Q. Which type of economy does India follow?
A). Capitalist economy
B). Socialist economy
C). Mixed economy
D). Command economy
Answer: C). Mixed economy
Explanation: India follows a mixed economy, combining elements of both private enterprise and government control for balanced growth and social welfare.
Q. In which economic system does the government control major industries to reduce inequality?
A). Capitalism
B). Socialism
C). Mixed economy
D). Laissez-faire economy
Answer: B). Socialism
Q. When was the Planning Commission of India established?
A). 1945
B). 1950
C). 1952
D). 1960
Answer: B). 1950
Explanation: The Planning Commission of India was established in 1950 to formulate five-year plans for the country’s economic development.
Q. _ is the chairman of Planning commission.
A). A member of Parliament
B). The Prime Minister of India
C). The President of India
D). A Governor of a state
Answer: B). The Prime Minister of India
Explanation: By convention, the Prime M
Q. India’s Five-Year Plans were borrowed from which country?
A). United Kingdom
B). United States
C). China
D). Soviet Union
Answer: D). Soviet Union
Q. The first Five-Year Plan of India focused mainly on:
A). Heavy industries
B). Agriculture
C). Defence
D). IT and services
Answer: B). Agriculture
Explanation: The First Five-Year Plan (1951–1956) prioritized agriculture, irrigation, and energy to build a strong foundation for future industrial growth.
Q. Self-reliance in India was linked with which type of economic strategy?
A). Export-oriented strategy
B). Import-substitution strategy
C). Laissez-faire strategy
D). Free trade strategy
Answer: B). Import-substitution strategy
Q. The main objective of land ceiling laws in India was to:
A). Increase tax collection
B). Promote equitable distribution of land
C). Encourage large-scale farming
D). Support industrial development
Answer: B). Promote equitable distribution of land
Q. The Green Revolution mainly focused on the production of:
A). Pulses and oilseeds
B). Wheat and rice
C). Millets only
D). Cash crops
Answer: B). Wheat and rice
Q. P. C. Mahalanobis was the founder of:
A). Indian Council of Agricultural Research
B). Indian Statistical Institute
C). Reserve Bank of India
D). Planning Commission
Answer: B). Indian Statistical Institute (Calcutta)
Q. The Industrial Policy Resolution, 1956 classified industries into how many schedules?
A). Two
B). Three
C). Four
D). Five
Answer: B). Three
Q. Consider the following statements about the Permit–License Raj:
1). It required industries to obtain government licenses to start or expand.
2). It aimed to promote a free market economy.
Which of the statements given above is/are correct?
A). Only 1
B). Only 2
C). Both 1 and 2
D). Neither 1 nor 2
Answer: A). Only 1
Explanation: The Permit–License Raj involved strict government control over industries and did not promote a free market economy.
Q. Under Permit–License Raj, competition in the industrial sector was:
A). Encouraged
B). Completely free
C). Restricted
D). Internationally competitive
Answer: C). Restricted
Explanation: Licensing limited entry of new firms, reducing competition.
Q. The Karve Committee is also known as the:
A). Heavy Industries Committee
B). Village and Small Industries Committee
C). Industrial Licensing Committee
D). Planning Review Committee
Answer: B). Village and Small Industries Committee
Explanation: The Karve Committee was set up in 1955 to examine the role of village and small-scale industries.
Q. The Second Five-Year Plan was based on the model proposed by:
A). D. R. Gadgil
B). M. S. Swaminathan
C). P. C. Mahalanobis
D). V. T. Krishnamachari
Answer: C). P. C. Mahalanobis
Q. The Second Five-Year Plan emphasized development of:
A). Consumer goods industries
B). Heavy and capital goods industries
C). Cottage industries only
D). Service sector
Answer: B). Heavy and capital goods industries
Explanation: Priority was given to steel, machinery, and heavy industries.
Q. Mahalanobis started which journal?
A). Economic Weekly
B). Sankhya
C). Yojana
D). Indian Economic Review
Answer: B). Sankhya
Q. Match the following:
1. Gross Domestic Product
2. Quota
3. Land reforms
4. HYV seeds
5. Subsidy
a). Quantity of goods that can be imported
b). Seeds that give large proportion of output
c). The money value value of all the final goods and services produced within the economy in one year
d). Improvements in the field of agriculture to increase its productivity
e). The monetary assistance given by government for the production activities
Options:
A). 1–c, 2–b, 3–d, 4–a, 5–e
B). 1–b, 2–a, 3–c, 4–d, 5–e
C). 1–d, 2–b, 3–e, 4–c, 5–a
D). 1–c, 2–a, 3–d, 4–b, 5–e
Answer: D). 1–c, 2–a, 3–d, 4–b, 5–e