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MCQs

Total Questions : 10
Question 1.


Indian poverty is said to be predominantly rural. Yet the problem of urban poverty appears to have reached unmanageable proportions. The paradox is explained by:
1. greater visibility of urban poverty
2. migration of rural population to urban areas
3. seasonality of agricultural operations
4. the cycle of drought and floods


  1.     I only
  2.     I & II
  3.     I&IV
  4.     All 4
 Discuss Question
Answer: Option B. -> I & II
:
B

(b)


Question 2.


Decentralized planning on the basis of Panchayati Raj institutions was recommended by:


  1.     BalwantRai Mehta Committee
  2.     Mahalanobis Committee
  3.     Asoka Mehta Committee
  4.     Gadgil Committee
 Discuss Question
Answer: Option A. -> BalwantRai Mehta Committee
:
A

(a)


Question 3.


Which of the following is not a reason for the crisis facing the Indian steel industry since 1998?


  1.     Domestic production not able to meet the demand
  2.     Dumping of steel by countries like China and Japan
  3.     World slump in the demand for steel
  4.     Delay in modernization of the Indian steel plants
 Discuss Question
Answer: Option A. -> Domestic production not able to meet the demand
:
A

(a)


Question 4.


Structural adjustment is supposed to affect the poor and the weaker sections. Which of the following causes is not one of the reasons for the increasing misery of the poor consequent on the implementation of structural reforms?


  1.     Most of the new jobs created were in the urban sector.
  2.     There was a sharp fall in government expenditure.
  3.     Subsidies on foodgrains were slashed.
  4.     Real wages of unskilled workers increased.
 Discuss Question
Answer: Option D. -> Real wages of unskilled workers increased.
:
D

(d)


Question 5.


The purpose of the India Brand Equity Fund is:


  1.     to promote inbound tourism
  2.     to make 'Made in India' a label of quality
  3.     to organize trade fairs
  4.     to provide venture capital to IT sector
 Discuss Question
Answer: Option B. -> to make 'Made in India' a label of quality
:
B

(b)


Question 6.


The argument for reduction in the rate of taxation to promote economic activity rests on the following premises:
1. Lower taxes increase the amount of savings
2. Moderate taxes lead to lower prices
3. It promotes consumption
4. It increases government's revenue.


  1.     all four
  2.     I only
  3.     IV only
  4.     I and III
 Discuss Question
Answer: Option D. -> I and III
:
D

(d)


Question 7.


The New Economic Policy (1991) was launched in the background of the following economic indicators:
1. India's foreign exchange reserves had fallen to US$1 billion.
2. The fall of the Soviet Union had deprived India of almost a quarter of its export market.
3. There was negative growth in real GDP.
4. Indian rupee had to be devalued by 45 per cent,


  1.     all 4
  2.     only I
  3.     I and II only
  4.     I. II and III
 Discuss Question
Answer: Option C. -> I and II only
:
C

(c)


Question 8.


The National Agricultural Policy, 2000 emphasizes ____ as a measure of land reform.


  1.     Tenancy reform
  2.     Co-operative farming
  3.     Distribution of surplus land
  4.     Consolidation of holdings
 Discuss Question
Answer: Option D. -> Consolidation of holdings
:
D

(d)


Question 9.


Which of the following is not a function of the National Development Council?


  1.     Review the working of the Five Year Plans
  2.     Consider important socio-economic policies
  3.     Decide on allocation among the states
  4.     Improve the efficiency of administrative services required for plan implementation.
 Discuss Question
Answer: Option C. -> Decide on allocation among the states
:
C

(c)


Question 10.


Economists explain that India needs to increase its rate of savings. An obstacle to this is:


  1.     the prevalence of conspicuous consumption
  2.     the absence of a good network of financial institutions in the rural areas
  3.     erosion in the value of savings as a result of inflation
  4.     the availability of white goods
 Discuss Question
Answer: Option C. -> erosion in the value of savings as a result of inflation
:
C

(c)


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