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TOP 75 QUESTIONS INDIAN ECONOMY

Class 12 - Economics

Section A
1. Public sector means that production units are [1]

a) Owned by government b) Owned by private individuals

c) Both d) None
2. Which of the following is not the reason for introduction of economic reforms in 1991? [1]

a) Deficit in Balance of Payments b) High rate of inflation

c) Increase in exports d) Fall in foreign exchange reserves

3. In which year Right to Education Act was passed? [1]

a) 2010 b) 2011

c) 2009 d) 2012
4. ________ is major source of human capital. [1]
i. Taxes
ii. Subsidies
iii. Health
iv. All the above

a) Option (iii) b) Option (i)

c) Option (ii) d) Option (iv)

5. Operation Flood is also known as ________ [1]

a) Both Green Revolution and Golden b) White Revolution

Revolution

c) Golden Revolution d) Green Revolution

6. Short term credit is needed for [1]

a) Period of 20 years b) Period 5 years

c) Period of 15 months d) Period of 15 years

7. The number of persons, who are actually employed at a particular time are known as: [1]

a) Work force b) Participation

c) Labour force d) Both Labour force and Work force

8. When due to introduction of new machinery, some workers tend to be replaced by machines, their [1]
unemployment is term as

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 a) Seasonal b) Structural

c) Technological d) Mechanical
9. Which of the following adjustments would be made to any increase in GDP in order to derive an 'Index of [1]
Sustainable Economic Welfare' (ISEW)

a) Subtract the monetary value of non- b) Subtract the costs of environmental

defensive public expenditures degradation

c) Subtract the monetary value of personal d) Subtract the monetary value of capital
consumption formation
10. Which animals/ birds help in bio composting? [1]

a) Cattles b) Peacock

c) Snakes d) Owls
11. When did nationalisation of capital goods industry took place in Pakistan? [1]

a) 1970s b) 1980s

c) 1990s d) After 2000

12. What was the aim of the Great Leap Forward Programme initiated in China in 1958? [1]

a) Rapid industrialisation b) Development of infrastructure

c) Control of population d) Agricultural development

Section B
13. Assertion (A): The main cause of the stagnation in the agricultural sector in India under the British colonial rule [1]
was the zamindari system.
Reason (R): The stagnation in the agricultural sector was caused mainly because of the various systems of land
settlement that were introduced by the colonial government, particularly the zamindari system.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

14. Assertion (A): Modernization includes an adaptation of Technology and Change in Social Outlook. [1]
Reason (R): Modernization raises the standard of living of People.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

15. Assertion (A): According to the Government of India, the disinvestment of Public Sector Enterprises has [1]
brought accountability and professionalism to them.
Reason (R): The Government of India used disinvestment mainly to improve financial discipline and facilitate
modernisation.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

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16. Assertion (A): GATT was established in 1948 with 23 countries as the global trade organisation. [1]
Reason (R): To administer all multilateral trade agreements by providing equal opportunities to all countries in
the international market for trading purposes.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

17. Assertion (A): In India, people often migrate from urban to rural areas. [1]
Reason (R): Gains of migration are greater than the cost of migration. Implying that migration leads to human
capital formation through better utilization of skills.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

18. Assertion (A): It is important to develop proper storage facilities in rural areas. [1]
Reason (R): Farmers are forced to sell their crops at very low prices to traders because of the fear of it getting it
damaged from fire, rodents or pests due to lack of proper storage.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

19. Assertion (A): Female Education in India is still a far cry. [1]
Reason (R): Women rendering household services as housewives are not deemed as workers.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

20. Assertion (A): Liquefied petroleum gas (LPG) is a clean fuel. [1]
Reason (R): LPG reduces household pollution to a large extent. Also, energy wastage is minimised.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

Section C
21. State whether the given statement is True or False: [2]
(a) India was an importer of primary products and an exporter of finished goods during British rule. [1]
(b) In India, a mixed type of economic system is being followed [1]
Section D
22. Identify the sources of Human Capital Formation and choose the correct alternative to fill in the blanks. [1]

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 a) Expenditure on Health and Expenditure on b) Expenditure on Migration and Expenditure
Migration on Knowledge

c) Expenditure on Technology and Expenditure d) Expenditure on Health and Expenditure on

on Knowledge Schools
23. Which one of the following was launched with the objective of helping the poor in rural areas to become self- [1]
employed?

a) DPAP b) DDP

c) IRDP d) TRYSEM
24. Which is the apex institute at the national level which provides re-finance facilities to institutions engaged in [1]
providing rural credit?

a) NBAARD b) DABARD

c) NABADR d) NABARD
Section E
25. India approached the ________ and received $7 billion as loan to manage the crisis. For availing the loan, these [1]
international agencies expected India to liberalise and open up the economy by removing restrictions on the
private sector, reduce the role of the government in many areas and remove trade restrictions between India and
other countries.
a. International Bank for Reconstruction and Development (World Bank)
b. International Monetary Fund (IMF)
c. Both (a) and (b)
d. Standard Chartered Bank

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 a) Option (b) b) Option (a)

c) Option (c) d) Option (d)

26. Human capital is a ________ process. [1]

a) All of these b) economic

c) physical d) social
27. The ________ of the environment implies that the resource extraction rate is not above the rate of resources [1]
regeneration.

a) Opportunity cost b) Absorptive capacity

c) Assimilation capacity d) Carrying capacity

Section F
28. Arrange the following events of Pakistan in chronological order and choose the correct alternative: [1]
i. Nationalisation of Capital Goods
ii. First Five Year Plan
iii. Pakistan's Independence Day
iv. Introduction of Reforms

a) (iv), (i), (ii), (iii) b) (iv), (ii), (i), (iii)

c) (ii), (i), (iv), (iii) d) (iii), (ii), (i), (iv)

Section G
29. Statement I: The colonial government made many sincere attempt to estimate India's national and per capita [1]
income.
Statement II: During the British colonial period, most studies did find that the country’s growth of aggregate
real output during the first half of the twentieth century was less than two per cent coupled with a meagre half
per cent growth in per capita output per year.

a) Statement II is true, but statement I is false. b) Both the statements are true.

c) Both the statements are false. d) Statement I is true, but statement II is false.
30. Statement 1: The low productivity of the agricultural sector forced India to import food from the United States [1]
of America.
Statement 2: Agricultural development was focused right from the First Five Year Plan as it accounted for the
largest share of workforce.

a) Statement 2 is true and Statement 1 is false. b) Both the statements are true.

c) Statement 1 is true and Statement 2 is false. d) Both the statements are false.
31. Statement I: As an important member of WTO, India has been in the forefront of framing fair global rules, [1]
regulations and safeguards and advocating the interests of the developing world.
Statement II: India has kept its commitments towards liberalisation of trade, made in the WTO, by removing
quantitative restrictions on imports and reducing tariff rates.

a) Both the statements are true. b) Statement I is true, Statement II is false.

c) Both the statements are false. d) Statement II is true, Statement I is false.

32. Statement 1: The new economic policy has neglected the agricultural sector as compared to other two sectors. [1]

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 Statement 2: The new economic policy has discouraged consumerism.

a) Statement 1 is true and Statement 2 is false. b) Statement 2 is true and Statement 1 is false.

c) Both the statements are true. d) Both the statements are false.
33. Statement I: The availability of educated labour force facilitates adaptation of new technologies. [1]
Statement II: Economists have stressed the need for expanding educational opportunities in a nation as it
accelerates the development process.

a) Statement I is true, Statement II is false. b) Statement II is true, Statement I is false.

c) Both the statements are false. d) Both the statements are true.
34. Statement 1: Enhanced earnings due to migration are more than cost of migration leading to human capital [1]
formation.
Statement 2: Migration facilitates utilisation of inactive skills of the people and hence it contributes to human
capital formation.

a) Both the statements are true. b) Statement 1 is true and Statement 2 is false.

c) Both the statements are false. d) Statement 2 is true and Statement 1 is false.
35. Statement 1: Much of the agricultural employment activities are concentrated in the Kharif season. [1]
Statement 2: Diversification of crop production aims to shift from commercial farming to subsistence farming

a) Statement 1 is true and Statement 2 is false. b) Statement 2 is true and Statement 1 is false.

c) Both the statements are true. d) Both the statements are false.
36. Statement 1: The various institutional sources used to exploit small farmers by lending them credit at high [1]
interest rates.
Statement 2: National Bank for Agriculture and Rural Development is the Apex Bank which works for the
expansion of rural credit.

a) Statement 1 is true and Statement 2 is false. b) Both the statements are true.

c) Statement 2 is true and Statement 1 is false. d) Both the statements are false.
37. Statement I: National Bank for Agriculture and Rural Development (NABARD) was set up in 1985 as an apex [1]
body to coordinate the activities of all institutions involved in the rural financing system.
Statement II: The Green Revolution was a harbinger of major changes in the credit system as it led to the
diversification of the portfolio of rural credit towards productionoriented lending.

a) Both the statements are false. b) Both the statements are true.

c) Statement II is true, Statement I is false. d) Statement I is true, Statement II is false.

38. Statement I: While estimating the number of workers, all those who are engaged in economic activities are [1]
included as employed.
Statement II: During 2017-18, India had about a 471 million strong workforce.

a) Both the statements are false. b) Statement II is true, Statement I is false.

c) Both the statements are true. d) Statement I is true, Statement II is false.

39. Statement I: Self-employment is a major source of livelihood for both men and women as this category [1]
accounts for more than 50 per cent of the workforce.

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 Statement II: Agriculture is not a major source of employment in urban areas where people are mainly engaged
in the service sector.

a) Statement I is true, Statement II is false. b) Statement II is true, Statement I is false.

c) Both the statements are false. d) Both the statements are true.
40. Statement I: In order to address two major environmental concerns in India, viz. water and air pollution, the [1]
government set up the Central Pollution Control Board (CPCB) in 1974.
Statement II: The CPCB has identified 14 categories of industries (large and medium scale) as significantly
polluting.

a) Both the statements are true. b) Statement II is true, Statement I is false.

c) Statement I is true, Statement II is false. d) Both the statements are false.

41. Statement I: Global warming and ozone depletion contribute to increased financial commitments for the [1]
government.
Statement II: The opportunity costs of negative environmental impacts are high.

a) Both the statements are true. b) Both the statements are false.

c) Statement II is true, Statement I is false. d) Statement I is true, Statement II is false.

42. Statement 1: Montreal Protocol is a historical treaty designed by the members of the United Nations to protect [1]
the ozone layer.
Statement 2: The Montreal Protocol has significantly reduced the burden of CFCs in the stratosphere.

a) Statement 2 is true and Statement 1 is false. b) Both the statements are false.

c) Both the statements are true. d) Statement 1 is true and Statement 2 is false.
43. Read the following statements carefully: [1]
Statement 1: China introduced structural economic reforms on its own, without any pressure.
Statement 2: Scholars argue that in India, the economic reforms process led to the worsening of all the
economic indicators.
In the light of the given statements, choose the correct alternatives from the following:

a) Statement 1 is false and Statement 2 is true. b) Statement 1 is true and Statement 2 is false.

c) Both Statements 1 and 2 are false d) Both Statements 1 and 2 are true.
44. Statement I: In the 1970s, nationalisation of capital goods industries took place in Pakistan. [1]
Statement II: In 1988, reforms were initiated in Pakistan.

a) Statement II is true, Statement I is false. b) Statement I is true, Statement II is false.

c) Both the statements are true. d) Both the statements are false.
Section H
45. Identify the correct statement from the following. [1]
a. Restrictive policies of commodity production, trade and tariff pursued by the colonial government adversely
affected the structure, composition and volume of India's foreign trade.
b. Effective trade policies of commodity production, trade and tariff pursued by the colonial government
favorably affected the structure, composition and volume of India's foreign trade.

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 c. Liberal policies of commodity production, trade and tariff pursued by the colonial government adversely
affected the structure, composition and volume of India's foreign trade.
d. Restrictive policies of commodity production, trade and tariff pursued by the colonial government favorably
affected the structure, composition and volume of India's foreign trade.

a) Option (d) b) Option (b)

c) Option (c) d) Option (a)

46. Which statement is false regarding economic planning [1]

a) It is concerned with whole of economic life b) It is the purposive adoption of resources to

of a country social ends

c) It is a path of action in terms of policy d) It is an organised efforts to achieve

measures which were followed in the past objective within fixed framework
47. From the following statements regarding Goods and Services Tax (GST), identify the incorrect statement: [1]

a) It's imposed on the supply of goods and b) All types of direct and indirect taxes have
services. been subsumed by it.

c) It ensures uniformity of tax rates across all d) It ensures better tax compliance and tax
states. collection.
48. Identify the incorrect statement from the following: [1]
a. Horticulture has emerged as a successful sustainable livelihood option for farmers in India.
b. Horticulture is an important sector for potential diversification and value addition in agriculture.
c. India is blessed with supportive climatic and soil conditions for horticulture.
d. Horticulture is the business related to producing, storing and distributing food grains.

a) Option (b) b) Option (a)

c) Option (c) d) Option (d)

49. Which of the following statement is not true for a worker? [1]

a) Those who help the main workers are also b) Workers may temporarily abstain from work
workers. due to illness.

c) A worker contributes to the GDP. d) Self-employed are not workers.

50. Which of the following statements is not correct with regards to Sustainable Development? [1]
a. Sustainable Development aims to ensure that present needs are fulfilled without compromising ability of
future generations to meet their own needs.
b. A development path is sustainable, if stock of overall capital assets fall over time.
c. The term' sustainable development' was first emphasised by United Nations Conference on Environment and
Development (UNCED).
d. Sustainable development is a development which ensures growth of agriculture, manufacturing and service
sector, to meet these needs.

a) Statement a is incorrect. b) Statement c is incorrect.

c) Statement d is incorrect. d) Statement b is incorrect.

Section I

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51. Since independence, India has witnessed a considerable fall in the Infant Mortality Rate in India. Identify [1]
which of the following may not be one of the reasons for the fall in the Infant Mortality Rate?

a) Technological expansion over the years b) Improvement in health facilities over the
years

c) Improvement in educational standards over d) Fall in standard of living of the population

the years of the nation over the years
52. Identify, which of the following is not a correct function of environment? [1]
i. Exclusion of waste
ii. Sustainance of life
iii. Provide aesthetic services

a) (ii) only b) (i) only

c) (i) & (ii) d) (ii) & (iii)

Section J
53. Find the odd man out: [1]
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.

a) Option (b) b) Option (c)

c) Option (d) d) Option (a)

Section K
54. Select Indicators of Development in Education and Health Sectors [1]

Particulars 1951 1981 1991 2001 2016-17

Real Per Capita Income (in ₹) 7,651 12,174 15,748 23,095 77,659

Crude Death Rate (Per 1,000 Population) 25.1 12.5 9.8 8.1 6.3

Infant Mortality Rate 146 110 80 63 33

Female 37.2 54.1 59.7 63.9 67

Life Expectancy at Birth (in Years)
Male 36.2 54.7 60.9 66.9 70

Literacy Rate (%) 16.67 43.57 52.21 65.20 76

On the basis of the above-mentioned information answer the following question:

The Real Per Capita Income of India (as per the given data) has increased by ________ (approximately) between
1951 and 2016-17.

a) 1015 % b) 915 %

c) 815 % d) 715 %
Section L
55. Akhilesh gets two job offers: one from Kochi while other from Jaipur. He is going through the cost and benefit [1]
analysis before choosing the final option. Which source of human capital formation is he considering?

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 a) Expenditure on Education b) Expenditure on Health

c) Expenditure on Migration d) Expenditure on On-the-Job-Training

Section M
56. The most important characteristic of India*s foreign trade throughout the colonial period was the [3]
generation of a large export surplus. But this surplus came of a huge cost to the country’s economy. Do
you agree with the above statement? Give valid reasons in support of your answer.
57. Import restrictions were imposed in India with the dual objective to save foreign exchange reserves and to be [3]
self-sufficient. Justify the given statement with valid arguments.
58. What were the needs of economics reforms for India? [3]
59. Explain the concept of human capital formation. [3]
60. Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which sells its products under the brand name [3]
of Amul, has secured the 2nd position in the world top 300 cooperatives. The ranking is based on the ratio of
turnover over gross domestic product (GDP) per capita. GCMMF is India's largest food product marketing
organisation with annual turnover more than US$ 6.2 Billion. Its daily milk procurement is approx 26.3 million
liters per day from 18,600 village milk cooperative societies, 18 member unions covering 33 districts, and 3.64
million milk producer members. These numbers indicate the trust and improvement of dairy farmers in the
cooperative setup.
Do you think Cooperative Marketing is beneficial to the farmers?
61. Explain the various aspects of the unemployment problem of India. [3]
62. Explain how the use of Non-conventional sources of energy can have a favourable impact on the environment? [3]
63. What do you mean by liberty indicators? How strongly do you feel that they should be considered as indicators [3]
of development? Discuss.
64. India is often called the Outsourcing Destination of the world. Discuss the prime reasons for this name given to [4]
India.
65. Identify how Human Development Index is calculated? What is the position of India in the World Human [4]
Development Index?
66. Explain the role of Minimum Support Price (MSP) and Buffer Stocks in the context of agricultural marketing in [4]
India.
67. Explain how the opportunity costs of negative environmental impact are high. [4]
68. a. United Nations Department of Economic and Social Affairs indicated that India has overtaken China as the [4]
world's most populous country in the month of April 2023.
Explain the consequences of one-child policy adopted by China in the 1970s.
b. Discuss the impacts of Special Economic Zones (SEZs) on the economic growth of China.

69. a. Ujjwala Yojana has been a game-changer for rural India. State any three conventional fuels being [6]
targeted under the LPG cylinder distribution scheme (Ujjwala Yojana).
b. Indian Health System needs a stronger dose of public expenditure to cure itself. Justify the given
statement with valid arguments.
70. Explain the need and type of land reforms implemented in the agricultural sector. [6]
71. a. Human capital formation gives birth to innovation, invention and technological improvements. Do you agree [6]
with the given statement? Support your answer with valid arguments.
b. Critically evaluate the role of rural banking system in the process of rural development in India.

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72. Study the following table showing the status-wise trends in employment, analyse the table and give reasons for [6]
such casualisation of the workforce.
Trends in Employment Pattern (Status-wise), 1972-2012 (in %)

Item 1972-73 1983 1993-94 1999-2000 2011-2012

Status

Self-employed 61.4 57.3 54.6 52.6 52.0

Regular Salaried Employees 15.4 13.8 13.6 14.6 18.0

Casual Wage Labourers 23.2 28.9 31.8 32.8 30.0

Total 100.0 100.0 100.0 100.0 100.0

73. Till the late 1970s, India, China and Pakistan - all the three countries were maintaining the same level of [6]
low development. The last three decades have taken these countries to different levels.
Do you agree with the given statement? Give valid reasons in support of your answer.
Section N
74. Read the hypothetical text and answer the given questions: [1]
In 2017-2018, approximately 306.8 million tonnes of production has been estimated and shared about 33% of
total agricultural production (Ministry of Agriculture, India). The historical report suggested that the growth rate
of horticultural crop production accounted for 2.7% per year (Figure 1). This may be attributed to irrigational
facilities, technological improvement, involvement of small and marginal farmers and better agronomic practice
and improved varieties of seeds, etc. However, horticulture in India is facing several challenges like inadequate
availability of planting materials, rein fed horticulture, dearth of the market facility, post-harvest management,
lack of processing facilities and insufficient trained manpower, etc. Forecasting Agricultural output using Space,
Agrometeorology and Land-based observations (FASAL) program, Govt of India aims at providing multiple
preharvest production forecasts and crops at National/State/district level [1]. The present paper is to provide a
review of studies of the use of geospatial technology and its future prospects in horticulture development in
India.
i. At which level India stands in production of fruits and vegetables in the world.
a. Fourth
b. Third
c. Second
d. First
ii. High crop productivity led to ________ revolution in horticultural farming in India.
a. Green
b. Golden
c. White
d. Yellow
iii. Read the following statements:
Assertion (A): Horticulture in India is facing several challenges like inadequate availability of planting
materials, rein fed horticulture, dearth of the market facility, post-harvest management, lack of processing
facilities, and insufficient trained manpower, etc.
Reason (R): Shifting to horticultural farming has reduced the economic vulnerability of the small and

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 marginal farmers.
Select correct alternative
a. Both Assertion and Reason are correct
b. Both Assertion and Reason are incorrect
c. Assertion is correct and Reason is incorrect
d. Assertion is incorrect and Reason is correct
iv. Match the following:

Column 1 Column 2

(1) Horticulture crop (i) Economic vulnerability

(2) Production reduces for horticulture (ii) Flowers

(3) Shifting to horticultural farming has

(iii) Pulses
reduced

(iv) Shift from single-cropping system to multi-cropping

(4) Diversification of crop production
system

a. 1 - ii, 2 - iii, 3 - i, 4 - iv
b. 1 - iii, 2 - ii, 3 - i, 4 - iv
c. 1 - ii, 2 - iii, 3 - iv, 4 - i
d. 1 - iii, 2 - ii, 3 - iv, 4 - i

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