Indian Economy > Planning

ECONOMIC DEVELOPMENT AND FIVE YEAR PLANS MCQs

Total Questions : 376

Page 1 of 38 pages
Question 1. Planning Commission has been replaced by which of the given institutions?
  1.    NITI Aayog
  2.    Investment Commission of India
  3.    Finance Commission of India
  4.    None of these
 Discuss Question
Answer is Option A. -> NITI Aayog
Answer: (a) Planning Commission has been replaced by an institution named NITI Aayog. In 2014, the Central Government led by Prime Minister Narendra Modi decided to wind down up the Planning Commission. It was proposed to replace it with a more dynamic organisation that is more popular and connected to the times.
Question 2. The Finance Commission is primarily concerned with recommending to the President about
  1.    the principle government grants-in-aid to be given to the states
  2.    distributing the net proceeds of the taxes between the centre and the states
  3.    Both (A) and (B)
  4.      Neither (A) nor (B)
 Discuss Question
Answer is Option C. -> Both (A) and (B)
Answer: (c)
Question 3. Consider the following statements regarding Indian planning.

  1. The Second Five Year plan emphasized the establishment of heavy industries.

  2. The Third Five Year Plan aimed to achieve self-sufficiency in food grains and increase agricultural production to meet the requirements of industry and exports.


Which of the statements given above is/are correct?
  1.    2 only
  2.    1 and 2 both
  3.    1 only
  4.    None
 Discuss Question
Answer is Option B. -> 1 and 2 both
Answer: (b) The Second Five Year Plan heralded in a true sense the Socialist Project of the then Prime Minister, Jawaharlal Nehru. The economic policies of Nehru were heavily influenced by the erstwhile Union of Soviet Socialist Republics (USSR) which had followed the path of speedy industrialisation to expand the manufacturing base of its economy. The Second Five Year Plan focused mainly on heavy industry as against the first plan which was essentially an agricultural plan. This was done to boost domestic production and manufacturing of goods. The third Plan aimed to achieve self-sufficiency in food grains and increase agricultural production to meet the requirements of industry and exports.
Question 4. Human Poverty Index (HPI) measures the deprivation as a composite index of:
  1.    knowledge, basic needs and standard of living
  2.    longevity, nutrition and knowledge
  3.    longevity, knowledge, and standard of living
  4.    longevity, standard of living and sanitation
 Discuss Question
Answer is Option C. -> longevity, knowledge, and standard of living
Answer: (c)
Question 5. Which of the following can aid in furthering the Government’s objective of inclusive growth?

  1. promoting self-help group

  2. promoting micro, small and medium Enterprises

  3. Implementing the Right to Education Act


Select the correct answer using the codes given below :
  1.    1 and 2 only
  2.    2 and 3 only
  3.    1 only
  4.    1, 2 and 3
 Discuss Question
Answer is Option D. -> 1, 2 and 3
Answer: (d) The Government's objective of inclusive growth can be furthered by promoting self-help groups, promoting micro, small and medium enterprises and implementing the right to education. This will improve employment opportunities, increase GDP etc.
Question 6. The slogan of ‘poverty abolition’ was given in which Five Year Plan?
  1.    Fourth plan
  2.    Fifth plan
  3.    Second plan
  4.    Sixth plan
 Discuss Question
Answer is Option B. -> Fifth plan
Answer: (b) The slogan of ‘poverty abolition’ was given by Indira Gandhi in 1971 and it was implemented during the Fifth Five Year Plan 1974–79. Gandhi promised to reduce poverty by targeting the consumption levels of the poor and enact wide-ranging social and economic reforms. 2nd plan - ‘Socialist pattern & life’ 4th plan - ‘Garibi Hatao’ 6th plan - ‘‘Rolling plan’ taken from Japan coined by Gunnar Myrdal.
Question 7. Consider the following statements :

  1. The state sets broad parameters and goals for the economy.

  2. The targets to be achieved are broadly set by the state.

  3. The plan is made for a specific time period of about 15 years.


Which of the statements given above is/are correct about the Indicative planning?
  1.    1, 2 and 3
  2.    1 and 3
  3.    1 and 2
  4.    only 1
 Discuss Question
Answer is Option C. -> 1 and 2
Answer: (c) Indicative planning is a form of economic planning implemented by a state in an effort to solve the problem of imperfect information in the market and mixed economies in order to increase economic performance. Regarding indicative planning, the state sets broad parameters and goals for the economy and the targets to be achieved are broadly set by the state.
Question 8. Consider the following economic processes taking place in Indian Economy :
  1. Import of western culture through the mass media and telecommunication system in India.
  2. Establishment of factory limits of MNCs in India.
  3. Acquisition of branded foreign companies by Indian business tycoons.
Which of the economic processes given above is/ are encompassed under globalization?
  1.    1 and 3
  2.    2 and 3
  3.    1, 2 and 3
  4.    only 2
 Discuss Question
Answer is Option C. -> 1, 2 and 3
Answer: (c)Under Globalisation, all the following are covered – Import of western culture through the mass media and telecommunication system, establishment of factory limits of MNCs and acquisition of branded foreign companies by business tycoons.
Question 9. The Planned Development Model was adopted in India from
  1.    1st May, 1965
  2.    1st April, 1951
  3.    26th January, 1950
  4.    15th August, 1947
 Discuss Question
Answer is Option B. -> 1st April, 1951
Answer: (b)
Question 10. Consider the following statements

  1. Absolute Poverty: It refers to the total number of people living below the Poverty line. As per this measure, around 30% of India’s population is below the poverty line.

  2. Relative Poverty: It refers to the Poverty of people, in comparison to other people, regions in the nation.


Which among the following statement is/ are incorrect?
  1.    1 only
  2.    Neither 1 nor 2
  3.    2 only
  4.    Both 1 and 2
 Discuss Question
Answer is Option B. -> Neither 1 nor 2
Answer: (b) Absolute Poverty: It refers to the total number of people living below the Poverty line. As per this measure, around 30% of India’s population is below the poverty line. Relative Poverty: It refers to the Poverty of people, in comparison to other people, regions in the nation.