ABS VIDHYA MANDHIR

THIRUVALUR
QUESTION BANK

CHAPTER-II INDIAN ECONOMY 1950 -1990

Objective Type Questions

1. Under which system the goods are distributed among people not on the basis of what
people need but on the basis of purchasing power?

(a) Capitalistic system (b) Socialistic system ©Mixed system (d)Dual system

2. Who is known as the architect of 'Indian Planning'?

(a) Jawaharlal Nehru (b) Dr. BR Ambedkar (c) PC Mahalanobis (d) Sardar Vallabh bhai
Patel

3. The Planning Commission was set up in:

(a)1948 (b) 1950 (c) 1951 (d) 1956

4. When was first five-year plan introduced?

(a)1st April, 1950 (b) 1st April, 1951 (c) 1st April, 1952 (d) 31st March, 1950

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

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

6. Long-term objectives to be achieved over a long period of time formulated with reference
to common goals of plans are called____________

(a)Objectives of plans (b) Objectives of planning ( c)Perspective plans (d)Both (b) and (c)

7. A good indicator of growth is steady increase in the:

(a)Gross Domestic Product (b) Net Domestic Product( c)Population(d)National Income

8. Self-reliance means avoiding:

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

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

(a) Land reforms(b) Green Revolution(c) Buffer stocks(d) Land ceiling

10. 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

11. Which of the following is not true for small scale industries?

(a) SSI is 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.

12. During the initial stages of planning, special concessions 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 ©Export promotion
strategy

(d)None of the above

13. Protection of domestic industries took the form of:

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

14._____________sector was mainly dependent on monsoon.

15. _____________means utilisation of country's resources into different development

activities in accordance with the national priorities.

16. ____________refers to utilisation of country's resources in order to promote economic

growth.

17._____________were initiated in order to bring equity in ownership of landholdings.

18._________________ ,_______________,________________and _____________are the

common goals of five year plans.

19. The excess portion of agriculture produce, which is sold into the market by the farmers, is
called______________

20. Capitalist economy takes major economic decisions i.e., what to produce, how to produce
and for whom to produce. (True/False)

21. The deficit portion of agriculture produce which is sold into the market by the farmers is
called marketed surplus. (true/FaIse)

22. Self-reliance refers to the utilisation of country's resources in order to promote economic
growth and modernisation without using the resources imported from other countries.
(True/False)

23. Give two examples of socialist economy.

24. What are those economies called where it is the government and the market together
answering the questions—What, How and For whom?

25. What is the meaning of economic planning?OR What is the meaning of economic
planning?

26. In which year was the planning commission set up? Ans. It was set up in 1950.

27. What do you understand by a plan?

28. What is 'Sankhya'?

29. What does the term 'growth' in the context of a country denote?

30.What is the 'Structural Cornposition' of an economy? [

31. Define the term 'Self Reliance'.

32. What do you mean by land reforms?

33. What is meant by 'Land Ceiling'?

34. What do you understand by Green Revolution?

35. What is 'Marketed Surplus'?

36. What is subsidy?

37. Define a 'small-scale industry'.

38. What is 'Import-substitution'?

39. What do you understand by 'tariff?

Short Answer Type Questions [3/4 Marks]

40. How are economies classified into different types of economic systems?

41. Why is P.C. Mahalanobis known as the architect of Indian planning?

42. Distinguish between planning objectives and plan obje

43. Explain the long-term objectives of Five Year Plans in India.

44. How has India's occupational structure changed in the period 1950 to 1990?

45. Explain 'Modernisation' as aim of five-year plans.

46. What has been the impact of self-reliance on Indian economy?

47. Explain the policy of “land to the tiller” and its benefits.
48. Why were the benefits of green revolution restricted to few states and few crops in initial
stages of planning?

49. How did government ensure that the small farmers also benefit from the green revolution
as the rich farmers?

50. How did green revolution enable the government to procure sufficient food grains and
build its buffer stocks?

51. Give a quantitative appraisal of India's demographic profile during the colonial period.

52. Subsidies provide an incentive for wasteful use of resources.' Do you accept/reject?
Justify your answer.

53. Why was there a need for reform of economic policy in 1990? Explain.

54. What was the need for economic reforms in 1991?

55. Trace the growth of industrial sector during the period 1950—51 to 1990—91

56. Discuss the principal components of Industrial Policy Resolution, 1956.

57. How were the industries classified according to the Industrial Policy Resolution, 1956?

58. How did government promote regional equality in industrial development?

59. How do small scale industries promote rural development? Or

Give the three characteristics of small scale industry.

60. Why do small scale industries need protection by the government?

61. How are small scale industries distinguished from large scale industries?

62. Why are the small scale and cottage industries important in the development of Indian
economy?

63. Give any four features of small scale industries.

64. What is import substitution policy? Why it was introduced in India?

65. Explain how tariffs and quotas protect the domestic in (lustry?

66. Distinguish between tariffs and quotas.

67. Why does Indian planning place more emphasis on industrial development? Or

In industrial development in India government played a leading role. Why?

68. In industrial development in India, government played a leading role. Why?

Or
Why was public sector given a leading role i n industrial development during the planning
period? Explain any two reasons.

69. How was the licensing policy misused by some industrial houses?

70. Explain the 'policy of protection' in industries.

71. What were the drawbacks of the licensing policy followed by the government before
1991?

72. Explain the 'permit license raj'.

Long Answer Type Questions [6 Marks]

73. How are the economic decisions taken in different economic systems?

74. What are the features of a capitalist economy».

75. What are the features of a socialist economy?

76. Explain 'Growth, Equity and Self-reliance' as long term objectives of planning.

77. Why were the land reforms not implemented successfully?

78. Elaborate the major policy initiatives in agriculture sector.

79. What is Green Revolution? Why and when was it implemented?

80. How did Green Revolution benefit the farmers?

81. What were the drawbacks of the green Revolution?

82. Critically explain the economic policy prior to 1991 with its achievements and failures.

83. Explain any four importance’s of industries for a developing country like India?

84. Highlight the achievements of India's industrial sector during the first seven plans (1950
-91).