MCQ- Economics
MCQ
UNIT 1
Economic system of the world
Capitalism
Socialism
Mixed Economy
Five-Year Planning in India
The Sectors of the Indian Economy
Capitalism
1. Which of the following is a key feature of capitalism?
A) Collective ownership
B) Central planning
C) Private ownership of resources
D) Absence of competition
Answer: C) Private ownership of resources
2. In a capitalist economy, prices are determined by:
A) Government regulation
B) Consumer preferences
C) Central authority
D) Market forces
Answer: D) Market forces
3. Which of the following is a disadvantage of capitalism?
A) Lack of innovation
B) Income inequality
C) Lack of consumer choice
D) Overreliance on government
Answer: B) Income inequality
4. Which country is considered to have a primarily capitalist economy?
A) North Korea
B) Sweden
C) United States
D) Cuba
Answer: C) United States
5. What is the primary driving force in a capitalist economy?
A) Government intervention
B) Social welfare
C) Profit motive
D) Planned economy
Answer: C) Profit motive
Socialism
6. Which of the following is a characteristic of socialism?
A) Private ownership of resources
B) Profit motive
C) Government ownership of resources
D) Market-determined prices
Answer: C) Government ownership of resources
7. In a socialist economy, the distribution of goods is determined by:
A) Market forces
B) Profit maximization
C) Central planning
D) Consumer demand
Answer: C) Central planning
8. Which of the following countries is an example of a socialist economy?
A) United States
B) Sweden
C) North Korea
D) Japan
Answer: C) North Korea
9. Socialism aims to achieve:
A) Maximum profit
B) Equal distribution of wealth
C) Market competition
D) Minimal government intervention
Answer: B) Equal distribution of wealth
10. Which of the following is a disadvantage of socialism?
A) Lack of government intervention
B) Income inequality
C) Reduced incentives for innovation
D) High consumer choice
Answer: C) Reduced incentives for innovation
Mixed Economy
11. What is a mixed economy?
A) An economy with no government intervention
B) An economy with complete government control
C) An economy that combines elements of capitalism and socialism
D) An economy with only public sector enterprises
Answer: C) An economy that combines elements of capitalism and socialism
12. In a mixed economy, who controls the means of production?
A) Only the government
B) Only private individuals
C) Both private individuals and the government
D) Neither private individuals nor the government
Answer: C) Both private individuals and the government
13. Which of the following is a feature of a mixed economy?
A) No role for private enterprises
B) Complete absence of government regulation
C) Coexistence of public and private sectors
D) Exclusive focus on social welfare
Answer: C) Coexistence of public and private sectors
14. Which of the following countries has a mixed economy?
A) United States
B) North Korea
C) India
D) Cuba
Answer: C) India
15. In a mixed economy, the government typically intervenes in:
A) Determining prices of all goods
B) Planning the entire economy
C) Providing public goods and services
D) Eliminating private enterprises
Answer: C) Providing public goods and services
Five-Year Planning in India
16. When was the First Five-Year Plan in India launched?
A) 1947
B) 1951
C) 1956
D) 1961
Answer: B) 1951
17. The focus of the First Five-Year Plan was:
A) Industrial development
B) Agriculture and irrigation
C) Education and health
D) Infrastructure development
Answer: B) Agriculture and irrigation
18. Which Five-Year Plan focused on the "Green Revolution"?
A) First Plan
B) Second Plan
C) Third Plan
D) Fourth Plan
Answer: D) Fourth Plan
19. The term "Garibi Hatao" (Remove Poverty) is associated with which Five-Year Plan?
A) Second Plan
B) Third Plan
C) Fourth Plan
D) Fifth Plan
Answer: D) Fifth Plan
20. Which was the last Five-Year Plan in India?
A) 10th Plan
B) 11th Plan
C) 12th Plan
D) 13th Plan
Answer: C) 12th Plan
21. Which agency was responsible for formulating Five-Year Plans in India?
A) Reserve Bank of India
B) Ministry of Finance
C) Planning Commission
D) NITI Aayog
Answer: C) Planning Commission
22. The focus of the Eleventh Five-Year Plan (2007-2012) was:
A) Poverty alleviation
B) Inclusive growth
C) Industrial growth
D) Infrastructure development
Answer: B) Inclusive growth
23. Which Five-Year Plan was terminated before its completion due to war?
A) First Plan
B) Second Plan
C) Third Plan
D) Fourth Plan
Answer: C) Third Plan
24. Who is considered the architect of India's First Five-Year Plan?
A) Mahatma Gandhi
B) Jawaharlal Nehru
C) Dr. B.R. Ambedkar
D) P.C. Mahalanobis
Answer: D) P.C. Mahalanobis
25. The concept of Five-Year Plans in India was borrowed from which country?
A) United States
B) United Kingdom
C) Soviet Union
D) China
Answer: C) Soviet Union
Sectors of the Indian Economy
26. Which of the following is considered the primary sector of the Indian economy?
A) Agriculture
B) Manufacturing
C) Services
D) Information Technology
Answer: A) Agriculture
27. Which sector of the Indian economy has the largest share in GDP?
A) Agriculture
B) Industry
C) Services
D) Mining
Answer: C) Services
28. Which of the following is a characteristic of the tertiary sector?
A) Production of raw materials
B) Manufacturing of goods
C) Provision of services
D) Extraction of natural resources
Answer: C) Provision of services
29. Which sector is known as the backbone of the Indian economy?
A) Agriculture
B) Manufacturing
C) Services
D) Mining
Answer: A) Agriculture
30. Which industry is a part of the secondary sector?
A) Farming
B) Retail
C) Construction
D) Software services
Answer: C) Construction
31. Which sector includes activities like banking, education, and health?
A) Primary sector
B) Secondary sector
C) Tertiary sector
D) Quaternary sector
Answer: C) Tertiary sector
32. Which of the following is NOT a part of the primary sector?
A) Mining
B) Fishing
C) Banking
D) Agriculture
Answer: C) Banking
33. Which of the following is a major problem faced by the agricultural sector in India?
A) High industrial output
B) Lack of skilled labor
C) Fragmented land holdings
D) High technological adoption
Answer: C) Fragmented land holdings
34. Which of the following sectors is responsible for the maximum employment in India?
A) Primary sector
B) Secondary sector
C) Tertiary sector
D) Quaternary sector
Answer: A) Primary sector
35. Which sector is experiencing the fastest growth in India?
A) Primary sector
B) Secondary sector
C) Tertiary sector
D) Quaternary sector
Answer: C) Tertiary sector
36. Which of the following is considered a challenge for the secondary sector in India?
A) High agricultural productivity
B) Inadequate infrastructure
C) Lack of services
D) Overdependence on technology
Answer: B) Inadequate infrastructure
37. Which of the following is an example of a public sector enterprise in India?
A) Tata Steel
B) Reliance Industries
C) ONGC
D) Infosys
Answer: C) ONGC
38. Which of the following is a major export from the Indian services sector?
A) Textile goods
B) Information technology services
C) Petroleum products
D) Agricultural products
Answer: B) Information technology services
39. The Green Revolution in India is most closely associated with which sector?
A) Primary sector
B) Secondary sector
C) Tertiary sector
D) Quaternary sector
Answer: A) Primary sector
40. Which of the following is a characteristic of the informal sector in India?
A) High wages
B) Job security
C) Lack of formal contracts
D) Extensive government regulation
Answer: C) Lack of formal contracts
41. Which Indian sector has seen significant FDI inflows in recent years?
A) Agriculture
B) Construction
C) Services
D) Mining
Answer: C) Services
42. Which of the following is a policy initiative to support the manufacturing sector in India?
A) Make in India
B) Digital India
C) Skill India
D) Swachh Bharat
Answer: A) Make in India
43. Which state in India is the leading producer of agricultural products?
A) Maharashtra
B) Uttar Pradesh
C) Punjab
D) Tamil Nadu
Answer: B) Uttar Pradesh
44. The term "disguised unemployment" is most commonly associated with which sector?
A) Primary sector
B) Secondary sector
C) Tertiary sector
D) Quaternary sector
Answer: A) Primary sector
45. Which of the following factors has contributed to the growth of the services sector in India?
A) Increase in agricultural productivity
B) High industrial output
C) Outsourcing and IT services
D) Government subsidies
Answer: C) Outsourcing and IT services
46. Which Indian sector is most vulnerable to monsoon failures?
A) Secondary sector
B) Tertiary sector
C) Primary sector
D) Quaternary sector
Answer: C) Primary sector
47. Which of the following is NOT a part of India's secondary sector?
A) Automobile manufacturing
B) Textile production
C) Coal mining
D) Banking services
Answer: D) Banking services
48. Which Indian sector has benefited the most from liberalization, privatization, and globalization (LPG) reforms?
A) Primary sector
B) Secondary sector
C) Tertiary sector
D) Quaternary sector
Answer: C) Tertiary sector
49. Which of the following is an example of a cooperative sector in India?
A) Indian Railways
B) Amul Dairy
C) Maruti Suzuki
D) Infosys
Answer: B) Amul Dairy
50. Which of the following schemes was introduced to support the small and medium enterprises (SMEs) in India?
A) Make in India
B) Digital India
C) Start-up India
D) Prime Minister’s Employment Generation Programme (PMEGP)
Answer: D) Prime Minister’s Employment Generation Programme (PMEGP)
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