1. Nature of Indian Economy

Q- It will be true to classify India as
(a) A food-deficit economy
(b) A labour-surplus economy
(c) A trade-surplus economy
(d) A capital-surplus economy
Ans: (b)

Q- Which sector of Indian Economy has shown remarkable expansion during the last decade?
(a) Primary Sector
(b) Secondary Sector
(c) Tertiary Sector
(d) Mining Sector
Ans: (c)

Q- When development in economy takes place, the share of tertiary sector in National Income
(a) first falls and then rises
(b) first rises and then falls
(c) keeps on increasing
(d) remains constant
Ans: (c)

Q- The term ‘mixed economy’ denotes
(a) existence of both rural and urban sectors
(b) existence of both private and public sectors
(c) existence of both heavy and small industries
(d) existence of both developed and underdeveloped sectors
Ans: (b)

Q- Mixed economy means
(a) Where agriculture and industry are given equal importance
(b) Where public sector exists alongwith the private sector in national economy
(c) Where globalization is transferred with heavy dose of Swadeshi in national economy
(d) Where the Centre and the States are equal partners in economic planning and development
Ans: (b)

Q- Economic liberalisation in India started with
(a) substantial changes in industrial licensing policy
(b) the convertibility of Indian rupee
(c) doing away with procedural formalities for foreign direct investment
(d) significant reduction in tax rates
Ans: (a)

Q- The ‘Dual Economy’ is a mixture of
(a) traditional agriculture sector and modern industrial sector
(b) industrial sector and manufacturing sector
(c) state ownership of the means of production in corporation of foreign organisation
(d) industrial sector and trading of goods obtained through imports
Ans: (a)

Q- Identify the factors responsible for the retarded economic development of India
1. Long British
2. Shortage of capital
3. Westerhised social attitude
4. Caste system
(a) Only 1 and 4
(b) Only 1, 2 and 3
(c) Only 1, 2 and 4
(d) Only 3 and 4
Ans: (c)

Q- There are inequalities in income and wealth distribution in India. This implies that
(a) India has a feudal society
(b) The economy is under developed
(c) Indian society is conservative
(d) Planning has failed
Ans: (b)

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