Economy MCQ Quiz - Objective Question with Answer for Economy - Download Free PDF

The correct answer is Good Year.Key Points 

• The Ballabgarh manufacturing plant is one of the two plants operated by Goodyear in India.
• It is located in the Ballabgarh Industrial Area in Haryana, approximately 30 km south of New Delhi. The plant is spread across an area of around 68 acres and has been in operation since 1961.
• The Ballabgarh plant produces a wide range of tires for various vehicles, including passenger cars, SUVs, commercial trucks, and buses.
• It has a production capacity of approximately 7 million tires per year and employs over 1,500 people.
• The plant is equipped with advanced manufacturing technology and processes, including state-of-the-art machinery for tire building, curing, and testing.
• The plant also has a research and development center that works on developing new and innovative tire technologies to meet the changing needs of customers.
• Goodyear is committed to sustainability, and the Ballabgarh plant has implemented several initiatives to reduce its environmental footprint, such as using renewable energy sources, implementing water conservation measures, and reducing waste generation.
• The plant has been awarded several certifications for its commitment to quality, safety, and environmental sustainability.

Additional Information

• Goodyear is a multinational tire manufacturing company founded in 1898 in Akron, Ohio, United States.
  • The company produces a wide range of tires for various applications, including passenger cars, trucks, buses, aircraft, motorcycles, and off-road vehicles.
• CEAT Tyres is a leading Indian tyre manufacturing company that was founded in 1958.
  • The company is headquartered in Mumbai, Maharashtra, India, and is a part of the RPG Group.
  • CEAT Tyres is one of the largest tyre manufacturers in India and has a strong presence in both the domestic and international markets.
• MRF Tyres is one of the largest tyre manufacturers in India, and it is also a globally recognized brand.
  • The company was founded in 1946 and has its headquarters in Chennai, India.
• JK Tyre & Industries Ltd is a leading tyre manufacturing company in India.
  • The company was established in 1951 and has since then expanded to become one of the largest tyre manufacturers in India.

The correct answer is 1978-80.Key Points

• The duration of continuous plans in India was 1978-80.
• They are also known as Rolling Plans.
• Continuous Plans were introduced by Janta Government by discontinuing the fifth five-year plan in 1977-78.
• Continuous Plans were based on the concept of revising plans and targets for the next year on the basis of the previous year's performance.
• It provided flexibility in planning, but later in 1980, Indira Gandhi came back into power and resumed five-year plans by introducing the sixth five-year plan.

Additional Information

• The five-year plans were introduced by the government in 1951 for the economic stability and development of the country.
• The concept of five-year plans in India is adopted from the Soviet Union.
• The body responsible for planning, executing and monitoring Five-year plans was Planning Commission from 1951 to 2014.
• The Planning Commission was dissolved on 13 August 2014 by Prime Minister Modi's government and a new body was set up named (National Institution for Transforming India) NITI Aayog.

The correct answer is 5^th Five-year plan.

Key Points

• The final draft of the fifth plan was prepared and launched by D.P. Dhar in the backdrop of economic crisis arising out of run-away inflation
  fuelled by a hike in oil prices and failure of the Govt. takeover of the
  wholesale trade in wheat.
• It proposed to achieve two main objectives: 'removal of poverty'
  (Garibi Hatao) and 'attainment of self-reliance promotion of high rate of growth, better distribution of income and significant growth in the domestic rate of savings was seen as key instruments
• Due to high inflation, cost calculations for the Plan proved to be
  completely wrong and the original public sector outlay had to be
  revised upwards.
• After the promulgation of the emergency in 1975, the emphasis shifted to the implementation of the Prime Ministers 20 Point Programme. FYP was relegated to the background and when Janta Party came to power in 1978, the Plan was terminated.

The correct answer is it is regime where a nation's currency is set by the forex market through supply and demand.

Key Points

• A floating exchange rate is a regime where the currency price of a nation is set by the forex market based on supply and demand relative to other currencies.
• It is determined by market forces of demand and supply.
• It is in contrast to a fixed exchange rate.
• In  fixed exchange a currency is pegged or held at the same value relative to another currency.

The correct answer is Both 1 and 2.Key PointsPublic Private Partnership (PPP):

• Public-private partnerships involve collaboration between a government agency and a private-sector company that can be used to finance, build, and operate projects, such as public transportation networks, parks, and convention centres.
• Financing a project through a public-private partnership can allow a project to be completed sooner or make it a possibility in the first place.
• Commonly adopted models of PPPs include: 
  • Build-Operate-Transfer (BOT)
  • Build-Own-Operate (BOO)
  • Build-Operate-Lease-Transfer (BOLT)
  • Design-Build-Operate-Transfer (DBFOT)
  • Lease-Develop-Operate (LDO)
  • Operate-Maintain-Transfer (OMT), etc.
• These models are different on the level of investment, ownership control, risk sharing, technical collaboration, duration, financing etc.

Build-Operate-Transfer (BOT):

• It is a conventional PPP model in which the private partner is responsible to design, build, operate (during the contracted period) and transfer back the facility to the public sector. Hence, statement 1 is correct.
• Private sector partner has to bring the finance for the project and take the responsibility to construct and maintain it.
• The public sector will allow private sector partners to collect revenue from the users. Hence, statement 2 is correct.
• The national highway projects contracted out by NHAI under PPP mode is a major example of the BOT model.

The correct answer is Primary sector.

Key Points:

• Activities that generate income are termed as economic activities.
• On the basis of economic activities, the Indian economy can be divided into 3 major sectors that are the primary sector, the secondary sector, and the tertiary sector.
• Dairy comes under the primary sector.
• Primary sector: Primary activities are directly dependent on the environment as these refer to the utilization of the earth’s resources. It, thus includes hunting and gathering, pastoral activities, fishing, apiculture, etc.
• Secondary sector: Secondary activities add value to natural resources by transforming raw materials into valuable products. Therefore, they are concerned with manufacturing, processing and construction industries. For eg: Shoe factory.
• Tertiary sector: Tertiary activities include both production and exchange. The production involves the ‘provision’ of services that are consumed. The exchange involves trade, transport and communication facilities that are used to overcome distance. For eg: Consultancy.

The correct answer is Horticulture and Honey.

Key Points

• The Golden Revolution is related to Horticulture and Honey.
• It started in 1991 and lasted till 2003.
• Father of Golden Revolution: Nirpakh Tutaj.
• The Golden Fibre Revolution is related to Jute Production.

Additional Information

The correct answer is Russia.

Key Points

• The constitution of India has borrowed most of its provisions from the constitution of different countries in the world.
• According to Dr B R Ambedkar, the constitution of India has been framed after ransacking all the known constitutions of the world.
• The important provisions borrowed from Russia are:
  • Five-year plan.
  • Fundamental duties.

Additional Information

• The important provisions borrowed from Britain are:
  • Parliamentary form of government
  • Rule of Law.
  • Single Citizenship.
  • Office of Comptroller and Auditor General of India.
  • Bicameralism.
  • Writs.
• The important provisions borrowed from the United States are:
  • Fundamental rights.
  • Preamble.
  • Independence of judiciary.
  • Judicial review.
  • Impeachment.
  • Post of vice-president.
• The important provisions borrowed from Germany:
  • Suspension of Fundamental Rights during the emergency.

The correct answer is 1956-61.

Key Points

• 1956-61 was the duration of the Second Five Year Plan.
• The Second Five Year Plan was based on Mahalanobis Model.
• ​Its main focus was on the industrial development of the country.
• P. C. Mahalanobis was a famous Indian statistician who founded the Indian Statistical Institute.
• The plan lagged behind the target growth rate of 4.5% and achieved a growth rate of 4.27%.

Additional Information

• The five-year plans were one of the central plans.
• The plans were formulated and were financed by the central government.
• These were launched in 1951, with the first five-year plans covering the years 1951-56.
• There were three breaks in five-year plans during 1966-69, 1978-80, and 1991-92.
• "Twelfth Five Year Plan" duration is from 2012 to 2017, and it was under the leadership of Manmohan Singh.
• It was the last five-year plan because Niti Aayog replaced it with the planning commission.
• Its main theme was “Faster, More Inclusive and Sustainable Growth”.
• Its growth rate target was 8%.​

​

The correct answer is Third five year plan.

Key Points

• The third Five Year Plan was launched from 1961-1966 under the leadership of Pandit Jawaharlal Nehru.
  • The Deputy Chairman of the Planning commission at the time of the third five-year plan was D. R. Gadgil.
  • The plan was also known as the Gadgil Yojana.
  • The independent economy (establishment of a self-reliant and self-generating economy), agriculture, and improvement in the production of wheat were the major objectives of the plan.
  • The third Five Year Plan was affected due to drought and two wars (Sino-India war of 1962 and Indo-Pakistani war of 1965).

Additional Information

• The First five-year plan 
  • This plan was launched from 1951-1956 under the leadership of Pandit Jawaharlal Nehru.
  • It was based on the Harrod-Domar model.
  • The targeted growth rate of the plan was 2.1%.
  • The plan was successful and achieved a growth rate of 3.6% which was more than its target.
  • The agricultural development of the country was the major objective of the plan.
  • At the end of this plan, five IITs were set up in the country.
• The second five-year plan
  • ​​​This plan is based on P.C Mahalanobis Model.
  • It was planned from 1 April 1956 to 31 March 1961.
  • It is popularly known as Mahalanobis Plan.
  • The second five-year plan accords high priority to industrialization, and especially to the development of basic and heavy industries.
  • This plan includes substantial investment in iron and steel, coal and Heavy engineering, Machine building, Heavy chemicals, and Cement Industries.​
• ​Fourth-Five year Plan:
  • ​The duration of this Plan is 1969-1974 under the leadership of Indira Gandhi.
  • The two main objectives of this Plan are growth with Stability and Progressive achievement with self-reliance.
  • During this Plan, 14 major Indian Banks were nationalized and the Green Revolution was started.
  • At this time, the Indo-Pak war of 1971 and the Bangladesh liberation war took Place.
  • The main emphasis was on the growth rate of agriculture to enable other sectors to move forward.
  • First, two years of the plan saw record production.
  • The last three years did not measure up due to poor monsoon.
  • Implementation of Family Planning Programmes was amongst the major targets of the Plan.

Important Points

The correct answer is option 4 i.e 1950.

Key Points

• The Planning Commission was an institution which formulated Five-Year Plans in India.
  • Planning Commission set up in 1950.
  • Planning commission was established based on the recommendation of an advisory planning board under the chairmanship of KC Neogy.
  • Headquarters: Yojana Bhavan, New Delhi.
  • Planning commission is only an advisory body.
  • The concept of planning was based on the Russian model introduced by Joseph Stalin.
  • The Prime Minister is the chairman of the planning commission.
  • Jawaharlal Nehru was the first chairman of the planning commission.
  • Deputy chairman of the planning commission was appointed by the Union Cabinet.
  • Gulzarilal Nanda was the first deputy Chairman of the Planning Commission.
• Narendra Modi government dissolved the Planning Commission in 2014.
• The planning commission was replaced by the newly formed NITI Aayog in 2015.

The correct answer is Custom duties.

Important Points

• The tax imposed on the import and export of commodities is called Custom duties.
• This is a form of foreign trade control and a policy that taxes foreign goods to encourage or protect domestic industry.
• Tariffs may be set (a constant sum per unit of imported goods or a percentage of the price) or variable (the amount varies by price). Import taxation means that consumers are less likely to purchase them because they are more costly.
• An excise tax is an indirect tax on the sale of a particular good or service charged by the Government.
• A VAT (Value-added tax) is a consumption tax that is imposed on a product whenever a value is added at each stage of the supply chain, from production to point of sale.
• Goods and Services Tax(GST) is an Indirect tax on the purchase of goods and services used in India.

The correct answer is 150mm × 66 mm.

• The new Rs. 500 currency note has the dimensions of 150mm × 66 mm.

Additional Information

• It has the portrait of Mahatma Gandhi on the obverse side whereas the motif of Red Fort is present on the reverse side of the note along with a logo and tagline of Swachh Bharat Abhiyan.
• It is stone-grey in colour. 

The correct answer is None of the above.

Key Points 

• GDP:
  • GDP’s full form is Gross Domestic Product is evaluated regularly to account for changing production structure, relative prices, and better recording of economic activities.
  • Gross Domestic Product (GDP) is the total money value of final goods and services produced in the economic territories of a country in a given year. Hence, statement 1 is not correct.
  • Non-monetary goods and services (e.g. cooking by housewife) are not included in GDP calculation. Hence, statement 2 is not correct.
  • Economic transactions virtually include everything economic in the country. For e.g., if a stockbroker sells and purchases the same stock worth Rs. 1000 five times in a day, it does not increase the GDP of the country by Rs. 5000.
  • Economic transactions may also include buying and selling of bonds, FII inflows, and outflows, etc. Hence, statement 3 is not correct.
  • GDP includes the value of all goods and services produced within a country within a year.
• Source Link- https://ncert.nic.in/ncerts/l/leec102.pdf

The correct answer is Second Five Year Plan.

Key Points

• Second Five-year plan (1956 to 1961)
  • The second plan was conceived in an atmosphere of economic stability.
  • It was felt agriculture could be accorded lower priority. 
  • Industries got more importance in the 2nd five-year plan. The focus was mainly on heavy industries. 
  • The Indian government boosted the manufacturing of industrial goods in the country.
  • This was done primarily to develop the public sector.
  • The Plan Focussed on rapid industrialization- heavy & basic industries.
  • Advocated huge imports through foreign loans.
  • Therefore, the Indian Government adopted a mixed economy during the second five-year plan. Hence, Option 2 is correct.
  • The Industrial Policy 1956 was based on the establishment of a socialistic pattern of society as the goal of economic policy.
  • Acute shortage of forex led to pruning of development targets, the price rise was also seen ( about 30%) vis a vis decline in the earlier Plan & the 2nd FYP was only moderately successful.

Important Points

• The 2nd year five-year plan functioned based on the Mahalanobis model. 
• The Mahalanobis model was propounded by the famous Prasanta Chandra Mahalanobis in the year 1953.
• As many as five steel plants including the ones in Durgapur, Rourkela ,Bhilai were set up as per the 2nd five-year plan. 
• During the term of the 2nd five-year plan, Atomic Energy Commission came into being.
• The Commission was established in the year 1957. 
• During the same period, the Tata Institute of Fundamental Research was born.

Additional Information

• First Five Year Plan:
  • It was launched from 1951 to 1956, under the leadership of Jawaharlal Nehru. 
  • It was based on the Harrod-Domar model with a few modifications. 
  • Its main focus was on the agricultural development of the country.
  • This plan was successful and achieved a growth rate of 3.6% (more than its target of 2.1%). 
  • At the end of this plan, five IITs were set up in the country. 
• Third Five Year Plan:
  • It was made from 1961 to 1966.
  • It is also called ‘Gadgil Yojna’, after the Deputy Chairman of Planning Commission D.R. Gadgil.
  • The target of this plan was to make the economy independent.
  • The stress was laid on agriculture and the improvement in the production of wheat. 
  • India was engaged in two wars: (1) the Sino-India war of 1962 and (2) the Indo-Pakistani war of 1965. These wars exposed the weakness in our economy and shifted the focus to the defense industry, the Indian Army, and the stabilization of the price (India witnessed inflation). 
  • The plan was a flop due to wars and drought. The target growth was 5.6% while the achieved growth was 2.4%. 
• Fourth Five Year Plan:
  • Its duration was from 1969 to 1974, under the leadership of Indira Gandhi. 
  • The two main objectives of this plan i.e. growth with stability and progressive achievement of self-reliance.
  • Fourteen major Indian banks were nationalized and the Green Revolution was started.
  • Indo-Pakistani War of 1971 and the Bangladesh Liberation War took place. 
  • Implementation of Family Planning Programmes was amongst major targets of the Plan
  • It failed and could achieve a growth rate of 3.3% only against the target of 5.7%.