MCQs for Understanding Economic Development (Economics)

MCQs for Class 10 Economics Chapter - Development

1.Per capita income hides

(a) disparities

(b) average income

(c) total population

(d) none of these

Answer: (a) disparities

2.Development goal for landless agricultural labor is

(a) high prices for crops

(b) more days of work

(c) cheap labor

(d) pollution free environment

Answer: (b) more days of work

3.Kerala has low infant mortality rate because it has

(a) Low provision of basic health and educational facilities

(b) Adequate provision of basic health and educational facilities

(c) High mortality rate among elderly people

(d) None of the above

Answer: (b) Adequate provision of basic health and educational facilities

4.Dividing the total income of country with its population, we get

I. Per-Capita income

II. National income

III. Average Income

IV. Total Income

(a) Only III

(b) I and II

(c) All of the above

(d) None of these

Answer: (a) Only III

5.Which of the following is not true about development?

(a) Different people usually have same goals.

(b) Different people can have different goals.

(c) Different people can have different as well as conflicting goals.

(d) Different people can have different as well as conflicting goals regarding national development.

Answer: (a) Different people usually have same goals.

6.The per-capita income of different countries is counted in which currency?

(a) Rupees

(b) Pounds

(c) US Dollars

(d) Canadian Dollars

Answer: (c) US Dollars

7.Development of an individual refers to

(a) mental development

(b) physical development

(c) spiritual development

(d) overall development

Answer: (d) overall development.

8.Among Haryana, Kerala and Bihar, the lowest per- capita income state is Bihar. It shows that

(a) Bihar has high standard of living

(b) People are earning less in Kerala

(c) Maharashtra has more number of rich people

(d) On an average, people in Bihar have low income

Answer: (d) On an average, people in Bihar have low income

9.Which one of the following is not a base for preparation of Human Development Index (HDI)

(a) Literacy rate

(b) Life expectancy

(c) Industrialization

(d) Per capita income

Answer: (c) Industrialization

10.Classical view of economic development includes

(a) per capita income

(b) national Income

(c) none of these

(d) both a and b

Answer: (a) per capita income

11.Full form of SED is

(a) sustainable economic development

(b) simple economic development

(c) sound economic development

(d) none of these

Answer: (a) sustainable economic development

12.IMR stands for

(a) Infant Mortality Ratio

(b) Indian Mortality Ratio

(c) International Mortality Ratio

(d) none of these

Answer: (a) Infant Mortality Ratio

13.Which criteria is used by World Bank for classifying countries?

(a) Literacy Rate

(b) Life Expectancy

(c) Enrolment percentage

(d) Per Capita income

Answer: (d) Per Capita income

14.The literacy rate is highest in Kerala while the infant mortality rate is highest in Bihar. What does it show?

(a) Most of the people in Kerala and Bihar have good living conditions.
(b) Both Bihar and Kerala lack basic necessities of life.

(c) The standard of living in Kerala is batter than Bihar.

(d) The standard of living in Bihar is better than Kerala.

Answer: (c) The standard of living in Kerala is batter than Bihar.

15.Body mass index is used to calculate

(a) Nourishment level

(b) Body growth

(c) Only a

(d) Both a and b

Answer: (d) Both a and b

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MCQs for Class 10 Economics Chapter - Sectors Of The Indian Economy

1.Which of the following occupations cannot be included in primary sector?

(a) Agriculture

(b) Fishing

(c) Mining

(d) Moneylending

Answer: (d) Moneylending

2.Agriculture, dairy farming are activities belonging to which of the following sectors?

(a) Primary

(b) Secondary

(c) Tertiary

(d) Scientific technology

Answer: (a) Primary

3.Which of the following occupations cannot be included in tertiary sector?

(a) Courier

(b) Basket weaver

(c) Call center employee

(d) Transporter

Answer: (b) Basket weaver

4.GDP stands for Gross Domestic Product. What does it show? Pick up the correct statement given
below:

(a) It shows how big is the economy of a country in a given year in terms of its total

(b) It shows what the total product of a country in a given year without counting the country’s total
resources.

(c) It shows the number of people involved in production in a particular year.

(d) It shows the total value of trade transactions of a country in a particular year.

Answer: (a) It shows how big is the economy of a country in a given year in terms of its total

output.

5.Choose one correct statement from the following:

Underemployment occurs —

(a) when people are not willing to work.

(b) when people are working slowly.

(c) when people are working less than what they are capable of doing.

(d) when people are not paid for their jobs.

Answer: (c) when people are working less than what they are capable of doing.

6.Which sector has lost its share in GDP but still continues to be largest employer?

(a) Primary

(b) Secondary

(c) Tertiary

(d) Only c

Answer: (a) Primary

7.Which of the following measures the proportion of children that die before the age of 1 year as a
proportion of 1000 live children born in that particular year?

(a) IMR - Infant mortality rate

(b) Literacy rate

(c) Net attendance ratio

(d) Drop out ratio

Answer: (a) IMR - Infant mortality rate

8.____________ refers to the activities which are undertaken by people with the object of earning money.

(a) Organised activities

(b) Unorganised activities

(c) Economic activities

(d) Noneconomic activities

Answer: (c) Economic activities

9.NREGA (National Rural Employment Guarantee Act of 2005) has guaranteed_________ days of
employment in a year in many districts of India. What are the correct number of

days?

(a) 200 days

(b) 100 days

(c) 30 days

(d) 60 days

Answer: (b) 100 days

10.In the past 100 years, there has been a further shift from _______ to ______ in developed countries.
This has become the most important in terms of total production.

(a) secondary to tertiary sector

(b) primary to tertiary sector

(c) primary to secondary sector

(d) none of the above

Answer: (a) secondary to tertiary sector

11.Who among the following fall under the organized sector?

(a) Raghu, a daily wage labourer working in a dam site under a contractor.

(b) Nafeesa, a doctor getting all employment benefits.

(c) Purushothaman, a cleaning staff in a private bank.

(d) Ammini, a tailor stitching clothes at his home.

Answer: (b) Nafeesa, a doctor getting all employment benefits.

12.Manish is preparing to join Google as software engineer which of the following might be wrong
about him?

(a) He will work in unorganized sector

(b) He will work in private sector

(c) He will work in tertiary sector

(d) He will work in organized sector

Answer: (a) He will work in unorganized sector

13.The sectors are classified into organized and unorganized sector on the basis of:

(a) Employment conditions

(b) The nature of economic activity

(c) Ownership of enterprises

(d) Number of workers employed in the enterprise

Answer: (a) Employment conditions

14.Disguised unemployment occurs when people

(a) Do not want to work

(b) Are working in a lazy manner

(c) Are working less than what they are capable of doing

(d) Are not paid for their work

Answer: (c) Are working less than what they are capable of doing

15.Rituraj is employed as a government teacher. Which of the following statement is right about him?

(a) He works in secondary sector

(b) He works in private sector

(c) He works in unorganized sector

(d) He works in public sector

Answer: (d) He works in public sector

MCQs for Class 10 Economics Chapter - Money and Credit

1.Which one of the following is a formal source of credit?

(a) Traders

(b) Cooperative societies

(c) Moneylenders

(d) Friends and relatives

Answer: (b) Cooperative societies

2.All the banks act as mediator between _________ and _________.

(a) rural people, urban people

(b) literates, illiterates

(c) people, government

(d) depositors, borrowers

Answer: (d) depositors, borrowers

3.Which of the following is not a feature of Self Help Groups (SHGs)?

(a) It consists of 15-20 members or more.

(b) Here members pool their savings which acts as collateral.

(c) Loans are given at nominal rate of interest.

(d) It is an informal source of credit.

Answer: (d) It is an informal source of credit.

4.Organised credit is also called

(a) informal credit

(b) formal credit

(c) cooperative credit

(d) none of these

Answer: (b) formal credit

5.Which one of the following is the appropriate meaning of collateral?

(a) It is the sum total of money borrowed from banks.

(b) The amount borrowed from friends.

(c) It is an asset of the borrower used as guarantee to a lender.

(d) The amount invested in a business.

Answer: (c) It is an asset of the borrower used as guarantee to a lender.

6.Which one of the following is the newer way of providing loans to the rural poor, particularly women?

(a) Cooperative Banks

(b) Grameen Banks

(c) Self-Help Groups

(d) Moneylenders

Answer: (c) Self-Help Groups

7.Which of the following statements is false

(a) There is no organization which supervises the credit activities of lenders in the informal sector.

(b) RBI stops the money lenders from using unfair means to get their money back.

(c) Compared to the formal lenders, most of the informal lenders charge much lesser interest on loans

(d) All of the above

Answer: (d) All of the above

8.Banks use the major portion of the deposits to

(a) Extend loans

(b) Invest in infrastructure

(c) Deposit in foreign banks

(d) None of the above

Answer: (a) Extend loans

9.Name the system in which the double coincidence of wants is an essential feature.

(a) Barter system

(b) Money economy

(c) Global economy

(d) None of these

Answer: (a) Barter system

10.Double coincidence of wants means ____________.

(a) What a person desires to sell is exactly what the other person wishes to buy.

(b) What a person desires to sell is exactly what the other person also wishes to sell.

(c) What a person desires to buy is exactly what the other person also wishes to buy.

(d) None of the above.

Answer: (a) What a person desires to sell is exactly what the other person wishes to buy.

11.Since money acts as an intermediate in the exchange process, it is called

(a) Medium of trade

(b) Medium of Exchange

(c) Medium of Business

(d) Medium of transaction

Answer: (b) Medium of Exchange

12.............refers to an agreement in which the lender supplies the borrower with money, goods or
services in return for the promise of future payment.

(a) Debit

(b) Cash transaction

(c) Credit

(d) Trade

Answer: (c) Credit

13.People also have the provision to withdraw the money as and when they require the deposits in the
bank accounts to be withdrawn, what are these deposits called?

(a) Fixed deposits

(b) Savings

(c) Demand deposits

(d) Demand drafts

Answer: (c) Demand deposits

14.Banks use the major portion of the deposit to:

(a) Keep reserve so that people may withdraw

(b) Meet their routine expenses

(c) Extend loans

(d) Meet renovation of the bank

Answer: (c) Extend loans

15.At present which form of money is increasingly used apart from paper

money?

(a) Commodity money

(b) Metallic money

(c) Plastic money

(d) All the above

Answer: (c) Plastic money

MCQs for Class 10 Economics Chapter - Globalisation and the Indian Economy

1.Globalisation has led to improvement in living conditions:

(a) of all the people

(b) of people in the developed countries

(c) of workers in the developing countries

(d) none of the above.

Answer: (d) none of the above.

2.One major government initiative to attract foreign companies to invest in India is:

(a) To raise the standard of education

(b) to promote unemployment in the public sector

(c) To build special economic zones

(d) both (a) and (c)

Answer: (c) To build special economic zones

3.Which one of the following Indian industries has been hit hard by globalisation?

(a) Information Technology (IT)

(b) Toy making

(c) Jute

(d) Cement

Answer: (a) Information Technology (IT)

4.Which of the following is not a feature of a Multi-National Company?

(a) It owns/controls production in more than one nation.

(b) It sets up factories where it is close to the markets.

(c) It organises production in complex ways.

(d) It employs labour only from its own country.

Answer: (d) It employs labour only from its own country.

5.World Trade Organisation (WTO) was started at the initiative of which one of the following

group of countries?

(a) Rich countries

(b) Poor countries

(c) Developed countries

(d) Developing countries

Answer: (c) Developed countries

6.Globalisation has created new opportunities of:

(a) Employment

(b) emerging multinationals

(c) providing services

(d) all of the above

Answer: (d) all of the above

7.An MNC is a company that owns or controls production in

(a) one country

(b) more than one country

(c) only developing countries

(d) only developed countries

Answer: (b) more than one country

8.Globalisation has posed major challenges for:

(a) Big producers

(b) small producers

(c) rural poor

(d) none of these

Answer: (b) small producers

9.Which of the following organisations lays stress on liberalisation of foreign trade and foreign

investment?

(a) International Labour Organisation

(b) International Monetary Fund

(c) World Health Organisation

(d) World Trade Oraganisation

Answer: (d) World Trade Oraganisation

10.What was the main channel connecting country in the past?

(a) Labour

(b) Religion

(c) Technology

(d) Trade

Answer: (d) Trade

11.Companies who set up production units in the Special Economic Zones (SEZs) do not have

to pay taxes for an initial period of:

(a) 2 years

(b) 5 years

(c) 4 years

(d) 10 years

Answer: (b) 5 years

12.Investments made by MNCs are termed as:

(a) Indigenous investment

(b) Foreign investment

(c) Entrepreneur’s investment

(d) None of theAbove

Answer: (b) Foreign investment

13.Tax on imports is an example of:

(a) Terms of Trade

(b) Collateral

(c) Trade Barriers

(d) Foreign Trade

Answer: (c) Trade Barriers

14.It refers to the globalisation which creates opportunities for all and ensures that its benefits

are better shared.

(a) Privatisation

(b) Special Economic Zones (SEZs)

(c) World Trade Organisation (WTO) (d) Fair globalisation

Answer: (d) Fair globalisation

15.The process of rapid integration or interconnection between countries through free trade, free

mobility of capital and labour is called

(a) Foreign trade

(b) Liberalisation

(c) Globalisation

(d) Privatisation

Answer: (c) Globalisation