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 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy Quiz 3 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Is health an education and element of smart City? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 2. Which currency is used in India? A) Indian Dollar (IDR). B) Indian Rupee (INR). C) Pakistani Rupee (PKR). D) Bangladeshi Taka (BDT). Show Answer Correct Answer: B) Indian Rupee (INR). 3. Consider the following statements about Outcome budgeting:1. Outcome budgeting measures the development outcomes of all government programmes. 2. It is measure of improvement in quality of the programme. 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. 4. Which government initiative aims to provide skill development to the youth? A) National Training Scheme. B) Youth Empowerment Program. C) Skill India. D) Skill Development Initiative. Show Answer Correct Answer: C) Skill India. 5. Benefits enjoyed by companies who set up production units in the SEZs are: A) They do not have to pay taxes for some years. B) Reduction in excise duty. C) Reduced tariffs and barriers. D) None of the above. Show Answer Correct Answer: A) They do not have to pay taxes for some years. 6. The benefits of human development go far beyond the expansion of: A) Income. B) Wealth accumulation. C) Both. D) None. Show Answer Correct Answer: C) Both. 7. State any two types of interdependence between agriculture and service sector A) Transportation and Marketing. B) Farming and Harvesting. C) Banking and Insurance. D) Manufacturing and Production. Show Answer Correct Answer: A) Transportation and Marketing. 8. Who releases the Wholesale Price Index figures? A) Ministry of Statistics and Program Implementation. B) Ministry of Home Affairs. C) Ministry of Finance. D) Ministry of Commerce and Industry. Show Answer Correct Answer: D) Ministry of Commerce and Industry. 9. Recently the official poverty line in India is determined by: A) Finance Commission. B) Planning Commission. C) NITI Aayog. D) Reserve Bank of India. Show Answer Correct Answer: C) NITI Aayog. 10. Assertion:Poverty declined significantly in India after liberalization.Reasoning:Economic reforms increased growth and employment opportunities. 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. 11. What measures has the RBI taken to control inflation? A) The RBI has increased government spending to control inflation. B) The RBI has lowered interest rates to boost consumer spending. C) The RBI has implemented price controls on essential goods. D) The RBI has taken measures such as adjusting the repo rate, using CRR and SLR, and conducting open market operations to control inflation. Show Answer Correct Answer: D) The RBI has taken measures such as adjusting the repo rate, using CRR and SLR, and conducting open market operations to control inflation. 12. Consider the following statements about Startups in India:1. All Start ups need to be registered within the last 5 years. 2. The Startups can be process, product or service oriented. 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. 13. Consider the following statements:1. SARFESI Act enables Banks to auction properties to recover loans. 2. ARCs are formed under SARFESI Act. 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. 14. Consider the following statements about Green Bonds:1. All green bonds are debt instruments. 2. The capital raised from green bonds is used only to fund green projects like renewable energy, emission reductions. 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. 15. Indian economy under British rule was: A) Growing economy. B) Developing economy. C) Developed economy. D) Underdeveloped economy. Show Answer Correct Answer: D) Underdeveloped economy. 16. About two-third of the Indians are engaged in ..... A) Farming. B) Forestry. C) Fishing. D) None of the above. Show Answer Correct Answer: A) Farming. 17. What is a common cause of industrial disputes related to employment conditions? A) Disagreements over wages, benefits, or working hours. B) Lack of office supplies. C) Employee tardiness. D) Break room cleanliness. Show Answer Correct Answer: A) Disagreements over wages, benefits, or working hours. 18. What is the primary source of revenue for the Indian government? A) Foreign aid. B) Investment income. C) State-owned enterprise profits. D) Tax revenue. Show Answer Correct Answer: D) Tax revenue. 19. Patriotism is a key aspect of nationalism. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 20. Which organization is responsible for monetary policy in India? A) Securities and Exchange Board of India (SEBI). B) Ministry of Finance. C) International Monetary Fund (IMF). D) Reserve Bank of India (RBI). Show Answer Correct Answer: D) Reserve Bank of India (RBI). 21. What gives us GDP A) Sum of production in all the three sectors. B) Sum of intermediate goods and final goods. C) All the above. D) None of the above. Show Answer Correct Answer: A) Sum of production in all the three sectors. 22. Which Bill was proposed to be passing to solve problems in infrastructure contracts, PPP and Public Utilities? A) Public Utility Resolution of Disputes Bill. B) Skill Development Programme. C) Goods & Services Tax. D) Companies Amendment Bill. Show Answer Correct Answer: A) Public Utility Resolution of Disputes Bill. 23. What is the main aim of the 'Digital India' campaign? A) To promote traditional farming methods in rural areas. B) To limit internet access to urban areas only. C) To increase the use of cash transactions in the economy. D) To transform India into a digitally empowered society and knowledge economy. Show Answer Correct Answer: D) To transform India into a digitally empowered society and knowledge economy. 24. State the place of India in the world in terms of population size and density. A) Second & Third. B) First & Second. C) Second & Second. D) Third & Second. Show Answer Correct Answer: A) Second & Third. 25. According to the Tendulkar committee, the poverty line in rural area is a monthly per capita consumption expenditure below A) Rs 650. B) Rs 600. C) Rs 670. D) Rs 673. Show Answer Correct Answer: D) Rs 673. 26. In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities? A) Microfinance Institutions. B) Cooperative Banks. C) Commercial Banks. D) Regional Rural Banks. Show Answer Correct Answer: C) Commercial Banks. 27. The concept of Universal Basic Income (UBI) in India was discussed in: A) 2005 Planning Commission Report. B) 1991 Economic Survey. C) 2010 NITI Aayog Paper. D) 2016-17 Economic Survey. Show Answer Correct Answer: D) 2016-17 Economic Survey. 28. How does the demographic transition model relate to developing nations like India? A) It doesn't relate at all. B) Developing nations move through the transitions faster. C) Developing nations move through the transitions slower. D) It is actually based on the developing nations. Show Answer Correct Answer: B) Developing nations move through the transitions faster. 29. Industrial activities result in deforestation because ..... A) They require large amounts of wood for construction. B) They use too much water. C) They produce too much waste. D) They cause global warming. Show Answer Correct Answer: A) They require large amounts of wood for construction. 30. Intially, the industrial development was confined to the stage of: A) Cotton textile mills. B) Jute textile mills. C) Cotton and jute textile mills. D) Capital goods industry. Show Answer Correct Answer: C) Cotton and jute textile mills. 31. WHAT IS SERVICE SECTOR? A) Consist of all activities which do not directly produce tangible goods (productos que se pueden tocar), but help to satisfy people's wants and need. B) Consist only of tangible goods (productos que se pueden tocar). C) Consist of all tangible goods that help to satisfy people's wants and need. D) None of the above. Show Answer Correct Answer: A) Consist of all activities which do not directly produce tangible goods (productos que se pueden tocar), but help to satisfy people's wants and need. 32. Which Ministry is responsible for calculating GDP in India? A) Ministry of Finance. B) Ministry of Commerce and Industry. C) Ministry of Central Statistical and Program Implementation. D) Ministry of consumer Affairs. Show Answer Correct Answer: C) Ministry of Central Statistical and Program Implementation. 33. Name the state of India having the highest density of population and also mention its density. A) West Bengal, 905 persons per sq km. B) Bihar, 1102 persons per sq km. C) NCT of Delhi, 11297 persons per sq km. D) UP, 828 persons per sq km. Show Answer Correct Answer: B) Bihar, 1102 persons per sq km. 34. Which of the following economic activity is not in the tertiary sector? A) Banking. B) Bee-keeping. C) Teaching. D) Working in a call centre. Show Answer Correct Answer: B) Bee-keeping. 35. Choose the correct option:Assertion(A):The government has taken up initiatives in generating employment opportunities particularly in the rural area. Reason (R):In the last few decades, there has been rapid growth in the gross domestic product, but without simultaneous increase in employment opportunities. A) A and B are true and R explains A. B) A and B are true and R does not explain A. C) A is true but R is false. D) A is false but R is true. Show Answer Correct Answer: A) A and B are true and R explains A. 36. What is the type of Indian economy? A) Communist. B) Capitalist. C) Mixed. D) Socialist. Show Answer Correct Answer: C) Mixed. 37. Economic growth has helped reduce poverty in India.-Say true or false A) True. B) False. C) Both. D) None of the above. Show Answer Correct Answer: A) True. 38. ..... sector generally takes the output of the primary sector and manufactures ..... goods. A) Tertiary, Raw. B) Secondary, semi-finished. C) Agriculture, Finished. D) Industrial, Finished. Show Answer Correct Answer: D) Industrial, Finished. 39. The impact of Climate Change on agricultural yield is more intense in which category of land? A) Irrigated. B) Public. C) Non Irrigated. D) Open. Show Answer Correct Answer: C) Non Irrigated. 40. Why is primary sector caleed primary A) It inccludes primary school. B) It forms the base of other sectors. C) All the above. D) None of the above. Show Answer Correct Answer: B) It forms the base of other sectors. 41. What does GDP stand for in economic terms? A) Global Development Plan. B) Gross National Product. C) Gross Domestic Product. D) General Domestic Price. Show Answer Correct Answer: C) Gross Domestic Product. 42. Which of the following are money market instruments1) Equity 2) Fully and partially convertible debentures 3) Shares Select the correct answer using the code given below. A) Only 1. B) 1 and 2. C) 1 and 3. D) None of them. Show Answer Correct Answer: D) None of them. 43. Primary sector is related to A) Agriculture. B) Dairy, forestry. C) Fishing, mining. D) All the above. Show Answer Correct Answer: D) All the above. 44. The Macro-Economic Vulnerability index includes1) Fiscal Deficit 2) Current Account Deficit 3) Inflation A) Only 1 and 2. B) Only 2 and 3. C) Only 1 and 3. D) All of the above. Show Answer Correct Answer: D) All of the above. 45. Which is the largest producing sector A) Agricultural sector. B) Industrial sector. C) Service sector. D) None of the above. Show Answer Correct Answer: C) Service sector. 46. The major reform in the Indian financial sector after 1991 was the introduction of: A) Nationalization of banks. B) Liberalization and deregulation. C) Social banking scheme. D) Green banking. Show Answer Correct Answer: B) Liberalization and deregulation. 47. ..... opens up new and additional sources of employment to absorb all surplus labour from agriculture. A) Industry. B) Agriculture. C) Industrialisation. D) Cottage industries. Show Answer Correct Answer: A) Industry. 48. What are the primary causes of unemployment in India? A) Economic slowdown, lack of skills, population growth, seasonal employment, structural changes. B) High wages, job security, technological advancements, government policies, urban migration. C) Increased foreign investment, better education, reduced population, automation, labor laws. D) Rural development, improved infrastructure, enhanced healthcare, global trade, environmental factors. Show Answer Correct Answer: A) Economic slowdown, lack of skills, population growth, seasonal employment, structural changes. 49. ..... was engaged in the formulation of five year plans in India. A) RBI. B) Plannig commission. C) All the above. D) None of the above. Show Answer Correct Answer: B) Plannig commission. 50. A Tax whose burden can be shifted to others is termed as ..... A) Direct Tax. B) Indirect Tax. C) Both. D) None of them. Show Answer Correct Answer: B) Indirect Tax. 51. What percentage of hospitals in India are provided by the private healthcare sector? A) 80%. B) 58%. C) 90%. D) 50%. Show Answer Correct Answer: B) 58%. 52. What is called Tax heaven? A) A country which gives tax exemptions to the foreign citizens that there will be no tax on investing the money in their country. B) Subsidy given by the government in taxes. C) Tax evasion in the domestic country. D) To impose equal taxes on domestic producers and foreign producers. Show Answer Correct Answer: A) A country which gives tax exemptions to the foreign citizens that there will be no tax on investing the money in their country. 53. A labor force of 20 million people has 18.5 million people employed. Find the unemployment rate. A) 8.5%. B) 6%. C) 7.5%. D) 10%. Show Answer Correct Answer: C) 7.5%. 54. "Jobless growth" refers to: A) Growth without employment creation. B) Growth with fiscal deficit. C) Growth without inflation. D) Growth with reduced exports. Show Answer Correct Answer: A) Growth without employment creation. 55. The Gross National Happiness does not have one of these as its components. A) Higher real per capita income. B) Uninterrupted growth and development Model. C) Environmental Protection. D) Cultural Promotion (i.e. inculcation of ethical and spiritual values in life without which, it says, progress may become a curse rather than a blessing). Show Answer Correct Answer: B) Uninterrupted growth and development Model. 56. Agriculture absorbs surplus labour from industries A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 57. The objectives of Government budget are1) Economic Stability 2) Redistribution of income and wealth 3) Allocation of resources Which of the statements given above are correct? A) Only 1 and 2. B) Only 2 and 3. C) Only 1 and 3. D) All of the above. Show Answer Correct Answer: D) All of the above. 58. What is the budget for initial allocation in 2014 to 2015 year budget for the pilot smart cities? A) ₹ 7060 crores. B) ₹ 7050 crores. C) ₹ 7080 crores. D) ₹ 7070 crores. Show Answer Correct Answer: A) ₹ 7060 crores. 59. Industrial sector is also called A) Service sector. B) Agricultural sector. C) Industrial sector. D) None of the above. Show Answer Correct Answer: C) Industrial sector. 60. With respect to Anchor Investor, consider the following statements1) He is the first investor in any round that provides subsequent investors a degree of confidence 2) Anchor investors belong to the Qualified Institutional Buyers (QIBs) category 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. 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