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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