1. India aims to achieve a 5 trillion dollar economy by :
(a) 2022
(b) 2024
(c) 2026
(d) 2030
[U.P. P.C.S. (Pre) 2020]
Ans. (b) 2024
- In 2019, Prime Minister Narendra Modi set the goal of making India a 5 trillion US dollar economy and a major economic powerhouse by 2024.
- This would make India the third biggest economy in the world.
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2. India aims to achieve the 5 trillion dollar economy target by :
(a) 2022 A.D.
(b) 2024 A.D.
(c)2026 A.D.
[U.P.B.E.O. (Pre) 2019]
Ans. (b) 2024 A.D.
- In 2019, Prime Minister Narendra Modi aimed to make India a 5 trillion US dollar economy and a major player in the global economy by 2024.
- This would make India the third biggest economy in the world.
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3. Mixed economy means :
(a) Where agriculture and industry are given equal importance
(b) Where public sector and private sector co-exist in the national economy
(c) Where the process of globalization is affected by a heavy dose of Swadeshi in the national economy
(d) Where the Centre and States are equal partners in economic planning and development
[U.P. U.D.A./L.D.A. (Pre) 1999]
Ans. (b) Where public sector and private sector co-exist in the national economy
- A mixed economy is a system that combines aspects of both a free market economy and a government-controlled economy.
- This means that both public and private businesses are allowed to exist and the government encourages both to flourish.
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4. A mixed economy in India means :
(a) Co-existence of large and cottage industries
(b) Foreign collaboration in economic development
(c) Co-existence of public and private sector
(d) None of the above
[U.P.P.C.S. (Mains) 2013]
Ans. (c) Co-existence of public and private sector
- A mixed economy is a system that has elements of both capitalism and socialism.
- This means that both the public and private sectors work together.
- The government will step in to help the private sector if needed.
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(a) Existence of both small and large industries
(b) Existence of both private and public sectors
(c) Existence of both primary and secondary sectors
(d) None of the above
[U.P.P.C.S. (Pre) 1990, U.P.U.D.A./L.D.A. (Pre) 2006, Uttarakhand U.D.A./L.D.A. (Pre) 2007]
Ans. (b) Existence of both private and public sectors
- A mixed economic system is one that has elements of both capitalism and socialism.
- It allows people to own their own property and to make decisions about their money, but the government can also influence the economy to reach certain social goals.
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6. Indian Economy is :
(a) Mixed economy
(b) Socialist economy
(c) Capitalist economy
(d) Gandhian socialist economy
[U.P. R.O. / A.R.O. (Mains) 2016]
Ans. (a) Mixed economy
- The Indian economy is a combination of capitalist and socialist principles.
- It allows for private property to be owned and used, but the government can also intervene in order to reach certain social goals.
- Most businesses are privately owned, but the government will regulate certain industries that are important or make public goods.
- The Gandhian socialist economy is based on decentralization and resources being shared fairly without any exploitation or violence.
- People are encouraged to be self-employed and look after themselves.
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7. Which of the following are main characteristics of the Indian Economy?
(a) Capitalist economy
(b) Socialist economy
(c) Mixed economy
(d) None of the above
[U.P.P.C.S. (Pre) (Re-Exam) 2015, U.P.P.C.S. (Mains) 2013]
Ans. (c) Mixed economy
- The Indian economy is a prime example of a mixed economic system.
- This type of system is a combination of capitalism, where private property is protected and there is economic freedom, and socialism, where the government can regulate activities to achieve social objectives. Mixed economies usually keep private ownership and control of most production, but the government may regulate or socialize certain important industries.
- Gandhian socialism is based on decentralization and equal access to resources without any exploitation or violence. Self-employment and self-reliance are also key features.
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8. Which type of economy does India have?
(a) Socialist
(b) Gandhian
(c) Mixed
(d) Free
[53rd to 55th B.P.S.C. (Pre) 2011, U.P.P.C.S. (Pre) 2007]
Ans. (c) Mixed
- The Indian economy is a mix of capitalism and socialism.
- This type of system allows for people to own private property, but the government can also get involved to help achieve certain goals.
- Usually, private companies control production, but the government regulates some industries to make sure everyone has access to necessary goods.
- The Gandhian socialist economy is based on sharing resources without exploitation and using self-employment and self-reliance.
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9. It will be true to classify India as :
(a) A food-deficit economy
(b) A labour-surplus economy
(c) A trade-surplus economy
(d) A capital-surplus economy
[48th to 52nd B.P.S.C. (Pre) 2008]
Ans. (b) A labour-surplus economy
- India has a lot of people and many are willing to work for low wages. By 2030, India is expected to have an extra 245.3 million people with skills thanks to its large population and government efforts to help people gain skills.
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10. An underdeveloped economy is generally characterized by :
I. Low per capita income
II. Low rate of capital formation
III. Low dependency ratio
IV. Work force largely in the tertiary sector
Select the correct answer from the codes given below :
Codes :
(a) I and II
(b) II and III
(c) III and IV
(d) I and IV
[U.P.P.C.S. (Mains) 2017]
Ans. (a) I and II
- An underdeveloped economy usually has a low income per person, a lot of people having babies, too much reliance on old-fashioned farming, not enough money for investments, a lot of people without jobs or not working enough, a low standard of living, a lot of poor and uneducated people, not enough technical or industrial progress, etc.
- A developed economy has a low number of dependents and a lot of people working in services.
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11. Which of the following correctly explains that India is an underdeveloped economy?
1. Inequitable distribution of income
2. High dependency ratio
3. Slower rate of increase in national income
4. Change in the banking and financial sector
Select the correct answer using the codes given below.
(a) 1, 3 and 4
(b) 1, 2 and 4
(c) 1 and 4
(d) All of these
(e) None of these
[Chhattisgarh P.C.S. (Pre) 2017]
Ans. (e) None of these
- The unequal spread of income, a lot of people needing help and a slow increase in the national income show that India is an underdeveloped economy.
- Changing the banking and financial sector is not a sign of an underdeveloped economy.
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12. Which of the following features indicates that the Indian economy is in a developing category?
I. Occupation is mainly agriculture
II. Disguised unemployment
III. Poor quality of human capital
IV. High per capita intake of proteins
Select the correct answer from the codes given below :
Codes :
(a) I & II only
(b) I & IV
(c) II & III only
(d) I, II & III
[U.P.P.C.S. (Mains) 2017]
Ans. (d) I, II & III
- The Indian economy is considered to be in the developing stage, as it has many features like low per capita income, a lot of people depending on agriculture, high population growth, high unemployment, low capital formation, low technology, poor quality of human capital, lack of infrastructure, high poverty and inequality, low industrial development, market imperfections, and generally low quality of life for the average Indian.
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13. The Indian Economy can be described as :
(a) A backward and stagnant economy
(b) A developing economy
(c) An underdeveloped economy
(d) A developed economy
[U.P.P.C.S. (Mains) 2011]
Ans. (b) A developing economy
- The Indian economy increased by 13.5% in the first 3 months of the 2022-2023 financial year.
- S&P Global Market Intelligence has changed their predictions for India’s growth in 2024 to 6.6% from 5.9%.
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14. The Indian Economy is characterized by :
I. Pre-dominance of Agriculture
II. Pre-dominance of Industry
III. Low per Capita Income
IV. Massive Unemployment
Select your answer from the codes given below :
(a) I & II only
(b) I, II & III only
(c) II, III & IV only
(d) I, III & IV only
[U.P. Lower Sub. (Spl.) (Pre) 2004]
Ans. (d) I, III & IV only
- Industrial power is a sign of a strong economy.
- India is still developing, so it doesn’t have this characteristic yet.
- However, other signs show that India is improving economically.
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15. Which of the following is a non-economic element in the growth of the country?
(a) Social Behaviour
(b) Natural resources
(c) Energy resources
(d) Capital resources
[R.A.S./R.T.S. (Pre) 1996]
Ans. (a) Social Behaviour
- Here are some non-economic factors that can impact a country’s growth:
- Favorable legislation
- Human resources
- Technical know-how and general education
- Political freedom
- Social organization
- Corruption
- Desire to develop
- Culture
- Religion
- The role of family
- Class
- Tradition
- Role of the individual
- Social and political dependence
- The role of government
- Language as a resource of human capital
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16. Which of the following is not part of the ‘Second Generation of Economic Reforms’ identified by the Government?
(a) Oil Sector Reforms
(b) Public Sector Reforms
(c) Legal System Reforms
[U.P.P.C.S. (Mains) 2009]
Ans. (c) Legal System Reforms
- Of the given choices, only ‘reform in judicial system’ isn’t seen as part of the government’s second generation of economic reforms.
- The right answer is (c).
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17. The Indian model of development ensures the interest of–
(a) Person
(b) State
(c) State and Person both
(d) None of the above
[U.P. U.D.A./L.D.A. (Pre) 2013]
Ans. (c) State and Person both
- India has a mixed economy, meaning both public and private sectors play a role in its development.
- The public sector is managed by the state government while the private sector is managed by individuals.
- This helps to protect the interests of both the state and individuals.
- Therefore, option (c) is the correct answer.
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