Microtheme: "Economic Growth,LPG,Planning " —
14 questions asked in Prelims in the past.

1. [2019] In a given year in India, official poverty lines are higher in some States than in others because
   • (a) poverty rates vary from State to State
   • (b) price levels vary from State to State
   • (c) Gross State Product varies from State to State
   • (d) quality of public distribution varies from State to State
   Correct Answer: (B) price levels vary from State to State
2. [2019] With reference to land reforms in independent India, which one of the following statements is correct?
   • (a) The ceiling "laws were aimed at family holdings and not individual holdings.
   • (b) The major aim of land reforms was providing agricultural land to all the landless.
   • (c) It resulted in cultivation of cash crops as a predominant form of cultivation.
   • (d) Land reforms permitted no exemptions to the ceiling limits.
   Correct Answer: (B) The major aim of land reforms was providing agricultural land to all the landless.
3. [2018] Despite being a high saving economy, capital formation may not result in significant increase in output due to
   • (a) weak administrative machinery
   • (b) illiteracy
   • (c) high population density
   • (d) high capital-output ratio
   Correct Answer: (D) high capital-output ratio
4. [2017] Which of the following has/have occurred in India after its liberalization of economic policies in 1991?
   1. Share of agriculture in GDP increased enormously.
   2. Share of India’s exports in world trade increased.
   3. FDI inflows increased.
   4. India’s foreign exchange reserves increased enormously.
   Select the correct answer using the codes given below:
   • (a) 1 and 4 only
   • (b) 2, 3 and 4 only
   • (c) 2 and 3 only
   • (d) 1, 2, 3 and 4
   Correct Answer: (B) 2, 3 and 4 only
5. [2017] The term ‘Domestic Content Requirement’ is sometimes seen in the news with reference to
   • (a) Developing solar power production in our country.
   • (b) Granting licenses to foreign T.V. channels in our country.
   • (c) Exporting our food products to other countries.
   • (d) Permitting foreign educational institutions to set up their campuses in our country.
   Correct Answer: (A) Developing solar power production in our country.
6. [2015] The substitution of steel for wooden ploughs in agricultural production is an example of
   • (a) labour-augmenting technological progress
   • (b) capital-augmenting technological progress
   • (c) capital-reducing technological progress
   • (d) None of the above
   Correct Answer: (B) capital-augmenting technological progress
7. [2014] Which of the following are associated with ‘Planning’ in India?
   1. The Finance Commission
   2. The National Development Council
   3. The Union Ministry of Rural Development
   4. The Union Ministry of Urban Development
   5. The Parliament
   Select the correct answer using the code given below:
   • (a) 1, 2 and 5 only
   • (b) 1, 3 and 4 only
   • (c) 2 and 5 only
   • (d) 1, 2, 3, 4 and 5 only
   Correct Answer: (C) 2 and 5 only
8. [2013] Economic growth in country X will necessarily have to occur if
   • (a) there is a technical progress in the world economy
   • (b) there is population growth in X
   • (c) there is capital formation in X
   • (d) the volume of trade grows in the world economy
   Correct Answer: (C) there is capital formation in X
9. [2013] Disguised unemployment generally means
   • (a) large number of people remain unemployed
   • (b) alternative employment is not available
   • (c) marginal productivity of labour is zero
   • (d) productivity of workers is low
   Correct Answer: (C) marginal productivity of labour is zero
10. [2012] With reference to consumer’s rights/privileges under the provision of law in India, which of the following statements is/are correct? 1. Consumers are empowered to take samples for food testing 2. When a consumer files a complaint in any consumer forum, no fee is required to be paid. 3. In case of death of a consumer, his/her legal heir can file a complaint in the consumer forum on his/her behalf.
    • (a) 1 only
    • (b) 2 and 3 only
    • (c) 1 and 3 only
    • (d) 1, 2 and 3
    Correct Answer: (C) 1 and 3 only
11. [2011] What does the term “economic liberalization” refer to in the context of Indian economy?
    • (a) Expansion of the public sector
    • (b) Restriction of foreign investment
    • (c) Removal of restrictions on private sector and encouragement of free market policies
    • (d) Increase in trade barriers
    Correct Answer: (C) Removal of restrictions on private sector and encouragement of free market policies
12. [2011] The term “Gresham’s Law” is often mentioned in the context of economics. What does it state?
    • (a) Bad money drives out good money when both are in circulation.
    • (b) Good money drives out bad money when both are in circulation.
    • (c) Inflation drives out deflation in the economy.
    • (d) Market competition drives out inefficient producers.
    Correct Answer: (A) Bad money drives out good money when both are in circulation.
13. [2010] In the context of Indian economy, consider the following pairs:
    Term Most appropriate description
    1. Melt down Fall in stock prices
    2. Recession Fall in growth rate
    3. Slow down Fall in GDP
    • (a) 1 only
    • (b) 2 and 3 only
    • (c) 1 and 3 only
    • (d) 1,2 and 3
    Correct Answer: (A) 1 only
14. [2009] In the context of independent India’s economy, which one of the following was the earliest event to take place ?
    • (a) Nationalisation of Insurance companies
    • (b) Nationalisation of State Bank of India
    • (c) Enactment of Banking Regulation Act
    • (d) Introduction of First Five-year Plan
    Correct Answer: (C) Enactment of Banking Regulation Act