Indian Economy


20 Questions MCQ Test Economy Traditional for UPSC (Civil Services) Prelims | Indian Economy


Description
This mock test of Indian Economy for UPSC helps you for every UPSC entrance exam. This contains 20 Multiple Choice Questions for UPSC Indian Economy (mcq) to study with solutions a complete question bank. The solved questions answers in this Indian Economy quiz give you a good mix of easy questions and tough questions. UPSC students definitely take this Indian Economy exercise for a better result in the exam. You can find other Indian Economy extra questions, long questions & short questions for UPSC on EduRev as well by searching above.
QUESTION: 1

 Which of the following explains the term economic growth?

Solution:

There is no single definition that can define the term economic growth. However, there are various indicators that explain the term.
 

QUESTION: 2

Economic development is characterized by

Solution:

The structural change is the shift from primary sector to secondary and tertiary sectors contribution to the GDP. Change in occupational structure involves falling share of agriculture in the total employment.

 

QUESTION: 3

Which of the following explains the term economic development?

Solution:

Economic development is a wider concept than growth. There are various parameters used to define and measure it.
 

QUESTION: 4

An underdeveloped economy is characterized by

Solution:

Underdeveloped countries face the problem of deprivation of a large section of the population, low per capita real income etc.
 

QUESTION: 5

Scarcity of capital , technological backwardness and unemployment are generally found in

Solution:

Underdeveloped countries lag behind in various factors like availability of resources, technology etc.
 

QUESTION: 6

 Which of the following denotes an underdeveloped economy?

Solution:

Other than the above features, there is High incidence of poverty, rapid population growth and technological backwardness too.

 

QUESTION: 7

Consider the following statements and identify the right ones.
i. Higher level of capital-output ratio indicates efficient use of capital.
ii. It reflects the productivity of capital in the economy

Solution:

COR refers to the number of units of capital required to produce one unit of output. A higher level of it means inefficient use of capital.
 

QUESTION: 8

Consider the following statements and identify the right ones.

Solution:

It is high in capital intensive industries because of more use of capital and time lag between investment and production.
 

QUESTION: 9

Which of the following about strategy of balanced growth is right?

Solution:

The supporters of this theory argue that simultaneous investment in all the sectors will help in faster growth. It is based on the idea that all sectors are interlinked.
 

QUESTION: 10

 Which of the following about strategy of unbalanced growth is right?

Solution:

This strategy says that there will be positive impact on the sectors that are lagging behind and they will also try to catch up with it.
 

QUESTION: 11

Consider the following statements and identify the right ones.
i. Unbalanced growth strategy is also known as Mahalanobis strategy
ii. This strategy was adopted in India after the 7th five year plans.

Solution:

India adopted this growth strategy after independence itself. The second five year plan emphasized on the development of heavy industries.
 

QUESTION: 12

The concept of PQLI was developed by

Solution:

The Physical Quality of Life Index is one of the indicators to measure human development. It is calculated by using a simple average.

QUESTION: 13

The parameter/s of the PQLI is/are

Solution:

PQLI has 3 parameters- life expectancy index, infant mortality rate and basic literacy index.

 

QUESTION: 14

Consider the following statements and identify the right ones|
i. The Oxford PHI publishes Human Development Report
ii. The HDR is published biennially.

Solution:

The United Nations Development Programme (UNDP) published the HDR every year since 1990.

 

QUESTION: 15

The concept of HDI was popularized by

Solution:

The concept developed in the 1990s. It has 3 important parameters- life expectancy, education achievement index and standard of living index.
 

QUESTION: 16

The component/s of HDI is/are

Solution:

The concept developed in the 1990s. It has 3 important parameters- life expectancy, education achievement index and standard of living index.
 

QUESTION: 17

The Multidimensional Poverty Index has been developed by

Solution:

The MPI concept is developed by the Oxford Human Development Initiative. It has three main dimensions to it.
 

QUESTION: 18

Which of the following is not a component of MPI?

Solution:

MPI has 3 important dimensions to it- health, education and standard of living. Based on these , there are ten parameters.

 

QUESTION: 19

Consider the following statements and identify the right ones.
i. Each indicator in educational dimension is equally weighted at 1/6
ii. Each indicator in standard of living is equally weighted at 1/8

Solution:

While education and health dimensions measure each indicators at equal weightage of 1/6, for standard of living it is 1/18
 

QUESTION: 20

Which of the following is not an indicator to measure MPI?

Solution:

These are the indicators to measure standard of living. Other indicators are drinking water, sanitation etc.

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