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

The correct answer is ​279279 lakh crores.

Key Points

•  Andhra Pradesh government has pegged the budget outlay for the year 2023-24 at ₹2,79,279 crore, with a lion’s share of allocations going to the flagship welfare schemes being implemented under the Navaratnas.
• The Andhra Pradesh government’s Budget outlay for 2022–23 and 2021–22 was ₹2.56 lakh crore and ₹2.29 lakh crore, respectively.
• Presenting the Budget for the fifth time in Amaravati on Thursday, the Finance Minister Buggana Rajendranth pegged the revenue expenditure at ₹2,28,540 crore and capital expenditure at ₹31,061 crore. 
• The revenue deficit works out to ₹22,316 crore, and the fiscal deficit is placed at ₹54,587 crore. The fiscal deficit would be 3.77 percent of GSDP, while the revenue deficit would be 1.54 percent of GSDP.

The correct answer is Option 3.

Key PointsFarmyard manure

• Farmyard manure refers to the decomposed mixture of dung and urine of farm animals along with litter and left over material from roughages or fodder fed to the cattle.
• On an average well-decomposed farmyard manure contains 0.5% N, 0.2% P2O5 and 0.5% K2O. Hence, Option 3 is the correct answer. 
• The present method of preparing farmyard manure by the farmers is defective. Urine, which is wasted, contains one per cent nitrogen and 1.35 per cent potassium.
• Nitrogen present in urine is mostly in the form of urea which is subjected to volatilization losses.
• Even during storage, nutrients are lost due to leaching and volatilization.
• However, it is practically impossible to avoid losses altogether, but can be reduced by following improved method of preparation of farmyard manure.
• Trenches of size 6 m to 7.5 m length, 1.5 m to 2.0 m width and 1.0 m deep are dug.

The correct answer is Option 1.

Key PointsField capacity:

• It is the amount of soil moisture or water content held in the soil after excess water has drained away and the rate of downward movement has decreased.
• This usually takes place 2–3 days after rain or irrigation in pervious soils of uniform structure and texture.
• The physical definition of field capacity is the bulk water content retained in soil at −33 kPa of hydraulic head or suction pressure.
• The term originated from Israelsen and West and Frank Veihmeyer and Arthur Hendrickson.
• Field capacity is characterized by measuring water content after wetting a soil profile, covering it (to prevent evaporation) and monitoring the change soil moisture in the profile.

Additional Information

• Permanent wilting point (PWP) or wilting point (WP) is defined as the minimum amount of water in the soil that the plant requires not to wilt.
  • If the soil water content decreases to this or any lower point a plant wilts and can no longer recover its turgidity when placed in a saturated atmosphere for 12 hours.
• The critical moisture content is the average material moisture content at which the drying rate begins to decline. A prototype drying test should be conducted to determine the critical moisture content.
•  Water Use Efficiency (WUE) is the ratio between effective water use and actual water withdrawal.
  • It characterizes, in a specific process, how effective is the use of water

The correct answer is Option 4.

Key Points

• Photosynthesis is the process that plants use to turn light, carbon dioxide, and water into sugars that fuel plant growth, using the primary photosynthetic enzyme Rubisco.
• The majority of plant species on Earth uses C3 photosynthesis, in which the first carbon compound produced contains three carbon atoms.
• In this process, carbon dioxide enters a plant through its stomata (microscopic pores on plant leaves), where amidst a series of complex reactions, the enzyme Rubisco fixes carbon into sugar through the Calvin-Benson cycle.
• About 85% of the plant species on the planet are C3 plants, including rice, wheat, soybeans and all trees.
• C4 plants—including maize, sugarcane, and sorghum—avoid photorespiration by using another enzyme called PEP during the first step of carbon fixation
• Photorespiration is a wasteful pathway that occurs when the Calvin cycle enzyme rubisco acts on oxygen rather than carbon dioxide.
• The majority of plants are C3 plants, which have no special features to combat photorespiration.
• C4 plants minimize photorespiration by separating initial CO2 fixation and the Calvin cycle in space, performing these steps in different cell types.
• Hence, all the 3 statements are correct.

The correct answer is Option 1.

Key PointsRatooning:

• It is the agricultural practice of harvesting a monocot crop by cutting most of the above-ground portion but leaving the roots and the growing shoot apices intact so as to allow the plants to recover and produce a fresh crop in the next season.
• This practice is widely used in the cultivation of crops such as rice, sugarcane, banana, and pineapple.
• Ratoon crops cannot be perennially renewed.
• They may be harvested only for a few seasons, as a decline in yield tends to occur due to increased crowding, damage by pests and diseases, and decreasing soil fertility.
• The earliest record for ratooning, in a crop plant, can be traced back to the Vedic period in India.
• The Atharvaveda mentions that farmers cultivating barley (yava) used to cut barley plants many a time.

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 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 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 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 Ellora Caves.

Key Points

• In April 2019, RBI issued new Rs. 20 currency notes in the Mahatma Gandhi (New) series. 
• The new Rs 20 notes have the signature of the Reserve Bank's Governor.
• The base colour of the new note is Greenish Yellow.
• The new (Rs 20) denomination has the motif of Ellora Caves on the reverse side of the note.
• The dimension of the banknote will be 63 mm x 129 mm.

Additional Information

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 Fourth Five-year Plan - Family planning programme

Key Points

• Fourth Five-Year Plan (1969-1974)
  • The fourth Five Year Plan was the first plan launched by the Indira Gandhi government amid the pressure of drought, devaluation, and inflationary recession.
  • The country was fighting with population explosion, increased unemployment, poverty, and a shackling economy. In addition, the situation in East Pakistan (now independent Bangladesh) was becoming dire as the Indo-Pakistani War of 1971 and the Bangladesh Liberation War took place.
  • Funds earmarked for industrial development had to be used for the war effort.
  • The result was that this plan period was also no better than the third five-year plan.
  • It gave emphasis on Family planning programs to control the population.​

Additional Information

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 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%.