Tag: indian economy on the eve of independence

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Questions Related to indian economy on the eve of independence

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

Which of the following set of wars was mainly responsible for failure of the Third 5 year Plan?

  1. Indo-China war of 1962 and Indo-Pak war of 1947

  2. Indo-China war of 1962 and Indo-Pak war of 1965

  3. Indo-Pak war of 1971 and Kargil war of 1999

  4. Indo -china war of 1962 and Indo-Pak war of 1971
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The term of the third five year plan was from 1960 to 1965 in between which these two wars broke out the devastated the Indian economy and led to the failure of this plan.

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

Dependence of agriculture is one of the features of the Indian economy.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Indian agricultural sector accounts for 18 percent of total GDP of India  and creates employment for 50 percent of the total countries' workforce. Hence, dependence of agriculture is one of the features of the Indian economy.

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

Which industry was India well known for during the British rule?

  1. Cotton and Silk

  2. Metal

  3. Precious Stone Work

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

India was globally renowned for its high-quality handicrafts, specifically cotton textiles, silk, metalwork, and precious stone work, before the decline caused by British industrial policies.

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

Match the following:

A B
1. RBI 1. Increase in CRR
2. Inflation 2. Factor of production
3. Elasticity 3. Central Bank
4. Labour 4. Responsiveness to change

  1. (1,4) (2,3) (3,2) (4,1)

  2. (1,2) (2,3) (3,4) (4,1)

  3. (1,4) (2,2) (3,4) (4,3)

  4. (1,3), (2,1), (3,4), (4,2)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
1) Reserve Bank Of India is the only Central bank of India. It is the apex bank.
2) In order to check Inflation, that is, rising general level of prices, cash reserve ration is increased by the central bank to reduce the credit creation capacity of the commercial banks.
3) Elasticity is the term which means responsiveness to change. For example, elasticity of demand refers to the ratio of the proportionate change in quantity demanded of a product to the proportionate change in the price of the product.
4) Labour is a factor of production. Labour is known as the human efforts which help to produce goods and services in an economy.
Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

When India attained independence in 1947, its economy was ?

  1. Underdeveloped

  2. Developed

  3. Developing

  4. Partially developed
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Due to centuries of colonial exploitation, the Indian economy was largely stagnant and underdeveloped in terms of industrial capacity and infrastructure at the time of independence in 1947.

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

Which of the following statements is true of agriculture in Indian economy between 1973 and 2003? 

  1. The sectoral share of agriculture in employment has decreased far more than its share in total output.

  2. The sectoral share of agriculture in total output has decreased, but its share in employment has increased.

  3. The sectoral share of agriculture in total output had increased, but its share in employment had decreased.

  4. The sectoral share of agriculture in output has decreased far more than its share in total employment
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Over the thirty years between 1973 and 2003, while production in all the three sectors has increased, it has increased the most in the tertiary sector. Since this sector generates services rather than goods, the share in total employment increased.

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

Heavy _________ is one of the most alarming features of the Indian economy.

  1. Industrial pressure

  2. Population pressure

  3. Social pressure

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The reason responsible for the heavy population pressure is high birth-rate, falling death-rate, high immigration from adjoining countries. The growing population imposes a huge economic burden on the society because the growing requirements of basic necessities are to be met by the government. It effects the economic progress of the country.

Multiple choice economics indian economy on the eve of independence british colonial rule indian, capitalist and mixed economy development experience (1947-90)

In $1936$ __________ was invited to determine the share of provinces and the methods of distribution of the centrally collected revenue.

  1. Sir Otto Niemeyer

  2. Acworth

  3. Chintaman Deshmukh

  4. Lord Pethic Lawrence
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An expert committee under the Chairmanship of Sir Otto Niemeyer was appointed in 1936 to inquire into the financial position of the Provinces, the special assistance required by each and the time and mode of distributing the provincial share of income tax and proceeds of the export duty on jute.

Sir Niemeyer recommended that assistance should be given to the provin­ces in three-ways:

(a) The outstanding debts incurred before 1935 by Bengal, Bihar, Assam, the N.W.F.P. and Orissa plus approximately Rs. 2 crores of pre-1921 debt in the case of Central provinces should be cancelled.

(b) Appreciating that the jute growing provinces stood in special need of financial assistance, it recommended distribution of a further 12.5% of the Export duty on jute, thus making a total of 52.5% to the jute growing provinces.

(c) Such provinces as might be in need of assistance should be given grants- in-aid to balance their budgets. It was expected to provide “in-built flexibility.”

As regards the distribution of the proceeds of Income Tax between the Centre and the provinces, it recommended that provinces and the federated states should get 50% of the proceeds of the tax; the share of each province to be fixed partly on the basis of population and partly on the basis of the residence of the assessees.