{CUET} 1000 MCQs of Economics with answers (2022)

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Important Multiple Choice Questions of Economics with answers

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Unit I: Introduction to Microeconomics

Which of the following central problem of an economy deals with the distribution of National Income?

a) How to produce
b) What to produce
c) For whom to produce
d) None of these

Ans – c)

Which of the following is/are features of resources in an economy?

a) Limited supply
b) Alternative uses
c) Both a) and b)
d) None of these

Ans – c)

Scarcity requires that people must do which of the following things?

a) Trade
b) Cooperate
c) Make choices
d) Competition

Ans – c)

Opportunity cost is:

a) the additional benefit of buying an additional unit of a product.
b) the cost incurred in the past before we make a decision about what to do in future
c) a cost that is borne in terms of discomfort and pain while supplying factors of production
d) that which we forgo, or give up while making a choice or a decision

Ans – d)

The opportunity cost of watching a movie will be equal to:

a) the time lost while watching the show
b) the pleasure that could have been enjoyed watching TV instead
c) the pleasure enjoyed by watching the show
d) the amount paid to buy the tickets

Ans – b)

Which of the following is/are true about an economy?

a) It is the system of arrangement of all economic activities
b) It is comprised of all the regions of a country
c) Both a) and b)
d) Neither a) nor b)

Ans – c)

The most fundamental economic problem is related to

a) scarcity of resources
b) Unlimited human wants
c) Both a) and b)
d) Neither a) nor b)

Ans – a)

An economy in which all economic activities are organized through the market is called:

a) mixed economy
b) market economy
c) centrally planned economy
d) None of these

Ans – b)

Economics is:

a) the study of stocks and bond market
b) mainly the study of business firms
c) the problem of choice under scarcity
d) the study of management decisions

Ans – c)

Which of the following is/are not the feature of human wants

a) Limited
b) Recurring
c) Both a) and b)
d) Neither a) nor b)

Ans – a)

According to Prof. Lionel Robbins means are

a) Scarce
b) Unlimited
c) Undefined
d) All of these

Ans – a)

Microeconomics is not concerned with the behavior of:

a) National income
b) a consumer
c) a firm
d) a producer

Ans – a)

Macroeconomics deals with:

a) the behavior of firms
b) the behavior of the electronics industry
c) the activities of individual units
d) economic aggregates

Ans – d)

Which of is/are the reasons for Economic problems?

a) Scarcity of resources
b) Alternative uses of resources
c) Unlimited human wants
d) All of the above

Ans – d)

There are many economies in the world that are technologically advanced, these economies further focus on the development of the latest technologies. In this way, these economies will be able to solve the economic problems once and for all.

a) True
b) False
c) Partially True
d) Incomplete statement

Ans – b)

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Read More:- 100 CUET MCQs of Introduction to Microeconomics with answers

The Central Problems are called central because they are faced by:

a) All the consumers
b) All the producers
c) All the investors
d) All the countries

Show Answer

The economic problem is basically the problem of choice making:

a) Between inputs
b) Between outputs
c) About distribution of output
d) All the above

Show Answer

The Central problems of “What, how, and for whom” are:

a) Interdependent
b) Independent
c) All problems may not be present at one time
d) May vary from country to country

Show Answer

The Central Problem of ‘How to produce’ is basically the problem of deciding to undertake production with the help of:

a) Capital only
b) Labour only
c) Both Capital and Labour
d) How much of capital and labour each

Show Answer

The Central problem of ‘for whom’ refers to the distribution of goods between:

a) Rich and the poor
b) Users
c) Different sections of society
d) Between the public sector and private sectors

Show Answer

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Read More:- Important CUET MCQs of Central Problems of Economics class 12

Unit II: Consumer Behaviour and Demand

In the study of consumer behaviour, we study decision making by a consumer
with respect to:

a) Spending of income
b) Adjusting purchases due to change in price
c) Both a) and b)
d) Neither a) not b)

Ans – c)

The necessary condition under utility approach to attain consumer’s equilibrium
in case of two commodity is:

a) MUx/Px = Muy/Py
b) MRsx = Px/Py
c) MUx = Px
d) None of these

Ans – a)

A rational consumer is called ‘rational’ becuase he/she aims at:

a) Maximizing purchases
b) Minimizing expenditure
c) Maximizing utility
d) Minimizing wastage

Ans – c)

When we add up utility derived from consumption of all the units of the
commodities, we get:

a) Total utility
b) Initial Utility
c) Marginal utility
d) None of these

Ans – a)

On consuming some units of a good, the utility obtained is 10 utils. It
is an example of:

a) Ordinal utility
b) Cardinal utility
c) Marginal utility
d) None of the above

Ans – b)

There is a ‘Law’ in theory of consumer behaviour which states that as
a consumer consumes more and more units of a good, the utility from each
new unit consumed:

a) Increases
b) Remains constant
c) Decreases
d) Increases initially, remains constant and ultimately decreases.

Ans – c)

Marginal Utility (MU) in terms of money is equal to:

a) Marginal Utility in utils/Marginal Utility of one rupee
b) Marginal utility of one rupee/Marginal Utility in utils
c) Marginal Utility in utils/Price of the Commodity
d) None of these

Ans – a)

According to the Law of diminishing marginal utility, satisfaction obtained from the consumption of each successive unit:

a) Increases
b) Decreases
c) Remains same
d) Either increases or decreases

Ans – b)

Marginal utility refers to utility:

a) From the last unit consumed
b) From one more unit consumed
c) From one less unit consumed
d) All the above

Ans – d)

Marginal utility of a good means utility on consuming:

a) More units
b) Less units
c) One more unit
d) All the above

Ans – d)

Which of these is a condition for consumer’s equilibrium by indifference curve
analysis?

a) MUx = Px
b) MUx/Px = MUy/Py
c) MRSx = Px/Py
d) MUx = MUy

Ans – c)

If MUx/Px > MUy/Py, then to reach the equilibrium position, a consumer should:

a) Stop buying any commodity
b) Buy both the commodities in equal quantity
c) Buy more of X and less of Y
d) Buy more of Y and less of X

Ans – c)

When a consumer increases consumption of a good from 2 units to 4 units,
total utility rises from 9 utils to 14 utils. Marginal utility is:

a) 5 utils
b) 2.5 utils
c) 3 utils
d) Can’t calculate

Ans – b)

According to the Law of Diminishing Marginal Utility, as the consumer reduces
consumption of a good marginal utility of the remaining quantity of that
good:

a) Falls
b) Rises
c) Remains unchanged
d) Can not calculate

Ans – b)

If the consumption of an additional unit of a commodity causes no change in TU, then the resultant MU is:

a) Zero
b) Positive
c) Negative
d) Constant

Ans – a)

Total Utility is ____________ at the point of satiety:

a) Minimum
b) Maximum
c) Zero
d) None of these

Ans – b)

A consumer consumes only two goods X and Y. On planning to spend the whole
of income on these two goods, he finds MUx = 6 utils and MUy = 4 utils. Px and Py are ₹ 4and ₹ 6 per unit respectively. In this situation the consumer will:

a) Stick to his plan
b) Buy less of X
c) Buy more of Y
d) Buy more of X and less of Y

Ans – d)

A consumer consumes only two goods X and Y and plans to spend the entire income
on these, The prices of X and Y are respectively ₹ 7 and ₹ 8 per unit respectively. In the plan, marginal utilities of X and Y turn out to be 8 utils and 7 utils respectivley. Suppose marginal utility in the case of each good remains unchanged as more or less is consumed. In such a case consumer
will:

a) Buy only X
b) Buy only Y
c) Buy both X and Y is equal quantities
d) Stick to his plan

Ans – a)

Marginal Utility (MU) of nth unit is calculated as:

a) MUn = TUn – TUn+1
b) MUn = TUn + TUn+1
c) MUn = TUn + TUn-1
d) MUn = TUn – TUn-1

Ans – d)

In the case of a single commodity, the consumer’s equilibrium is achieved when:

a) MUx > Px
b) MUx < Px
c) MUx not equal to Px
d) MUx = Px

Ans – d)

A consumer consumes only two goods X and Y with prices of ₹ 4 and ₹ 5 per unit
respectively. On making a plan of spending his whole income he finds
MUx = 12 utils and MUy = 15 utils. The consumer:

a) Is in equilibrium
b) Is not in equilibrium nor can reach equilibrium
c) Can reach equilibrium by buying less of X and more of Y
d) Can reach equilibrium by buying more of X and less of Y

Ans – a)

A consumer consumes only two goods X and Y and is in equilibrium with
MUx = MUy, then:

a) Px = Py
b) Px < Py c) Px > Py
d) Any of the above

Ans – a)

Given the total utility schedule of a good, how many units of the good the consumer will buy it the price per unit is ₹ 4.

Consumption (Unit)	Total Utility (Rs.)
1	3
2	5
3	6

a) 1 Unit
b) 2 Unit
c) 3 Unit
d) 0 Unit

Ans – d)

How is TU derived from MU?

a) TU = ∑MU
b) TU = U1 + U2 + U3 ——- + Un
c) TUn = MUn + MUn – 1
d) TUn = MUn – MUn – 1

Ans – a), b)

What happens to MU when TU is maximum?

a) MU is negative
b) MU is Zero
c) MU is decreasing
d) MU is increasing

Ans – b)

In case of cardinal utility approach, utility is measured in:

a) Rupees
b) Ranks
c) Utils
d) None of these

Ans – c)

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Introductory Macroeconomics

Below are the units in Macroeconomics

Unit III: National Income and Related Aggregates — Basic Concepts and Measurement.

1. Food Items purchased by a production unit are

a) Single-use consumer goods
b) Durable use consumer goods
c) Single-use Capital goods
d) Durable use capital goods

Ans – c

2. Capital at the end of the year 2012 was ₹ 100 crore and at the end of the year 2013 was ₹ 110 crore. Depreciation during the year 2013 was ₹ 5 crore. Gross investment during 2013 is:-

a) ₹ 5 crore
b) ₹ 10 crore
c) ₹ 15 crore
d) ₹ 110 crore

Ans – b

3. Fixed capital at the end of the year 2013 was ₹ 50 crore and at the end of the year 2014 ₹ 55 crore. Closing stock at the end of year 2013 and 2014 was respectively ₹ 10 crore and ₹ 5 crore respectively. Gross investment during 2014 is :-

a) 0
b) 5
c) 10
d) 15

Ans – a

4. Capital loss is:-

a) Normal wear and tear of fixed capital goods
b) Foreseen obsolescence
c) Unforseen obsolescence
d) All the above

Ans – c

5. A firm hires the services of a chartered accountant and pays fees. For the firm, payment of fess is:-

a) Final expenditure
b) Intermediate expenditure
c) Investment expenditure
d) Capital expenditure

Ans – b

6. Purchase of refrigerator by a restaurant is:-

a) Consumption expenditure on durable good
b) Consumption expenditure on non-durable good
c) Intermediate expenditure
d) Final expenditure

Ans – d

7. Capital and investment are:-

a) Both flows
b) Both stocks
c) Capital is stock while investment is flow
d) Investment is stock while capital is flow

Ans – c

8. A ‘resident’ of a country is one :

a) Who was born in that country
b) Who lives in that country
c) Who is citizen of that country
d) Who lives, earns, spends and accumulates in that country

Ans – d

9. Economics territory is one in which the following move freely :

a) People
b) Goods
c) Capital
d) All the above

Ans – d

10. Economic territory of a country is also called :

a) Geographical territory
b) Political frontiers
c) Domestic territory
d) All the above

Ans – c

11. Chinese embassy in India is a part of economic territory of:

a) China
b) India
c) Both China and India
d) International area

Ans – a

12. GDP at mp is:

a) Inclusive of depreciation
b) Inclusive of indirect tax
c) Exclusive of subsidies
d) All the above

Ans – d

13. Given GDP at mp = 100, subsidies = 5 and depreciation = 10, then NDP at fc equals :

a) 95
b) 100
c) 105
d) 115

Ans – 95

14. Given NDP at fc = 80, indirect tax = 10, and net factor income to abroad = -10, what is NNP at mp?

a) 70
b) 80
c) 90
d) 100

Ans – b

15. Macroeconomics is concerned with:

a) the level of output of goods and services in the economy
b) the general level of prices
c) GDP growth
d) all of these

Ans – d

16. Study of the general price level is a subject matter of:

a) microeconomics
b) macroeconomics
c) both a) and b)
d) None of these

Ans – b

17. Aggregation is involved in:

a) microeconomics
b) macroeconomics
c) both a) and b)
d) none of these

Ans – c

18. Economic agents include:

a) government
b) consumers
c) producers
d) all of these

Ans – d

19. Which of the following statements is associated with general equilibrium analysis?

a) It is the method of study in microeconomics
b) It is the method of study in macroeconomics
c) There is no change in the labour market
d) None of these

Ans – b

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Unit IV: Determination of Income and Employment

Out of the following, which can have a value more the one?

a) MPC
b) APC
c) APS
d) MPS

Ans – b)

Which of the following is not a component of aggregate demand in a two sector economy?

a) Net Exports
b) Government Expenditure
c) Consumption
d) Both a) and b)

Ans – d)

Break-even point is achieved when:

a) National Income = Consumption
b) Consumption = Saving
c) Saving = 0
d) National Income > Consumption

Ans – a), c)

AD curve is a:

a) Horizontal straight line parallel to the X-axis
b) Positively sloped curve
c) Negatively sloped curve
d) Vertical straight line parallel to the Y-axis

Ans – b)

Aggregate supply and _ are always equal.

a) National Income
b) Aggregate Demand
c) Marginal Propensity to save
d) Average Propensity to consume

Ans – a)

Consumption function is the functional relationship between _ and ___ .

a) Consumption, Aggregate demand
b) Consumption, National Income
c) Aggregate Demand, Aggregate Supply
d) National Income, Private Income

Ans – b)

Tick the wrong option:

a) APC can be more than 1
b) APC can be equal to 1
c) APC rises with increases in income
d) APC can be less than 0

Ans – c), d)

__ refers to actual saving in an economy during a year.

a) Ex-ante saving
b) APS
c) MPS
d) Ex-post saving

Ans – d)

Which of the following is not true about AD in a two sector economy?

a) AD = Consumption + saving
b) AD curve starts from some point above the origin
c) AD = Consumption + Investment
d) AD curve has a positive slope

Ans – a)

Which of the following fact is correct about MPC?

a) Value of MPC varies between 0 and 1
b) MPC of poor is more than that of rich
c) MPC falls with successive increase in income
d) MPC can be more than 1

Ans – a), b), c)

Which of these is a component of Aggregate Demand.

a) Private consumption expenditure
b) Investment expenditure
c) Savings
d) All of these

Ans – a), b)

Which of the following can have a negative value?

a) APC
b) MPC
c) MPS
d) APS

Ans – d)

AD curve starts:

a) From the origin
b) Point Below the origin
c) Point above the origin
d) None of these

Ans – c)

If investment falls to zero, national income does not fall to zero because of:

a) Autonomous Consumption
b) Induced Investment
c) Autonomous Investment
d) Multiplier

Ans – a)

The value of _ can never be negative, while ___ can have a value eqaul to one.

a) APS, APC
b) MPC, APS
c) APC, APS
d) MPS, APC

Ans – d)

Which of the following expression is correct?

a) APC = Consumption/National Income
b) APC = Change in Consumption/Change in National Income
c) APC = 1 – APS
d) APC = National Income/Consumption

Ans – a), C)

If C – 100 + 0.75Y, then Saving Function will be expressed as:

a) S = 100 + 0.25Y
b) S = -100 + 0.75Y
c) S = -100 + 0.25Y
d) S = 75 + 0.25Y

Ans – c)

At the break-even point:

a) Consumption curve lies below the 45 degree line
b) Consumption curve intersects 45 degree line
c) Consumption curve lies above the 45 degree line
d) None of these

Ans – b)

Suppose in a hypothetical economy, hte income rises from ₹5,000 crores to ₹6,000 crores. As a result,
the consumption expenditure rises from ₹4,000 crores to ₹4,600 crores. Marginal propensity to
consume in such a case would be __ .

a) 0.8
b) 0.4
c) 0.2
d) 0.6

Ans – d)

Average Propensity to consume can never be __ .

a) positive
b) zero
c) more than one
d) less than one

Ans – b)

Which of the following is correct?

a) MPC + APC = 1
b) MPC + APS = 1
c) MPC + MPS = 1
d) MPC – MPS = 1

Ans – c)

Consumption curve makes an intercept on the Y-axis. It indicates that:

a) Saving is positive when income is zero
b) Consumption is positive when income is zero
c) Saving is negative when income is positive
d) consumption is zero when income is zero

Ans – b)

Relationship of APC and APS with national income can be represented as:

a) Both APC and APS fall with increase in National Income
b) Both APC and APS rise with increase in National Income
c) APS falls, while APC rises with increase in National Income
d) APC falls, while APS rises with increase in National Income

Ans – d)

In the saving Function: S = -100 + 0.6Y, the value of autonomous consumption will be:

a) 0.6
b) -100
c) 0.4
d) 100

Ans – d)

Problem of unemployment is the problem of:

a) Voluntary unemployment
b) Involuntary Employment
c) Involuntary Unemployment
d) Voluntary Employment

Ans – c)

The level of induced consumption in an economy depends on:

a) Level of Nationa Income
b) MPC
c) Both a) and b)
d) Autonomous Consumption

Ans – c)

Which of the following is true about AD in a two sector economy:

a) AD = Consumption + Investment
b) AD curve starts from some point above the origin
c) AD curve has a positive slope
d) All of these

Ans – d)

Which of the following statements is false?

a) At break even point, the value of APC is one
b) The value of marginal propensity to consume is always positive
c) APC can never be greater than one
d) Full employment implies absence of involuntary unemployment

Ans – c)

Which of the following is correct

a) MPC + MPS = 1
b) MPC + MPS > 1
c) MPC – MPS = 1
d) MPC + MPS = 0

Ans – a)

Full employment implies absence of:

a) Unemployment
b) Voluntary Unemployment
c) Involuntary Unemployment
d) None of these

Ans – c)

When consumption function shoots from Y-axis, it indicates that:

a) Consumption is zero when income is zero
b) Saving is zero when income is zero
c) Saving is negative when income is positive
d) Consumption is positive when incoe is zero

Ans – d)

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Unit V: Money and Banking

1. Which of the following makes a financial institution a bank?

a) Accepting borrowings
b) Lending
c) Accepting demand deposits
d) Accepting time deposits

Show Answer

2. Creation of money by commercial banks refers to:

a) Creation of bank deposits
b) Issuing currency
c) Both a) and b)
d) Neither a) nor b)

Show Answer

3. How much money are banks able to create is determined by:-

a) Initial deposits
b) SLR
c) CRR
d) All of these

Show Answer

4. The Value of Money Multiplier equal:-

a) 1/SLR
b) 1/CRR
c) 1/(SLR + CRR)
d) None of these

Show Answer

5. Given CRR = 4% and SLR = 16%, the value of money multiplier is:-

a) 25
b) 6.25
c) 5
d) 8.33

Show Answer

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6. When the central bank sells securities in the market, the credit creation capacity of the commercial banks is likely to:-

a) Rise
b) Fall
c) May rise or may fall
d) No effect

Show Answer

7. Lowering of CRR by the central bank has the following impact on the credit creation capacity of the commercial banks:-

a) Negative
b) Positive
c) Can be negative or can be positive
d) No effect

Show Answer

8. Raising Reverse Repo Rate by the central bank is likely to have the following impact on demand for goods and services in the economy.

a) Rise
b) Fall
c) May rise or may fall
d) No effect

Show Answer

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Unit VI: Government Budget and the Economy

Spot the Capital Receipt:

a) Tax Received
b) External grants received
c) Dividend received
d) Disinvestment

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Spot the revenue receipt:-

a) Recovery of loans
b) Borrowings
c) External grants
d) Disinvestment

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Fiscal deficit in a government budget refers to:-

a) Shortfall in taxes
b) Shortfall in disinvestment
c) Disinvestment requirement
d) Borrowings requirements

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From the following data about a Government budget, find out Fiscal deficit:

Items	(₹ in Crore)
i) Capital receipts net of borrowings	95
ii) Revenue expenditure	100
iii) Interest payments	10
iv) Tax revenue	60
v) Non-tax revenue	20
vi) Capital expenditure	110

Options

a) ₹20 crore
b) ₹35 crore
c) ₹25 crore
d) None of these

Show Answer

From the following data about a government budget find Primary deficit:

Items	(₹ in crore)
i) Revenue expenditure	70000
ii) Borrowings	15000
iii) Revenue receipts	50000
iv) Interest payments	25% of revenue deficit

Options

a) ₹15000 crore
b) ₹10000 crore
c) ₹20000 crore
d) None of these

Show Answer

From the following data bout a government budget calculates Primary deficit:

items	(₹ in crore)
i) Revenue deficit	40
ii) Non-debt creating capital receipts	190
iii) Tax Revenue	125
iv) Capital Expenditure	220
v) Interest payments	20

Options

a) ₹70 crore
b) ₹50 crore
c) ₹450 crore
d) ₹10 crore

Show Answer

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Unit VII: Balance of Payments

1. Exchange Rate refers to the rate at which the following is exchanged.

a) Goods
b) Services
c) Currencies
d) All the above

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2. Floating Exchange Rates is determined by:

a) Mutual consultations between coutries
b) Banking systems
c) Market Forces
d) None of the above

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3. Managed floating exchange rate is called ‘managed’ because it is influenced by the steps taken by:-

a) Government
b) Central Bank
c) World Bank
d) IMF

Show Answer

4. When exchange rate in terms of domestic currency rises:-

a) Exports become cheaper
b) Imports become cheaper
c) Exports become costiler
d) NO effect on imports

Show Answer

5. When exchange rate falls in terms of domestic currency:-

a) Domestic currency depreciates
b) Foreign currency appreciates
c) Domestic currency appreciates
d) NO effect on the domestic currency

Show Answer

6. In the foreign exchange market that market price of US Dollar rises from ₹ 60 to ₹ 61. This means that:-

a) Rupee has depreciated
b) US Dollar has appreciated
c) Both a) and b)
d) None of the above

Show Answer

7. Price of one currency is relation to other currencies in the internatinoal exchange market is known as:-

a) Equilibrium rate
b) fixed exchange rate
c) exchange rate
d) flexible exchange rate

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8. The rate which is determined by the government is known as:-

a) flexible exchange rate
b) Fixed Exchange Rate
c) floating exchange rate
d) None of these

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9. The exchange rate at which demand for foreign currency becomes equal to its supply, is called

a) Equal rate of exchange
b) Mint Parity
c) Equilibrium exchange rate
d) all of these

Show Answer

10. What is the relationship between ‘demand for foreign exchange’ and ‘exchange rate’:-

a) Inverse
b) Direct
c) One to one
d) No Relationship

Show Answer

11. When supply of foreign exchange increases, the equilibrium exchange rate will:-

a) Rise
b) fall
c) not change
d) either rise or fall

Show Answer

12. Demand for foreign currency depends upon:-

a) repayment of international loans
b) investment in rest of the world
c) direct foreign investment in the domestic economy
d) both a) and b)

Show Answer

13. Due to depreciation of foreign currency, the supply of foreign currency in domestic economy will:-

a) increase
b) not change
c) either increase or decrease
d) decrease

Show Answer

14. Direct foreign investment is a source of:-

a) demand for foreign exchange
b) supply of foreign exchange
c) both a) and b)
d) none of these

Show Answer

15. When the exchange rate rises due to managed floating, it is called:

a) devaluation
b) appreciation
c) depreciation
d) revalutaion

Show Answer

1	MCQs of Foreign Exchange Rate Macroeconomics with answers
2	Assertion Reason MCQs of Foreign Exchange Rate Macroeconomics with answers
3	Matching Type MCQs of Foreign Exchange Rate Macroeconomics with answers
4	Case/source Based MCQs of Foreign Exchange Rate Macroeconomics with answers

1. Balance of Payments of a country is a statement that records:-

a) Sources of Foreign Exchange
b) Uses of Foreign Exchange
c) Both a) and b)
d) None of the above

Show Answer

2. The categories of transactions that are included in current account of Balance of Payments are:-

a) Exports and imports of goods
b) (a) + Exports and Imports of services
c) (b) + Income from and to abroad
d) (c) + Transfers from and to abroad

Show Answer

3. Balance of Trade equals:-

a) Exports less imports
b) Exports of goods less imports of goods
c) Exports of services less imports of services
d) None of the above

Show Answer

4. The categories of transactions that are included in the capital account of the Balance of Payments are:-

a) Investments from and to abroad
b) Borrowings and lendings from and to abroad
c) Changes in foreign exchange reserves
d) All the above

Show Answer

5. The measurement of Balance of Payments deficit is based on:-

a) Autonomous transactions
b) Accommodating transactions
c) Current account transactions
d) Capital account transactions

Show Answer

Read Here:- Important MCQs of Money and Banking chapter class 12

Read Here:- Matching Type MCQs of Money and Banking chapter class 12

Read Here:- Assertion Reason Based MCQs of Money and Banking chapter class 12

Read Here:- Case/source Based MCQs of Money and Banking chapter class 12

6. Choose the correct statement from given below:

a) Balance of trade records the exports and imports of invisible items.
b) A surplus in BoT can rectify the deficit in Bop.
c) Accommodating items are only recorded in the capital account of the BOP.
d) Import of machinery will be recorded in the capital account of BoP.

Show Answer

7.Choose the correct statement from given below.

a) Balance of Trade is a component of the capital account of Balance of Payments.
b) Floating exchange rate is used to stabilize the price of foreign currency.
c) Increase in the supply of foreign exchange results in a fall in its price
d) Rise in the exchange rate leads to the revaluation of the currency.

Show Answer

Read Here:- Matching Type MCQs of Balance of Payments Class 12

8. Current accounts records all payments to rest of the world as_________and all receipts from rest of the world as______

a) Credit, Debit
b) Debit, Credit
c) Debit, Debit
d) Credit, Credit

Show Answer

9. Balance on invisible trade is equal to

a) Export of goods – Import of goods
b) Export of services – Import of services
c) Import of goods – Export of goods
d) Import of services – Export of goods

Show Answer

10. If value of visible exports is greater than the value of invisible imports, the balance relates to

a) Current account Bop
b) Trade Deficit
c) Capital account BoP
d) Can’t be determined

Show Answer

Read Here:- Normal MCQs of Government Budget and the Economy Class 12

Read Here:- Matching Type MCQs of Government Budget and Economy Class 12

Read Here:- Assertion Reason Based MCQs of Government Budget and Economy Class 12

11. Balance of trade is a__________concept as compared to balance of payments.

a) narrower
b) broader
c) similar
d) None of the above

Show Answer

12. If trade deficit is ₹ 1500 crores and import of goods are ₹ 3500 crores, value of export of goods will be ₹ 2000 crores?

a) True
b) False
c) Partially true
d) Can’t be predicted

Show Answer

13. Trade deficit refers to the situation where

a) Export of goods is more than the import of goods
b) export of goods is less than the import of goods
c) export of services is more than the import of services
d) export of services is less than the import of services

Show Answer

14. Uni-lateral transfers are included in

a) current account Bop
b) capital account Bop
c) Both a) and b)
d) None of these

Show Answer

15. An Indian real estate company received rent from google in New York. This transaction would be recorded on____________side of_____________account.

a) credit, current
b) debit, capital
c) credit, capital
d) debit, current

Show Answer

1	MCQs of Balance of Payments Macroeconomics with answers
2	Assertion Reason MCQs of Balance of Payments Macroeconomics with answers
3	Matching Type MCQs of Balance of Payments Macroeconomics with answers
4	Case/source-based MCQs of Balance of Payments Macroeconomics with answers

INDIAN ECONOMIC DEVELOPMENT

Below are the all units in this section.

Unit VIII: Development Experience (1947-90) and Economic Reforms since 1991

MCQs of Indian Economy on the Eve of Independence

Which one belongs to the primary sector:-

a) Fishing
b) Water Supply
c) Exports of agricultural products
d) None of the above

Show Answer

Which one belongs to the tertiary sector:-

a) Growing wheat
b) Making biscuits using wheat flour
c) Trading in wheat
d) None of the above

Show Answer

Which one belongs to the secondary sector:-

a) Electricity generation
b) Electricity distribution
c) Both a) and b)
d) None of the above

Show Answer

Indian Economy under British rule was:

a) Developed economy
b) Developing economy
c) Underdevloped economy
d) Growing economy

Show Answer

Most of India’s population during British rule was dependent on which sector for a living?

a) Primary sector
b) Secondary sector
c) Tertiary sector
d) Nearly equally in all the above sectors

Show Answer

Read Here:- Matching Type MCQs of Indian Economy on the Eve of Independence economics class 12

Read Here:- Assertion Reason MCQs of Indian Economy on the Eve of Independence economics class 12

Which factor caused low productivity in agriculture?

a) System of land settlement
b) Low level of technology
c) Lack of investment
d) All the above

Show Answer

British rulers policy towards industrialization in India was to make India mainly:

a) Importer of primary products from Britain and exporter of finished products to Britain
b) Importer of finished products from Britain and exporter of primary products to Britain
c) Exporter of both primary products and finished products
d) Importer of both primary products and finished products

Show Answer

One of the following was high during the British rule over India:

a) Literacy rate
b) Female literacy rate
c) Infant mortality rate
d) Life expectancy

Show Answer

The occupational structure of India during the British rule revealed that the Indian economy was:

a) Underdeveloped
b) Developed
c) Stagnant
d) Underdeveloped and stagnant both

Show Answer

Whose estimate of national income was considered very significant?

a) Debadhai Naroji
b) William Digby
c) RC Desai
d) VKRV Rao

Show Answer

1	MCQs of Indian Economy on the Eve of Independence with answers
2	Assertion Reason MCQs of Indian Economy on the Eve of Independence with answers
3	Matching Type MCQs of Indian Economy on the Eve of Independence with answers
4	Case/source Based MCQs of Indian Economy on the Eve of Independence with answers

MCQs of Indian Economy (1950-1990)

Let’s Practice

Planning is needed to solve the central problems of:

a) What to produce
b) How to produce
c) For whom to produce
d) All the above

Ans – d)

Rate of economic growth is measured by rate of change in:

a) Nominal GDP
b) Read GDP
c) DP at current price
d) Any one of the above

Ans – b)

From 2017 onwards India has adopted of the period of vision of:

a) 5 years
b) 10 years
c) 15 years
d) 20 years

Ans – c)

Modernization refers to change in:

a) Technology
b) Management techniques
c) Social outlook
d) All the above

Ans – d)

The objective of self reliance measn reducing dependence on:

a) foreign trade
b) foreign aid
c) foreign investment
d) All the abvoe

Ans – b)

The objective of equity can be achieved by:

a) reducing gap between rich and poor
b) reducing poverty
c) Both a) and b)
d) None of the above

Ans – c)

Agricultural sector is part of:

a) Primary sector
b) Secondary sector
c) Tertiary sector
d) All the three sectors

Ans – a)

Land reforms mean to solve problems relating to:

a) Ownership of land
b) Distribution of land
c) Exploitation of farmers
d) All the above

Ans – d)

New Agricultural strategy was also knows as:

a) While revolution
b) Agricultural revolution
c) Green revolution
d) Land revolution

Ans – c)

Crops raised by using new technology under New Agricultural strategy were prone to attack
by:

a) Rats
b) Animals
c) Pests
d) Mosquitoes

Ans – c)

The crops which benefitied most under green revolution were:

a) Wheat
b) Rice
c) Both Wheat and Rice
d) None of the above

Ans – c)

Industries producing goods, are a part of

a) Primary sector
b) Secondary sector
c) Tertiary sector
d) None of the above

Ans – b)

Small scale units are differentiated from large scale units on the basis of:

a) Volume of output
b) Amount of investment
c) Volume of sale
d) Size of unit area

Ans – b)

At the time of independence private sector did not come forward to start capital goods
industries due to:

a) Lack of capital
b) Lack of demand
c) Both a) and b)
d) None of the above

Ans – c)

The Industrial policy which worked till 1990 was adopted in:

a) 1948
b) 1951
c) 1956
d) 1961

Ans – c)

The licensing policy aimed at:

a) Promoting regional equality
b) check undue expansion of industrial sector
c) bothe a) and b)
d) None of the above

Ans – c)

When was the planning commission set up?

a) 1949
b) 1950
c) 1956
d) 1850

Ans – b)

Abolition of Intermediaries and land ceiling are part of:

a) Industrial reforms in India
b) External sector reforms in India
c) Land reforms in India
d) Banking reforms in India

Ans – c)

Which of the following is a goal of five year plan?

a) Growth
b) Green Revolution
c) Land REforms
d) Modernisation

Ans – a), d)

1	MCQs of Indian Economy 1950-1990 Chapter with answers
2	Assertion Reason MCQs of Indian Economy 1950-1990 Chapter with answers
3	Matching Type MCQs of Indian Economy 1950-1990 Chapter with answers
4	Case/source Based MCQs of Indian Economy 1950-1990 Chapter with answers

Unit IX: Current challenges facing the Indian Economy

MCQs of Poverty Chapter

1. SJSRY stands for:

a) Swarna Jaynati Shahri Rozgar Yojna
b) Shahari Jeewan Sudhar Rashtriya Yojana
c) Sampoorna Jeewan Shahari Rozgar Yojna
d) None of these

Ans – a)

2. ______ poor are the ones who regularly move in and out of poverty.

a) Chronic
b) Churning
c) Occasionally
d) None of these

Ans – b)

3. The earlier ‘Food for work Programme’ has now been converted into:

a) Intensive Area Development Program
b) Integrated Rural Development Program
c) Mahatma Gandhi National Rural Employment Program
d) Minimum Needs Program

Ans – c)

4. Which of the following is a characteristic of poor people?

a) Poor health
b) Debt Trap
c) Smaller Families
d) Gender Inequality

Ans – a), b), d)

5. MPCE stands for __

a) Monthly Per Capital Expenditure
b) Minimum Per Capita Expenditure
c) Maximum Per Capital Expenditure
d) None of these

Ans – a)

6. Self-employment programmes include:

a) Prime Minister’s Rozgar Yojana
b) Swarna Jayanti Shahri Rozgar Yojana
c) National Food for Work Programme
d) All of the above

Ans – a), b)

7. Who introduced the concept of ‘Jail Cost of Living’?

a) Mahatma Gandhi
b) Dodabhai Naroji
c) Jawahar Lal Nehru
d) None of these

Ans – b)

8. Which one of the following are categorised as “Always Poor”?

a) Chronic Poor
b) Occasionally Poor
c) Both a) and b)
d) Neither a) nor b)

Ans – a)

9. ____ refers to poverty of people, in comparison to other people, regions or nations.

a) Absolute Poverty
b) Relative Poverty
c) Both a) and b)
d) Neither a) nor b)

Ans – b)

10. Which organization collects data on poverty in India?

a) NSSO
b) SJSRY
c) MGNERGA
d) None of these

Ans – a)

11. Transient poor includes:

a) Occasionally poor
b) Churning Poor
c) Never Poor
d) Usually Poor

Ans – a), b)

12. In which year, “National Food for Work Programme” was launched?

a) 2008
b) 1999
c) 2004
d) 2010

Ans – c)

13. When was Natinoal Social Assistance Programme Initiated?

a) 15th August 1996
b) 15th August 1998
c) 15th August 1997
d) 15th August 1995

Ans – d)

14. The Programme initiated by the Government to improve food and nutritional level of poor was:

a) Public Distribution System
b) Integrated Child Development Scheme
c) Midday Meal Scheme
d) All of these

Ans – d)

15. Reason for chronic indebtedness among the poors.

a) Poor work mainly as landless agricultural laborers
b) Poor borrow money from lenders who charge high rates of interest
c) The poor are highly vulnerable. They are not able to negotiate their legal wages from employers and are exploited
d) Poors and landless. Even if some of them possess land, it is only dry or wasteland.

Ans – b)

1	MCQs of Poverty Chapter with answers
2	Assertion Reason MCQs of Poverty Chapter with answers
3	Matching Type MCQs of Poverty Chapter with answers
4	Case/source-based MCQs of Poverty Chapter with answers

MCQs of Human Capital Formation

Let’s Practice

Human Capital consists of :

a) Entire population
b) Workers
c) Entrepreneurs
d) Both workers and entrepreneurs

Show Answer

A person becomes a human resource when he/she :

a) Is willing to work
b) Is able to work
c) Belongs to a particular age group
d) All the above

Ans – d)

Show Answer

Human Capital formation means incurring expenditure on :

a) Education
b) Training
c) Health
d) Any one of the above

Ans – d)

Show Answer

The following activity leads to human capital formation :

a) Walking
b) Physical exercises
c) Yoga
d) Any one of the above

Ans – d)

Show Answer

_________ five-year plan recognised the importance of Human capital.

a) Seventh
b) Third
c) Eight
d) Sixth

Ans – a)

Show Answer

Which of the following is an example of physical capital?

a) Machinery
b) Health of People
c) Building
d) Education and knowledge in people

Ans – a), c)

Show Answer

In India, which of the following organizations regulates the health sector?

a) ICMR
b) UGC
c) AICTE
d) None of these

Show Answer

The expenditure by the government on education is expressed as:

a) Percentage of total government expenditure
b) Percentage of GDP
c) Percentage of National Income
d) Neither a) nor b)

Ans – a), b)

Show Answer

Which one of the following is an indicator of educational achievement in a country?

a) Youth Literacy Rate
b) Adult Literacy RAte
c) Primary Completion Rate
d) All of these

Show Answer

In the year ___________ Indian Government made free and compulsory education for age
group of 6 – 14 years.

a) 2001
b) 2009
c) 2003
d) 2007

Ans – b)

Show Answer

Which one of the following is a reason for poor human capital formation in India?

a) Brain drain
b) Low growth of population
c) Insufficient resources
d) All of these

Ans – a), c)

Show Answer

_____________ refers to the stock of skill, ability, expertise, education, and knowledge embodied
in the people.

a) Human resource
b) Physical Capital
c) Human Capital
d) None of these

Show Answer

1	MCQs of Human Capital Formation Chapter with answers
2	Assertion Reason MCQs of Human Capital Formation Chapter with answers
3	Matching Type MCQs of Human Capital Formation Chapter with answers
4	Case/source-based MCQs of Human Capital Formation Chapter with answers

MCQs of Rural Development

Let’s Practice

The Problem faced in rural banking are:

a) Insufficient rural credit
b) Growing overdue
c) Inadequate amount of sanction
d) All of these

Show Answer

The Scheme of “Micro Finance” is entended through

a) Self Help groups
b) Land Development Banks
c) NABARD
d) Regional Rural Banks

Show Answer

Which one of the following is not a non-institutional source of credit?

a) Money-lenders
b) Co-operative credit
c) Traders and commission agents
d) Land Development Bank

Show Answer

Why is the minimum support price fixed by the government?

a) For government own benefit
b) To safeguard the interest of farmers
c) To safeguard the interest of consumers
d) None of these

Show Answer

Which of the following is an institutional source of rural credit?

a) Co-operative Credit
b) Land Development Banks
c) NABARD
d) All of the above

Show Answer

Agriculture marketing does not comprise of

a) Transportation of the produce to the marketplace for sale
b) Grading of the produce according to the quality
c) Storage of the produce for sale in future
d) Credit took to meet expenditure on agriculture

Show Answer

Distress sale by the farmers refer to:

a) Sale of rotten crop
b) Sale of the crop through commission agents
c) Sale of the crop at the MSP fixed by the government
d) Sale of the crop at a very poor price

Show Answer

_________is the apex body which coordinates the functioning of different financial
institutions working for the expansion of rural credit.

a) NABARD
b) Self Help Groups
c) Regional Rural Banks
d) Commercial Banks

Show Answer

1	MCQs of Rural Development Chapter with answers
2	Assertion Reason MCQs of Rural Development Chapter with answers
3	Matching Type MCQs of Rural Development Chapter with answers
4	Case/source-based MCQs of Rural Development Chapter with answers

MCQs of Employment Chapter

Let’s Practice

Most of the disguised unemployed persons in India are found in:

a) Agriculture
b) Industry
c) Traded
d) Transport

Ans – a)

The percentage of the population participating in production activity is called ______.

a) Labour force
b) Workforce
c) Labour supply
d) participation rate

Ans – d)

Workers who is on permanent payroll of their employer is called

a) Self-employed workers
b) Casual workers
c) Regular workers
d) None of these

Ans – c)

A number of persons unemployed = Labour Force – _____ .

a) Supply of labor
b) Workforce
c) Total population
d) Participation Rate

Ans – b)

Less employment of females in comparison to males is an indication of:

a) Economic backwardness
b) Social backwardness
c) both a) and b)
d) None of these

Ans – c)

Agriculture laborers, farmers, owners of small enterprises which employ less than 10 workers fall in the category
of

a) formal sector
b) information sector
c) casual workers
d) regular workers

Ans – b)

Data on unemployment in India can be obtained from which source?

a) Reports of the census of India
b) National sample survey organization
c) Directorate general of unemployment
d) All of the above

And – d)

The number of persons, who are actually employed at a particular time is known as:

a) Labour force
b) Workforce
c) Both a) and b)
d) Neither a) nor b)

Ans – b)

Unemployment leads to which of the following:

a) Loss of manpower
b) loss of output
c) Decline in capital formation
d) all of these

Ans – d)

In which type of unemployment, the marginal productivity of an additional worker is zero?

a) Disguised unemployment
b) Involuntary unemployment
c) Seasonal unemployment
d) Structural unemployment

Ans – a)

Unemployment which occurs for the time period when workers move from one job to another job is known as _______ .

a) Cyclical unemployment
b) Seasonal unemployment
c) Technological unemployment
d) Frictional unemployment

Ans – d)

Which type of unemployment is found in the agricultural sector?

a) Disguised unemployment
b) Structural unemployment
c) Industrial unemployment
d) Educated unemployment

Ans- a)

The process of moving from self-employment and regular salaried employment to casual wage work is known as:

a) Informalisation of workforce
b) Casualisation of workforce
c) Both a) and b)
d) Neither a) nor b)

Ans – b)

Two months ago, Shyam was working as a part-time salesman on a commission basis in a company. Due to his excellent performance, the company appointed him as permanent sales manager on a fixed monthly salary. From the point of view of employment currently he is a

a) skilled worker
b) regular salaried worker
c) unskilled worker
d) casual wage labour

Ans – b)

Hired workers are those

a) who work for others
b) who are not self-employed
c) who are engaged in their own business
d) Both a) and b)

Ans – d)

Unemployment refers to people:

a) Who are not willing to work
b) Who are willing but do not get work
c) Who leave their jobs in search of better ones
d) Who have been dismissed because of incorrect practices

Ans – b)

Unemployment arising from economic fluctuations is called:

a) frictional unemployment
b) disguised unemployment
c) Cyclical unemployment
d) urban unemployment

Ans – c)

1	MCQs of Employment Chapter with answers
2	Assertion Reason MCQs of Employment Chapter with answers
3	Matching Type MCQs of Employment Chapter with answers
4	Case/source Based MCQs of Employment Chapter with answers

MCQs of Infrastructure Chapter

Let’s Practice

Electricity generated from radioactive elements is called:

a) Thermal Power
b) Hydro-electric Power
c) Atomic Power
d) Tidal Power

Ans – c)

Which of the following is a component of the environment?

a) Living elements only
b) NOn-living elements only
c) Both a) and b)
d) None of these

Ans – c)

Which of the following is a part of a three-tier system of health infrastructure?

a) Primary health care
b) Secondary health care
c) Tertiary health care
d) All of these

Ans – d)

Which of the following is not considered as an element of the environment?

a) Air
b) Land
c) Weather
d) Electricity

Ans – d)

Which of the following is a renewable resource of energy?

a) Solar Energy
b) Wind Energy
c) Thermal Energy
d) All of these

Ans – a), b)

Which of the following is a reason for noise pollution?

a) Domestic sewerage
b) Industrial waste
c) Industrial machines
d) Emission of gases

Ans – c)

Which sector has the largest share in total consumption of commercial energy?

a) Agricultural sector
b) Transport Sector
c) Industrial sector
d) Household

Ans – c)

Which of the following is a cause of environmental degradation?

a) Population explosion
b) Increasing urbanization
c) Rapid industrialisation
d) All of these

Ans – d)

India’s Energy Policy encourages the following two energy sources:

a) Hydel and Thermal Power
b) Wind and thermal power
c) Hydel and wind
d) Thermal and Nuclear power

Ans – c)

Sustainable development is that development that satisfies the need of:

a) present generation only
b) future generation only
c) both a) and b)
d) None of these

Ans – c)

Which of the following is not a measure to meet the power crisis?

a) Improvement in Plant load factor
b) Control and transmission and distribution losses
c) Increase in production capacity
d) Encourage use of nonrenewable sources

Ans – d)

Which of the following is a necessary condition of sustainable development?

a) Increase in the quality of life
b) Reduction in the level of pollution
c) Conservation of the stock of natural capital
d) All of these

Ans – d)

Which primary source of energy has the largest share in commercial energy consumption?

a) Oil
b) Natural gas
c) Hydro energy
d) Coal

Ans – d)

An increase in real income along with an increase in economic welfare is called:

a) Economic growth
b) economic development
c) Sustainable development
d) None of these

Ans – b)

Which of the following is an example of economic infrastructure?

a) Transport
b) Education
c) Health
d) Communication

Ans – a), d)

One of the following is an example of social infrastructure:

a) Power
b) Sanitation
c) Transportation
d) Water supply

Ans – b)

1	MCQs of Infrastrucure Chapter with answers
2	Assertion Reason MCQs of Infrastructure Chapter with answers
3	Matching Type MCQs of Infrastructure Chapter with answers
4	Case/source Based MCQs of Infrastructure Chapter with answes

MCQs of Environment and Sustainable Development

Let’s Practice

Which of the following is an important function of the environment?

a) To provide resources for production
b) To provide aesthetic services
c) To assimilate waste
d) All of these

Ans – d)

Sustainable development means that the present society passes on the future generation at least as much of the following
as we have:

a) Man Made capital
b) Natural capital
c) Human capital
d) All the above

Ans – d)

_ is the main reason for soil erosion.

a) Ozone Depletion
b) Air Pollution
c) Deforestation
d) None of these

Ans c)

Natural environment refers to:

a) Air
b) Land
c) Water
d) All the above

Ans – d)

Which of the following are biotic elements: i) Birds, ii) Water, iii) Land; and iv) Forests?

a) i, ii
b) i, iii
c) i, iv
d) ii, iii

Ans – c)

Economic activities harm the environment through:

a) Air pollution
b) Water pollution
c) Exhausting non renewable resources
d) Any of the above

Ans – d)

The government set up the Central Pollution Control Board to control:

a) Air Pollution
b) Noise Pollution
c) Water Pollution
d) Soil Erosion

Ans – a), c)

Global warming is caused by:

a) Head generated by sun rays passing through earth
b) A part of sun’s rays heat reflected back towards space.
c) Reflection of heat into blocked by greenhouse gases
d) None of the above

Ans – c)

Sustainable development can be achieved by:

a) Restricting use of renewable resources
b) Controlling the growth of population
c) Controlling pollution
d) All of these

Ans – d)

Besides the sun rays global warming is also caused by:

a) Burning of coal
b) Burning of oil
c) Burning of gas
d) All the above

Ans – d)

__ is the observed and projected increase in the average temperature of earth’s atmosphere and oceans.

a) Global warming
b) Biodiversity Loss
c) Ozone Depletion
d) Deforestation

Ans – a)

Natural resources are being exhausted rapidly due to:

a) Excessive mining
b) Excessive cutting of trees
c) Too much of fishing
d) Any of the above

Ans – d)

Which one of the following is a measure to control air pollution in vehicles?

a) Promotion of thermal power plants
b) Promotion of public transport
c) Promotion of CNG instead of petrol
d) All of these

Ans – b), c)

1	MCQs of Environment and Sustainable Development chapter with answers
2	Assertion Reason MCQs of Environment and Sustainable Development chapter with answers
3	Matching Type MCQs Environment and Sustainable Development Chapter with answers
4	Case/Source Based MCQs of Environment and Sustainable Development chapter with answers

MCQs of Development Experiences of India A comparison with Neighbours

Let’s Practice

Indian, Pakistan, and ________ have many similarities in their development strategies.

a) Nepal
b) China
c) Srilanka
d) Bangladesh

Ans – b)

The main aim of comparing countries is to:

a) Know differences in physical features
b) Know differences in economic features
c) Know how much rich or poor we are a country is in relation to other countries
d) Learn from the development experiences of these countries

Ans – d)

Which type of economic system is followed in China?

a) Mixed Economy
b) Socialist Economy
c) Capitalist Economy
d) None of these

Ans – b)

A meaningful comparison between the two countries is possible on the basis of:

a) Common Currency
b) Common Price level
c) Both a) and b)
d) Any other

Ans – c)

Which sector of the economy contributes the highest to India’s GDP?

a) Service
b) Agriculture
c) Industry
d) None of these

Ans – a)

The term PPP signifies

a) Common prices
b) Common currency
c) Both a) and b)
d) Any other

Ans – c)

Which one of the following is an indicator of human development?

a) Life Expectancy of birth
b) contribution to GDP
c) Infant Mortality Rate
d) All of these

Ans – a), c)

Quality of life is influenced by:

a) Income
b) Education
c) Health
d) All the above

Ans – d)

_______ Program was started in China with the aim of industrialisation.

a) Great Leap Forward
b) Great Proletarian Cultural Revolution
c) One-child Policy
d) None of these

Ans – a)

Which economic system did china choose for economic development?

a) Capitalist system
b) Socialist system
c) Mixed Capitalist system
d) None of the above

Ans – b)

_ has the highest life expectancy at birth.

a) India
b) China
c) Pakistan
d) Both a) and b)

Ans – b)

Which economic system did India adopt as a development strategy?

a) Capitalist System
b) Socialist System
c) Mixed Capitalist System
d) Socialist system up to 1991 and then the capitalist system

Ans – c)

Great Leap Forward campaign was initiated in:

a) Pakistan
b) India
c) China
d) Both a) and b)

Ans – c)

Which of the three countries has the lowest rate of population growth?

a) India
b) Pakistan
c) China
d) All equal

Ans – c)

Rank India, Pakistan, and China in terms of the better value of the Human Development Index.

a) 1st Pakistan, 2nd – China, 3rd – India
b) 1st – Pakistan, 2nd – India, 3rd – China
c) 1st – China, 2nd – Pakistan, 3rd – India
d) 1st – China, 2nd – India, 3rd – Pakistan

Ans – d)

Which of the three countries has the highest growth rate of GDP?

a) India
b) Pakistan
c) China
d) All equal

Ans – c)