BBA 203- INDIAN ECONOMY

Question Bank for TT-1

Q1) MCQ
1) The best indicator of economic development of any country is?

a) Its agriculture
b) Its gross production

c) Its transport
d) Its per capita income

2) What is the mainstay of Indian economy?

a) Manufacturing
b) Public Sector

c) Business
d) Agriculture

3) India is the largest milk producing country in the world:

a) True

b) False

4) Who was the father of operation flood?

a) Dr. Norman Borlaug
b) Dr. Verghese Kurien

c) Dr. M.S. Swaminathan

d) Dr. William Gande

5) The increase in oil seeds production was due to?

a) White Revolution
c) Green Revolution
b) Yellow Revolution
d) Brown Revolution
6) The progress in increase of fish production was called
a) White Revolution
b) Brown Revolution

c) Yellow Revolution
d) Blue Revolution

7) Which state is the biggest tea producer in the country?

a) Andhra Pradesh
c) Sikkim
b) Assam
d) West Bengal
8) India holds 3rd position in the production of sugarcane:
a) True

b) False

9) The data of estimation of India's National income is issued by

a) Planning Commission
b) Central Statistical Organization

c) National data Centre

d) None of the above

10) First five year plan in India was from

a) 1947 1952
b) 1950-1955

c) 1949 - 1954
d) 1951-1956

11) First five year plan was based on

a) Harrod-Domar Model
b) Both

c) P.C. Mahalanobis Model

d) None of the above

12) Which five year plan focused on "Growth with social justice and equity
a) Ninth FYP
b) Seventh FYP

c) Eighth FYP
d) Sixth FYP

13) What is NSSO ?

a) National Social Science Organisation
Organisation
b) National Security Science Organisation
Organisation
14) Green Revolution started in
a) 1964-65
b) 1966-1967

c) National Social Study

d) National Sample Survey

c) 1965-1966
d) 1967-1968

15) Which one among the following formulates the fiscal policy in India
a. Planning Commission
c) Finance Commission
b. The Reserve Bank of India
d) Ministry of Finance
16) Which state has the highest Per Capita Income in India
a) Delhi
b) Punjab
17) Which industry is the largest?

c)Bihar
d) West Bengal

a) Handloom
b) Music

c) Sports
d) Textile

18) Who fixes the poverty line

a) Government
b) Rajya Sabha

c) Lok Sabha
d) Planning Commission

19) The aim of which of the Five Year Plans was to correct the disequilibrium
in the economy?
a) First FYP
b) Third FYP

c) Second FYP
d) Fourth FYP

20) Which of the following Five Year Plans recognized human development as
the core of all developmental efforts?
a) Eighth FYP
c) Seventh FYP
b) Fifth FYP
d) Third FYP
21) Which of the following plans aimed at improving the standard of living?
a) Third Plan
b) Fifth Plan

c) Fourth Plan
d) Sixth Plan

22) Which Indian state has the largest number of cotton textile mills?
a) Madhya Pradesh
b) Gujarat

c) Maharashtra
d) West Bengal

23) Which of the following plans aimed at the removal of poverty and
attainment of self-reliance?
a) second plan
b) fourth plan

c) third plan
d) fifth plan

24) Census in India is being held regularly after every

a) 6 years
b) 10 years

c) 8 years
d) 12 years

25) Who was the chief architect of Green Revolution that significantly improved
the agricultural yield in the country?
a) MS Swaminathan

c) VR Krisha Aiyyar
d) Jawaharlal Nehru

b) V Kurien

26) In Indian economy, the principal means of transportation is

a) airways
b) waterways

c) railways
d) roadways

27) Which industry employs the largest number of women in India?

a) tea
b) jute

c) textile
d) coal

28) SEBI stands for

a) Science and Engineering Board of India
b) Securities and Exchange Board of India
c) Social Equity Bureau of India
d) Science and Educational Board of India
29) During which Five Year Plan was the annual growth rate of National Income
the lowest?
a) second plan
b) third plan

c) fifth plan
d) sixth plan

30) Economic planning is an essential feature of

a) capitalist economy
b) socialist economy

c) mixed economy
d) dual economy

31) Development means economic growth with

a) price stability
b) social change

c) inflation
d) deflation

32) Which one of the following was set up during the Seventh Five Year Plan to
help the low income groups?
a) NABARD
b) Regional rural bank

c) National Housing Bank

d) UTI Bank

33) The launching of five year plans in India saw the introduction of
a) mixed economy
b) socialist economy

c) capitalist economy
d) closed economy

34) Which of the following has the sole right of issuing paper notes in India?
a) Union Government
b) Reserve Bank of India

c) Ministry of Finance
d) Supreme Court

35) In India, coins and subsidiary coins are issued by

a) Union Government
b) Reserve Bank of
36) The Indian economy is

c) Ministry of Finance
d) Supreme Court

a) Capitalist
b) Socialistic

c) Mixed
d) Federal

37) Which certification indicates a guarantee of quality for agricultural food

products like ghee, honey, etc.?
a) ISI
b) Agmark

c) BIS
d) All of above

38) Who was the first chairman of the Planning Commission?

a) Dr. S. Radhakrishnan
b) Jawaharlal Nehru

c) Dr. Rajendra Prasad

d) Dr. M. Vishveshwaraya

39) In terms of size what position does the Indian economy occupy in the world?
a) 10th
b) 12th

c) 7th
d) 9th

40) Which state has the highest percentage of people living below the poverty line?
a) Uttar Pradesh
b) Orissa

c) Bihar
d) Madhya Pradesh

41) Which of the following is the most populous city in India?

a) Mumbai
b) Delhi

c) Kolkata
d) Chennai

42) Which Indian state has the lowest percentage of people living below the
poverty line?

a) Punjab
b) Gujarat

c) Karnataka
d) Maharashtra

43) Which of the following is the top fruits producer in India?

(a) Gujarat
(c) Maharashtra
(b) Andhra Pradesh
(d) Himachal Pradesh
44) In census 2011, which of the following have minimum density of population?
(a) Bihar
(c) Goa
(b) Kerala
(d)Arunachal Pradesh
45)

Which
of
the
following
statement
is
not
correct?
(a) Birth rate is number of the births per thousand of the population during a
year.
(b) Blue chip is a company which does not guarantee about the return on an
investment
(c) Bull is a persons who is optimistic about the share market
(d) Boom is a situation of an economy in which price and employment are the
maximum

46) What kind of unemployment is found in the agricultural sector of India?

(a) Situational
(c) Frictional
(b) Voluntary
(d) Disguise
47) One of the reasons for Indias occupational structure remaining more or less
the same over the years has been that
(a)
(b)

Productivity in agriculture has been high enough to induce people to stay

with agriculture
People are largely unaware of the significance of transition from agriculture
to industry for economic development.

(c)

Investment pattern has been directed towards capital intensive industries.

(d)

ceilings-on land holdings have enabled more people to own land and hence
their preference to stay with agriculture

48) The modern economy is not characterised by?

(b)

capital intensive mode of production

development of money economy

(c)

production for market

(d)

self-sufficient village system

(a)

49) To know whether the rich are getting richer and the poor getting poorer, it is
necessary to compare
(a)
(b)

The availability of food grains among two sets of people, one rich and the
other poor, over different periods of time
The distribution of income of an identical set of income recipients in
different periods of time

(c)

The wholesale price index over different periods of time for different regions

(d)

The distribution of income of different sets of income recipients at a point of

time

50) Which of the following is not a direct tax?

(b)

Wealth Tax
Income Tax

(c)

Estate Duty

(d)

Sales Tax

(a)

Q2) CASE STUDY

CASE 1
The latest figures reveal the increasing trend in literacy ratio but it also depicts the
vast differences between rural and urban literacy growth rate. With around 296
million illiterate citizens above the age of seven, the government has initiated
various programs and missions for the quantitative expansion of education. As a
country, Indias main objective is to become a major challenge to global powers in
this sphere. Free and compulsory education to all children up to the age of fourteen
is the constitutional commitment in India. UNESCO also aims at education for all

by 2015 but our country is one among those where the literacy levels are much
lower than other countries and requires gigantic efforts to reach the globally
decided level of 75%. The Indian education system is perhaps the second largest in
the world catering students from different socio-economic background. At the time
of independence, emphasis was on the quantitative expansion of the education
facilities which tilted to quality education after the 1960s. However, in the present
decade, the government has been trying to spread education to the most remote
parts of the country with the help of various schemes to attract children residing in
rural areas to attend school such as the Midday Meal Scheme, Sarva Shiksha
Abhiyan (Education for All) etc. These schemes have been initiated keeping in
view of the goal of cent percent literacy ratio. The statistics shows that gross
enrolment ratio at present is about 90% at primary level and only 60% at secondary
level. This reveals that still many youngsters are out of school and not getting the
required education that can foster these individuals as well as national
development..
Questions:
(5+5)
1) What do you think is more important, quantity education or quality
education? Justify.
2) What do you understand by Inclusive Education? Bring in light any one
such policy in India catering to inclusive education. What measures do you
suggest to achieve high literacy rate in India?
CASE 2
South Asia, along with Sub-Saharan Africa, now accounts for the biggest share of
poor people in the world. Together with East Asia and Pacific, these three regions
comprise 1.6 billion of poor population (Multidimensional poverty Index, 2015). It
means limited access to all kinds of resources, from food and shelter to education
and even sanitation. For example, in India, around 50% lack proper
accommodation, 35% of the countrys households lack clean water supplies, and
70% of the entire population live in the anti-sanitary conditions. At the same time,
there are evident problems with schooling (85% rural locations do not have a
school), infrastructure, and child labor.

According to Indias Socioeconomic and Caste Census (SECC), 73% of the

countrys people live in rural areas. 95% of the rural population cannot afford
paying taxes, and over 90% do not have regular jobs. The poverty problem goes
along with low rates of illiteracy, as only 64.3% can read or write. While the worst
cases of poverty are mostly observed in villages, the urban poor spend about 4/5 of
all income on food.
Indias officials have been trying to solve the poverty problem for a long time. One
of the obstacles is that the countrys definition of poor is based on ones ability to
afford a minimum diet requirement of 2,400 (rural population) or 2,100 (urban
population) kcal per day. This way, all other peoples needs, except food, remain
neglected. Besides, even if the daily critical income level was raised by 100% (up
to $2.40), it would be much lower than in developed countries.
There are certain initiatives aimed at poverty reduction in India. Thus, in 2011, the
number of the poor was almost 8% down as compared with 2009. Still, except for
the targeted aid, too little is done to provide people, especially in rural areas, with
the necessary resources, such as, education, sewerage, or proper roads. The policy
makers should focus more on the countrys agrarian sector (due to the large
percentage of rural population), as it would serve more efficient redistribution of
human resources. Access to education is also essential in the context of poverty
elimination.
The difference between Indias poor and the poor of the Western countries is vast.
While in Europe, the USA, and a number of other developed countries, health care,
clean water, basic education, and shelter are accessible even to those who are
considered poor, all these things are thought of as a luxury by a large part of
Indians.
.
Questions:
(a)
(b)

(4+6)
Discuss the issue of poverty in India.
What are the various poverty alleviation programmes in India?

CASE 3
The unemployment scenario in India has always been quite acute. With a huge
population and slow growth of job opportunities, unemployment has been
widespread in India. Large scale unemployment has led to several socio-economic

problems like poverty, malnutrition, antisocial and criminal activities, drug and
substance abuse, etc. The lack of proper unemployment insurance schemes has
further aggravated this problem.
In the early 1990s, major economic reforms were undertaken in India. One of the
major objectives of these economic reforms was to boost employment in the Indian
economy. However, though the economic reforms were successful in raising
productivity and attracting FDI (Foreign Direct Investment), the growth in job
opportunities was not as high as had been expected. Another important factor in
the unemployment scenario in India is underemployment. There exists very high
underemployment in various sectors of the labor force in India. Disguised
unemployment also exists in various sectors of the Indian economy. Regional
imbalances in the unemployment scenario in India are another important factor.
While some areas have higher employment opportunities, some areas have very
low opportunities of employment. This has led to inter-state labor migration in the
Indian economy.
Questions:

(4+6)

1) What do you understand by disguised unemployment? Explain with

example.
2) Do you think unemployment, poverty and low standard of living are interrelated? Justify.

Q3) SHORT NOTES:

i.
ii.
iii.
iv.
v.
vi.
vii.
viii.

Disinvestment of Public Enterprises

Vicious Circle of Poverty
2 types of Poverty
Parallel Economy
Types of unemployment
Gini Coefficient as a measure of income inequality
MNREGA
Primary Sector of Indian Economy

Q4) DIFFERENCE:
i.
ii.
iii.

Economic Growth and Economic Development

Absolute and Relative Poverty
Rural Employment and Urban Employment

Q5) SHORT QUESTION:

i.
ii.
iii.
iv.

Explain in brief the changes in occupational structure of India post

independence.
Discuss the salient features of Indian Economy.
Explain any 2 objectives of Economic Planning in India.
What factors result in inequality of income in an economy? Elaborate.

Q6) LONG QUESTION:

i. What do you mean by economic planning? Discuss the concept of
Inclusive Growth in respect to current FYP of India.
ii. Critically evaluate the NIP 1991, highlighting its objectives and features.
iii. Explain the trends in changes in the sectoral composition of India.
iv. Critically evaluate the existence of inequalities in income distribution in
an economy.
v. Highlight some of the consequences of existence of parallel economy.
Also highlight various measures adopted in India to curb the issue of parallel
economy.