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 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy Quiz 2 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Assertion:Cash transfers may be more efficient than PDS.Reasoning:They reduce leakage and administrative costs. A) Both A and R are true, and R is the correct explanation of A. B) Both A and R are true, but R is not the correct explanation of A. C) A is true, but R is false. D) A is false, but R is true. Show Answer Correct Answer: A) Both A and R are true, and R is the correct explanation of A. 2. Following is the contribution of agriculture towards industry. A) Agriculture supplies food for the workers working in different industries. B) When agricultural productivity improves, as a result of industrialisation, farmers income increases. C) Industry opens up new and additional sources of employment to absorb all surplus labour from agriculture. D) Industry supplies various agricultural inputs such as chemical fertilisers. Show Answer Correct Answer: A) Agriculture supplies food for the workers working in different industries. 3. What is the target inflation rate set by the Reserve Bank of India? A) 3%. B) 5%. C) 4%. D) 6%. Show Answer Correct Answer: C) 4%. 4. During the British rule, high mortality rate due to: A) Inadequate public health facilities. B) Occurrence of frequent natural calamities. C) Both (a) and (b). D) Neither (a) nor (b). Show Answer Correct Answer: C) Both (a) and (b). 5. What initiatives have been taken to promote the digital economy in India? A) Launch of a new currency system. B) Initiatives include Digital India program, GST implementation, UPI promotion, Digital India Fund, and efforts to enhance internet connectivity and digital literacy. C) Implementation of cashless transactions only. D) Promotion of traditional banking methods. Show Answer Correct Answer: B) Initiatives include Digital India program, GST implementation, UPI promotion, Digital India Fund, and efforts to enhance internet connectivity and digital literacy. 6. In which type of unemployment more people are employed than required? A) Seasonal unemployment. B) Disguised unemployment. C) Educated unemployment. D) All the above. Show Answer Correct Answer: B) Disguised unemployment. 7. When was the GST introduced in India? A) 31st March 2014. B) 30 June 2019. C) 1st July 2017. D) 1st April 2018. Show Answer Correct Answer: C) 1st July 2017. 8. NREGA (National Rural Employment Guarantee Act of 2005) has guaranteed ..... days of employment in a year in many districts of India A) 30 days. B) 200 days. C) 60 days. D) 100 days. Show Answer Correct Answer: D) 100 days. 9. Benefits of ..... is reduction in space required for landfills and recycling of organic waste and nutrients back to soil A) Composting. B) Dumping. C) Afforestation. D) Segregation of waste. Show Answer Correct Answer: A) Composting. 10. Sugar industry is a ..... oriented industry. A) Raw material. B) Footloose. C) Market. D) None. Show Answer Correct Answer: A) Raw material. 11. WHAT KIND OF ECONOMY WAS INDIAN ECONOMY BEFORE INDEPENDANCE A) ADVANCED. B) DEVELOPING. C) STAGNANT. D) NONE OF THESE. Show Answer Correct Answer: C) STAGNANT. 12. Economic development refers to A) Economic growth. B) Economic growth plus changes in output distribution and economic structure. C) Sustainable increases in Gross National Product. D) None of the above. Show Answer Correct Answer: B) Economic growth plus changes in output distribution and economic structure. 13. What was the reported value of the correlation coefficient for international trade participation by a state & its prosperity in the Economic Survey of 2017-18? A) 0.98. B) -0.46. C) 0.70. D) 0.38. Show Answer Correct Answer: C) 0.70. 14. How does inflation impact the purchasing power of consumers? A) Inflation decreases the purchasing power of consumers. B) Inflation has no effect on consumer purchasing power. C) Inflation stabilizes the purchasing power of consumers. D) Inflation increases the purchasing power of consumers. Show Answer Correct Answer: A) Inflation decreases the purchasing power of consumers. 15. Seasonal unemployment A) Slows the economy Slows the economy. B) Is predictable. C) Is a result of changes in technology. D) Describes recent college graduates. Show Answer Correct Answer: B) Is predictable. 16. What is the area for the smart City project and where is it actually located? A) 550 acres. Gandhinagar near Ahmedabad in the state of Gujarat. B) 505 acres. Gandhinagar Vadodara in state of Gujarat. C) 560 acres. Gandhinagar Surat in state of Gujarat. D) 580 acres. Gandhinagar China in state of Gujarat. Show Answer Correct Answer: A) 550 acres. Gandhinagar near Ahmedabad in the state of Gujarat. 17. Which sector is known as the backbone of the Indian economy? A) Tourism. B) Information Technology. C) Manufacturing. D) Agriculture. Show Answer Correct Answer: D) Agriculture. 18. What are the disadvantages of skill India? A) Provide training, technical and financial support for various trades. B) Increase productivity as the existing workforce. C) Train citizens or unexpected to fulfill the demand for skilled manpower. D) It will focus on core sectors including gems and jewellery. Show Answer Correct Answer: C) Train citizens or unexpected to fulfill the demand for skilled manpower. 19. What is the primary sector of the Indian economy? A) Service sector and tourism. B) Manufacturing and industrial activities. C) Agriculture and allied activities. D) Mining and mineral extraction. Show Answer Correct Answer: C) Agriculture and allied activities. 20. Fair globalisation refers to ensuring benefits to: A) Labourers. B) Producers. C) Consumers. D) All the above. Show Answer Correct Answer: D) All the above. 21. Workers enjoy job security in: A) Private Sector. B) Unorganized Sector. C) Agriculture Sector. D) Organized Sector. Show Answer Correct Answer: D) Organized Sector. 22. Consider the following statements:1. All Bank ATMs are owned and operated by the concerned bank. 2. White label ATMs are operated by non bank entities. 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. 23. With respect to Deputy Governor of RBI, consider the following statements1) The RBI has four deputy governors 2) A central bank Deputy Governor can be appointed for a term with a maximum of five years or till the age of 60 Select the correct answer using the code given below. A) Only 1. B) Only 2. C) All of the above. D) None of the above. Show Answer Correct Answer: A) Only 1. 24. Increase in income should be based on increase in ..... capacity A) Consumption. B) Productive. C) Distributive. D) None. Show Answer Correct Answer: B) Productive. 25. Basket weaving is an example of A) Small scale industry. B) Cottage industry. C) Large scale industry. D) None of the above. Show Answer Correct Answer: B) Cottage industry. 26. National Income is: A) Sum of factor income during an accounting year. B) Sum of interest earned during an accounting year. C) Sum of wages paid during an accounting year. D) Sum of Rent paid during an accounting year. Show Answer Correct Answer: A) Sum of factor income during an accounting year. 27. Whiich Indian company was bought over by Cargill Foods-a large American MNC? Pick out the name from the alternatives provided A) Fun Foods Ltd. B) Amul. C) Agro Tech Foods Ltd. D) Parakh Foods. Show Answer Correct Answer: D) Parakh Foods. 28. The movement by people from one place to another with the intention of settling temporarily or permanently in a new location. A) Distribution. B) Pull factor. C) Migration. D) Push factor. Show Answer Correct Answer: C) Migration. 29. Which Indian state is the largest producer of rice? A) Andhra Pradesh. B) Uttar Pradesh. C) West Bengal. D) Punjab. Show Answer Correct Answer: C) West Bengal. 30. What has been the average GDP growth rate of India in the last decade? A) 8-9%. B) 6-7%. C) 10-11%. D) 4-5%. Show Answer Correct Answer: B) 6-7%. 31. Which of the following measures the number of persons who did not find work on a day, or on some days, during the survey week? A) CDS. B) UPS. C) CWS. D) UPSS. Show Answer Correct Answer: A) CDS. 32. Consider the following statements about Priority Sector Lending:1. Priority sector lending is applicable to those sectors which do not get easy credit from the market. 2. Export Credit, Education and Housing are components of Priority Sector lending. 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. 33. What is the lock in period for ELSS Investments currently? A) 4 Years. B) 3 Years. C) 5 Years. D) 2 Years. Show Answer Correct Answer: B) 3 Years. 34. Which sector has contributed the most to India's GDP growth? A) Agriculture sector. B) Manufacturing sector. C) Construction sector. D) Services sector. Show Answer Correct Answer: D) Services sector. 35. Consider the following statements1) Stocks are defined over a period of time 2) Flows are defined over a particular point of time Which of the following is/are correct? A) Only 1. B) Only 2. C) All of the above. D) None of them. Show Answer Correct Answer: D) None of them. 36. What is the secondary sector involved in? A) Extraction of raw materials. B) Collection of raw materials. C) Providing a service. D) Processing of raw materials into semi-finished and finished goods. Show Answer Correct Answer: D) Processing of raw materials into semi-finished and finished goods. 37. Which is the largest producer of sugar? A) Uttar Pradesh. B) Tamil Nadu. C) Punjab. D) Maharastra. Show Answer Correct Answer: D) Maharastra. 38. Globalisation results in A) Inflow of labour from abroad. B) Inflow of capital from abroad. C) Inflow of tourists from abroad. D) All the above. Show Answer Correct Answer: B) Inflow of capital from abroad. 39. If agriculture is the backbone, industry is the ..... of the economy A) Elictricity. B) Energy. C) Light. D) Power. Show Answer Correct Answer: B) Energy. 40. If operators are fired and replaced with computer technology, the operators would be considered A) Frictionally unemployed. B) Structurally unemployed. C) Cyclically unemployed. D) Dissatisfiededly unemployed dissatisfiededly unemployed. Show Answer Correct Answer: B) Structurally unemployed. 41. Which of the following is measured as the number of persons who remained unemployed for a major part of the year? A) UPSS. B) CDS. C) UPS. D) CWS. Show Answer Correct Answer: C) UPS. 42. Indian economy is characterised by too much dependence on ..... A) Agriculture. B) Industry. C) Services. D) Trade. Show Answer Correct Answer: A) Agriculture. 43. Assertion:India's external sector performance weakened after globalization.Reasoning:Globalization restricted India's access to foreign markets. A) Both A and R are true, and R is the correct explanation of A. B) Both A and R are true, but R is not the correct explanation of A. C) A is false, but R is true. D) Both A and R are false. Show Answer Correct Answer: D) Both A and R are false. 44. Agriculture is a source of capital formation for Industries. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 45. Choose the correct option:Statement-I:It While estimating the number of workers, all those who are engaged in economic activities are included as employed. Statement-II:During 2017-18. India had about a 471 million strong workforce. A) Both the statements are true. B) Both The Statement are false. C) Statement-I is true, Statement-2 is false. D) Statement 2 is true, Statement 1 is false. Show Answer Correct Answer: A) Both the statements are true. 46. What is the primary purpose of the Trade Unions Act of 1926? A) To establish a national bank. B) To provide legal recognition and protection to trade unions in India. C) To regulate the export of goods. D) None of the above. Show Answer Correct Answer: B) To provide legal recognition and protection to trade unions in India. 47. Why did the government shift its strategy from long term to short term programs to remove unemployment? A) Large Scale Corruption. B) Lukewarm response from the. C) Lack of funds. D) Long term programs takes a long time to implement. Show Answer Correct Answer: D) Long term programs takes a long time to implement. 48. What is the aim of sustainable development? A) To transform our world. B) Action to end poverty and inequality. C) To ensure that all people enjoy health, justice and prosperity. D) All of above. Show Answer Correct Answer: D) All of above. 49. Which index is used to calculate inflation in India? A) Wholesale Price Index. B) GDP deflator. C) Commodity Price Index. D) Productive Price Index. Show Answer Correct Answer: A) Wholesale Price Index. 50. Service Tax to be exempted on general insuranceschemes under which scheme: A) NIRMAYA Scheme. B) Customer Act. C) Shyama Prasad Mukherji Rurban Mission. D) Companies Amendment Bill. Show Answer Correct Answer: A) NIRMAYA Scheme. 51. Globalization has made trade between nations more easy A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 52. Railways is an examples of A) Joint sector. B) Private sector. C) Public sector. D) Tertiary sector. Show Answer Correct Answer: C) Public sector. 53. Consider the following statements:1. All NPAs are stressed assets. 2. An asset is considered as a Stressed asset if the principal and/or interest remains overdue for more than 45 days. 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: B) 2 only. 54. The best solution to reduce the quantum of soil erosion is ..... A) Deforestation. B) Composting. C) Afforestation. D) Use eco-friendly techniques. Show Answer Correct Answer: C) Afforestation. 55. THE WORD 'STAGNANT' MEANS A) CONSTANT ON SAME LEVEL. B) INCREASING. C) DECREASING. D) ALL OF THE ABOVE. Show Answer Correct Answer: A) CONSTANT ON SAME LEVEL. 56. Which one of these is not an element of smart City A) Adequate water supply, sustainable environment. B) Sustainable environment, health and education. C) To not educate the poor, have a corrupt government. D) Affordable housing especially for the poor. Show Answer Correct Answer: C) To not educate the poor, have a corrupt government. 57. The digital divide refers to the gap between individuals and communities who have access to digital technologies and those who do not. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 58. Which of the following is known as the Paper Gold? A) US Dollar. B) Pound. C) Demand draft. D) Special Drawing Right. Show Answer Correct Answer: D) Special Drawing Right. 59. The majority of India's workforce is employed in the: A) Organized sector. B) Corporate sector. C) Government sector. D) Informal sector. Show Answer Correct Answer: D) Informal sector. 60. Any two sources of air pollution A) Factories and Vehicles. B) Trees and Animals. C) Oceans and Rivers. D) Sun and Moon. 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