This quiz works best with JavaScript enabled. Home > Class 12 > 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 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. 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. 3. 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. 4. Proper drainage system helps ..... A) In reducing soil erosion. B) In increasing soil erosion. C) In decreasing crop yield. D) In increasing crop diseases. Show Answer Correct Answer: A) In reducing soil erosion. 5. 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. 6. 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. 7. Which one of these is an example of intermediate goods? A) Woven basket. B) Biscuits. C) Wheat flour. D) Wooden chair. Show Answer Correct Answer: C) Wheat flour. 8. 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. 9. 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. 10. 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. 11. 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. 12. ..... development meets the needs of the present without compromising the ability of future generations to meet their own needs. A) Sustainable. B) Economic. C) Human. D) Socio-economic. Show Answer Correct Answer: A) Sustainable. 13. 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) Manufacturing-Service-Agriculture. D) Agriculture-Service-Manufacturing. Show Answer Correct Answer: A) Service-Manufacturing-Agriculture. 14. 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. 15. 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. 16. What is the target inflation rate set by the Reserve Bank of India? A) 6%. B) 5%. C) 4%. D) 3%. Show Answer Correct Answer: C) 4%. 17. 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). 18. 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. 19. 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. 20. When was the GST introduced in India? A) 1st July 2017. B) 1st April 2018. C) 31st March 2014. D) 30 June 2019. Show Answer Correct Answer: A) 1st July 2017. 21. NREGA (National Rural Employment Guarantee Act of 2005) has guaranteed ..... days of employment in a year in many districts of India A) 200 days. B) 100 days. C) 30 days. D) 60 days. Show Answer Correct Answer: B) 100 days. 22. Benefits of ..... is reduction in space required for landfills and recycling of organic waste and nutrients back to soil A) Afforestation. B) Segregation of waste. C) Dumping. D) Composting. Show Answer Correct Answer: D) Composting. 23. Sugar industry is a ..... oriented industry. A) Raw material. B) Footloose. C) Market. D) None. Show Answer Correct Answer: A) Raw material. 24. 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. 25. 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. ← PreviousNext →Related QuizzesClass 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy Quiz 1Class 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy Quiz 2Class 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy Quiz 4Class 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy Quiz 5Class 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy Quiz 6Class 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy Quiz 7Class 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy Quiz 8Class 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy Quiz 9Class 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy Quiz 10Class 12 Economics (Indian Economic Development) Chapter 2 Current Challenges Facing The Indian Economy Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books