1st Chapter

Indian Economy On The Eve Of Independence

1. Among the following estimators whose estimates of per capita income of India during the colonial
period was considered very significant:
a) Dadabhai Naoroji
b) William Digby
c) R.C. Desai
d) V.K.R.V. Rao

2. Major contribution to the GDP of the country on the eve of independence was from:
a) Tertiary sector
b) Secondary sector
c) Primary sector
d) Both primary and secondary sector

3. British rule in India for almost

a) Almost 3 centuries
b) Almost 100 years
c) Almost 2 centuries
d) Almost 150 years

4. The economic policies pursued by the colonial government in India were concerned with
a) Protection and promotion of india
b) Protection of india and promotion of Britain
c) Protection and promotion of Britain
d) Both A and C

5. The impact of British policy on India economic structure was

a) India becomes supplier of raw materials and consumer of finished industrial products from Britain
b) India became supplier of finished product to Britain
c) India became supplier of finished industrial products and consumer of raw materials from Britain
d) Both B and C

6. One of the following statements about Indian economy is not true. Identify the false statement
a) Indian agriculture was flourishing before the advent of the British
b) India’s foreign trade throughout the colonial period was marked by a large export surplus
c) India had a sound industrial base under the British
d) British developed the Railway system in India for their own benefit

7. The Indian economy on the eve of the independence was:

a) Developed
b) Stagnant
c) Underdeveloped
d) (b) and (c)
AGRICULUTRE SECTOR

8. Agriculture sector is also known as:

a) Tertiary sector
b) Secondary sector
c) Primary sector
d) First sector

9. The main interest of the Zamidar was:

a) To collect rent
b) To improve the condition of agriculture
c) to product food crops
d) to produce cash crops

10. Despite being the major source of livelihood, the agriculture sector continued to experience
stagnation and deterioration during the British rule in India because of:
a) decline of handicraft
b) land tenure system
c) drain of India’s wealth
d) none of the above

11. The main reason for stagnation of agriculture during the British rule was:
a) Low literacy rate
b) Discriminatory tariff policy
c) Land tenure system
d) De- industrialization

12. There was high relatively higher yield of cash crops in certain areas of the country due
a) Better irrigation facility
b) Commercialization of agriculture
c) Good monsoon
d) None of these

INDUSTRIAL SECTOR

13. Initially, the industrial development was confined to the setting upof:
a) Cotton textile mills
b) Jute textile mills
c) Cotton and jute textile mills
d) Capital goods industry

14. Decline of handicraft industries led to :

a) Massive unemployment
b) Import of finished goods
c) Both (a) and (b)
d) Neither (a) nor (b)
15. ___________ Sector generally takes the output of the primary sector and manufactures _________
goods.
a) Agriculture, finished
b) Secondary, semi-finished
c) Tertiary, raw
d) Industrial, finished

16. The Tata Iron and Steel Company was incorporated in the year:
a) 1907
b) 1947
c) 1908
d) 1950

17. The major cause of decay of Indian handicrafts during British Rule:
a) Low priced machine made goods
b) Discriminatory tariff policy
c) Both (a) and (b)
d) Neither (a) nor (b)

18. The jute mills dominated by foreigners during the British rule, were mainly concentrated in:
a) Bengal
b) Gujarat
c) Maharashtra
d) d) Kerala

19. The finest variety of muslin was called:

a) Malmal
b) Malmalkhas
c) Malmalshahi
d) All of these

20. Capital goods industries are those industries which

a) Helps in Production of consumers good directly
b) Helps in production of machines and tools which produce consumer goods
c) Helps in agriculture production only
d) Needs more capital

21. Decay of handicrafts was caused by:

a) British tariff policy
b) Competition From Man-Made Machines
c) New Patterns of demand
d) all of these
Foreign Trade Sector

22. Suez canal was opened for transport in :

a) 1850
b) 1869
c) 1853
d) 1901

23. Under colonial dispensation the economic policies of the government were concerned with
a) Development of handicraft industries
b) Development of the colonized country
c) Promotion of British economic interest
d) None of these

24. On the eve of independence, India was net exporter of:

a) Primary products
b) Industrial products
c) Capital goods
d) Agricultural goods

25. The opening of Suez Canal served as a direct route for ships operating between:
a) India and America
b) India and Britain
c) India and Srilanka
d) India and Pakistan

26. The exports surplus during the British rule was used:
a) To make payments for expenses incurred by an office set up by the colonial government in Britain.
b) To meet expenses on war fought by the British government.
c) To import invisible items.
d) All of these.

DEMOGRAPHIC PROFILE

27. Before 1921, India was in the ______________ of demographic transition.

a) First stage
b) Second stage
c) Third stage
d) None of the above

28. Which year is described as the “year of Great Divide”?

a) 1881
b) 1907
c) 1921
d) 1931
 29. India was in the first stage of demographic transition:
a) Before 1947
b) after 1947
c) Before 1921
d) after 1921

30. At the time of Independence, the infant mortality rate was:

a) 220 per thousand
b) 250 per thousand
c) 218 per thousand
d) 280 per thousand

31. The first census in British India was held in the year:
a) 1880
b) 1881
c) 1882
d) 1883

32. During the British rule, high mortality rate was due to
a) Inadequate public health facilities
b) Occurrence of frequent natural calamities
c) Both (a) and (b)
d) Neither (a) nor (b)

33. High Birth Rate and Low Death Rate represents ___________ stage of demographic transition.
a) Third
b) First
c) Second
d) First and second

34. Which of the following statement is true regarding demographic profile of India during the
colonial rule?
a) Life expectancy was 63 years
b) Infant mortality rate was around 70 per thousand live births
c) Overall literacy level was less than 16 percent
d) Both birth rate and death rate were quite low.

OCCUPATIONAL STRUCTURE
35. Occupational structure refers to
a) Distribution of working force among the different occupations
b) Nature of different occupations
c) Size of working force in a country
d) Number of people living in a country
 36. The agriculture sector with _____ percent accounted for the largest share of workforce, during the eve of
Independence.
a) 70-75%
b) 80-85%
c) 75-80%
d) 60-65%

37. Parts of the then Madras Presidency comprised areas of the present-day states of :
a) Tamil Nadu and Andhra Pradesh
b) Kerala and Karnataka
c) Tamil Nadu and Andhra Pradesh and Orissa
d) Both A and B

Infrastructure sector

38. The most important infrastructure developed during British rule was:
a) Airways
b) Railways
c) Waterways
d) None of the these

39. Which service remained throughout inadequate under the colonial regime?
a) Law and order
b) Postal services
c) Railways
d) Ports

40. ____________refers to the fundamental facilities and system serving a country. City, or area,
including the services and facilities necessary for its economy to function.
a) Sanitation
b) Transport
c) Railways
d) Infrastructure

41. The Tata Airlines was incorporated in the year:

a) 1907
b) 1918
c) 1932
d) 1922

42. The road which was built by British in India was to

a) Mobilizing the army within India
b) Drawing out of raw materials from the countryside
c) To overcome the problem of frequent famines in India
d) Only A and B
 43. The railways affected the structure of the Indian economy in two ways
a) Commercialization of crops
b) Indian village becomes self-sufficient.
c) Broken the geographical and cultural barriers
d) Only A and C

44. This service becomes quite expensive and the British finally abandoned was
a) Airways sector
b) Defense sector
c) Inland waterways
d) Postal services

Match the followings

1. Choose the correct pair from Column A and Column B:

Column A Column B
Suez Canal 1921
First Railway Bridge 1907
Tata Steel 1869
Great Divide Year 1854

2. Arrange the following events in the order of occurrence:

a) First Railway bridge linking Bombay with Thane
b) Setting up of Tata Airlines
c) India conducted its first official Census.
d) India’s entry into the second stage of Demographic transition.
2ND CHAPTER
Planning in India
Introduction to economic planning
1. An ______________ is a system of production and exchange of goods and services.
a) Economy
b) Economic
c) Eco System
d) Environment

2. The economic system adopted in India is ___________.

a) Mixed
b) Capitalist
c) Socialist
d) Both (a) and (c)

3. __________ refers to an arrangement by which central problems of an economy are solved.

a) Economic system
b) Mixed economy
c) Modernisation
d) Socialist economy

4. Under which system the goods are disturbed among people not on the basis of what people need
but on the basis of purchasing power?
a) Capitalistic system
b) Socialistic system
c) Mixed system
d) Dual system

5. The share of agriculture in India’s GDP has _______ over the years.
a) Remained constant
b) Decreased
c) Increased
d) First decreased and then increased

6. The central problems of an economy are :

a) What to produce
b) How to produce
c) For whom to produce
d) All of these
7. The concept of Five Year Planning is outsourced from :
a) Russia
b) USA
c) Brazil
d) Mexico

8. The First Five Year Plan was based on :

a) DAGMAR Model
b) Harod-Domar Model
c) 20 Point Model
d) Fountain Model

GOAL OF FIVE YEAR PLAN

9. Who is known as the architect of ‘Indian Planning’?
a) Jawaharlal Nehru
b) DR. BR Ambedkar
c) PC Mahalanobis
d) Sardar Vallabh bhai Patel

10. From the following which is not the goals of planning India :
a) Growth
b) Correcting BOP
c) Self-reliance
d) None of the above

11. A good indicator of growth is steady increase in the

a) Gross domestic product
b) Net domestic product
c) Population
d) National income

12. The common goals of the five year plans are:

a) Modernisation
b) Growth
c) Self-reliance
d) All of the above

13. __________ implies use of advanced technology.

a) Modernisation
b) Globalisation
c) Privatisation
d) Planning

14. Self-reliance means avoiding:

a) Exports
 b) Imports
c) Both (a) and (b)
d) None of the above

15. The GDP of a country is not derived from the following sectors of the economy, namely
a) Service sector
b) Primary sector
c) Foreign sector
d) Secondary sector

16. Importance to self-reliance was given up till which five year plan
a) First 6 years plan
b) First 5 years plan
c) First 7 year plan
d) First 8 years plan

17. Modernization means

a) Increase the production of goods and services by adopt new technology.
b) Avoiding imports of those goods which could be produced in India itself
c) Recognition the women should have the same rights as men.
d) Both (a) and (c)

18. Self-reliance is does not include

a) To reduce our dependence on foreign countries, especially for food
b) To reduce our dependence on foreign countries, especially for defense items
c) Avoiding imports of those goods which could be produced in India itself
d) To reduce the foreign interference in our policies

19. Import substitution refers to a policy of substitution of imports by ________ production.

a) Domestic
b) Foreign
c) State
d) District

AGRICULTURE SECTOR REFORMS

20. Land ceiling refers to

a) Fixing the maximum size of land owned by the owner
b) Abolition of intermediaries
c) Portion of agricultural produce sold in the market
d) None of the above
 21. ___________ refers to fixing the specified limits of land, which could be owned by an individual.
a) Consolidation of holdings
b) Cooperative farming
c) Tariff
d) Land ceiling

22. Land reforms were successful in following states

a) Kerala and west Bengal
b) West Bengal and Karnataka
c) Tamil Nadu and Kerala
d) Punjab and Kerala

23. Which factor led to the breaking up of the stagnation of agriculture?

a) Land reforms
b) Green revolution
c) Buffer stocks
d) Land ceiling

24. Green revolution introduced during the planning process was restricted mainly to:
a) Wheat and rice
b) Cereals and pulses
c) Cotton and jute
d) Jowar and bajra

25. Before Green revolution introduced during the planning process india was at the mercy of this
country for meeting nation’s food requirements
a) America
b) China
c) British
d) Russia

26. Marketed surplus refers to the

a) Portion of agricultural produce which is sold in the market by the farmers
b) Portion of agricultural product which is sold by the government in the market
c) Earning of the farmers which is left with the farmers
d) Portion of agricultural product which is left with the farmer after selling in the market

INDUSTRY AND TRADE REFORMS

27. Which of the following is not true for small scale industries?
a) SSI labour intensive and therefore, employment oriented.
b) SSI needs small investment and is therefore, equity oriented
c) SSI is capital intensive and therefore, increases productivity
d) SSI shows locational flexibility and is therefore, equality oriented
28. During the initial stages of planning, special concession were given to the industries producing
goods to be used as substitutes for imported goods. This strategy was named as:
a) Inward looking trade strategy
b) Outward looking trade strategy
c) Export promotion strategy
d) None of the above

29. Protection of domestic industries took the form of:

a) Quotas
b) Tariffs
c) Both (a) and (b)
d) None of the above

30. Schedule A comprises of industries which would be exclusively owned by __________.

a) Government
b) Private Sector
c) Both (a) and (b)
d) None of these

31. Inward looking trade strategy is also known as a policy of ___________.

a) Import relaxation
b) Import substitution
c) Import promotion
d) None of these

32. Five year plans has put a lot of emphasis in the growth of Industries because
a) Industries provide more stable employment than agriculture
b) Promotes modernization
c) Growth of economy
d) All of above

33. Industrial Policy Resolution of 1956 to classify the industries in category was adopted to
a) To promote regional equality
b) To protect the domestic industry
c) To increase the role of public sector
d) All of the above

34. License to expand production under industrial policy was given was given only
a) When government is convinced that it can earn huge taxes
b) When the industry can earn handsome foreign exchange
c) When government was convinced that the economy required a larger quantity of goods
d) To reduce the role of public sector

35. In 1955, the Village and Small-Scale Industries Committee, also called the Karve Committee, noted
the possibility of using small-scale industries to
a) Increase the role private sector
b) To increase the taxes
 c) Both A and B
d) To generate employment in rural areas

36. Maximum limit to start small scale in present scenario is

a) 5 lakh
b) 50 lakh
c) 1 crore
d) 5 crore

37. Small scale industries was given protection by the government due to
a) They cannot compete with large industries
b) They are more suitable in rural development
c) Both A and B
d) To keep a check on private Sector

38. Effect of industrial policy 1956 on industries was

a) Industries started to get diversified
b) India become self-sufficient in industrial goods
c) Industries share fall in GDP during 1991
d) Only A and B

Match the following

1. Match the following columns Industrial Policy Resolution of 1956 classified the industries into the
following category
Column A Column B
1. First category A. Private sector will supplement the public sector
2. Second category B. Meant for private sector through the system of licenses
3. Third category C. Meant only for public Sector

2. Match the following columns

Column A Column B
1. . Prime Minister A. Seeds that give large proportion of output
2. Gross Domestic Product B. Quantity of goods that can be imported
3. Quota C. Chairperson of the Planning Commission.
4. Land Reforms D. The money value of all the final goods and services
produced within the economy in one year
5. . HYV Seeds E. Improvements in the field of agriculture to increase its
productivity
6. Subsidy F. The monetary assistances given by government for
production activities

Ans. 1. (C); 2. (D); 3. (B); 4. (E); 5 (A); 6 (F)

Application based

Column A Column B
Planning commission 2001
Industrial Policy Resolution 1991
Sale of Modern Bread to private sector 1956
2nd phase of Green revolution 1950
New economic policy mid-1970s to mid-1980s

Answer the following questions on the basis of the following data:

a) Comment upon industrial and agriculture growth rates.
b) Summarize the reason for the following trend

Sector 1950-1951 1990-1991

Agriculture 59% 34.9%
Industry 13% 24.6%
Services 28% 40.5%
Total 100% 100%

True or false
1. Benefit of Green Revolution has only benefited the Rich farmers and not to the poor farmers

2. In India, between 1950 and 1990, the proportion of GDP contributed by agriculture declined significantly
and also population depending on it

3. Agriculture provides employment which is more stable than the employment in Industry

4. The proportion of GDP contributed by the agricultural sector increased in the period from
11.8 per cent in 1950-51 to 24.6 per cent in 1990-91

5. Protection from foreign competition enabled the development of indigenous industries in the areas of
electronics and automobile sectors which otherwise could not have developed

6. The policies of the public sector would have to be complimentary to those of the private sector, with the
private sector leading the way.

7. At independence, about 75 per cent of the country’s population was dependent on agriculture.

8. Quota and licensing was policy to promote equity in the agricultural sector

9. The GDP is the market value of all the goods and services produced in or outside the country during a year

10. The first seven five year plans gave importance to self-reliance
 11. Industrial policy 1956 of protecting the Domestic industries was disaster. Comment on the above line with
suitable answer.

3RD CHAPTER ECONOMIC REFORMS SINCE 1991

TOPIC: - INTRODUCTION AND BACKGROUND

1. In 1991, India met with an economic crisis due to

a) Rise in foreign exchange reserves
b) Low inflation
c) Huge debts burden
d) Political instability

2. In 1991, India met with an economic crisis relating to its:

a) External debt
b) Internal debt
c) stock exchange
d) none of the above

3. International Bank for Reconstruction And Development (IRBD) is popularly known as:
a) World bank
b) Bank of Tokyo
c) American express
d) HSBC bank

4. IMF stands for:

a) International Monetary Foundation
b) Internal Monetary Fund
c) International Monetary Fund
d) International Money Foundation
5. When expenditure is more than income, the government borrows to finance the ____from banks.
a) Surplus
b) Deficit
c) Credit
d) Debit

6. India approached which international monetary institution during crisis?

a) IBRD
b) IMF
c) World Bank
d) all of the above

7. Stabilization measures were intended to correct:

a) Balance of payment problem
b) Inflationary situations
c) depleting foreign exchange reserves
d) all of these

8. Stabilization measures were intended to

a) Improving the efficiency of the economy
b) Increasing its international competitiveness
c) Both (a) and (b)
d) Maintain sufficient foreign exchange

9. The most urgent problem which promoted the introduction of New Economic Policy in 1991 Was:
(a) Bad performance of public sector units.
(b) Foreign exchange crises.
(c) High tax rates leading to tax evasion.
(d) Both A and B

ECONOMIC REFORMS

10. Economic reforms in India was started on 24th July:

a) 1992
b) 1993
c) 1991
d) 1990

11. Which of the policy is not initiated under the new economic policy?
a) Liberalization
b) Privatisation
c) Globalisation
d) Urbanization

12. ______means integrating the domestic economy with the world economy.
a) Globalisation
b) Liberalization
c) Privatisation
d) Demonetisation
13. ____________refers to relaxation of Government restrictions.
a) Privatisation
b) Globalisation
c) Disinvestment
d) Liberlisation

14. The process of privatization is where:

a) A company is transferred to a non-profit organization
b) Services that were previously supplies are outsourced
c) A few public sector enterprises are sold to private sector
d) A state industry merges with or takes over a private or publicity owned company

15. Objectives of privatization are:

a) To improve the government’s financial position
b) To improve the performance of an enterprise
c) To reduce the burden on public administration
d) All the above

16. __________ refers to the transfer of assets or service functions form public to private ownership.
a) Globalisation
b) Privatisation
c) Liberalisation
d) All of the above

17. Foreign exchange reforms was done by

a) Devaluating the Rupee against foreign currency
b) Introducing the fixed exchange rate system
c) Determination of the exchange rate by the market forces
d) Both (a) and (c)

18. Government taxation and expenditure policy is known as

a) Trade policy
b) Monetary policy
c) Fiscal policy
d) Taxation policy

19. Moderate rate of tax was implemented during reforms period to

a) Encourage savings
b) Voluntary disclosure of income.
c) Increasing in foreign exchange reserve
d) Both (a) and (b)

20. Taxes imposed on incomes of individuals are :

a) Indirect taxes
b) Tariff barriers
c) Direct taxes
 d) All of these

21. Which of the following is not a component of fiscal reforms?

a) Taxation reforms
b) Public expenditure reforms
c) Change in interest rate
d) Control of public debt

22. Fiscal policy of the government refers to:

(a) Taxation policy
(b) Government expenditure policy
(c) Both (a) and (b)
(d) Neither (a) nor (b)

23. Which of the following industries are reserved for the public sector?
a) Cement
b) Defense equipment
c) Atomic energy generation
d) both (b) and (c)

24. Import Licensing was abolished except in case of :

a) Hazardous items
b) Environmentally sensitive industries
c) both (a) and (b)
d) none

25. Quantitative restrictions on imports of manufactured consumer goods and agricultural products were
also fully removed from
a) 1980
b) 1991
c) 2001
d) 1995

26. Cheaper imported goods was one of the reasons behind:

a) Growing unemployment
b) Unbalanced Growth
c) Low level of industrial growth
d) Spread of consumerism

27. Industry reserved for public sector:

a) Defense equipment
b) Atomic energy generation
c) Railway transport
d) All of these

28. Financial sector in India is regulated by

a) RBI
b) CENTRAL GOVT
c) SEBI
 d) both (a) and (b)

29. Financial sector reforms does not include

a) Foreign investment limit in banks was raised to around 50 per cent
b) Foreign Institutional Investors (FII), allowed to invest in Indian financial markets
c) Reduce the role of RBI from regulator to facilitator
d) Removal of licensing procedures for imports

30. WTO was established in the year

a) 1995
b) 1948
c) 1996
d) 1994

31. GATT was established in the year:

a) 1958
b) 1948
c) 1968
d) 1995

32. Which of the following is not a feature of Privatisation:

a) Contraction of public sector
b) Policy of disinvestment
c) policy of memorandum of understanding
d) Tax rates have been reduced

33. India has become one of the favorable destinations for outsourcing because of this reason:
a) High wage rates
b) Availability of skilled manpower and accuracy
c) Low taxes
d) All of these

34. The government has made efforts to improve the efficiency of PSU’s by giving them______ in taking
managerial decisions.
a) Money
b) Financial assistance
c) Autonomy
d) none of the above

35. BPO means ___________.

a) Business policy outsource
b) Business process organisation
c) Business process outsourcing
d) None of the above

36. What was the one major proposal of new industrial policy (1991)?
a) NRI’s will not be allowed for capital investment in India
b) Facility of FDI upto 51 percent in high priority industries
c) Import restrictions on technical knowhow for one year
 d) Abolition licensing export for six industries

37. Financial sector reforms mainly relate to:

a) Banking sector
b) Foreign exchange market
c) Both (a) and (b)
d) Insurance sector

38. Rate of which tax was reduced as per the tax reform:
a) Gift tax
b) Corporation tax
c) Income tax
d) Both (b) and (c)

INDIAN ECONOMY DURING REFORMS: AN ASSESSMENT, GST &

DEMONETIZATION

39. Which is the latest tax introduced by the government of India?(Choose the correct alternative)
a) Goods and services tax
b) Value added tax
c) Service tax
d) Corporation tax

40. Under GST, which is not a tax slab

a) 5%
b) 12%
c) 20%
d) 28%

41. Aim of demonetization not included was

a) Form a less-cash or cash-lite economy
b) Check on tax evasion
c) Reduce the money supply
d) Adding savings into the formal financial system

42. The opening up of the Indian Economy has led to

a) Fall in foreign exchange and rise in FDI
b) Rise in foreign exchange and fall in FDI
c) Rise in foreign exchange and rise in FDI
d) Fall in foreign exchange and Fall i in FDI

43. During the reform period

a) Agriculture has declined, industrial sector reported fluctuation, and service sector has gone up.
b) Agriculture has gone up., industrial sector reported fluctuation, and service sector has declined
c) Agriculture has declined, industrial sector reported gone up, and service sector reported fluctuation
 d) Agriculture sector reported fluctuation, industrial sector gone down, and service sector has gone up.

44. Though the GDP growth rate has increased in the reform period,
a) Employment rate has rise
b) Employment rate has fallen
c) Employment rate remains same
d) Reemployment rate has fluctuates

45. Reforms have not been able to benefit agriculture because of

a) Public investment in agriculture sector especially in infrastructure has fallen
b) Rise in subsidy
c) Rise in import duties on agricultural products
d) Shift from production of cash crops to food crops

46. India is seen as a successful exporter of:

a) Auto parts
b) Engineering goods
c) IT software and textiles
d) All of these

47. Factors that adversely affected Indian farmers are:

a) Removal of MSP and subsidy
b) Lifting of quantitative restrictions
c) Reduction in import duties
d) All of these

48. GST was not introduced for the following purpose

a) Generate additional revenue for the government,
b) Reduce tax evasion
c) To increase direct taxes
d) Create ‘one nation, one tax and one market

True and False

One of the major aims of financial sector reforms is to reduce the role of RBI from regulator to facilitator
of financial sector
4th CHAPTER `
POVERY
1. Dadabhai Naoroji used the menu for a prisoner and used appropriate prevailing prices to arrive
at what may be called ________________.(JAIL)
2. The weighted average of consumption of the three segments of population gives the average
poverty line, which according to Dada bhai Naoroji, comes out to be ________________adult
jail cost of living.
3. A line or continuum from the very poor to the absolutely rich classifies various kinds of poor
and non-poor, with the ________________dividing the poor from the non-poor.
4. People who are always poor and those who are usually poor but who may sometimes have a
little more money (example: casual workers) are grouped together as the____________
(a) Chronic poor
(b) Churning poor
(c) Occasionally poor
(d) Transient poor
5. __________ is a group of people who regularly move in and out of poverty (example: small
farmers and seasonal workers).
6. The churning poor, who regularly move in and out of poverty, and the occasionally poor who
are rich most of the time but may sometimes have a patch of bad luck, are called
the________________.
7. The government uses ___________ as proxy for income of households to identify the poor.
8. Amartya Sen, noted Nobel Laureate, has developed an index to estimate poverty known as
___________
9. When the number of poor is estimated as the proportion of people below the poverty line, it is
known as __________
10. The official data on poverty is made available to the public by the
________________consumption expenditure data collected by the __________ it id estimated
on the basis of consumption expenditure data collected by the________________.
11. The proportion of poor in India during 1973-2012 has come down from________________ to
________________.
12. One of the noted poverty alleviation programmes initiated in the 1970, was ____________.
13. Under which one of the following self-employment Programmes. One can get financial
assistance in the form of bank loans to set up small industries?
(a) Rural Employment Generation Programme (REGP)
(b) Prime Minister’s Rozgar Yojana (PMRY)
(c) Swarna Jayanti Shahari Rozgar Yojana (SJSRY)
(d) All of the above
14. ________________ is implementing the Rural Employment Generation Programme (REGP).
15. The educated unemployed from low - income families in rural and urban areas can get financial
help to set up any kind of enterprise that generates employment under ________________.
(a) Rural Employment Generation Programme (REGP)
(b) Prime Minister’s Rozgar Yojana (PMRY)
(c) Swarna Jayanti Shahari Rozgar Yojana (SJSRY)
(d) Swarna Jayariti Gram Swarozgar Yojana (SGSY)
16. ________________ mainly aims at creating employment opportunities — both self employment
and wage employment — in urban areas.
(a) Rural Employment Generation Programme (REGP)
(b) Prime Minister’s Rozgar Yojana (PMRY)
(c) Swarna iayanti Shahari Rozgar Yojana (SJSRY)
(d) Swarna Jayanti Gram Swarozgar Yojana (SGSY)
17. Since the 1990s those who wish to benefit from the self employment programmes are
encouraged to form ________________.
18. Initially, the self- Help droups (SHGs) are encouraged to save money and land among
themselves as small loans. Later, through banks, the government provides partial financial
assistance to SHGs which then decide whom the loan is to be given to for self-employment
activities. ________________ is one such programme.
19. Swarnajayanti Gram Swarozgar Yojana (SGSY) has now been restructured as ___________. A
similar programme called _________ has also been in place for urban poor.
20. In August 2005, the parliament passed a new Act to provide guaranteed wage employment to
every rural household whose adult volunteer is to do unskilled manual work for a minimum of
100 days in a year. This Act is known as ______________.
21. Three major programmes that aim at improving the food and nutritional status of the poor are
________________.
22. ________________ are attempts in developing infrastructure and housing conditions.
23. _____________ is initiated by the central government, under which elderly people who do not
have anyone to take care of them are given pension to sustain themselves. Poor women who are
destitute and widows are also covered under this scheme.
1. From 2014, a `scheme called________________ people in India are encouraged to open
bank accounts.( Pradhan Mantri Jan-Dhan Yojana)
24. Casual workers are grouped as the chronic poor. (True /False)
25. The minimum calorie intake in rural area is 2100 calories. (True /False)
26. Number of people living below poverty line. (Absolute poverty/Relative poverty)

27. Economists identify the poor on the basis of their ________________and ownership of assets
(a) Income
(b) Occupation
 (c) Expenditure
(d) Living standard
28. Who was the first person to define poverty in terms of Jail Cost of Living?
(a) Dadabai Naroji
(b) V.K.R.V. Rao
(c) Willian Digby
(d) R.C. Desai
29. The average calories required per person in urban area is
(a) 2400
(b) 2100
(c) 2500
(d) 2150
30. The approach to reduce poverty through specific poverty alleviation programmes has been
initiated from the
(a) Second Five Year plan
(b) Third Five Year plan
(c) Fifth Five Year plan
(d) Seventh Five Year plan
31. The approach to addressing poverty through public expenditure in providing minimum basic
amenities to the people has been initiated from the ___________
(a) Second Five Year plan
(b) Third Five Year plan
(c) Fifth Five Year plan
(d) Seventh Five Year plan
ANSWER KEY
2. jail
3. three-fourth
4. The Poverty Line
5. (a) Chronic poor
6. churning poor
7. transient poor
8. Monthly Per Capita Expenditure (MPCE)
9. Sen Index
10. ‘Head Count Ratio’ (Poverty Ratio)
11. Planning Commission; National Sample Survey Organisation (NSSO).
12. 55percent;22percent
13. Food for work
14. (a) Rural Employment Generation Programme (REGP)
15. The Khadi and Village Industries Commission
16. (b) Prime Minister’s Rozgar ‘Yojana (PMRY)
 17. (c) Swarna Jayanti Shahari Rojgar Yojana (S)SRY)
18. Self-Help Groups (SHGs)
19. Swarnajayanti Gram Swarozgar Yojana (SGSY)
20. National Rural Livelihoods Mission (NRCM); National Urban Livelihoods Mission
21. Mahatma Gandhi National Rural Employment Guarantee Act.
22. Public Distribution System, Integrated Child Development Scheme and Midday Meal
Scheme
23. Pradhan Mantri Gram Sadak Yojana, Pradhan Mantri Gramodaya Yojana, Valmiki
Ambedkar Awas Yojana
24. National Social Assistance Programme
25. Pradhan Mantri Jan-Dhan Yojana
26. True
27. False
28. Absolute poverty
29. (b) Occupation
30. (a) Dadabai Naroji
31. (b) 2100
32. (b) Third Five Year plan
33. (c) Fifth Five Year Plan

1. Labour force participation rate in India is _______ as compared to advanced countries.

(A) Very low
(B) Low
(C) High
(D) Very high

2. In India, poverty in urban areas is __________ than the poverty in rural areas.
(A) More
(B) Lesser
(C) Equal
(D) None of the above

3. In India, a ___________ rate of economic growth is an essential condition for poverty removal.
(A) Low
(B) Very Low
(C) High
 (D) Very High

4. Non poor implies persons who are

(A) Transient poor
(B) Churning poor
(C) Chronic poor
(D) Never poor

5. Poverty line divides the population as poor and ____________.

(A) Rich
(B) Very poor
(C) Non poor
(D) All the above

6. _____________ organisation collects statistics on poverty in India.

(A) Planning commission
(B) NSSO
(C) Ministry of statistics
(D) None of these

7. ____________ programme intend to improve the food and nutritional status of the poor.
(A) Midday meal scheme
(B) Public distribution system
(C) Integrated child development scheme
(D) All of these
8. Approach followed by the government to reduce poverty in India :
(A) Growth oriented
(B) Specific poverty alleviation programmes
(C) Meeting the minimum needs of the poor
(D) All of these

9. Who was the first person to discuss the concept of poverty line in India?
(A) Shaheen Rafi khan
(B) Dadabhai Naoroji
(C) Damian Killen
(D) Amartya Sen

10. Small farmers or seasonal workers who regularly move in and out of poverty, fall in the category of:
(A) Chronic poor
(B) Never poor
(C) Churning poor
(D) Usually poor

11. The calorie requirement for measuring poverty line is higher in rural areas than urban areas because in
rural area:
(A) People do not enjoy as much as people in urban areas
(B) Food items in are expensive
(C) People are engaged in mental work
(D) People are engaged in physical labour
12. Poverty index developed by Nobel Laureate Amartya Sen was named as:
(A) Poverty gap index
(B) Sen’s index
(C) Squared poverty gap
(D) None of the above

13. Which of the following state reduced its people below the poverty line to 17% during 1973-2010?
(A) Bihar
(B) West Bengal
(C) Uttar Pradesh
(D) Tamil Nadu

14. Which of the following is not a mojor cause of poverty in India?

(A) Low capital formation
(B) Lack of social/welfare nets
(C) Social exclusion
(D)
(E) Migration of people from rural to urban India

15. This scheme was introduced on 15th august, 1995 as 100 per cent centrally sponsored scheme for social
assistance for the poor to ensure minimum national standard for social assistance.
(A) Jawahar Gram Samridhi Yojna(JGSY)
(B) Swaran Jayanti Shahari Rozgar Yojna(SJSRY)
(C) Employment Assurance Scheme(EAS)
(D) National Social Assistance Programme (NSAP)

16. Which of the following is a programme for the benefit of the elderly?
(A) Public Distribution System
(B) Preadhan Mantra Gram Sadak Yojna
(C) Social Assistance Programme
(D) National Food For Work Programme

17. Which programe is restricted as ‘National Rural Linelihiid Mission’?

(A) National Food For Work Programme
(B) Swarna Jayanti Gram Swarozgar Yojna
(C) Rural Employment Generation Programme
(D) Prime Minister’s Rozgar Yojna

18. SISKY stands for:

(A) Swarna Jayanti Shari Razgar Yajana
(B) Swarna Jeewan Sudhar Rashtriya Yajanat
(C) Sampoorna Jeewan Shahari Rozgar Yajana
(D) None of the above

19. ___________ is the flagship outcome based Skill Training Scheme of the Ministry of Skill Development
& Entrepreneureship.
(A) Swarn Jayanti Swarojgar Yojna
(B) Roshini
(C) Deen Dayal Upadhyay Grameen Kaushal Yojna
(D) Pradhan Mantri Kaushal Vikas Yojna
5th CHAPTER
HUMAN CAPITAL FORMATION
1. The stock of skill and expertise of nation at a point of time is called:
(A) Human capital
(B) Human development
(C) Human capital formation
(D) Physical capital

2. Which of the following is not a source of Human Capital formation?

(A) Education
(B) Saving
(C) Health
(D) Information

3. Before introducing new technology, a firm provides the basic skills to the workers regarding its usage.
This is which source of human capital formation?
(A) Study programme for adults
 (B) On the job training
(C) Expenditure on information
(D) Investment in education

4. If a worker absent herself/ himself for long due to ill health, it will affect his/ her:
(A) Job security
(B) Wage/income
(C) Productivity
(D) All the above

5. Which of the following statements is true?

(A) Major share of education expenditure goes to higher education
(B) No education cess is imposed by the government on all union taxes
(C) Human development is bases on the idea that education and health are integral to human well- being
(D) Education and literacy can be used as synonyms of each other

6. In India, education sector is regarded by:

(A) Ministry of education
(B) NCERT
(C) UGC and AICTE
(D) All the above

7. The major share of total education expenditure is taken by __________

(A) Elementary education
(B) Higher education
(C) Secondary education
(D) Technical education

8. Economic growth requires ___________.

(A) Human capital
(B) Physical capital
(C) Both (a) and (b)
(D) Neither (a) nor (b)

9. Expenditure on education is __________.

(A) Wasteful
(B) Investment
(C) Skill
(D) Not required

10. ___________ is major source of human capital.

(A) Taxes
(B) Subsidies
(C) Health
(D) All the above

11. ____________ is better indicator of development.

(A) National output
 (B) Per capita income (monetary)
(C) Real per capita income
(D) National income

12. Significance of human capital was recognized in _____________ five year plan.
(A) Third
(B) Second
(C) Seventh
(D) Fourth

13. Indicators of educational achievement :

(A) Primary education
(B) Youth literacy rate
(C) Adult literacy rate
(D) All of these

14. Government organisation that regulate education sectors

(A) NCERT
(B) ICMR
(C) UGC
(D) Both (a) and (c)

15. Source of Human capital formation :

(A) Investment in education
(B) Investment in Health
(C) Investment in on-the-job training
(D) All of these

16. A person becomes a human resources when he is

(A) Willing to work
(B) Able to work
(C) in the age group 15-60 years
(D) All of these

17. Indicator of growth of education sector

(A) Life expectancy rate
(B) Infant mortality rate
(C) Literacy rate
(D) None of these

18. From the following which is not a source of human capital :

(A) On-the job training
(B) Migration
(C) Investment in education
(D) None of the above

19. Physical capital is

(A) Tangible
(B) Easily sold in the market
(C) (a) and (b)
 (D) None of the above

20. UNDP stands for :

(A) United Nations Developing Plan
(B) United National Development Programme
(C) United Nations Duration Programme
(D) United Nations Development Policy
 (HUMAN CAPITAL FORMATION)
1. ___________ represents enhanced labour productivity which is an acquired ability and an
outcome of deliberate investment decisions with an expectation that it will increase future
income sources.
2. Both ___________ and _________ , along with many other factors like on-the-job training, job
market information and migration, increase an individuals income generating capacity.
3. Two independent reports on the Indian economy, in recent times, have identified that India
would grow faster due to its strength in ___________________.
4. ________________is the outcome of investment in education, health, on-the-job training,
migration and information.
5. Match the following:
(a) The percentage of ‘education (i) expresses how much of our income is
expenditure of total government being committed to the development of
expenditure’. education in the country.
(b) The percentage of ‘education (ii) indicates the importance of education in
expenditure of GDP’ the scheme of things before the
government.

6. The education commission (1964-66) had recommended that at least ____________ of GDP be
spent on education so as to make a noticeable rate of growth in educational achievements.

7. In 2009 the government of India enacted ______________make free education a fundamental

right of all children in the age group of 6-14 years.
8. In which year the Government of India enacted the Right to Education (RTE) Act?
(a) 2007
(b) 2008
(c) 2009
(d) 2010
9. The government of India is leaving a ________ percent Education Cess on all the union taxes
for spending on elementary education.
(a) 2 percent
(b) 5 percent
(c) 10 percent
(d) 12 percent

ANSWERS
1. human capital
2. education health
3. human capital formation
4. Human capital formation
 5. (a) — (ii), (b) — (iii)
6. 6 percent
7. the Right to Education Act
8. (c) 2009
9. (a) 2 percent

3. Identify the correct sequence of alternative given in column 1 and 2 by matching them:

Column 1 Column 2
It is an action plan for the economic and social 1) Agriculture marketing
upliftment of rural sector
Institutional and non-institutional sources 2) Organic farming
Activities which include gathering the produce 3) Rural credit
after harvesting, processing the produce, grading
the produce, according to its quality
Use of organic manure, bio- fertilizersetc 4) Rural development

6TH CHAPTER
RURAL DEVELOPMENT
-
1. The institutional aource of credit whose area of operation is the one where banking facilities and
cooperatives are absent and which operate at the district level is:
(A) Regional rural bank
(B) Commercial bank
(C) Self-help group
(D) NABARD

2. Credit needs related to constructing fences and digging wells are fulfilled by:
(A) Short term credit
(B) Medium term credit
(C) Long term credit
(D) None of the above

3. Government has assured the farmers of some minimum income from the sale of their crop by
introducing:
(A) Warehousing facilities
(B) Regulated markets
(C) Minimum support price policy
(D) Co-operative agriculture marketing societies

4. The sector providing alternate livelihood options to 70 million small and marginal farmers is:
 (A) Livestock
(B) Agro-processing
(C) Apni Mandi
(D) Fisheries

5. Production of a diverse variety of crops rather than one specialised crop is called:
(A) Diversification of production activity
(B) Diversification of crop production
(C) Diversification of employment
(D) All the above

6. The ‘Golden Revolution’ was a period of very high productivity in:

(A) Foodgrain production
(B) Horticulture
(C) Organic farming
(D) Piscicultre

7. Which of the following is true about organic farming?

(A) Organically grown food is more healthier and tastier
(B) Yields in organic farming are lower than in chemical farming
(C) It adversely effects the fertility of the soil
(D) It is quite expensive method of farming

8. Credit taken for a period of 15 years is

(A) Short term credit
(B) Medium term credit
(C) Long term credit
(D) All of these

9. NABARD is ____________ source of rural credit

(A) Institutional
(B) Non-institutional
(C) Cooperative society
(D) Regional

10. Organic farming uses

(A) Organic manure
(B) Bio-fertilisers
(C) Organic pesticides
(D) All of these

11. Diversification in agriculture activities means finding alternate employment in

(A) Non-farm sectors
(B) Urban sectors
(C) Rural sectors
(D) None of these

12. Traditional sources of rural credit in India are :

(A) Money lenders
 (B) Relatives and friends
(C) Traders
(D) All of these

13. Non farm areas of employment :

(A) Animal husbandary
(B) Fisheries
(C) Horticulture
(D) All of these

14. Institutional sources of agricultural credit are :

(A) Land development banks
(B) NABARD
(C) Self-help group
(D) All of these

15. Growth in rural marketing relates to

(A) Provision of physical infrastructure
(B) Regulation of markets
(C) Cooperative farming
(D) All of these

16. Organic farming is needed because it

(A) Maintains and enhances the ecological balance
(B) is free from chemical based fertilizers
(C) Both (a) and (b)
(D) Neither (a) nor (b)

17. Short term credit is needed for

(A) Period of 15 months
(B) Period 5 years
(C) Period of 15 years
(D) Period of 20 years

18. From the following which is not a non-institutional source of credit in India.
(A) Money lenders
(B) Traders
(C) Commission agents
(D) Commercial banks

19. Father of ‘Green Revolution’ In India

(A) M.S. Swaminathan
(B) Norman Borlong
(C) Chidambaram Subramaniam
(D) None of the above

20. The farming which relies on naturally occurring ecological process and biodiversity:
(A) Organic farming
(B) Conventional agriculture
(C) (a) and (b)
 (D) None of the above

21. SHG stands for :

(A) Self Human Group
(B) Sufficient Humidity Growth
(C) Self Help Group
(D) Self Human Growth

22. AMUL stands for :

(A) Anand Multiple Union Ltd.
(B) Agriculture and Milk Union Ltd.
(C) Anand Mil Union Ltd.
(D) Anand Manufacturing Union Ltd.

23. Which is related to microfinance:

(A) Self Help Group
(B) NABARD
(C) Both
(D) None
 RURAL DEVELOPMENT)

1. ___________ was set up in 1982 as an apex body to coordinate the activities of all
institutions involved in the rural financing system.
2. The SHGs promote thrift in small proportions by a minimum contribution from each
member. From the pooled money, credit is given to the needy members to be repayable in
small installments at reasonable interest rates. Such credit provisions are generally
referred to as __________________.
3. __________ is a process that involves the assembling, storage, processing, transportation,
packaging, grading and distribution of different agricultural commodities across the
country.
4. _____________ , in realising fair prices for farmers’ products, is one of the initiatives
taken by the government.
5. As agriculture is already overcrowded, a major proportion of the increasing labour force
needs to find alternative employment opportunities in other non-farm sectors. Non- farm
economy has several segments in it; some possess dynamic linkages that permit healthy
growth while others are in subsistence, low productivity propositions. The dynamic sub
sectors include ____________.
6. Those non-farm sectors which have the potential but seriously lack infrastructure and
other support include ___________
7. __________________is a system whereby all the farmers can pool their milk produced
according to different grading (based on quality) and the same is processed and marketed
to urban centres through cooperatives. In this system, the farmers are assured of a fair
price and income from the supply of milk to urban markets.
8. Rampant underemployment, low per capita earnings, absence of mobility of labour to
other sectors and __________ and ____________community face today.
9. There is a need to increase credit facilities through ___________ and __________ for
fisherwomen to meet the working capital requirements for marketing.
10. In recent years, awareness of the harmful effect of chemical based fertilisers and
pesticides on our health is on a rise. Efforts in evolving technologies which are eco-
friendly are essential for sustainable development and one such technology which is eco-
friendly is __________________.
11. _____________ is a whole system of farming that restores, maintains and enhances the
ecological balance.
12. __________ and ___________ are major concerns which need to be addressed apart from
an appropriate agriculture policy to promote organic farming.
13. The yields from organic farming are more than modern agricultural farming. True/ False?
Give reason.
14. Match the following:
A. Organic farming (i) Shift of workforce from
 agriculture to other
allied activities
B. Agricultural marketing (ii) Process involves
assembling , storage,
packaging and
distribution of different
Agricultural_activities.
C. Diversification (iii) System enhances the
ecological balance
15. National Bank of Agriculture and Rural Development was set up in ________ as an apex
body to coordinate the activities of all institutions in the rural financing system.
(a) 1969 (b) 1982 Cc) 1949 (d) 1991
ANSWERS
1. The National Bank for Agriculture and Rural Development (NABARD)
2. micro-credit programmes
3. Agricultural marketing
4. Co-operative marketing
5. agro-processing industries, food processing industries, leather industry tourism, etc.
6. traditional home-based industries like pottery, crafts, handlooms etc.
7. Operation Flood
8. a high rate of illiteracy; indebtedness, Rampant unemployment
9. cooperatives; SHG5
10. organic farming
11. organic farming
12. Inadequate infrastructure; the problem of marketing the products
13. Ei: The yields from organic farming are less than modern agricultural farming in the
initial years.
14. A. (iii), B. (ii), C. (i)
15. (b) 1982

7TH CHAPTER
Employment
1. The formula to calculate workforce participation ratio is:
(A) (workforce /Total population) X 100
(B) (Number of unemployed persons/Labour force) X 100
(C) Workforce+ number of people who are willing to work but are unemployed
(D) (workforce/ labour force) X 100
2. Workers who are on permanent pay-roll of their employer are called:
(A) Self- employed workers
(B) Casual workers
(C) Regular workers
(D) None of the above

3. Men get opportunity to work in:

(A) Primary sector
(B) Secondary sector
(C) Service sector
(D) Both (a) and (c)

4. Agriculture labourers, farmers, owners of small enterprise which emply less than 20 workers fall in the
category of :
(A) Formal sector
(B) Informal sector
(C) Casual workers
(D) Regular workers

5. Due to the recent efforts of which international body the Indian government, initiated the modernization
of informal sector?
(A) World Bank
(B) WTO
(C) International Labour Organisation
(D) G-20

6. After the workers lost their jobs in 1980’s, which city experienced an economy recession and communal
riots?
(A) Ahmedabad
(B) Bombay
(C) Allahabad
(D) Bangalore

7. Find the odd one out.

(A) A private school teacher in a school with only 25 teachers
(B) A nurse in a government hospital
(C) Cycle-rickshaw puller
(D) A civil engineer working in a construction company which has 10 workers

8. Unemployment is defined as:

(A) The section of the population that is not capable of being employed
(B) The section of population willing to work but unable to find employment
(C) The section of population that is waiting to be employed
(D) The section of population that are without the skills needed by employers

9. Data on unemployment in India can be obtained from which source?

(A) Reports of Census of India
(B) National sample survey organisation(NSSO)
(C) Directorate general of employment
(D) All the above
10. About ___________ of the total population in the country is engaged in various economic activities.
(A) Three-fifth
(B) Four-fifth
(C) Two-fifth
(D) None of the above
11. When more persons are working in a job than actually required, it is known as ________.
(A) Disguised unemployment
(B) Seasonal unemployment
(C) Educated unemployment
(D) Open unemployment

12. Electricity, gas and water supply belong to ___________ sector.

(A) Primary sector
(B) Secondary sector
(C) Tertiary sector
(D) All the above

13. Those who work in their own establishment using their own resources are called _______.
(A) Hired workers
(B) Casual workers
(C) Regular workers
(D) Self-employed
14. Sum total of final goods and services produced in domestic territory of an economy during a year is
called __________.
(A) GDP
(B) NDP
(C) NNP
(D) GNP

15. Formal sector includes all those enterprises which employ

(A) More than 10 workers
(B) 10 workers
(C) Both (a) and (b)
(D) Neither (a) nor (b)

16. __________ is a common form of unemployment in rural India.

(A) Disguised unemployment
(B) Structural unemployment
(C) Educated unemployment
(D) None of these
17. The newly emerging jobs are found mostly in ___________ sector.
(A) Manufacturing
(B) Primary
(C) Service
(D) None of these

18. Unemployment common in urban areas

(A) Seasonal unemployment
 (B) Disguised unemployment
(C) Open unemployment
(D) None of these

19. Measure of reduce unemployment in very short period of time

(A) Reducing growth rate of population
(B) Reducing inequalities in the distribution of income and wealth
(C) Increasing investment in private and public sectors
(D) None of these

20. An establishment with four hired workers is known as _____________ sector establishment.
(A) Formal
(B) Informal
(C) (a) and (b)
(D) None of the above

21. The newly emerging jobs are found mostly in the _____________ sector.
(A) Service
(B) Manufacturing
(C) Agriculture
(D) None of the above

22. ____________ unemployment may result some workers are temporarily out of work while hanging job.
(A) Cyclical
(B) Voluntary
(C) Fictional
(D) Seasonal

23. When due to introduction of new machinery, some workers tend to be replaced by machines, their
unemployment is termed as
(A) Structural
(B) Technological
(C) Mechanical
(D) Seasonal

24. Most of the unemployment in India is

(A) Voluntary
(B) Structural
(C) Frictional
(D) Technical

25. Work force refers to that part of

(A) Labour force which is employed
(B) Population which is unemployed
(C) Population which is forced to work
(D) Labour force which is when employed
 (EMPLOYEMENT)
1. During 2011-12, India had about __________ The rural workers constitute about__________ of
this.
2. Women workers account for __________ of the rural workforce; whereas in urban areas, they are
just ________ of the work force.
3. Workers who own and operate an enterprise to earn their livelihood are known as _________
About in India belongs to this category.
4. __________ account for __________ labourers are casually engaged in others’ farms and, in
return, get a remuneration for the work done.
5. When a worker is engaged by someone or an enterprise and paid his or her wages on a regular basis
they are known as__________. They account for __________ of India’s workforce.
6. ___________ is a major source of livelihood for both men and women as this category accounts for
more than 50 per cent of India’s workforce.
(a) Self-employment
(b) Casual wage labour
(c) Regular salaried employment
(d) None of these
7. The newly emerging jobs are found mostly in the __________ sector. (service/manufacturing)
8. Over the last four decades (1972-2012) people have moved from self employment and regular
salaried employment to ____________ Scholars call this process as ______________
9. An establishment with four hired worker is known as ________ (formal/informal) sector
establishment.
10. Those who work in private sector establishments which employ10 hired workers or more are called
__________.
11. Find the odd man out:
(a) A clerk in the electricity office
(b) Computer operator in the state government office working on a temporary basis
(c) Worker in a hotel which has seven hired workers and three family workers.
(d) A police constable

12. Which of the following is working in the informal sector?

(a) A private school teacher In a school which has 25 teachers.
(b) The owner of a textile shop employing nine workers.
(c) Driver of a bus company which has more than 10 buses with 20 drivers, conductors and others
workers.
(d) Civil engineer working in a construction company which has 10 workers.
13. In India, about ___________ of the workforce are in the informal sector.
14. Owing to the efforts of the ______________ government has initiated the modernisation of
informal sector enterprises and provision of social security measures to informal sector workers.
15. Some people look for jobs in newspapers, some look for a job through friends and relatives. In
many cities, people standing in some select areas looking for people to employ them for that day’s
work. Some go to factories and offices and give their bio-data and ask whether there is any vacancy
in their factory or office. Some go to employment exchanges. The situation described in the above
paragraph is called_______________.
16. Unemployed person is one who is not able to get employment of even one hour in half a day.
This definition is given by:
(a) Economists
(b) National Sample Survey Organisation
(c) Census of India
(d) Directorate general of Employment and Training
17. Unemployment is a situation in which all those who, owing to lack of work, are not working but
either seek work though employment exchanges, intermediaries, friends or relatives or by making
applications to prospective employers or express their willingness or availability for work under the
prevailing condition of work and remunerations. This definition is given by:
(a) Economists
(b) National Sample Survey Organisation
(c) Census of India
(d) Directorate general of Employment and Training
18. Economists call unemployment prevailing in Indian farms as _______________.
19. Suppose a farmer has four acres of land and he actually needs only two workers and himself to
carry out various operations on his farm in a year, but if he employs five workers and his family
members such as his wife and children, this situation is known as ______________.
20. When there is no work to do on farms, people go to urban areas and look for jobs. This kind of
unemployment is known as _______________.
21. _____________ is the major formal sector employer in the country.
22. The nature of employment has become more _________________ (formal/informal) with only
limited availability of social security measures to the workers.

ANSWERS
1. 473 million; three-fourth
2. one-third;one-fifth
3. self-employed; 52 percent
4. Casual wage labourers; 30%
5. regular salaried employees; 18%
6. (a) Self-emp4oyment
7. service
8. casual wage work; casualisation of workforce
9. informal
10. formal sectors workers
11. (c)
12. (b)
13. 94 per cent
14. International Labour Organisation (ILO)
15. (c) Open unemployment
16. (a)
17. (b)
18. disguised unemployment
19. disguised unemployment
20. seasonal unemployment
21. Government
22. Informal
8TH CHAPTER
INFRASTRUCTURE

Introduction
1. The state known as ‘God’s own country
a) Karnataka
b) Gujarat
c) Kerala
d) Goa

2. Some states in India are performing much better than others in certain areas due to
a) Better irrigation facilities
b) Better transportation facilities
c) Better health care and sanitation faculties
d) All the above

3. ____________ infrastructure is important for the development of a nation

a) Economic
b) Social
c) Both (a) and (b)
d) Neither (a) and (b)

4. ___________ is an example of social infrastructure

a) Transport
b) Communication
c) Energy
d) Education

5. Education is an example of ____________

a) Sustainable development
b) Economic infrastructure
c) Economic development
d) Social infrastructure

Significance OF INFRASTRUCTURE
6. Which of the following is an example of conventional source of energy?
a) Natural gas
b) Solar energy
c) Biomass
d) Wind energy

7. Which source of power accounted for only 2%?

a) Hydel power
b) Wind power
c) Nuclear power
d) Tidal power

8. Which of the following statement is not true?

a) Distribution of electricity to farmer’s is the main reason for the losses of State Electricity Boards
(SEB’s)
b) At present, nuclear energy accounts for only 2 per cent of total energy consumption
c) CFL consume 80 percent more power than ordinary bulbs
d) Energy shortage adversely affects transport sector, industries sector and agriculture production

9. A lot of power is wasted during its transmission and distribution from power stations to
households. This can be controlled by:
a) Promoting the use of CFL’s
b) Proper lead management
c) Promoting non conventional sources
d) All the above

10. LPG is an example of ____________

a) Bio-energy
b) Solar energy
c) Wind energy
d) Natural gas

11. Energy generated by sun is known as____________

a) Natural gas
b) Solar energy
c) Wind energy
d) Electricity

12. From the following which is not a non-commercial source of energy

a) Solar energy
b) Wind energy
c) Tidal energy
d) Coal

13. Electricity generated from radioactive elements is called:

a) Thermal electricity
b) Atomic energy
c) Hydel electricity
d) Tidal energy
14. The highest use of commercial energy is:
a) Agriculture
b) Transport
c) Household
d) Industry

15. Sources of electricity are ____________

a) Water
b) Oil,Coal
c) Gas
d) All of these

16. From the following which is not a commercial source of energy

a) Petroleum
b) Coal
c) Electricity
d) Dried dung

17. Power generated using water:

a) Atomic power
b) Thermal power
c) Hydroelectric power
d) None of these

HEALTH

18. Essential indicator of good health in a country is increase in ___________

a) Death rate
b) Infant mortality rate
c) Expectancy of life
d) Incidence of deadly diseases

19. ____________ include hospitals with better facilities of health care like X-ray, surgeries, ECG etc.
a) Primary health care
b) Secondary heath care
c) Tertiary heath care
d) None of these

20. Indian system of medicine:

a) Unani
b) Yoga
c) Siddha
d) All of these

21. Indicator of health status:

 a) Expansion of health services
b) Decline of infant mortality rate
c) Both (a) and (b)
d) Neither (a) nor (b)

22. ___________ is an indicator which measures the number of people dying prematurely due to a particular
disease:
a) Global burden of disease
b) Golden burden of disease
c) Global burden of depression
d) Global break down disease

23. ISM stands for:

a) Indian systems of medicine
b) International system of medicine
c) Indian standard of medicine
d) None of the above

24. Indian system of medicine comprises of systems.

a) Three
b) Four
c) Five
d) Six

Write the correct sequence of option in Column II by matching them with options of Column I.
Column I Column II
(a) Primary sources of energy 1) Coal, petroleum and electricity
(b) Secondary sources of energy 2) (They do not require any transformation
(c) Commercial sources of energy before their use
(d) Non-commercial sources of energy 3) Firewood and cowdung
4) They require transformation before their
use

Write the correct pair.

Column I Column II
(a) Primary healthcare centre’s 1) Facilities for surgery
(b) Secondary healthcare centre’s 2) Maternal and child healthcare only
(c) Tertiary healthcare centre’s 3) (iii) Advanced level equipment and
specialized healthcare

Write the correct sequence of option in Column II by matching them with options of Column I.
Column I Column II
(a) Transport and communication 1) Social infrastructure
(b) Education and health 2) Non-conventional sources of energy
(c) Solar energy 3) Conventional sources of energy
(d) Petroleum 4) Economic infrastructure
Write the correct sequence of options in Column If by matching them with options of Column I.
Column I Column II
(a) Morbidity 1) Coal
(b) Social Infrastructure 2) It helps the economic system directly
(c) Economic Infrastructure 3) Health and Education
(d) Commercial Source of Energy 4) Tendency to fall ill
Ans. The correct sequence is – (iv), (iii), (ii), (i)

1. Write the correct sequence of option in Column II by matching them with options of Column I.
Column I Column II
(a) Hydro electricity 1) Generated by using coal, petroleum etc.
(b) Thermal electricity 2) Generated by using radio active elements
(c) Nuclear electricity 3) Generated by the heat emitted by sun
(d) Solar electricity 4) Generated from water.
Ans. The correct sequence is – (iv), (i), (ii), (iii)

2. Write the correct pair.

Column I Column II
(a) Eco-friendly fuel 1) Coal
(b) Renewable resource 2) Wind energy
(c) Non-renewable resource 3) Solar energy
(d) Non- biodegradable wasted 4) Paper
Ans. (b) – (ii)

1) …………… infrastructure helps in the process of production directly.(ECONOMIC)

2) ……….. Electricity is generated from water.(HYDEL)

3) ……………energy plants produce electricity through the fission of uranium. (NUCLEAR)

4) ………… is used as an indicator to assess the number of people dying prematurely of some disease and also
the number of years spent by them in a state of disability due to that disease.
Ans. Global Burden of Disease (GBD)

5) …………… are those resources that can be replenished or renewed naturally over time.
Ans. Renewable resources
6) ……………. are those resources that cannot be renewed in short duration.
Ans Non-renewable/Exhaustible resources

(INFRASTRUCTURE)
1. Match the following:

(a) Infrastructure associated with energy, (i) Social infrastructure

transportation and communication
(b) Infrastructure related to education, (ii) Economic infrastructure
health and housing

2. India invests only __________ of its GDP on infrastructure, which is far below that of China.
3. In India, commercial energy consumption makes up about _________________ of the total
energy consumed in India. Non-commercial energy sources account for over _____________ of
the total energy consumption.
4. At present nuclear/atomic energy accounts for only ____________ of the total energy
consumption, against a global average of 13%.
5. Generally, scholars assess people’s health by taking into account indicators like_____________.

6. Health infrastructure includes __________________.

7. At the village level, a variety of hospitals, technically known as _____________ have been set
up by the government.
8. Some private practitioners are not even registered doctors and are known as _____________.
9. Indian systems of medicine include _______________.
10. Indian system of Medicine (ISM) have huge potential and can solve large part of our healthcare
problems. True/False? Give reason.
11. Government expenditure on health sector is only_____________ of the total GDP; which is very
low as compared to USA and China.
12. ____________________ is an indicator used by exports to gauge the number of people dying
prematurely due to a particular disease, as well as, the number of years spent by them in a state
of ‘disability’ owing to the disease.
13. In India, more than the half of Global burden of diseases (GBD) is accounted for by
_________________.
14. Write the correct sequence of alternatives given in Column II by matching them with respective
terms in Column I:
A. Global burden of diseases (GBD) (i) Infant mortality rate, life expectancy
and nutrition levels
B. Indian Systems of Medicine (ISM) (ii) A variety of hospitals at the village
level
 C. Primary Health Centres (Pl-fCs) (iii) Ayurveda, Yoga, unani, Siddha,
Naturopathy and Homeopathy
D. Health Indicators (iv) An indicator to gauge the number of
people dying prematurely due to a
particular disease.

ANSWERS
1. (a) — (ii), (b) --(i)
2. 34 per cent
3. 74 per cent; 26 per cent
4. 2 per cent
5. infant mortality and maternal mortality rates, life expectancy, nutrition levels and the incidence
of communicable and non-communicable diseases.
6. hospitals; doctors, nurses and other para-medical professionals, beds, equipment required in
hospitals; and well-developed pharmaceutical industry.
7. Primary Health Centres (PHCs)
8. quacks
9. Ayurveda, Yoga, Unani, Siddha, Naturopathy and Homeopathy (AYUSH).
10. True : Because they are effective, safe and inexpensive.
11. 4.7 per cent
12. Global Burden of Diseases
13. communicable diseases such as diarrhea, malaria and tuberculosis.
14. (iv), (iii), (ii), (i)

9TH CHAPTER
ENVIRONMENT AND SUSTAINABLE DEVELOPMENT
1. Environmental includes:
(A) Biotic factors
(B) Abiotic factors
(C) Both (a) and (b)
(D) None of the above

2. Absorptive capacity is defined as:

(A) Ability of the environment to absorb degradation
(B) Resource generation within the assimilating capacity of the environment
(C) Average number of organisms living in a given environment
(D) The minimum population surviving in the world as a whole
3. Which of the following statement is correct?
(A) Global warming is entirely a natural phenomenon
(B) Global warming is simply an another term used for green house effect
(C) Global warming is the rise in average temperature at the earth’s surface
(D) Global warming is caused by ozone depletion

4. In 1997, a UN conference on climate change was held in :

(a) Japan
(b) India
(c) Germany
(d) China

5. Banning the use of chlorofluorocarbon compounds and other chlorine and bromine compounds and
other chlorine and bromine compounds is called:
(A) Chipko movement
(B) Apiko movement
(C) Montreal protocol
(D) None of the above
(E)
6. Which are the catch phases in the following UNCED definition of Sustainable Development:
“Development that meet the need of the present generation without compromising the ability of the
future generation to meet their own needs.”
(A) Need
(B) Future generation
(C) Need and present generation
(D) Need and future generation

7. Brundtland Commission in 1987 defined sustainable development as:

(A) A type to development which put the interests of developing countries ahead of the interests of the
rich nations
(B) Development which meets the needs of present generation without compromising the ability of
future generation to meet their own needs
(C) Development that protects the future generation even at the expense of present generation
(D) None of the above

8. Biotic elements of environment is:

(A) Air
(B) Water
(C) Birds
(D) Land

9. From the following renewable resource is:

(A) Rees
(B) Fossil fuel
(C) (a) and (b)
(D) None of the above

10. The ability of the environment to absorb degradation is:

 (A) Carrying capacity
(B) Absorptive capacity
(C) (a) and (b)
(D) None of the above

11. From the following which s a cleaner and greener energy souce:
(A) Thermal power
(B) Hydro power
(C) Wind power
(D) None of the above

12. GHGs refer to:

(A) Green Home Gases
(B) Greenhouse Gases
(C) Green Hurricane Gases
(D) Green Home Guards

13. What can be the preventive measure for climate change:

(A) Plantation
(B) Using cycle instead of cars and bikes
(C) Using organic product
(D) All of them

(SUSTAINABLE DEVELOPMENT)
1. _______________ is defined as the total planetary inheritance and the totality of all resources. It
includes all the biotic and abiotic factors that influence each other.
2. ______________ means the ability of the environment to absorb degradation.
3. Two major environmental issues facing the world today are __________ and_____________
4. The CPCB (Central Pollution Control Board) has identified _______________categories of
industries (large and medium scale) as significantly polluting.
5. The various measures adopted by the Ministry of Environment and the central and state
pollution central boards may not yield reward unless we consciously adopt a path of
________________ The concern for future generations alone can make development last
forever.
6. The concept of sustainable development was emphasised by_________________.
7. The use of _____________ as fuel in public transport system may reduce air pollution.
8. With the help of ___________ solar energy can be converted into electricity.
9. In recent years, India is taking efforts to increase the power generation through solar. India is
also leading an international body called _______________.
10. ______________is a gradual increase in the average temperature of the earth’s lower
atmosphere as a result of the increase in green house gases since the Industrial Revolution.
11. Identify the correct sequence of alternatives given in column II by matching them with
respective terms in column I.
Column I Column II
(a) A UN conference on climate change, (i) Emphasised the concept of
held in Kyoto, Japan in 1997 sustainable development
(b) The CPCB (Central Pollution control (ii) To fight global warming
Board)
(c) The United Nations Conference on (iii) Emphasised on protecting the
Environment and Development future generation.
(UNCED)
(d) The Brundtland Commission (iv) Identified 17 categories of
industries (large and medium scale) as
significantly polluting
12. CPCS is the full form of _____________________.

ANSWER
1. Environment
2. Absorptive capacity
3. Global warming ; Ozone depletion.
4. 17
5. Sustainable economic development
6. The United Nations Conference on Environment and Development (UNCED)
7. Compressed Natural Gas (CNG)
8. photovoltaic cells
9. International Solar Alliance (ISA)
10. Global Warming
11. (a) — (ii), (b) — (iv), (c) — (i), (d) — (iii)
12. Central Pollution Control Board
10TH CHAPTER
DEVELOPMENT EXPERIENCE INDIA

1. Reforms in __________ were introduced in 1978

(A) China
(B) Pakistan
(C) India
(D) None of the above

2. First five year plan of __________ commenced in the year 1956

a) Pakistan
b) China
c) India
d) (a) and (b)

3. Proportion of people below poverty line is more in:

a) India
b) Pakistan
c) China
d) USA

4. Reforms in _________ were introduced in 1988.

a) China
b) Pakistan
c) India
d) USA

5. The fertility rate is very high in

a) Pakistan
b) India
c) China
d) USA

6. One child norm is a feature of ____________ country.

a) France
b) India
c) Pakistan
d) China

7. _________ has the highest life expectancy

a) India
b) China
c) Pakistan
d) Both (a) and (c)
8. A campaign in China in 1958 where people were encouraged to set up industries in their backyard was
named as:
a) Great leap forward
b) Great proletarian cultural revolution
c) Anti- rightist movement
d) Four pests damping

9. In which of the following areas, Pakistan has an edge over Indian?

a) Export of software after economic reforms
b) Number of ph.d’s produced in science and engineering every year
c) Reducing the proportion of population below poverty line
d) All the above

10. According to demographic parameters, the density of population is lowest in:

a) China
b) India
c) Pakistan
d) Both (b) and (c)

11. China moving ahead of India and Pakistan is true for which indicator?
a) GDP per capita
b) Proportion of population below poverty line
c) HDI ranking
d) All the above

12. India, Pakistan and ____ have many similarities in their development strategies
(a) Nepal
(b) China
(c) Sri Lanka
(d) Bangladesh

13. Which type of economic system is followed in China?

(a) Mixed Economy
(b) Socialist Economy
(c) Capitalist Economy
(d) None of these

14. Which sector of the economy contributes the highest to India’s GDP?
(a) Service
(b) Agriculture
(c) Industry
(d) None of these

15. ___________ programme was started in China with the aim of industrialization.
(a) Great leap Forward
(b) Great proletarian Cultural Revolution
(c) One child policy
(d) None of these

16. ____________ has the highest life expectancy at birth.

 (a)India
(b)China
(c) Pakistan
(d) Both (a) and (b)

17. Which of the following two countries have adopted the Mixed Economic System?
(a) India and China
(b) India and Pakistan.
(c) China and Pakistan
(d) None of these

18. Which economic system did China chose for economic development?
a) Capitalist system
b) Socialist system
c) Mixed capitalist system
d) None of the above

19. Which economic system did India adopt as development strategy?

a) Capitalist system
b) Socialist system
c) Mixed capitalist system
d) Socialist system upto 1991 and then capitalist system

20. Which of the three countries has lowest rate of population growth?
a) India
b) Pakistan
c) China
d) All equal

21. Which of the three countries has the highest growth rate of GDP?
a) India
b) Pakistan
c) China
d) All equal

22. Which economic sector is the highest contribution to GDP in India, Pakistan and China?
a) Agriculture
b) Industries
c) Services
d) all equal

23. Which of the three countries has highest life expectancy at birth?
a) India
b) China
c) Pakistan
d) All equal

24. Which of the three countries has highest percentage of population above poverty line?
a) China
 b) Pakistan
c) India
d) All equal

25. Rank India, Pakistan and China in terms of better value of human development index.
(a) 1st – Pakistan; 2nd – China; 3rd– India.
(b) 1st – Pakistan; 2nd – India; 3rd– China.
(c) 1st – China; 2nd – Pakistan; 3rd - India
(d) 1st – China; 2nd – India; 3rd- Pakistan

26. _______ Performance in providing sanitation is better in comparison to ______.

(a) Pakistan’s, India
(b)China’s, Pakistan
(c) China’s, India
(d) India’s, Pakistan

DEVELOPMENT EXPERIENCE OF INDIA— A COMPARISON WITH NEIGHBOURS

1. First five year plan of ____________________ commenced in the year 1956.

(Pakistan/China)
2. GOP per capital, or proportion of population below poverty line is _________________ .
(income indicator of human development/Health indicator of human development)
3. Mortality rates, literacy, life expectancy etc. are____________. (income indicator of human
development/Health indicator of human development)
4. Which of the following countries has the lowest density of population?
(a) India
(b) China
(c) Pakistan
(d) None of the above
5. Growth rate of population is highest in which of the following country?
(a) India
(b) China
(c) Pakistan
(d) None of the above
6. Social Economic Zones were set up by China to:
(a) Attract foreign investors.
(b) To develop the backward regions.
(c) To maintain economic equality.
(d) To promote private sector.
7. China discontinued the one child policy because:
(a) They will be more elderly people in proportion to young people.
 (b) It increased the number of dependent population.
(c) People became dissatisfied with the policy.
(d) Population of the country decreased.
8. China succeeded in achieving higher growth rate than India because:
(a) It followed communist pattern of economy.
(b) It started reforms early.
(c) It gave much importance to manufacturing sector.
(d) All of above
9. China is ahead of India and Pakistan on many human development indicators. These
improvements were attributed to the reform process initiated in China in 1978. (True/False)

ANSWERS

1. Pakistan
2. income indicator of human development
3. Health indicator of human development
4. (b) China
5. (c) Pakistan
6. (a) Attract foreign investors.
7. (a) There will be more elderly people in proportion to young people.
8. (c) It gave much importance to manufacturing sector.
9. False: China is ahead of India and Pakistan on many human development indicators. However,
these improvements were attributed not to the reform process but the strategies that China
adopted in the pre-reform period.