SREE NARAYANA MISSION SENIOR SECONDARY SCHOOL

ECONOMICS
LPG

S.NO QUESTION

1. India received $ 7 billion as a loan from IMF to overcome its crisis in

the balance of payment account.
2. New Economic Policy can be divided into two groups, Stabilization
measures and Structural reform measures
3. How many industries were reserved for the public sector at the time
of deregulation of Industrial sector in 1991 ?
17 industries were reserved for public sector,Which reduced to 8
under New Industrial Policy.
4. RBI is the central bank of India and the whole financial sector is
regulated by it.
5. The percentage of foreign investment limits in banks following the
financial sector reforms was raised to 74.
6. Indian Government introduced the Goods and Services tax in 2016
with the aim to establish a unified tax system.
7. Hindustan Aeronautics Limited is a Navaratna.
8. Globalization aims at increasing the integration and
interdependence among countries
9. Name the successor organization of General Agreement on Trade
and Tariff (GATT)
WTO succeeded GATT in 1995.
10. Following the New Economic Policy, which sector mainly drives the
growth of Indian economy?
After the New Economic Policy, the growth of Indian economy is
mainly driven by the service sector.
11. Consider the following statements with regard to External Sector
Reforms and mark the correct combination.
I) It falls under the category of Liberalisation
II) Liberation of trade policy was a major reform undertaken
III) Devaluation of Indian rupee was another major reform
a) Only I
b) Only I and II
 c) All of the above
d) None of the above
12. The process through which a company hires services from external
sources, mainly foreign countries is known as ?
the process through which a company hires improved services
from external sources is known as outsourcing.
13. IBRD or International Bank of Reconstruction and Development was
the other name of the World Bank.
14. Spectacular growth in the Service sector was visible after 2000.
15. India approached the International Bank for Reconstruction and
Development, popularly known as World Bank and the International
Monetary Fund for loans.
16. Stabilisation measures are short term measures, intended to
correct the weaknesses of the Balance of Payment and to bring
inflation under control.
17. Many goods produced by the small-scale industries were de-
reserved following the deregulation of Industrial sector in 1991.
18. One of the main aims of the financial sector reforms is to reduce the
role of RBI from that of a Regulatorto a facilitator of financial sector.
19. Tax reforms are concerned with reforms in the Government’s
__________ and ____________ Policies, which are collectively known as
Fiscal policy.
Taxation ; Public Expenditure
20. Indirect taxes are the taxes levied on commodities.
21. The Goods and Service Tax Act came into effect from JULY, 2017.
22. In 1991, as an immediate measure to resolve the balance of
payment crisis, the rupee was Devalued against foreign currencies.
23. Quantitative restrictions on imports of manufactured consumer
goods and agricultural products were fully removed from April,
2001.
24. Under 1991 reforms,the industrial licence was abolished except for
Liquor, Health, security and environment, Defence equipment
industries.
25. Privatisation refers to the process of transferring/involving the
 private sector in the ownership, management and control of public
sector enterprises.
26. Which of the following argument favour Privatisation?( Choose the
correct alternative)
a)It creates competitive environment
b)It protects consumer sovereignty
c)Revive the PSU
d)All of the above

HUMAN CAPITAL FORMATION

S.NO QUESTION

1. Human resource refers to the ability of human to contribute to the

process of value-addition in the economy.
2. Physical capital refers to the produced means of production.
3. Addition to the stock of capital can be done by
a) Expenditure on Education
b) Expenditure on Health
c) Study Programme for adults
d) All of these
4. Migration involves
a) Transportation cost
b) Higher Living cost in different place
5. Education is a much wider concept than literacy.
6. What is the desired level of public expenditure on education as per
Education Commission? 6%
7. Problems in Human Capital Formation are
a) Low academic standards
b) Brain Drain
c) Rising population
8. Which organization enforces the rules and regulations regarding
technical education? AICTE
9. Education is important because
a) Expands mental horizon
b) Develops human personality
c) Helps in economic development
10. Which five-year plan recognizes the importance of human capital?
Seventh
11. Which institution is the primary funding authority for universities?
UGC
12 Expenditure on health can be done in the form of : –
a) Preventive Medicine
b) Curative Medicine
c) Social Medicine
13. Which organization enforces the rules and regulations relating to
education and research in health? ICMR
14 There is a growing trend towards Privatization
of education, which makes it expensive for poor people.
15. The enrolment ratio of female students in schools is Less and their
drop- out ratio is High.
16 Sector that needs huge investment.Education and Health
17. Expenditure and Investment on health makes human more efficient
and productive.
18. Institutions providing elementary education have increased Five
times.
19. Human development is Index of human welfare.
20. Read the following statement given below and choose the correct
alternative
Assertion (A)- The differences in literacy rate of males and females
is narrowing.
Reason (R )- Education for women needs to be promoted further
more.
a) Both assertion and reason are true. Reason is the correct
explanation of assertion
b) Both assertion and reason are true. Reason is not the correct
explanation of assertion
c) Assertion is true but reason is not
d) Reason is true but assertion is not