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IED CH 1, 2 & 3
Class 12 - Economics
Time Allowed: 1 hour Maximum Marks: 30

1. Assertion (A): More than Half of India’s Foreign trade was restricted to Britain. [1]
Reason (R): Britain maintained Monopoly control on India’s Import and Export.

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.

2. Assertion (A): Indian handicrafts were systematically destroyed owing to discriminatory policies of the British [1]
government.
Reason (R): Owing to colonial exploitation of the Indian economy, India became a net exporter of raw materials
and primary products.

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.

3. Assertion (A): In the second phase of the green revolution (mid 1970s to mid 1980s), the HYV technology [1]
benefited only the more affluent states and the wheat-growing regions.
Reason (R): In the second phase of the green revolution, the HYV technology spread to a larger number of
states and benefited more variety of crops.

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.

4. Assertion (A): The most developing countries today are industrialized countries. [1]
Reason (R): The growth process and industrialization are so intimately related to each other that
industrialization is often taken as a sine-qua-non of growth.

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.

5. Assertion (A): In 1991, India met with an economic crisis relating to its internal debt. [1]
Reason (R): The origin of the financial crisis can be traced from the inefficient management of the Indian
economy in the 1980s.

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.

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 c) A is true but R is false. d) A is false but R is true.
6. Assertion (A): India is often called as outsourcing hub/favourite outsourcing destination of the world. [1]
Reason (R): India has vast skilled manpower which enhances the faith of MNCs for investment in India. MNCs
get various types of lucrative offers from the Indian government such as tax holidays, tax concessions etc.

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.

7. Assertion (A): Liberalisation of trade and investment regime was initiated to increase international [1]
competitiveness of industrial production and also foreign investments and technology into the economy.
Reason (R): The aim was also to promote the efficiency of local industries and adoption of modern
technologies.

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.

8. 'Composition of foreign trade of any country tells us about the nature of commodities that are exported and [3]
imported.’ What can you state about the composition of foreign trade at the time of Independence?
9. Discuss occupational structure of Indian economy at the time of Independence. [4]
10. The Industrial Policy Resolution, 1956 has categorised industries on the basis of ownership. Discuss. [3]
11. Discuss the role of small scale industries in the generation of employment. [3]
12. How do you find the co-existence of malls and jhuggis in an economy? Had you been the person with authority, [3]
what policy changes you would have brought?
13. Discuss economic reforms in India in the light of social justice and welfare. [3]
14. India has certain advantages which makes it a favourite outsourcing destination. What are these advantages? [4]

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