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 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy Quiz 5 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following states has the highest population growth rate? A) West Bengal. B) Uttar Pradesh. C) Maharashtra. D) Uttarakhand. Show Answer Correct Answer: B) Uttar Pradesh. 2. Which of the following best defines unemployment? A) The state of being able to work and actively seeking work, but unable to find employment. B) The state of being able to work, but choosing not to. C) The percentage of the labour force that is able and actively seeking work, but cannot find employment. D) The total number of people who do not work. Show Answer Correct Answer: A) The state of being able to work and actively seeking work, but unable to find employment. 3. One of the following was high during British rule over India: A) Female literacy rate. B) Infant mortality rate. C) Life expectancy. D) Literacy rate. Show Answer Correct Answer: B) Infant mortality rate. 4. MGNREGA was first proposed in 1991 by A) Indra Ghandhi. B) P.V. Narasimha Rao. C) B.R Ambedkar. D) A.P.J. Kalam. Show Answer Correct Answer: B) P.V. Narasimha Rao. 5. Which are the qualitative techniques used in monetary policy1) Open market operations 2) Credit Rationing 3) Moral Suasion Which of the techniques 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: B) Only 2 and 3. 6. "TRYSEM" a Programme made for the: A) Providing road connectivity to the villages. B) Employment to Urban youths. C) Development of nutrition intake in the food of poor of the country. D) Employment to Rural youths. Show Answer Correct Answer: D) Employment to Rural youths. 7. What was the share of Service Sector to GDP, in India on 1950-51 and 1990-91? A) 50%. B) 40%. C) 80%. D) 28 %. Show Answer Correct Answer: D) 28 %. 8. What is the main purpose of the Goods and Services Tax (GST) in India? A) To simplify the tax structure and unify indirect taxes in India. B) To eliminate all forms of taxation in India. C) To increase the overall tax burden on citizens. D) To promote only direct taxes in the economy. Show Answer Correct Answer: A) To simplify the tax structure and unify indirect taxes in India. 9. What is the primary objective of trade unions in collective bargaining? A) Create conflicts between workers and management. B) Negotiate better wages, benefits, and working conditions. C) Promote individual interests over collective goals. D) Focus solely on reducing company profits. Show Answer Correct Answer: B) Negotiate better wages, benefits, and working conditions. 10. What is the impact of digital India by 2019? A) E governance and e services are not there. B) Digitally not empowered citizen. C) Wi-Fi in 8700000 schools. D) Net zero imports by 2020. Show Answer Correct Answer: D) Net zero imports by 2020. 11. Consider the following statements:1. Arms length pricing and Transfer pricing are one and the same. 2. They refer to the transactions between the 2 divisions of the same company. 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. 12. Economic development is a ..... concept than economic growth. A) Wider. B) Narrower. C) Worse. D) Better. Show Answer Correct Answer: A) Wider. 13. Consider the following statements about Advance Price Agreements:1. APAs help the companies to plan their tax payments in a better way. 2. APAs are useful in avoiding double taxation. 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. What is the definition of globalisation in this chapter? A) The integration between countries through foreign trade and foreign investments by multinational corporations (MNCs). B) The rapid rise and influence of MNCs in the globalisation process. C) The interconnectedness of regions across the world in various dimensions. D) The integration of production and markets through MNCs. Show Answer Correct Answer: A) The integration between countries through foreign trade and foreign investments by multinational corporations (MNCs). 15. Look at the following statements about real exchange rate1) It is taken as a measure of a country's international competitiveness 2) It refers to the relative price of goods 3) It has bearing on export and imports of the country 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. 16. Which of the following is a feature of the Indian economy? A) Service-oriented economy. B) Manufacturing-driven economy. C) Resource-dependent economy. D) Agricultural-based economy. Show Answer Correct Answer: A) Service-oriented economy. 17. Which of the following statements is true in respect of Public Sector? A) A group of people owns most of the assets. B) Government owns the assets. C) An individual owns most of the assets. D) Big companies own most of the assets. Show Answer Correct Answer: A) A group of people owns most of the assets. 18. Consider the following statements:1. Tax mitigation and Tax avoidance are one and the same. 2. Both come under the domain of strategies of Tax planning. 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: D) Neither 1 nor 2. 19. The labour force can be defined as: A) Those of workers who are seeking work and are available for work at current wage rate. B) Anyone who is working or actively seeking work. C) The population between school-leaving age and retirement age. D) Those who could claim benefit if they were to become unemployed. Show Answer Correct Answer: A) Those of workers who are seeking work and are available for work at current wage rate. 20. Which one is a primary occupation? A) Tailor. B) Basket weaver. C) Milk vendor. D) Flower cultivator. Show Answer Correct Answer: D) Flower cultivator. 21. ..... unemployment mainly occurs during recession or depression. A) Frictional. B) Cyclical. C) Structural. D) Disguised. Show Answer Correct Answer: B) Cyclical. 22. Agriculture is an unorganized sector A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 23. What are state highways? A) Roads linking a state capital with other state capitals. B) Roads linking a state capital with different district headquarters. C) Roads linking different districts in a state. D) Roads linking State capital with important cities. Show Answer Correct Answer: B) Roads linking a state capital with different district headquarters. 24. Full form of JAM A) Jan-Dhan Yojana, aapna and mobile. B) Jan-dhan Yojana Aadhaar and mobile connectivity. C) Jan dhan Yojana Aadhaar and Mani connectivity. D) Jan dhan Yojana ATM and mobile connectivity. Show Answer Correct Answer: B) Jan-dhan Yojana Aadhaar and mobile connectivity. 25. When we produce goods by exploiting natural resources, it is an activity of ..... A) Secondary sector. B) Primary sector. C) Industrial sector. D) Tertiary sectory. Show Answer Correct Answer: B) Primary sector. 26. What is the current status of the Indian economy as of 2023? A) The Indian economy is stagnant with no growth expected in 2023. B) The Indian economy is growing at a rate of 10% in 2023 without any challenges. C) The Indian economy is growing at a rate of 6-7% in 2023, facing challenges like inflation and global uncertainties. D) The Indian economy is in a recession with a negative growth rate. Show Answer Correct Answer: C) The Indian economy is growing at a rate of 6-7% in 2023, facing challenges like inflation and global uncertainties. 27. Deendayal Upadhyay Shramev Jayate Karyakram does not include which? A) Pradhan Mantri Rozgar Protsahan Yojana. B) Apprentice Protsahan Yojana. C) Universal Account Number. D) Revamped Rashtriya Swasthya Bima Yojana. Show Answer Correct Answer: A) Pradhan Mantri Rozgar Protsahan Yojana. 28. Who wrote the book "How to pay for Money" ? A) Amartya Sen. B) Professor Keynes. C) Adam Smith. D) Karl Marx. Show Answer Correct Answer: B) Professor Keynes. 29. Which is an example of Pure Raw Material? A) Cotton. B) Crude oil. C) Bauxite. D) Iron ore. Show Answer Correct Answer: A) Cotton. 30. The word Dirigisme relates to A) Complete Capitalism. B) Complete control of economy by state. C) Positive role of state invention in economy. D) None of the above. Show Answer Correct Answer: C) Positive role of state invention in economy. 31. When income levels rise, certain sections of people start demanding many more services like ..... A) Defence. B) Tourism. C) Hospitals. D) More food. Show Answer Correct Answer: B) Tourism. 32. Which of the following tax will be abolished by the Goods and Services Tax A) Property tax. B) Corporation tax. C) VAT. D) None of the above. Show Answer Correct Answer: C) VAT. 33. Full form of NSDC. A) National sweet development corporation. B) National school development corporation. C) National science development corporation. D) National skill development corporation. Show Answer Correct Answer: D) National skill development corporation. 34. Which among the following is not an international agreement centered around Finance and Economic Cooperation? A) Abuja Treaty. B) Kyoto protocol. C) Cooperation Council for the Arab States of the Gulf. D) None of the above. Show Answer Correct Answer: B) Kyoto protocol. 35. Among the following estimators whose estimates of per capita income of India during the colonial period was considered very significant: A) Dadabhai Naoroji. B) William Digby. C) V.K.R.V. Rao. D) R.C. Desai. Show Answer Correct Answer: C) V.K.R.V. Rao. 36. A:Female labour participation in India is low.R:Cultural norms and domestic responsibilities limit women's economic participation. 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. 37. Which initiative aims to transform sub-centers and primary health centers into Health and Wellness Centers (HWCs) in India? A) Swachh Bharat. B) Digital India. C) Make in India. D) Ayushman Bharat. Show Answer Correct Answer: D) Ayushman Bharat. 38. Consider the following statements1) Primary sector hosts majority of workers 2) Unemployment is more in urban than in rural Which of the statements given above are correct? 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. 39. The by-product of the sugar industry which is used in manufacturing paper and newsprint ..... A) Molasses. B) Bagasse. C) Wood pulp. D) Paper industry. Show Answer Correct Answer: B) Bagasse. 40. What is not true for the Monetary Policy Committee A) The Finance secretary is a part of this committee. B) They set the inflation tolerance rate. C) To set up a benchmark Interest rate. D) They maintain a 7 day period of silence after making a decision. Show Answer Correct Answer: A) The Finance secretary is a part of this committee. 41. Which legislation regulates industrial relations in India? A) Employment Rights Act, 1996. B) Workplace Relations Act, 1996. C) Industrial Disputes Act, 1947. D) Labor Relations Act, 2004. Show Answer Correct Answer: C) Industrial Disputes Act, 1947. 42. How has the COVID-19 pandemic affected the Indian economy? A) The Indian economy thrived during the pandemic, with increased consumer spending. B) The pandemic led to a rapid growth in the tech sector, boosting employment rates. C) The COVID-19 pandemic caused a severe contraction in the Indian economy, impacting various sectors and leading to increased unemployment and inflation. D) COVID-19 had no significant impact on the agricultural industry in India. Show Answer Correct Answer: C) The COVID-19 pandemic caused a severe contraction in the Indian economy, impacting various sectors and leading to increased unemployment and inflation. 43. Which one of this is not payment of nine pillar of digital India. A) E governance. B) IT for jobs. C) Public internet access. D) Information of all bank details. Show Answer Correct Answer: D) Information of all bank details. 44. What is the main objective of the Planning Commission of India? A) To oversee the implementation of international trade agreements. B) To regulate the banking sector in India. C) To manage the country's defense budget. D) To formulate and implement five-year plans for economic development. Show Answer Correct Answer: D) To formulate and implement five-year plans for economic development. 45. Where are the employment and non-employment figures taken from to study the data? A) Real-Time Handbook of Statistics on Indian Economy. B) National Statistical Office (NSO). C) NITI Aayog. D) Statistics information Bureau. Show Answer Correct Answer: C) NITI Aayog. 46. TISCO and IRL belong to which sector A) Public sector. B) Private sector. C) All the above. D) None of the above. Show Answer Correct Answer: B) Private sector. 47. Industries pollute water because ..... A) They directly dump waste materials into water bodies. B) They don't use water. C) They consume large amounts of water. D) None of the above. Show Answer Correct Answer: A) They directly dump waste materials into water bodies. 48. In this method, bulk organic waste is converted into fertilizer by biological action. A) Landfill. B) Incineration. C) Composting. D) None of the above. Show Answer Correct Answer: C) Composting. 49. What challenges does the service sector face in India? A) High employee turnover, lack of innovation, limited market access. B) Strong international partnerships, abundant resources, high wages. C) Excessive government support, overqualified workforce, low demand. D) Inadequate infrastructure, regulatory hurdles, skill shortages, competition, and quality issues. Show Answer Correct Answer: D) Inadequate infrastructure, regulatory hurdles, skill shortages, competition, and quality issues. 50. State the biologically determined natural sex ratio at birth. A) 100 boys per 100 girls. B) 184 boys per 100 girls. C) 105 boys per 100 girls. D) 95 boys per 100 girls. Show Answer Correct Answer: C) 105 boys per 100 girls. 51. Globalisation has led to improvement in A) Choice to consumers. B) Quality of goods and services. C) Foreign investment. D) All the above. Show Answer Correct Answer: D) All the above. 52. ..... may be defined as a process in which more and more industries are established in a country. A) Industries. B) Firm. C) Industrialisation. D) Manufacturing. Show Answer Correct Answer: C) Industrialisation. 53. BEFORE COMING OF BRITISH TRADERS, INDIA WAS FAMOUS FOR ..... A) COTTON TEXTILES. B) SILK. C) HANDICRAFTS. D) ALL OF THE ABOVE. Show Answer Correct Answer: D) ALL OF THE ABOVE. 54. Consider the following statements:1. Bilateral investment treaties protect the investments of one country into another. 2. BITs has other provisions like protection against nationalisation, non-discriminatory treatment etc. 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. 55. Which of the following is a public sector undertaking in India? A) Tata Steel. B) Infosys. C) Reliance Industries. D) ONGC. Show Answer Correct Answer: D) ONGC. 56. What is the term for the total value of goods and services produced in a country? A) Balance of Trade (BOT). B) Net National Product (NNP). C) Consumer Price Index (CPI). D) Gross Domestic Product (GDP). Show Answer Correct Answer: D) Gross Domestic Product (GDP). 57. ..... is the washing away of the earth's top soil due to various human activities A) Deforestation. B) Desertification. C) Both a and b. D) None of these. Show Answer Correct Answer: B) Desertification. 58. The problem faced by Indian agriculture is A) Cooperative farming. B) Problem of taxation. C) Lack of skilled labor. D) Dependence on monsoon. Show Answer Correct Answer: D) Dependence on monsoon. 59. Swarnajayanti Gram Swarozgar Yojana was launched in A) 1999. B) 2001. C) 2000. D) 1995. Show Answer Correct Answer: A) 1999. 60. Indian planners aims at developing the entire ecosystem. Which one of this is not one of its key pillar? A) Institutional infrastructure. B) Economic Infrastructure. C) Physical Infrastructure. D) Indian infrastructure. 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