Test: Class 9 Economy NCERT Based - 2


20 Questions MCQ Test Indian Economy for UPSC CSE | Test: Class 9 Economy NCERT Based - 2


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QUESTION: 1

Consider the following statements.

1. Sarva Siksha Abhiyan has been implemented to encourage attendance and retention of children and improve their nutritional status

2. Mid-day meal scheme is a significant step towards providing elementary education to all children in the age group of 6–14 years

Which of these statements are correct?

Solution:
  • “Sarva Shiksha Abhiyan is a significant step towards providing elementary education to all children in the age group of 6–14 years by 2010... It is a time-bound initiative of the Central government, in partnership with the States, the local government and the community for achieving the goal of universalisation of elementary education.”

  • Along with it, bridge courses and back-to-school camps have been initiated to increase the enrolment in elementary education. Midday meal schemes have been implemented to encourage attendance and retention of children and improve their nutritional status. These policies could add to the literate population of India.

  • The 12th plan endeavoured to raise the country's Gross Enrolment Ratio (GER) in higher education in the age group of 18 to 23 years to 25.2% by 2017–18 and to reach the target of 30% by 2020–21, which would be broadly in line with world average.

  • The strategy focuses on increasing access, quality, adoption of state-specific curriculum modification, vocationalisation and networking on the use of information technology. The plan also focuses on distance education, convergence of formal, non-formal, distance and IT education institutions. Over the past 50 years, there has been a significant growth in the number of universities and institutions of higher learning in specialised areas.

QUESTION: 2

Consider the following statements.

1. Seasonal unemployment happens when people are not able to find jobs during some months of the year

2. People dependant upon agriculture usually face seasonal unemployment

3. In case of disguised unemployment people appear to be employed

4. Rural areas have mostly educated unemployment

Which of these statements are not correct?

Solution: In the case of India we have unemployment in rural and urban areas. However, the nature of unemployment differs in rural and urban areas. In the case of rural areas, there is seasonal and disguised unemployment. Urban areas have mostly educated unemployment.

QUESTION: 3

Consider the following statements regarding unemployment.

1. Unemployment tends to increase economic overload.

2. Increase in unemployment is an indicator of a depressed economy

3. In case of India, a large number of people represented with low income and productivity are counted as unemployed

Which of these statements are correct?

Solution:
  • Unemployment leads to wastage of manpower resources.

  • People who are an asset for the economy turn into a liability. There is a feeling of hopelessness and despair among the youth. People do not have enough money to support their family.

  • Inability of educated people who are willing to work to find gainful employment implies a great social waste. Unemployment tends to increase economic overload. The dependence of the unemployed on the working population increases.

  • The quality of life of an individual as well as of society is adversely affected. When a family has to live on a bare subsistence level there is a general decline in its health status and rising withdrawal from the school system.

  • Hence, unemployment has a detrimental impact on the overall growth of an economy. Increase in unemployment is an indicator of a depressed economy. It also wastes the resource, which could have been gainfully employed. If people cannot be used as a resource they naturally appear as a liability to the economy. In the case of India, statistically, the unemployment rate is low.

  • A large number of people represented with low income and productivity are counted as employed. They appear to work throughout the year but in terms of their potential and income, it is not adequate for them.

QUESTION: 4

Assertion: In recent years, there has been a decline in the dependence of population on agriculture partly

Reason: Agriculture faces disguised unemployment

Select the correct code:

Solution:
  • Agriculture is the most labour absorbing sector of the economy. In recent years, there has been a decline in the dependence of population on agriculture partly because of disguised unemployment discussed earlier.

  • Some of the surplus labour in agriculture has moved to either the secondary or the tertiary sector. In the secondary sector, small scale manufacturing is the most labour-absorbing. In the case of the tertiary sector, various new services are now appearing like biotechnology, information technology and so on.

QUESTION: 5

Consider the following statements regarding the consequences of disguised unemployment in agriculture.

1. The concept of sharing of work in the field and the produce raised reduces the hardship of unemployment in the rural sector

2. This does not reduce the poverty of the family, gradually surplus labour from every household tends to migrate from the village in search of jobs

Which of these statements are correct?

Solution:
  • The employment structure is characterised by self-employment in the primary sector. The whole family contributes in the field even though not everybody is really needed. So there is disguised unemployment in the agriculture sector.

  • But the entire family shares what has been produced. This concept of sharing of work in the field and the produce raised reduces the hardship of unemployment in the rural sector.

  • But this does not reduce the poverty of the family, gradually surplus labour from every household tends to migrate from the village in search of jobs.

QUESTION: 6

Another feature of high poverty rates has been the huge income inequalities. In context of this, consider the following statements.

1. One of the major reasons for this is the unequal distribution of land and other resources

2. Land reforms which aimed at redistribution of assets in rural areas have not been implemented properly

3. In order to fulfil social obligations and observe religious ceremonies, people in India spend a lot of money

Which of these statements are correct?

Solution:
  • Another feature of high poverty rates has been the huge income inequalities.

  • One of the major reasons for this is the unequal distribution of land and other resources.

  • Despite many policies, we have not been able to tackle the issue in a meaningful manner.

  • Major policy initiatives like land reforms which aimed at redistribution of assets in rural areas have not been implemented properly and effectively by most of the state governments.

  • Since lack of land resources has been one of the major causes of poverty in India, proper implementation of policy could have improved the life of millions of rural poor.

  • Many other sociocultural and economic factors also are responsible for poverty. In order to fulfil social obligations and observe religious ceremonies, people in India, including the very poor, spend a lot of money.

QUESTION: 7

Arrange the following Schemes Chronologically based on their releasing year.

1. Prime Minister Rozgar Yozana (PMRY)

2. Rural Employment Generation Programme (REGP)

3. Pradhan Mantri Gramodaya Yozana (PMGY)

4. Gram Swarozgar Yojana (SGSY)

Choose from the following options.

Solution:
  • Prime Minister Rozgar Yozana (PMRY) is another scheme which was started in 1993.

  • Swarnajayanti Gram Swarozgar Yojana (SGSY) was launched in 1999.

  • Under the Pradhan Mantri Gramodaya Yojana (PMGY) launched in 2000, additional central assistance is given to states for basic services such as primary health, primary education, rural shelter, rural drinking water and rural electrification.

QUESTION: 8

Consider the following statements about Mahatma Gandhi National Rural Employment Guarantee Act, 2005.

1. It aims to provide 100 days of wage employment to every household to ensure livelihood security in rural areas

2. It also aimed at sustainable development to address the cause of draught, deforestation and soil erosion

3. One-third of the proposed jobs have been reserved for women

Which of these statements are correct?

Solution:
  • Mahatma Gandhi National Rural Employment Guarantee Act, 2005 aims to provide 100 days of wage employment to every household to ensure livelihood security in rural areas.

  • It also aimed at sustainable development to address the cause of draught, deforestation and soil erosion. One-third of the proposed jobs have been reserved for women.

  • The scheme provided employment to 220 crores person days of employment to 4.78 crore households.

  • The share of SC, ST, Women person days in the scheme are 23 per cent, 17 per cent and 53 per cent respectively.

  • The average wage has increased from 65 in 2006–07 to 132 in 2013–14. Recently, in March 2018, the wage rate for unskilled manual workers has been revised, state wise, the range of wage rate for different states and union territories lies in between ` 281 per day (for the workers in Haryana) to 168 per day (for the workers of Bihar and Jharkhand).

QUESTION: 9

In the present times it is becoming clear that there is a strong link between economic growth and poverty reduction. In this context, consider the following statements.

1. Economic growth widens opportunities and provides the resources needed to invest in human development

2. However, the poor may or may not be able to take direct advantage from the opportunities created by economic growth

3. The higher growth rates have helped significantly in the reduction of poverty

Which of these statements are correct?

Solution:
  • Over a period of thirty years lasting up to the early eighties, there was little per capita income growth and not much reduction in poverty. Official poverty estimates which were about 45 per cent in the early 1950s remained the same even in the early eighties.

  • Since the eighties, India’s economic growth has been one of the fastest in the world. The growth rate jumped from the average of about 3.5 per cent a year in the 1970s to about 6 per cent during the 1980s and 1990s. The higher growth rates have helped significantly in the reduction of poverty.

  • Therefore, it is becoming clear that there is a strong link between economic growth and poverty reduction. Economic growth widens opportunities and provides the resources needed to invest in human development.

  • This also encourages people to send their children, including the girl child, to schools in the hope of getting better economic returns from investing in education.

  • However, the poor may not be able to take direct advantage from the opportunities created by economic growth. Moreover, growth in the agriculture sector is much below expectations. This has a direct bearing on poverty as a large number of poor people live in villages and are dependent on agriculture.

QUESTION: 10

Consider the following statements.

1. The proportion of poor people is almost the same in every state

2. States like Punjab and Haryana have traditionally succeeded in reducing poverty with the help of high agricultural growth rates

3. In West Bengal, land reform measures have helped in reducing poverty

Which of these statements are correct?

Solution:
  • Poverty in India also has another aspect or dimension. The proportion of poor people is not the same in every state.

  • Although state level poverty has witnessed a secular decline from the levels of early seventies, the success rate of reducing poverty varies from state to state.

  • Recent estimates show while the all India Head Count Ratio (HCR) was 21.9 percent in 2011-12 states like Madhya Pradesh, Assam, Uttar Pradesh, Bihar and Odisha had above all India poverty levels.

  • Bihar and Odisha continue to be the two poorest states with poverty ratios of 33.7 and 32.6 percent respectively. Along with rural poverty, urban poverty is also high in Odisha, Madhya Pradesh, Bihar and Uttar Pradesh.

  • In comparison, there has been a significant decline in poverty in Kerala, Maharashtra, Andhra Pradesh, Tamil Nadu, Gujarat and West Bengal.

  • States like Punjab and Haryana have traditionally succeeded in reducing poverty with the help of high agricultural growth rates.

  • Kerala has focused more on human resource development. In West Bengal, land reform measures have helped in reducing poverty. In Andhra Pradesh and Tamil Nadu public distribution of food grains could have been responsible for the improvement.

QUESTION: 11

Which of the following are correctly matched?

1. Availability - food production within the country, food imports and the previous years stock stored in government granaries.

2. Accessibility - food is within reach of every person

3. Affordability - an individual has enough money to buy sufficient, safe and nutritious food to meet one's dietary needs

Choose from the following options.

Solution:
  • Food is as essential for living as air is for breathing. But food security means something more than getting two square meals.

  • Food security has following dimensions (a) availability of food means food production within the country, food imports and the previous years stock stored in government granaries. (b) accessibility means food is within reach of every person. (c) affordability implies that an individual has enough money to buy sufficient, safe and nutritious food to meet one's dietary needs.

  • Thus, food security is ensured in a country only if (1) enough food is available for all the persons (2) all persons have the capacity to buy food of acceptable quality and (3) there is no barrier on access to food.

QUESTION: 12

Consider the following statements.

1. Chronic hunger is a consequence of diets persistently inadequate in terms of quantity and/or quality

2. Seasonal hunger is related to cycles of food growing and harvesting

Which of the statements/statements is/are not correct?

Solution:
  • Hunger is another aspect indicating food insecurity. Hunger is not just an expression of poverty, it brings about poverty.

  • The attainment of food security therefore involves eliminating current hunger and reducing the risks of future hunger.

  • Hunger has chronic and seasonal dimensions. Chronic hunger is a consequence of diets persistently inadequate in terms of quantity and/or quality.

  • Poor people suffer from chronic hunger because of their very low income and in turn inability to buy food even for survival.

  • Seasonal hunger is related to cycles of food growing and harvesting. This is prevalent in rural areas because of the seasonal nature of agricultural activities and in urban areas because of casual labourers, e.g., there is less work for casual construction labourers during the rainy season. This type of hunger exists when a person is unable to get work for the entire year.

QUESTION: 13

Consider the following statements.

1. Buffer Stock is the stock of foodgrains, namely wheat and rice, procured by the government through the Department of Agriculture

2. The FCI purchases wheat and rice from the farmers in states where there is surplus production

3. The farmers are paid a pre announced price for their crops

Which of the statements/statements are correct?

Solution:
  • Buffer Stock is the stock of foodgrains, namely wheat and rice, procured by the government through the Food Corporation of India (FCI).

  • The FCI purchases wheat and rice from the farmers in states where there is surplus production. The farmers are paid a pre- announced price for their crops. This price is called Minimum Support Price (MSP).

  • The MSP is declared by the government every year before the sowing season to provide incentives to farmers for raising the production of these crops. The purchased food grains are stored in granaries.

QUESTION: 14

Consider the following statements.

1. The food procured by the FCI is distributed through every ration shops among the poorer section of the society

2. Ration shops also known as Fair Price Shops

Which of the statements/statements are correct?

Solution:
  • The food procured by the FCI is distributed through government regulated ration shops among the poorer section of the society.

  •  

    This is called the Public Distribution System (PDS). Ration shops are now present in most localities, villages, towns and cities. There are about 5.5 lakh ration shops all over the country. Ration shops also, known as Fair Price Shops, keep stock of foodgrains, sugar, and kerosene for cooking.

 

 

 

QUESTION: 15

Consider the following statements regarding the Public Distribution System.

1. In the beginning, the coverage of PDS was universal with no discrimination between the poor and the non-poor

2. In 1992, Revamped Public Distribution System (RPDS) was introduced in 1,700 districts in the country

3. Later Targeted Public Distribution System (TPDS) was introduced to adopt the principle of targeting the ‘poor in all areas’

Which of the statements/statements are correct?

Solution:
  • Public Distribution System (PDS) is the most important step taken by the Government of India (GoI) towards ensuring food security.

  • In the beginning, the coverage of PDS was universal with no discrimination between the poor and the non-poor. Over the years, the policy related to PDS has been revised to make it more efficient and targeted.

  • In 1992, Revamped Public Distribution System (RPDS) was introduced in 1,700 blocks in the country. The target was to provide the benefits of PDS to remote and backward areas. From June 1997, in a renewed attempt, Targeted Public Distribution System (TPDS) was introduced to adopt the principle of targeting the ‘poor in all areas’.

  • It was for the first time that a differential price policy was adopted for the poor and non-poor.

QUESTION: 16

In context of the public distribution system, Which of the following are correctly matched?

Name of the Scheme - Coverage Target Group

1. PDS - Universal

2. RPDS - Backward blocks

3. TPDS - Poorest of the poor

Which of the statements/statements are correct?

Solution:
QUESTION: 17

Consider the following statements about Antyodaya Anna Yojana (AAY).

1. Under this scheme, all the BPL families are covered under the targeted public distribution system

2. Initially, Twenty-five kilograms of foodgrains were made available to each eligible family at a highly subsidised rate of 2 per kg for wheat and 3 per kg for rice

Which of the statements/statements are correct?

Solution:
  • AAY was launched in December 2000. Under this scheme one crore of the poorest among the BPL families covered under the targeted public distribution system were identified. Poor families were identified by the respective state rural development departments through a Below Poverty Line (BPL) survey.

  • Twenty-five kilograms of foodgrains were made available to each eligible family at a highly subsidised rate of ` 2 per kg for wheat and ` 3 per kg for rice. This quantity has been enhanced from 25 to 35 kg with effect from April 2002.

  • The scheme has been further expanded twice by additional 50 lakh BPL families in June 2003 and in August 2004. With this increase, 2 crore families have been covered under the AAY. In 2009, the scheme was expanded to cover all BPL families and HIV Positive persons.

QUESTION: 18

Consider the following statements.

1. Subsidy is a payment that a government makes to a producer to supplement the market price of a commodity

2. Subsidies can keep consumer prices low while maintaining a higher income for domestic producers

Which of the statements/statements are not correct?

Solution: Both the statements are correct.

QUESTION: 19

Consider the following statements about Academy of Development Science (ADS).

1. ADS organises training and capacity building programmes on food security for NGOs.

2. ADS is working to set up Grain Banks, to facilitate replication through other NGOs and to influence the Government’s policy on food security.

Which of the statements/statements are correct?

Solution: Both the statements are correct.

QUESTION: 20

Which among the following are the factors which led to the decline of the public distribution system?

1. Ration shops regularly have unsold stocks of poor quality grains left

2. The price for above poverty line family is almost as high as the market price

3. Before Targeted PDS, every family, poor and non-poor had a ration card with a fixed quota of items

Choose from the following options.

Solution:
  • PDS dealers are sometimes found resorting to malpractices like diverting the grains to the open market to get better margin, selling poor quality grains at ration shops, irregular opening of the shops, etc.

  • It is common to find that ration shops regularly have unsold stocks of poor quality grains left. This has proved to be a big problem. When ration shops are unable to sell, a massive stock of foodgrains piles up with the FCI.

  • In recent years, there is another factor that has led to the decline of the PDS. Earlier every family, poor and non-poor had a ration card with a fixed quota of items such as rice, wheat, sugar etc.

  • These were sold at the same low price to every family. The three types of cards and the range of prices that you see today did not exist. A large number of families could buy foodgrains from the ration shops subject to a fixed quota.

  • These included low income families whose incomes were marginally higher than the below poverty line families. Now, with TPDS of three different prices, any family above the poverty line gets very little discount at the ration shop. The price for APL families is almost as high as the open market price, so there is little incentive for them to buy these items from the ration shop.