand
d Maximises producers’ profit
44. One of the main factors that led to rapid expansion of Indian exports is
a Imposition of import duties
b Liberalisation of the economy
c Recession in other countries
d Diversification of exports
45. Which is the oldest well-established industry in India?
a Iron and steel              b Jute
c Cotton textiles                        d None of these
46. Which of the following is most likely to cause an immediate increase in the size of the working population?
a A rise in the average size of families
b An increase in the birth rate
c A fall in the death rate of the over 60 year-olds
d More favourable tax treatment of the earnings of married women
47. Which of the following will tend to raise the market rate of interest in the long run?
a A fall in the marginal productivity of capital
b An increase in the amount of savings by individuals
c A rise in consumer demand for present over future consumption
d None of the above
48. Public sector consists of those enterprises in which the State owns-
a 50 per cent of the capital          b 66 per cent of the capital
c 85 per cent of the capital          d 100 per cent of the capital
49. Which techniques of production are preferable to India?
a Labour – intensive technique
b Capital-intensive technique
c Both a and b
d None of the above
50. The ‘Balanced growth theory’ was propounded by
a H. Leibenstein b J. Vene
c A.K. Sen                    d R. Nurkse
51. Who has propounded the doctrine of ‘unbalanced growth’?
a R. Nurske       b Resenstein Roden
c H. Myint         d Albert O. Hirschman
52. Which of the following industry developed well before independence?
a Heavy engineering       b Machine tools
c Chemical industries     d Textiles
53. India still remains one of the most under developed nations in terms of
a Natural resources        b The availability of capital
c Per capita income       d Per capita expenditure
54. While considering the Gross National Product             (GNP), which of the following is not required?
a Government purchases of goods
b Per capita income of individuals
c Private investment
d Net foreign investment
55. The rate of capital formation in under developed economy is low due to
a Widespread poverty
b Demonstration effect to follow suit the consumption pattern of the developed countries
c Lack of natural resources
d High defence expenditure
56. When did the Reserve Bank of India become a State-owned institution?
a 1943              b 1947
c 1949              d 1969
57. Regional Rural Bank Ordinance was enacted by the govt. in the year
a 1975              b 1978
c 1980              d 1982
58. The effect of occupational change in a country has the following bearing on the percentage population of the towns
a It decreases                b It has no effect
c It increases                 d It decreases very sharply
59. The Oil and Natural Gas Commission was set up in
a 1956              b 1957
c 1958              d 1959
60. In a country where higher percentage of its population relies, for its livelihood on agriculture, it is an index of
a Developed economy                b Capitalist economy
c Socialist economy                   d Underdeveloped economy
61. The nature of Indian Planning Commission is
a Autonomous corporation          b Advisory body
c Government body                    d A Ministry
62. Which one is included in the core industry?
a Public sector enterprises
b Private sector enterprises
c Multi-national enterprises
d Basic industries and defence
63. The Planning Commission in India was set up in 1950 by
a An ordinance enacted by president
b An amendment of Constitution
c Government
d An act of parliament
64. The idea of planning in India can be traced back to late
a Pt. J.L. Nehru             b M.K. Gandhi
c Mr. Visvesvaraiya        d Dadabhai Naoroji
65. The Bombay Plan is associated with
a Dr. S.N. Aggarwal       b Sh. M.N. Roy
c Dr. D.R. Gadgil           d Eight Industrial Magnates of Ind.
66. The Planning in Indian Economy is based on the
a Mixed economy system           b Capitalist system
c Gandhian system                    d Socialist system
67. The ex-officio Chairman of the Planning Commission of India is
a The Planning Minister              b The President
c The Prime Minister                  d The Vice-President
68. The five-year plans of our country aim at making the country
a Self-sufficient              b Rich
c Industrially developed   d Trade oriented
69. Draft five-year plans is finally approved by
a The President b National Development Council
c Parliament                  d Planning Commission
70. The underlying growth model of the First Five Year Plan was based on the model of
a Harrod-Domar b Marxian
c Mahalanobis               d J.M. Keynes
71. The Second Five Year Plan was based on the model of
a Dr. V.K.R.V. Rao        b Prof. P.C. Mahalanobis
c Harrod-Domar             d J.M. Keynes
72. The main emphasis laid in the Second Plan was on
a Agriculture                  b Power
c Industry                      d None of these
73. Planning in India under Pt. J.L. Nehru emphasized
a Development of heavy and core industries
b Small scale farming
c Large scale consumers goods industries
d Small scale and cottage industries
74. Generally perspective plans range for a period of
a Four years                              b Five to ten years
c Fifteen to twenty years            d Twenty to thirty years
75. For the first time a strategy of industrialization and development of heavy industries was adopted in
a First Plan       b Second Plan
c third Plan        d Fourth Plan
76. Which of the following is incorrect?
a 1951 – 56 First Five Year Plan
b 1956 – 61 Second Five Year Plan
c 1961 – 66 Third Five Year Plan
d 1966 – 71 Fourth Five Year Plan
77. The National Development Council was founded in
a 1950              b 1951
c 1952              d 1953
78. Nehruvian planning emphasized on
a Heavy and core industries
b Science and technology
c Small scale industries
d Agriculture
79. With the change of the Government in the center Fifth plan was terminated after
a Five years       b Six years
c Four years      d Three years
80. The maximum contribution to the resource mobilization of the public sector for the plans comes from
a Internal borrowing
b Foreign borrowing
c Surplus of public enterprises
d Tax revenue
81. A special feature of the Sixth Plan was
a Sectoral planning        b Area planning approach
c Planning from top        d Decentralisation of planning
81. Which pair is wrong?
a First Plan – agriculture and irrigation
b Second Plan – heavy industries
c Thrid Plan –minimum needs programme
d Fifth Plan – poverty removal
82. The set of basic priorities in the Seventh Plan is
a Food, Work and Productivity
b Growth, with Social Justice
c Garibi Hatao and Productivity
d Growth and Expansion of Employment Opportunities
83.  The main function of the National Development Council in India is to
a.  Promote national integration
b.  Review the working of the National Plan from time to time
c.  Develop villages
d.  None of the above

84. The first modern industry to develop in India was
a Iron and Steel industry b Cotton textile industry
c Engineering industry    d Cement industry
85.  The multiplier is the factor by which
a.  A change in income changes saving
b.  A change in income changes investments
c.  An increase in investment lowers income
d.  A change in autonomous expenditure changes income
86. National Income of a nation is
a Government’s annual income
b Sum total of factor incomes
c Surplus of public sector undertakings
d Exports minus imports
87.  Economic planning refers to
a.  The mobilization of taxes
b.  The allocation of resources
c.  The planning of manpower
d.  The mobilization of both taxes and manpower
88. Which of the following is an economic factor for the causes of poverty?
a Low productivity in agriculture
b Rapid rise in population
c Inequalities of income
d All of the above
89. Amongst the Handicrafts group, the highest export comes from
a Brass work                 b Poultry and ivory
c Sandalwood work        d Precious stones and pearls
90. India earns the maximum foreign exchange from
a U.S.A.            b Japan
c Russia           d U.K.
91. The principal commodities which consist the exports of India are
a Gems and jewellery
b Readymade garments
c Jute manufacture and handmade carpets
d All of the above
92. During the colonial rule India’s exports mainly consisted of
a A few primary commodities
b Manufactured commodities
c Handicrafts
d None of the above
93. The biggest public sector undertaking in India is
a Indian Railways           b ONGC
c LIC of India                 d HMT
94. Capital intensive industries cause
a Larger employment opportunities
b Increase in capital formation
c Unemployment
d All of the above
95. The Tata Iron and Steel CO. (TISCO) was set up in Jamshedpur in the year
a 1904              b 1906
c 1907              d 1909
96. Which government undertaking is responsible for the management of the public steel plants?
a SAIL              b GAIL
c ONGC            d BHEL
97. The source of largest revenue in India is
a Direct taxes    b Indirect taxes
c Sales tax        d Excise duty
98. The major emphasis in the Third Plan was on
a Making India self-reliant
b Adult education
c Green Revolution
d Food for work programme
99.  Change in which of the following is the best indicator of the changes in the standard of living of the people of country?
a.  Cost of living index    b.  Index of industrial productivity
c.  Per Capita income      d.  Whole sale price index
100.  It is impossible for a factor of production to earn economic rent if it
a.  Is in perfectly inelastic demand
b. Is in perfectly elastic supply
c.  Is not a fixed supply
d.  Has more than a single use



1.a       2.b       3.c        4.d       5.b       6.c        7.c        8.c        9.c        10.b

11.d      12.c      13.d      14.c      15.c      16.d      17.c      18.b      19.c      20.c

21.d      22.c      23.a      24.c      25.b      26.a      27.a      28.d      29.d      30.d

31.a      32.a      33.d      34.d      35.a      36.d      37.d      38.c      39.a      40.b

41.b      42.c      43.c      44.b      45.c      46.d      47.c      48.d      49.a      50.d

51.d      52.d      53.c      54.b      55.a      56.c      57.c      58.c      59.a      60.d

61.b      62.d      63.c      64.c      65.d      66.a      67.c      68.a      69.b      70.a

71.b      72.c      73.a      74.c      75.b      76.d      77.c      78.b      79.c      80.a

81.b      82.c      83.b      84.b      85.d      86.b      87.b      88.d      89.d      90.a

91.d      92.a      93.a      94.c      95.c      96.a      97.d      98.a      99.c      100.b

ECONOMICS SEVEN Reviewed by sambasivan srinivasan on 2:22:00 PM Rating: 5

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