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Indian Economy Model Test 4 in English

Indian Economy Model Test Questions 4 in English

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Question 1
The main proposal of Dunkel Draft with reference to agriculture is
A
reduction in agriculture subsidy
B
introduction of modern methods of cultivation
C
promotion of agriculture marketing
D
none of these
Question 2
Economic development depends on
A
quantity of human resources
B
quality of human resources
C
area of land
D
none of these
Question 3
Rural Poverty is due to
A
lack of adequate employment
B
surplus labour
C
low wage rate
D
all of these
Question 4
Census in India is conducted every
A
5 years
B
10 years
C
12 years
D
3 years
Question 5
The important objective of the development of the Co-operative sector are
A
prevention of concentration of economic power
B
wider dispersal of ownership of productive resources
C
active involvement of people in the development programme
D
all these
Question 6
Family planning in India has to face a number of obstacles in rural areas because of
A
Psychological factors and social orthody
B
unawareness of the use of family planning
C
corruption by the administrators
D
none of these
Question 7
A strategy of industrialization an development of the industries was adopted in
A
First Five Year Plan
B
Second Five Year Plan
C
Third Five Year Plan
D
Fifth Five Year Plan
Question 8
Mixed Economy means
A
private sector and public sector functional together
B
production by the private sector alone
C
means of production under Government Control
D
traditional social activities
Question 9
Tax revenue is distributed between the Central and State Government by the
A
Planning Commission
B
Election Commission
C
Finance Commission
D
Public Accounts Committee
Question 10
In recent years, the Indian Economy has been characterized as a
A
backward economy
B
developed economy
C
developing economy
D
none of these
Question 11
Which of the following is the most important objective of five year planning of India?
A
Reducing price instability
B
Increasing capital economy
C
Increasing per capital income
D
Reducing unequality of income and wealth
Question 12
Central Banking functions in India are performed by the
A
Reserve Bank of India
B
Central Bank of India
C
Bank of India
D
State Bank of India
Question 13
Which item earns maximum foreign exchange for India?
A
Leather and leather goods
B
Spices
C
Medicines
D
Rice
Question 14
Indian agriculture is at present
A
commercial
B
commercial
C
export surplus
D
self sufficient with little surplus
Question 15
Inflation is calculated by Finance Ministry on the basis of
A
consumer price index
B
cost of living index
C
wholesale price index
D
retail price index
Question 16
Poverty line is an indicator of
A
rural population
B
unemployment
C
low food intake
D
weak government
Question 17
India’s recent industrial development is due to
A
low interest rate
B
larger number of entrepreneurs
C
privatization
D
liberal industrial policy
Question 18
What is dual pricing?
A
Wholesale price & retail price
B
Pricing by agents and pricing by retailers
C
Price fixed by the government and price fixed in the open market
D
None of these
Question 19
The father of Economics is
A
J.M.Keynes
B
Adam Smith
C
Malthus
D
David Ricardo
Question 20
Which of the following statement is not true?
A
Commercial banks keep some cash with the Central Bank
B
Inflation results in increase in cost of living
C
Reserve Bank is the Central Bank of India
D
Reserve Bank gives loan to any member of the public
Question 21
The market price of the commodity is determined
A
by demand
B
by supply
C
by Government officials
D
by the equilibrium of demand and supply
Question 22
The paper money is issued in India by
A
The Commercial Bank
B
State Bank of India
C
Government of India
D
Reserve Bank of India
Question 23
The Hundi is a kind of
A
written promise to pay
B
an order to pay
C
an Indian form of bill
D
a crossed cheque
Question 24
The bank rate is fixed by the
A
Government
B
Commercial Bank
C
Central Bank
D
Stock Exchanges
Question 25
Budget is the
A
proposal of taxation
B
annual financial statement of income
C
money bill
D
annual financial statement of income and expenditure
Question 26
How many Commercial banks have been so far nationalized since 1969?
A
20
B
14
C
12
D
27
Question 26 Explanation: 
Note:19 in 2010
Question 27
What is the percentage contribution of industry to employment?
A
10
B
40
C
60
D
20
Question 28
Which of the following is not a country practicing mixed economy?
A
U.K
B
Italy
C
India
D
U.S.A.
Question 29
The largest state in population in India’s
A
Madhya Pradesh
B
Bihar
C
West Bengal
D
Uttar Pradesh
Question 30
India is
A
an advanced country
B
a backward country
C
an underdeveloped country
D
a developing country
Question 31
Consider the following statements:
  1. Indian agriculture is a gamble in the monsoon
  2. Agriculturists in India follow old technology
A
II is true
B
II id false
C
Both are true
D
Both are true
Question 32
Which of the following features of Indian Economy cause problems in the measurement of National income?
  1. Illiteracy II. Growth of public sector
III. Non-monetized consumption in the villages  IV. People holding multiple jobs
A
I and II
B
I,II and IV
C
I,II and III
D
II,III and IV
Question 33
The estimated amount of black money in 1996 was
A
Rs.3,40,000 Cr
B
Rs. 4,00,00Cr
C
Rs.5,50,000 Cr
D
Rs. 3,00,000 Cr
Question 34
Which one of the following is not an employment programme?
A
National Rural Development Programme
B
Integrated Rural Development Programme
C
Jawahar Rozgr Yojana
D
Training of Rural Youth for Self-employment
Question 35
In Tamil Nadu, a large quantity of water is used by
A
Agricultural Sector
B
Industrial Sector
C
Households
D
Mining Sector
Question 36
Indian Agriculture is having the following features
  1. Disguised unemployment II. High productivity
III. Majority of large farmers                    IV. Gamble in the Monsoon
A
I and II only
B
II and III only
C
II and IV only
D
I and IV only
Question 37
Which Bank serves as a Banker’s Bank?
A
State Bank of India
B
Reserve Bank of India
C
Union Bank of India
D
Central Bank of India
Question 38
Which one of the following is not an effective solution to solve the problem of poverty in India?
A
Control of population growth
B
Increase the production of necessities of life
C
Equitable distribution of incomes
D
Increasing the salaries of the workers
Question 39
Inflation means
A
very high prices
B
rising prices
C
falling prices
D
very low prices
Question 40
Match List I with list II and select the correct answer using the codes given below: List I                                                         List II
  1. Rajmannar Committee 1. Industrial Licensing
  2. Dutt Committee 2. Direct Taxes
  3. Wanchoo Committee 3. Central and State fiscal relation
  4. Chakravarthy Committee 4. Monetary System
A
3 1 2 4
B
2 3 1 4
C
1 4 3 2
D
4 2 1 3
Question 41
The sickness of some of the industries in India is mainly due to
A
Shortage of raw material
B
labour problem
C
transport problem
D
mis-management
Question 42
Disguised unemployment in India is mainly related to
  1. Agricultural sector II. Rural area
III. Factory sector                         IV. Urban area Choose the correct answer:
A
I and II are correct
B
II and IV are correct
C
III and IV are correct
D
I and III are correct
Question 43
Which term is not related to International Trade?
A
O. E. C. D
B
O. P. E. C
C
G. D. P
D
E. E. C
Question 44
Which of the following are priority objectives of the Eighth plan?
  1. Universalisation of elementary education
  2. Growth and diversification of Agriculture
  3. Containment of population growth
  4. Gradual privatization of public sector undertakings
A
I, II and IV are correct
B
II,III and IV are correct
C
I, III and IV are correct
D
I, II and III are correct
Question 45
The number of countries participating in GATT negotiations is
A
50
B
70
C
90
D
110
Question 46
Consider the following statements:
  1. Fifty years of planning has enabled India to become self sufficient in food
  2. India now has entered the Ninth Plan period
Of the statements:
A
I alone is correct
B
I and II are correct
C
II alone is correct
D
I and II are wrong
Question 47
In India largest number of workers are employed in
A
Iron and Steel Industry
B
Cotton Textile Industry
C
Jute Mill Industry
D
Sugar Industry
Question 48
Which of the following shows that India is Over populated?
A
India is the second most popular country next to China
B
The growth rate is highest in the world
C
There is a poverty, unemployment and pressure of land high birth rate
D
Small size land holdings
Question 49
Life Insurance Corporation of India  is an example of
A
Development Bank
B
Commercial Bank
C
Investment Bank
D
Co-operative Bank
Question 50
The reason for unemployment in rural areas of India is
A
poor industrial development
B
mechanization of agriculture
C
heavy density of population and halfhearted implementation of agrarian reforms
D
high illiteracy rate
Question 51
When was the First Five Year Plan launched in India?
A
1950
B
1954
C
1947
D
1955
Question 52
Population explosion in a country takes place when it has
A
high birth rate and high death rate
B
high birth rate and low death rate
C
low birth rate and high death rate
D
low birth rate and low death rate
Question 53
Very important hurdle in the way of economic development of India is
A
poverty
B
low capital formation
C
low saving rate
D
inefficient workers
Question 54
In India, professional tax is levied by
A
Union Government
B
State Government
C
Local Bodies
D
none of these
Question 55
Which industry provides jobs to the maximum number of people?
A
Iron and Steel
B
Cotton Textiles
C
Sugar Industry
D
Tea Processing
Question 56
Dumping refers to
A
selling at low prices
B
Selling at low prices in foreign markets
C
selling at high prices
D
none of these
Question 57
The aim of starting Industrial estates is
A
to attract foreign investors
B
to help small entrepreneurs
C
to promote large scale industries
D
to help sick industrial units
Question 58
A budget is
A
an estimate of the expenditure and receipts of Government for one year
B
a record of the past performance of Government
C
a forcast of Government’s future financial targets
D
a statements about the performances of public enterprises
Question 59
Amartya Sen was awarded Nobel prize in
A
Chemistry
B
Economics
C
Medicine
D
Physics
Question 60
Income Tax Rebate for senior citizens in the budget of 1994-95 qualifies people who are
A
58 and above
B
60 and above
C
65 and above
D
70 and above
Question 61
Trade Related Intellectual property Rights (TRIP) is a part of
A
Shimla Agreement
B
Rights guaranteed in the constitution of India
C
SAARC agenda
D
GATT agenda
Question 62
Minimum Needs Programme was introduced during the
A
Sixth Plan
B
Eighth plan
C
Third Plan
D
No such programme was introduced
Question 63
The Regulated Market aims at getting the farmers
A
loans
B
more consumers
C
fair prices
D
free lands
Question 64
‘GATT’ has been replaced  by
A
ILO
B
ITA
C
WOTT
D
WTO
Question 65
‘Land to the tiller’ involves
A
abolition of Zamindari System
B
ceiling of land holding
C
tenancy reforms
D
all of these
Question 66
Which one is not the feature of agricultural labourers?
A
They are unorganized
B
They are migratory in character
C
They are skilled and highly productive
D
They are poor
Question 67
Which one does  not accept deposit from public?
A
State Bank of India
B
Indian Bank
C
Indian Overseas Bank
D
Reserve Bank of India
Question 68
Due  to which of the following problems the currency of a nation meets strong pressure?
A
Capital flight
B
People shift to gold
C
Savings in banks discouraged
D
All of these
Question 69
Among these which one is the negative effect of Green Revolution?
A
Area of land attitude cultivation increased
B
A change in the attitude of the farmers
C
Depletion of forest and pasture ands
D
Generate market surplus
Question 70
Which one represents joint supply?
A
Birds and Cages
B
Radio Sets and TV sets
C
Wool and Mutton
D
Guitars and Violins
Question 71
What is the cure for inflation?
A
Decrease money supply
B
Increase the bank rate
C
Devaluation of currency
D
All of these
Question 72
Windfall profit occurs because of
A
Skilled management
B
Monopoly element
C
Unexpected circumstances
D
Efficient production
Question 73
The dominant occupation of Indians is
A
Trade
B
Industry
C
Transport
D
Agriculture
Question 74
Mother Industry is the name given to
A
iron and steel industry
B
sugar industry
C
cotton industry
D
cement industry
Question 75
Inflation is controlled through monetary policy by
A
RBI
B
Bank of India
C
Central Bank
D
none of these
Question 76
AGMARK is
A
a Co-operative for egg productions
B
a quality guarantee stamp for commodities like edible oils, ghee, honey etc.,
C
a regulated agricultural market
D
farmer’s co-operative
Question 77
Transporation creates
A
time utility
B
place utility
C
both time and place utility
D
none of these
Question 78
Which is the largest single source of central Government’s earning from tax revenue?
A
Excise Duty
B
Customs Duty
C
Wealth Duty
D
Income Tax
Question 79
Consider the following statements:
  • Assertion(A): Cotton and Textile industry in Tamil Nadu is in crisis
  • Reason(R): Yield of cotton is very low in Tamil Nadu.
Now select your answer  according to the coding scheme given below:
A
Both (A) and (R) are false
B
Both (A) and (R) are true
C
(A)is true, but (R) is false
D
(A) is false, but (R) is true
Question 80
“Crop Insurance Scheme” is beneficial to the farmers, because
  1. under this scheme farmers are protected against risks of crop  failures on payment of certain premium
  2. under this scheme loans are given to the poor farmers
  3. under this scheme farmers are assured of a fixed income and they are encouraged to increase production
  4. under this scheme the rate of interest is low.
Of the statements
A
I and III are correct
B
II and III are correct
C
I, II and III are correct
D
I and IV are correct
Question 81
Match List I with List II correctly and select your answer using the codes given below: List I                                             List II
  1. Green Revolution 1. Operation flood
  2. Milk Production 2. Indian agriculture
  3. Land reforms 3. Samathuvapuram
  4. Casteless Society 4. Ceiling on land holdings
A
1 3 4 2
B
2 1 4 3
C
4 3 2 1
D
2 1 3 4
Question 82
Expands PDS
A
Private Duty System
B
Public Distribution System
C
Public Demand Society
D
Public Dentist Society
Question 83
NABARD’S primary role is
A
to provide term loans to State Co-operative banks
B
to assist state Governments for share capital contributions
C
to act as a refinance institution
D
all of these
Question 84
Wanchoo Committee is associated with the following:
A
Direct taxation
B
Indirect taxation
C
Import duties
D
Export duties
Question 85
Disguised unemployment refers to
A
persons with no jobs
B
more persons employed for a job which a few can accomplish
C
unemployment among women
D
unemployment among educated
Question 86
In 1991 India devalued the rupee by
A
15.5%
B
18%
C
22%
D
33%
Question 86 Explanation: 
Note: In 1991 two times devalued 1st time 9%, 2nd time -11%
Question 87
Debentures are issued to raise
A
seasonal working capital
B
cyclical working capital
C
normal working capital
D
none of these
Question 88
Who acts as the chairman of the National Development Council?
A
Minister of planning
B
Secretary of the planning Commission
C
Minister of state for planning
D
Prime Minister
Question 89
The Industrial Credit and Investment Corporation of India (ICICI) was established to provide financial assistance to industrial units in
A
Private Sector
B
Public Sector
C
Joint sector
D
Small scale sector
Question 90
The object of the fiscal policy is
A
economic development
B
distribute justice
C
price stability
D
all of these
Question 91
Which of the following is the largest (in terms of profit) public sector organization in India?
A
Steel Authority of India
B
Bharat Heavy Electricals
C
Bharat Petroleum
D
Oil and Natural Gas Commission
Question 92
The highly labour intensive industry in India is
A
Iron and Steel Plants
B
Textile Mills
C
Construction
D
Handicrafts
Question 93
The Green Revolution has led to
A
increase in production
B
increase in regional inequalities
C
maximum benefit to the wheat crop
D
all of these
Question 94
SIDCO is concerned with
A
Steel production
B
Small Scale Industries
C
Large Scale industries
D
none of these
Question 95
What is a financial year?
A
March to March
B
April to April
C
May to May
D
January to January
Question 96
AGMARK refers to
A
egg production
B
regulated agricultural market
C
Co-operative bank
D
quality guarantee stamp for agricultural commodities
Question 97
NABARD is a
A
Bank
B
Bureau
C
Board
D
Department
Question 98
A person who has an account in a bank is considered to be
A
a Debtor
B
a Customer
C
a Creditor
D
an Agent
Question 99
Economic planning is necessary for
A
rapid increase in national income
B
rapid economic growth
C
establishing socialistic society
D
all of these
Question 100
What is meant by Industrial sickness?
A
Lack of funds for survival
B
More unemployment
C
High cost of production
D
More capital required
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