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 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy Quiz 4 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. TELL NAME OF THE CROP FARMERS WERE FORCED TO GROW A) CHILLY. B) INDIGO. C) WHEAT. D) COCONUT. Show Answer Correct Answer: B) INDIGO. 2. How do MNCs spread their production to other countries? A) By setting up partnerships with local companies, using local companies for supplies, competing with local companies, or buying them up. B) By dividing the production process into small parts and spreading it across the globe. C) By placing orders for production with small producers in developing countries. D) By investing in foreign countries and setting up factories and offices for production. Show Answer Correct Answer: A) By setting up partnerships with local companies, using local companies for supplies, competing with local companies, or buying them up. 3. ..... involve processing of raw materials to produce more valuable products in large quantities. A) Industries. B) Manufacturing. C) Industrialisation. D) Resources. Show Answer Correct Answer: A) Industries. 4. A:Informal sector workers often lack job security.R:Most informal jobs are unregistered and lack legal protection. 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. 5. Cyclical unemployment A) Describes employees moving from one job to another. B) Lasts longer than 6 months. C) Increases inflation Increases inflation. D) Describes recent college graduates. Show Answer Correct Answer: B) Lasts longer than 6 months. 6. Which of the following Yojna gave nominal premium and highest ever compensation in case of crop loss? A) PM Fasal Bima Yojna. B) Pramaparagat Krishi Vikas Yojna. C) PM Krishi Sinchai Yojna. D) Shyama Prasad Mukherji Rurban Mission. Show Answer Correct Answer: A) PM Fasal Bima Yojna. 7. Which of the following is NOT a disadvantage of operating a cottage industry? A) Operators may lack marketing skills. B) Raw materials may be hard to obtain. C) Cottage industry usually offers low and attractive prices. D) Long hours of work usually required. Show Answer Correct Answer: C) Cottage industry usually offers low and attractive prices. 8. Impact of urbanisation on the ecosystem ..... A) Increases biodiversity. B) Reduces air pollution. C) Improves soil quality. D) Destroys habitats and reduces biodiversity. Show Answer Correct Answer: D) Destroys habitats and reduces biodiversity. 9. What was the percentage of India's public health expenditure as a proportion of GDP before the COVID-19 pandemic? A) 0.75%. B) 1.5%. C) 2.15%. D) 1.92%. Show Answer Correct Answer: B) 1.5%. 10. .What is called "Blue Chip" ? A) A multinational company. B) A company which is listed on a foreign stock exchange. C) Companies which are run by large corporate houses. D) A company, whose share always provides profit. Show Answer Correct Answer: D) A company, whose share always provides profit. 11. Which of the following is a major challenge in rural marketing? A) Homogeneous demand across all rural regions. B) Low distribution costs. C) Lack of proper infrastructure. D) High purchasing power of rural consumers. Show Answer Correct Answer: C) Lack of proper infrastructure. 12. Look at the following statements about Vittiya Saksharata Abhiyan1) It is a Program to create awareness about sanitation with the help of celebrities 2) Under it, young students and faculty members will be roped to encourage and motivate people 3) Ministry of Sanitation and Drinking water launched it and is implementing agency Which of the statements given above is/are correct? A) Only 1 and 3. B) Only 2. C) Only 2 and 3. D) None of the above. Show Answer Correct Answer: B) Only 2. 13. Poverty has been completely eradicated in India.-say true or false A) True. B) False. C) Both. D) None of the above. Show Answer Correct Answer: B) False. 14. High birth rate and low Death rate represents ..... stage of demographic transition. A) Third. B) First. C) Second. D) First and Second. Show Answer Correct Answer: C) Second. 15. What is the advantage of spreading out production across borders for MNCs? A) It allows MNCs to tap into the advantages of large markets, lower production costs, and availability of resources in different countries. B) It enables MNCs to control production and exert influence on distant producers. C) It provides opportunities for interlinking production across countries. D) It allows MNCs to buy up local companies and expand production. Show Answer Correct Answer: A) It allows MNCs to tap into the advantages of large markets, lower production costs, and availability of resources in different countries. 16. As the methods of farming changed and the agriculture sector began to prosper, most of the goods produced were ..... from the primary sector and most people were also employed in this sector? A) Natural products. B) Involved products. C) Mixed products. D) Synthetic products. Show Answer Correct Answer: A) Natural products. 17. Urbanisation is an indicator of A) Industrialisation. B) Agricultural development. C) All the above. D) None of the above. Show Answer Correct Answer: A) Industrialisation. 18. Which sector os the largest employer A) Primary sector. B) Secondary sector. C) Tertiary secot. D) None of the above. Show Answer Correct Answer: A) Primary sector. 19. What was the main channel connecting countries in the past? How is it different now? A) By sea routes; By air routes. B) By land routes; By sea routes. C) By air routes; By land routes. D) By rail routes; By sea routes. Show Answer Correct Answer: A) By sea routes; By air routes. 20. Service sector is known as A) Industrial sector. B) Secondary sector. C) Tertiary sector. D) Industrial sector. Show Answer Correct Answer: C) Tertiary sector. 21. A good quality of population is very important in determining the level of economic A) Development. B) Growth. C) Both. D) Neither. Show Answer Correct Answer: B) Growth. 22. Who was the author of the Book 'Planned Economy of India'? A) M. Visvesvaraya. B) Bhim Rao Ambedkar. C) Jawaharlal Nehru. D) Dada Bhai Nairobi. Show Answer Correct Answer: A) M. Visvesvaraya. 23. The primary sector is also called ..... A) Service sector. B) Agriculture and related sector. C) Pre-industry sector. D) Unorganized sector. Show Answer Correct Answer: B) Agriculture and related sector. 24. In the production of ..... and ..... India stands first. A) Gud ; Khandsari. B) Sugar ; Milk. C) Gud ; sugar. D) Khandsari:Sugar. Show Answer Correct Answer: A) Gud ; Khandsari. 25. Which Indian state gives highest income tax collection to the Government of India? A) Goa. B) Uttar Pradesh. C) Kerala. D) Maharashtra. Show Answer Correct Answer: D) Maharashtra. 26. Where does India stand in the production of sugar? A) 4$^{th}$. B) 3$^{rd}$. C) 1$^{st}$. D) 2$^{nd}$. Show Answer Correct Answer: D) 2$^{nd}$. 27. Primary sector is also called A) Only agriculture sector. B) Only related sector. C) Both agriculture and related sector. D) None of the above. Show Answer Correct Answer: C) Both agriculture and related sector. 28. Air pollution is not caused by ..... A) Deforestation. B) Industrial emissions. C) Burning fossil fuels. D) Photosynthesis. Show Answer Correct Answer: D) Photosynthesis. 29. Agriculture and industry are ..... to each other. A) Complementary. B) Close. C) Inter related. D) All of these. Show Answer Correct Answer: A) Complementary. 30. What percentage of doctors in India are provided by the private healthcare sector? A) 81%. B) 60%. C) 40%. D) 100%. Show Answer Correct Answer: A) 81%. 31. Consider the following statements about FCNR-Foreign Currency Non-Repatriable account deposits:1. FCNR accounts are meant specifically for NRIs and PIOs. 2. FCNR accounts can be maintained in any foreign currency. 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: A) 1 only. 32. Why did the Secondary sector later become the most important sector? A) 1. People began to use many more goods that were produced in factories at cheap rates. B) 2.Employment increased. C) 3.Agriculture declined. D) 4.both 1 and 2. Show Answer Correct Answer: D) 4.both 1 and 2. 33. New economic policy was announced in the year A) 1992. B) 1990. C) 1991. D) 1993. Show Answer Correct Answer: C) 1991. 34. As per NREGA 2005 (National Rural Employment Guarantee Act 2005) the number of days of employment guaranteed by government is A) 120 days. B) 100 days. C) 150 days. D) 80 days. Show Answer Correct Answer: B) 100 days. 35. Which is the public-private collaboration with GIFT? A) GUDC AND IL & FS. B) GUSD AND DF & GC. C) GUDC AND FS & GL. D) GUKV AND NT & DS. Show Answer Correct Answer: A) GUDC AND IL & FS. 36. As per the latest available Human Development Report (HDR) 2013 published by the UNDP estimates the human development index [HDI] in terms of three basic capabilities: A) To live a long and healthy life. B) To be educated and knowledgeable. C) To enjoy a decent economic standard of living. D) All of the above. Show Answer Correct Answer: D) All of the above. 37. Agriculture, dairy farming are activities belonging to which of the following sectors? A) Primary. B) Secondary. C) Tertiary. D) Scientific technology. Show Answer Correct Answer: A) Primary. 38. When agricultural productivity improves, as a result of industrialisation, farmers' income ..... A) Increases. B) Equalises. C) Zero. D) Decreases. Show Answer Correct Answer: A) Increases. 39. "Amazon" in India has hired 4000 graduate students." The given statement deals with sector employment. A) Urban. B) Rural. C) Formal. D) Informal. Show Answer Correct Answer: C) Formal. 40. ..... unemployment arises when the qualification of a person is not sufficient to meet his job responsibilities. A) Structural. B) Frictional. C) Disguised. D) Cyclical. Show Answer Correct Answer: A) Structural. 41. Consider the following statements about Small Finance Banks:1. Small Finance Banks are niche banks that cater to specific sections of the population. 2. These banks accept deposits and advance loans. 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. 42. He IT industry in India is expected to experience a decline in growth due to global economic uncertainties. A) False. B) True. C) All the above. D) None of the above. Show Answer Correct Answer: B) True. 43. What role does conciliation play in the settlement of industrial disputes? A) Conciliation is only used as a last resort in industrial disputes. B) Conciliation involves legal action to resolve industrial disputes. C) Conciliation provides a neutral third party to facilitate communication and negotiation between conflicting parties in industrial disputes. D) Conciliation always favors one party over the other in industrial disputes. Show Answer Correct Answer: C) Conciliation provides a neutral third party to facilitate communication and negotiation between conflicting parties in industrial disputes. 44. Launching of Sansad Adarsh Gram Yojna is related to the: A) Vallabh Bhai Patel. B) Deen Dayal Upadhyay. C) Mahatma Gandhi. D) Jai Prakash Narayan. Show Answer Correct Answer: D) Jai Prakash Narayan. 45. Which of the following provision makes NREGA as the Right to Work? A) Increase in land productivity has been given the preference. B) This Act was passed by the Parliament in 2005. C) This Act has been spread to all the districts in the country. D) If the government fails to provide employment, it will give unemployment allowance. Show Answer Correct Answer: D) If the government fails to provide employment, it will give unemployment allowance. 46. Which factor influences the decision of Indians to choose private healthcare over public healthcare due to its perception of providing personalized attention? A) Perception of better technology. B) Perception of better infrastructure, shorter wait times, and more individualized care. C) Perception of lower costs. D) Perception of more comprehensive services. Show Answer Correct Answer: B) Perception of better infrastructure, shorter wait times, and more individualized care. 47. Industrialisation can provide a base for rapid increase income. it is because that A) Productivity rates are higher in industry than in agriculture. B) Industries mainly depend on man's effort while agriculture depend on the nature. C) Both a and b. D) None of the above. Show Answer Correct Answer: C) Both a and b. 48. The primary objective of NABARD is to: A) Promote rural development by enhancing credit facilities for rural areas. B) Fund large-scale agricultural projects in urban areas. C) Provide low-interest loans to large-scale industries. D) Provide direct subsidies to farmers. Show Answer Correct Answer: A) Promote rural development by enhancing credit facilities for rural areas. 49. Which of the following BEST describes subsistence farming? A) Producing enough for personal consumption. B) Practiced for profit. C) Large scale, monoculture. D) Few persons employed, highly mechanised. Show Answer Correct Answer: A) Producing enough for personal consumption. 50. Which of the followings are called Brettonwoods Twins? A) IMF & International Bank for Reconstruction and Development (IBRD). B) IMF & World Trade Organisation. C) IBRD & World Trade Organisation. D) None of the above. Show Answer Correct Answer: A) IMF & International Bank for Reconstruction and Development (IBRD). 51. Define:immigrate A) Come to live permanently in a foreign country. B) Visiting a country. C) Leave one's own country in order to settle permanently in another. D) Flying over a country. Show Answer Correct Answer: A) Come to live permanently in a foreign country. 52. Which of the following is related to the Operation Green' mission? A) Production of tomato, onionand potatoes. B) Production of tomato, chiliand potatoes. C) Production of pulses, onionand potatoes. D) Production of tomato, pulses and rice. Show Answer Correct Answer: A) Production of tomato, onionand potatoes. 53. The technique of converting natural or man-made raw material into finished products is termed as ..... A) Resources. B) Industry. C) Industrialisation. D) Manufacturing. Show Answer Correct Answer: D) Manufacturing. 54. Globalization has led to a decrease in economic inequality worldwide. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 55. Which of the following types of activities are covered in the secondary sector? A) It generates services rather than goods. B) Natural products are changed through manufacturing. C) Goods are produced by exploiting natural resources. D) It includes agriculture, forestry and dairy. Show Answer Correct Answer: B) Natural products are changed through manufacturing. 56. The Public Distribution System (PDS) primarily distributes: A) Essential food grains. B) Luxury goods. C) Industrial raw materials. D) Export goods. Show Answer Correct Answer: A) Essential food grains. 57. Which of the following is a major agricultural product of India? A) Rice. B) Barley. C) Wheat. D) Corn. Show Answer Correct Answer: A) Rice. 58. What is the role of the Reserve Bank of India? A) To set international trade tariffs. B) To manage public transportation systems. C) To issue government bonds and securities. D) The role of the Reserve Bank of India is to regulate monetary policy, manage currency issuance, oversee the banking system, and maintain financial stability. Show Answer Correct Answer: D) The role of the Reserve Bank of India is to regulate monetary policy, manage currency issuance, oversee the banking system, and maintain financial stability. 59. Which department's petition rate is high, even though its success rate in litigation is low and declining A) Direct taxes. B) Indirect taxes. C) All taxes. D) None. Show Answer Correct Answer: A) Direct taxes. 60. Consider the following statements about Tax Terrorism:1. It is the practice adopted by the Government to impose large unjustified taxes. 2. Retrospective taxation is also considered as Tax terrorism. Which of the above statements are correct? A) 1 only. B) 2 only. C) Both 1 and 2. D) Neither 1 nor 2. 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