Indian Economy 1950 to 1990 MCQs Class 12 Economics are covered in this Article. Indian Economy MCQ 1950 to 1990 Test contains 48 questions. Answers to MCQ questions for Class 12 Indian Economics are available after clicking on the answer.
Indian Economy 1950 to 1990 MCQs Class 12 (Multiple Choice Questions)
1. When was the Planning Commission set up in India?
a) 1952
b) 1950
c) 1964
d) 1975
Answer
Answer: The Planning Commission in India was set up in 1950. Therefore, the correct option is B.
2. Which economy produces the goods that can be sold in the domestic or foreign market for profit motive?
a) Capitalist economy
b) Socialist economy
c) Mixed Economy
d) None of the above
Answer
Answer: The correct option is A, because in Capitalist economy, goods are produced and sold by the market which works on profit motive.
3. Who was the Chairperson of the Planning Commission of India ?
a) President of India
b) Finance Minister of India
c) Prime Minister of India
d) Governor of RBI
Answer
Answer: Prime Minister of India always acts as the Chairperson of the Planning Commission. So, option C is correct.
4. Which one of the following , is not a goal of the Planning Commission ?
a) Economic Growth
b) Equity
c) Resource conservation
d) Self-reliance
Answer
Answer: Resource conservation was not one of the four goals of the Planning Commission. Therefore, option C is correct.
5. In the language of economics, which one of the following is a good-indicator of economic growth?
a) GDP
b) NDP
c) GNP
d) NNP
Answer
Answer: GDP or the Goss Domestic Product can be defined as the market value of all the goods and services produced within the domestic boundary of India during a financial year. It acts as a good-indicator of economic growth of the country. Thus, option A is correct.
6. What is the term used for the policy ,which promote setting up of an upper limit of the land that could be owned by a landowner ?
a) Land Fragmentation
b) Land Ceiling
c) Land Cultivation
d) Land Tilling
Answer
Answer: The correct option is B, because Land Ceiling is a policy of land reform which means setting up of a maximum limit on the ownership of the land.
7. Name the two states in which land-reform were successful ?
a) Maharashtra and Tamil Nadu
b) Karnataka and West Bengal
c) Uttar Pradesh and Bihar
d) West Bengal and Kerala
Answer
Answer: West Bengal and Kerala are the two states in which land-reform was successful because Government of these states was committed towards the implementation of the policy. So, D is the correct option.
8. For the growth of___________, use of HYV seeds was beneficial.
a) Rice
b) Barley
c) Wheat
d) Pulses
Answer
Answer: C is the correct option because the use of HYV seeds was successful mainly in the wheat-growing regions.
9. What percentage of population was employed in agriculture by late 1990s ?
a) 65
b) 75
c) 60
d) 55
Answer
Answer: In spite of increase in agricultural productivity due to green revolution, 65% of population was still employed in agriculture even in late 1990s. Therefore, A is the correct option.
10. Which sector was given the main emphasis in 2nd five-year plans?
a) Agriculture
b) Trade
c) Industry
d) Transport
Answer
Answer: Five-year plan put main emphasis on the development of industrial sector. Therefore, C is the correct answer.
MCQ on Indian Economy 1950 to 1990 Class 12 – Question 11 – 25
11. In which year, Industrial Policy Resolution was adopted?
a) 1956
b) 1950
c) 1965
d) 1953
Answer
Answer: A is the correct option. Industrial Policy Resolution was adopted in the year 1956.
12. Name the committee formed for the Village and Small-Scale Industries in 1955.
a) Narasimhan committee
b) Karve Committee
c) Basel Committee
d) Rangarajan Committee
Answer
Answer: In 1955, Karve committee was formed for Village and Small-Scale industries. So, option B is the correct.
13. What is the trade-strategy, which India adopted in the first-seven five-year plans?
a) Partially inward-looking trade strategy
b) Partially outward looking trade strategy
c) Inward looking trade strategy
d) Outward looking trade strategy
Answer
Answer: India adopted inward looking trade strategy for increasing domestic production. Therefore, C is the correct option.
14. In which year, The New Economic policy was introduced?
a) 1992
b) 1993
c) 1996
d) 1991
Answer
Answer: D is the correct option. The New Economic Policy was introduced in the year 1991.
15. In 1950-1951,gross area under cultivation was ___crore hectare which now has shot up to __crore hectare.
a) 15,17
b) 13,19
c) 10,20
d) None of the above
Answer
Answer: Due to Green revolution the area under cultivation increased from 13 crore hectare to 19 crore hectare. The correct option is B..
16. Consider the following statement with respect to Indian agriculture and mention the correct combination.
I) Green Revolution led to the introduction of new technology
II) Green Revolution started the usage of HYV seeds
III) Green Revolution resulted in the improvement in oilseeds.
a) I and II
b) II and III
c) I only
d) None of the above.
Answer
Answer: The correct option is A, Combination I and II is correct, it led to improvement in Wheat majorly and rice to a certain extent, therefore C is not correct.
17. Consider the following statement with respect to Indian Industries and mention the correct combination.
I) Industrial Policy resolution was adopted in 1956
II) Karve Committee was set up in favour of small-scale industries
III) In 1991,Industrial Licensing policy was abolished for the improvement of Industries
a) Only I
b) Only II and III
c) None of the above
d) All of the above.
Answer
Answer: the correct option is D; all of the above.
18. The four goals of five-year plans include which of the following : –
a) Growth ;
b) Modernization
c) Self-reliance
d) All of the above
Answer
Answer: d) All of the above
19. The economy which produces only those consumer goods , which are demanded by the buyers and which can be sold in domestic or foreign markets profitably is known as : –
a) Market economy.
b) Capital Economy
c) Both A and B
d) None of the above
Answer
Answer: c) Both A and B
20. Land-ceiling is a policy of land-reform, under which the ——– size of the agricultural land that can be hold by a landowner is fixed.
a) Maximum
b) Minimum
c) Average
d) All of the above
Answer
Answer: a) Maximum
21. The use of HYV seeds requires availability of :
a) Regular supply of water ;
b) Use of pesticides and fertilizers in correct proportion
c) Both A and B
d) None of the above
Answer
Answer: c) Both A and B
22. The portion of agricultural produce which the farmer actually sells in the market after satisfying his domestic need is called : –
a) Profitable
b) Marketed Surplus
c) Cost surplus
d) None of the above
Answer
Answer: b) Marketed Surplus
23. Industries are classified into __________ categories in the Industrial Policy Resolution:
a) Two
b) Three
c) Four
d) Five
Answer
Answer: b) Three
24. Small scale industries in 1950 were defined as all those industries in which maximum investment was ________ lakh rupee
a) Five
b) Ten
c) Twenty
d) Once Crore
Answer
Answer: a) Five
25. Small scale industries today defined as all those industries in which maximum investment is _________
a) Less than Five Lakh
b) Less than Ten Lakh
c) Twenty Crore
d) Less than ten Crore
Answer
Answer: d) Less than ten Crore
26. At the time of independence_______ system of economy appealed to Jawaharlal Nehru the most. ( Fill in the blank with correct option )
a) Capitalist
b) Socialist
c) Mixed economy
d) Open economy
Answer
Answer: (b) Socialist
27. ________ refers to an arrangement by which central problem of an economy are solved.( Fill in the blank with correct alternative)
a) Economic growth
b) Social welfare
c) Economic system
d) Socialism
Answer
Answer: (c) Economic system
28. ______ spells out how the resources of a nation are put to use ( fill in the blank with correct alternative)
a) Plan
b) Feedback
c) Economic system
d) Policy
Answer
Answer: (a) Plan
29. The planning commission was set with the _________ as its chairman. ( Fill in the blank with correct alternative)
a) Prime minister
b) President
c) Civil servants
d) State ministers
Answer
Answer: (a) Prime minister
30. _________ is known as the architect of Indian planning. ( Fill in the blank with correct alternative)
a) Jawaharlal Nehru
b) Mahatma Gandhi
c) Mahalanobis
d) M Visvesvaraya
Answer
Answer: (c) Mahalanobis
31. The contribution made by each sector of the economy into GDP is called_______.( Fill in the blank with correct option)
a) Real GDP
b) Structural GDP
c) Structural composition
d) Real composition
Answer
Answer: (c) Structural composition
32. Read the following statement given below and choose the correct alternative
Statement 1- Small scale industries are more capital intensive
Statement 2- Industrial policy resolution formed the basis of second five year plan
a) Both are correct
b) Both are incorrect
c) Statement 1 is correct and statement 2 is incorrect
d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: (d) Statement 1 is incorrect and statement 2 is correct
33. Read the following statement given below and choose the correct alternative
Statement 1- Inward looking trade policy is known as import substitution
Statement 2- Tariffs and quotas were the instruments of import substitution policy
a) Both are correct
b) Both are incorrect
c) Statement 1 is correct and statement 2 is incorrect
d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: (a) Both are correct
34. Read the following statement given below and choose the correct alternative
Statement 1- In a capitalist economy, goods and services are distributed on the basis of what people actually need
Statement 2- In a socialist economy, goods and services are distributed on the basis of purchasing power
a) Both are correct
b) Both are incorrect
c) Statement 1 is correct and statement 2 is incorrect
d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: (b) Both are incorrect
35. Read the following statement given below and choose the correct alternative
Statement 1- Small scale industries were important for employment generation
Statement 2- Small scale industries contributed in foreign trade
a) Both are correct
b) Both are incorrect
c) Statement 1 is correct and statement 2 is incorrect
d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: (a) Both are correct
36. Read the following statement given below and choose the correct alternative
Statement 1- The investment limit of small scale industries is INR 10 crore
Statement 2- There are 68 items which are reserved for small scale industry
a) Both are correct
b) Both are incorrect
c) Statement 1 is correct and statement 2 is incorrect
d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: (b) Both are incorrect
37. Choose the correctly matched pair from the following
| Column A | Column B |
| A. Small scale industry | 1. Green revolution |
| B. Introduction of new technology and scientific farm management practices | 2. Prone to pest attacks |
| C. Indian agriculture at the time of independence | 3. Dependent on monsoon |
| D. HYV crops | 4. Established in 1955 |
a) A-1
b) B-2
c) C-3
d) D-4
Answer
Answer: (c) C-3
38. Choose the correctly matched pair from the following
| Column A | Column B |
| A. Subsidy | 1. Economic benefit granted by government to domestic producers |
| B. Economic planning | 2. Reducing dependence on imports |
| C. Modernization | 3. Optimum utilisation and coordination of limited resources |
| D. Self reliance | 4. Adoption of new technology |
a) A-1
b) B-2
c) C-3
d) D-4
Answer
Answer: (a) A-1
39. Read the following statement given below and choose the correct alternative
Assertion(A)- After independence, India adopted inward looking trade strategy which is called import substitution
Reason ( R)- Import substitution was highly regulatory and restrictive in nature
a) Both assertion and reason are true. Reason is the correct explanation of assertion
b) Both assertion and reason are true. Reason is not the correct explanation of assertion
c) Assertion is true but reason is not
d) Reason is true but assertion is not
Answer
Answer: (b) Both assertion and reason are true. Reason is not the correct explanation of assertion
40. Read the following statement given below and choose the correct alternative
Assertion (A)- After independence, India adopted mixed economy
Reason (R )- After independence, India adopted the objective of economic growth with social justice.
a) Both assertion and reason are true. Reason is the correct explanation of assertion
b) Both assertion and reason are true. Reason is not the correct explanation of assertion
c) Assertion is true but reason is not
d) Reason is true but assertion is not
Answer
Answer: (a) Both assertion and reason are true. Reason is the correct explanation of assertion
41. Read the following statement given below and choose the correct alternative
Assertion (A)- In a mixed economy, factors of production are owned by the public sector
Reason (R )- Consumer sovereignty exists in mixed economy
a) Both assertion and reason are true. Reason is the correct explanation of assertion
b) Both assertion and reason are true. Reason is not the correct explanation of assertion
c) Assertion is true but reason is not
d) Reason is true but assertion is not
Answer
Answer: (d) Reason is true but assertion is not
42. Read the following statement given below and choose the correct alternative
Assertion ( A)- Economic planning means coordination and utilisation of available resources in an economy
Reason ( R)- Economic planning is undertaken by the private sector in an economy
a) Both assertion and reason are true. Reason is the correct explanation of assertion
b) Both assertion and reason are true. Reason is not the correct explanation of assertion
c) Assertion is true but reason is not
d) Reason is true but assertion is not
Answer
Answer: (c) Assertion is true but reason is not
43. Read the following statement given below and choose the correct alternative
Assertion(A)- Land reforms refers to the change in the ownership of landholdings
Reason (R )- Equity in agricultural sector called for land reforms in 1950
a) Both assertion and reason are true. Reason is the correct explanation of assertion
b) Both assertion and reason are true. Reason is not the correct explanation of assertion
c) Assertion is true but reason is not
d) Reason is true but assertion is not
Answer
Answer: (c) Assertion is true but reason is not
Read the case study given below and answer the questions that follows
Economic growth suggests a steady expansion in GDP or a predictable expansion in the degree of production or a reliable expansion in the progression of labor and products in the economy throughout an extensive stretch of time.
Modernisation– It is a process of updating or improving something especially in the field of science and technology where we are doing technological advancement and innovation.
Self reliance– It implies staying away from imports of those products which can be produced in India itself. This approach was viewed as a need to lessen our reliance on Foreign nations, particularly for food.
Equity suggests impartial dispersion of pay with the goal that the advantages of development is shared by the general public at large.
44. Which of the following are objectives of planning ( choose the correct alternative)
a) Modernization
b) Equity
c) Self reliance
d) All of the above
Answer
Answer: (d) All of the above
45. _______ refers to means avoiding imports of goods which could be produced in India ( Fill in the blank with correct option)
a) Equity
b) Modernization
c) Self reliance
d) Economic growth
Answer
Answer: (c) Self reliance
46. Economic growth refers to constant increase in _______.( Fill in the blank with correct option)
a) Production
b) GDP
c) Equity
d) None of the above
Answer
Answer: (b) GDP
47. Modernization facilitated ; ( choose the correct alternative)
a) Innovative
b) Invention
c) Adoption of new technology
d) All of the above
Answer
Answer: (d) All of the above
48. Equity aims at ;( choose the correct alternative)
a) Equitable distribution
b) Economic growth
c) Modernization
d) All of the above
Answer
Answer: (a) Equitable distribution
CBSE Class 12 Economics Term 1 MCQ Based Questions
Part A: Introductory Macroeconomics
- Money and Banking Class 12 MCQs – 6 Marks
- Government Budget and the Economy – 6 Marks
- Balance of Payments Class 12 MCQs – 6 Marks
- Foreign Exchange Rate MCQs
Part B: Indian Economic Development
Development Experience (1947-90) and Economic Reforms since 1991:- 12 Marks
- Indian Economy on the eve of Independence MCQs
- Indian Economy (1950-90) MCQs
- Economic Reforms since 1991 MCQs
Current challenges facing Indian Economy – 10 Marks
Frequently Asked Questions on Indian Economy 1950 to 1990 MCQs
1. Are these MCQ’s on Indian Economy 1950 to 1990 Class 12 Economics are based on 2021-22 CBSE Pattern ?
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