This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Economics Indian Economic Development > Class 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The knowledge economy relies primarily on physical infrastructure for its value creation A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 2. ..... unemployment occurs when a person is out of one job and is searching for another for different reasons. A) Stuctural. B) Seasonal. C) Frictional. D) Cyclical. Show Answer Correct Answer: C) Frictional. 3. Cheaper imports, inadequate investment in infrastructure lead to A) Slowdown in agricultural sector. B) Replace the demand for domestic production. C) Slowdown in industrial sector. D) All the above. Show Answer Correct Answer: D) All the above. 4. Who was the first Chairman of the National Development Council? A) Jawaharlal Nehru. B) Ballabh Bhai Patel. C) Doctor Rajendra Prasad. D) Gandhi. Show Answer Correct Answer: A) Jawaharlal Nehru. 5. Birthrate is ..... A) The amount of people born / 100 people. B) The amount of people born / 1, 000 people. C) The amount of people born / 10 people. D) The amount of people born / 10, 000 people. Show Answer Correct Answer: B) The amount of people born / 1, 000 people. 6. INFANT MOTALITY RATE AT THE TIME OF INDEPENDANCEWAS A) LOW. B) HIGH. C) AVERAGE. D) NONE OF THESE. Show Answer Correct Answer: B) HIGH. 7. What are the factors that have facilitated globalisation? A) Rapid improvements in technology, liberalisation of trade and investment policies, and pressures from international organisations. B) The integration of production and markets, and the role of MNCs. C) The impact of globalisation on the development process. D) The examples and activities drawn from the local environment. Show Answer Correct Answer: A) Rapid improvements in technology, liberalisation of trade and investment policies, and pressures from international organisations. 8. Which of the following is not a long period objective of planning in India? A) Equitable distribution. B) Full employment. C) Better quality of life. D) GDP Growth. Show Answer Correct Answer: C) Better quality of life. 9. Consider the following statements about P-Notes:1.P-notes and Oversease derivative instruments are used by foreign entities interested in investing in Indian equity. 2. They are not registered with SEBI. Which of the above statements are correct? A) 1 only. B) 2 only. C) Both 1 and 2. D) Neither 1 nor 2. Show Answer Correct Answer: C) Both 1 and 2. 10. Cultural preservation is not a concern associated with nationalism. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 11. When was Nifty established? A) 1965. B) 1991. C) 1952. D) 1996. Show Answer Correct Answer: D) 1996. 12. Assertion:India became a major exporter in services after liberalization.Reasoning:Policy reforms promoted IT, telecommunications, and professional services. A) A) Both A and R are true, and R is the correct explanation of A. B) B) Both A and R are true, but R is not the correct explanation of A. C) C) A is true, but R is false. D) None of the above. Show Answer Correct Answer: A) A) Both A and R are true, and R is the correct explanation of A. 13. Which organization was formed in 1920 and played a significant role in the growth of trade unions in India? A) United Nations (UN). B) Indian National Congress (INC). C) All India Trade Union Congress (AITUC). D) World Trade Organization (WTO). Show Answer Correct Answer: C) All India Trade Union Congress (AITUC). 14. With reference to core of the core Schemes, consider the following statements 1) The funding is in the ration 75:25 2) MGNREGA is included in the classification 3) Development of Backward Classes and other vulnerable groups are not included Select the correct answer using the code given below. A) Only 1 and 2. B) Only 2 and 3. C) Only 1 and 3. D) All of the above. Show Answer Correct Answer: A) Only 1 and 2. 15. Rourkela Steel Plant is situated in A) Durg, Chhattisgarh. B) Singhbhum, Jharkhand. C) Sundargarh, Odisha. D) None of the above. Show Answer Correct Answer: C) Sundargarh, Odisha. 16. Consider the following equations1. Budget deficit= Total expenditure-Total Receipts 2. Primary deficit= Fiscal deficit-Interest payments Select the correct option A) Only 1. B) Only 2. C) All of the above. D) None of the above. Show Answer Correct Answer: C) All of the above. 17. Which of the following statement id true regarding demographic profile of India during the colonial rule? A) Life expectancy was 63 year. B) Infant mortality rate was around 70 per thousand live birth. C) Overall literacy rate level was less than 16 percent. D) Both birth rate and death rate were quite low. Show Answer Correct Answer: C) Overall literacy rate level was less than 16 percent. 18. What factor does NOT influence the growth of trade unions in India? A) Economic factors. B) Technological factors. C) Social factors. D) Political factors. Show Answer Correct Answer: D) Political factors. 19. What is the current status of India's trade deficit? A) India's trade deficit has decreased to $ 15 billion per month as of October 2023. B) India's trade deficit is around $ 10 billion per month as of October 2023. C) India's trade deficit is estimated at $ 30 billion per month as of October 2023. D) India's trade deficit is approximately $ 25 billion per month as of October 2023. Show Answer Correct Answer: D) India's trade deficit is approximately $ 25 billion per month as of October 2023. 20. Cybersecurity threats are a significant concern in the information technology sector. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 21. You will always have this because people will always want to change jobs. A) Frictional unemployment. B) Seasonal unemployment. C) Structural unemployment. D) Cyclical unemployment. Show Answer Correct Answer: A) Frictional unemployment. 22. Which is not a factor of industrial location? A) Power. B) Capital. C) Population density. D) Market. Show Answer Correct Answer: C) Population density. 23. Which of the following are the MOST important economic roles played by agriculture.I. A form of food securityII. Contributions to the GDPIII. Provides opportunities for local employmentIV. Allows for scientific research A) I, II and III only. B) I, II and IV only. C) II and III only. D) III and IV only. Show Answer Correct Answer: C) II and III only. 24. Consider the following statements about Banking Transaction Tax:1. BCTT is a tax levied on cash transactions above a specified limit. 2. The purpose of BCTT is to trace the source of money. Which of the above statements are correct? A) 1 only. B) 2 only. C) Both 1 and 2. D) Neither 1 nor 2. Show Answer Correct Answer: C) Both 1 and 2. 25. Which of the following is a major challenge faced by the Indian economy? A) Low agricultural productivity. B) High unemployment rates. C) Excessive foreign investment. D) High inflation rates. Show Answer Correct Answer: B) High unemployment rates. 26. ..... industries help in preserving traditional art and culture of a country. A) Cottage. B) Multinational. C) Large scale. D) Mineral based. Show Answer Correct Answer: A) Cottage. 27. Employment in the service sector has ..... to the same extent as production. A) Increased. B) Stabilized. C) Not increased. D) Doubled. Show Answer Correct Answer: C) Not increased. 28. Globalisation leads to rapid movements of the following between countries: A) Goods and services. B) Investments. C) People. D) All the above. Show Answer Correct Answer: D) All the above. 29. Which statement about death rate is true. A) All deaths are caused by diseases. B) Adult deaths are only used when determining death rate. C) Death rate affects our population. D) Death rate does not affect our population. Show Answer Correct Answer: C) Death rate affects our population. 30. Consider the following statements about SCHEME FOR SUSTAINABLE STRUCTURING OF STRESSED ASSETS (S4A):1. S4A refers to the scheme to deal with stressed assets of banking sector. 2. Under this scheme, debt is converted into equity. Which of the above statements are correct? A) 1 only. B) 2 only. C) Both 1 and 2. D) Neither 1 nor 2. Show Answer Correct Answer: C) Both 1 and 2. 31. When was skill India launched? A) July 16 2018. B) July 17 2015. C) July 16 2015. D) September 8 2006. Show Answer Correct Answer: C) July 16 2015. 32. The IT and Business Process Outsourcing (BPO) industry is a major contributor to: A) Service exports. B) Mining exports. C) Agricultural exports. D) Manufacturing exports. Show Answer Correct Answer: A) Service exports. 33. What are the main reasons for India's trade deficit? A) Strong foreign investments boosting local manufacturing and exports. B) High imports of crude oil, gold, and electronics, coupled with slower export growth. C) High tariffs on imported goods and low domestic production. D) Increased exports of textiles and machinery, leading to a surplus. Show Answer Correct Answer: B) High imports of crude oil, gold, and electronics, coupled with slower export growth. 34. Human poverty is ..... income poverty. A) Same as. B) Different from. C) Larger than. D) Lesser than. Show Answer Correct Answer: C) Larger than. 35. Increase in Real Income should be over a ..... period A) Short. B) Long. C) Both. D) None. Show Answer Correct Answer: B) Long. 36. Which international organization provides loans to developing countries including India? A) International Monetary Fund. B) United Nations Development Programme. C) Asian Development Bank. D) World Bank. Show Answer Correct Answer: D) World Bank. 37. What are the key issues facing the industrial sector in India? A) High labor costs, outdated technology, limited market access. B) Inadequate infrastructure, regulatory challenges, skill shortages, access to finance, and environmental concerns. C) Excessive government support, overproduction, and low demand. D) Strong competition from foreign markets, high tariffs, and trade barriers. Show Answer Correct Answer: B) Inadequate infrastructure, regulatory challenges, skill shortages, access to finance, and environmental concerns. 38. Revenue expenditure does not include one of these A) Infrastructure development. B) Interest payment. C) Defence expenditure. D) Major subsidies. Show Answer Correct Answer: A) Infrastructure development. 39. WHAT WAS LIFE EXPECTANCY AT THE TIME OF INDEPENDANCE A) 32. B) 45. C) 25. D) 65. Show Answer Correct Answer: A) 32. 40. Which of the following is the cause of industrial pollution? A) Global Warming. B) Overpopulation. C) Deforestation. D) Industrial Waste Disposal. Show Answer Correct Answer: D) Industrial Waste Disposal. 41. Which countries are India's largest trading partners? A) France, Italy, South Africa. B) United States, China, United Arab Emirates. C) Germany, Japan, Brazil. D) Canada, Australia, Russia. Show Answer Correct Answer: B) United States, China, United Arab Emirates. 42. What is smartcity and when was it launched? A) It's undeveloped urban area it was launched on 15 January 2016. B) It's a developed urban area . It was launched on 25 June 2015. C) It's a developed rural area . It was launched on 25 June 2015. D) It's undeveloped rural area. It was launched on 16, January 2016. Show Answer Correct Answer: B) It's a developed urban area . It was launched on 25 June 2015. 43. In which sector activities are not guided by profit motive? A) Organized sector. B) Unorganised sector. C) Public sector. D) Private sector. Show Answer Correct Answer: C) Public sector. 44. By 2006, how many countries were the members of the World Trade Organisation? A) 169. B) 149. C) 139. D) 159. Show Answer Correct Answer: B) 149. 45. Organic farming improves the quality of life for farmers. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 46. Tillage is the agricultural preparation of soil by mechanical agitation using Tools & Implements of various types, such as digging, ploughing, overturning, stirring, cutting for: A) Harvesting and processing. B) Cultivation and seed bed preparation. C) Spraying and fertilizing. D) Pruning and maintenance. Show Answer Correct Answer: B) Cultivation and seed bed preparation. 47. How can a population grow? A) Emigration and death. B) Immigration and death. C) Immigration and birth. D) Emigration and birth. Show Answer Correct Answer: C) Immigration and birth. 48. What is the basic function of foreign trade? A) To create an opportunity for producers to reach beyond domestic markets and compete in markets located in other countries. B) To facilitate the integration of markets and the interlinking of production across countries. C) To provide consumers with a wide choice of goods and services. D) To attract foreign investment and promote economic development. Show Answer Correct Answer: A) To create an opportunity for producers to reach beyond domestic markets and compete in markets located in other countries. 49. Iron and steel industry is an A) Small scale industry. B) Large scale industry. C) Cottage industry. D) None of the above. Show Answer Correct Answer: B) Large scale industry. 50. In 2013-14, the sector that contributed highest to the GDP was A) Primary. B) Secondary. C) Tertiary. D) None of the above. Show Answer Correct Answer: C) Tertiary. 51. Proper drainage system helps ..... A) In increasing soil erosion. B) In decreasing crop yield. C) In increasing crop diseases. D) In reducing soil erosion. Show Answer Correct Answer: D) In reducing soil erosion. 52. What is the primary goal of organic farming? A) To increase crop yields. B) To reduce the use of synthetic fertilizers and pesticides. C) To promote the use of genetically modified organisms (GMOs). D) To reduce the cost of farming. Show Answer Correct Answer: B) To reduce the use of synthetic fertilizers and pesticides. 53. What is the significance of the 'Make in India' initiative? A) The initiative focuses solely on agricultural development. B) It aims to reduce foreign investment in India. C) It is designed to promote only digital services in India. D) The significance of the 'Make in India' initiative lies in its potential to transform India into a global manufacturing hub, promote economic growth, and create employment opportunities. Show Answer Correct Answer: D) The significance of the 'Make in India' initiative lies in its potential to transform India into a global manufacturing hub, promote economic growth, and create employment opportunities. 54. Which one of these is an example of intermediate goods? A) Wheat flour. B) Wooden chair. C) Biscuits. D) Woven basket. Show Answer Correct Answer: A) Wheat flour. 55. Consider the following statements about Masala Bonds:1. All Masala bonds are denominated in Indian rupees. 2. These bonds insulate the investors from exchange rate fluctuations. Which of the above statements are correct? A) 1 only. B) 2 only. C) Both 1 and 2. D) Neither 1 nor 2. Show Answer Correct Answer: C) Both 1 and 2. 56. Consider the following statements about Essential Commodities Act:1. Essential Commodities Act, 1955 ensures the easy availability of essential commodities by protecting the listed items. 2. State governments are empowered to regulate and control the production and distribution. Which of the above statements are correct? A) 1 only. B) 2 only. C) Both 1 and 2. D) Neither 1 nor 2. Show Answer Correct Answer: C) Both 1 and 2. 57. Developing nations have: A) A lower infant mortality rate. B) A greater degree of equality in the income distribution. C) Lower rate of illiteracy. D) None of above. Show Answer Correct Answer: D) None of above. 58. What was level of Indian economy before coming of Britsh? A) RICH. B) POOR. C) AVERAGE. D) NONE OF THESE. Show Answer Correct Answer: A) RICH. 59. ..... development meets the needs of the present without compromising the ability of future generations to meet their own needs. A) Socio-economic. B) Sustainable. C) Economic. D) Human. Show Answer Correct Answer: B) Sustainable. 60. Which one of the following is the correct sequence of economic sectors in terms of their contribution to the GDP of India in decreasing order? A) Service-Manufacturing-Agriculture. B) Agriculture-Manufacturing-Service. C) Agriculture-Service-Manufacturing. D) Manufacturing-Service-Agriculture. Show Answer Correct Answer: A) Service-Manufacturing-Agriculture. 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