Capital formation in underdeveloped countries is a major bottleneck. The reason can be

Small size of market with no incentive for investment

Which of the following theories suggests that firms seek to penetrate new markets over time?

Theory of Comparative Advantage

The margin for a currency future should be maintained with the clearing house by

Either the buyer or the seller as per the agreement between them

Which organisations strain on the liberalisation of foreign investment and foreign trade?

International Labour Organisation

The most urgent problem which prompted the introduction of the New Economic Policy in 1991 was

Poor performance of public sector

High tax rate leading to tax evasion

Which programme was launched in 2006 with objective of correcting regional imbalances in provision of healthcare?

Pradhan Mantri Swasthya Suraksha Yojna

Integrated Disease Surveillance

Arrange in the right order the contribution of sectors to the GDP from highest to lowest.

Manufacturing, tertiary, agriculture

Agriculture, manufacturing, tertiary

Agriculture, tertiary, manufacturing

Tertiary, manufacturing, agriculture

Manufacturing, tertiary, agriculture

Apart from India, Pakistan and Bangladesh who are the other member countries of SAARC?

Nepal, Bhutan, Thailand and Singapore

Nepal, Bhutan, Malaysia and Maldives

Nepal, Bhutan, Maldives, Sri Lanka and Afghanistan

Which one of the following is NOT one of the indicators for the Human Development Index dimensions?

Gross domestic product per capita

The most urgent problem which prompted the introduction of the New Economic Policy in 1991 was

Poor performance of public sector

High tax rate leading to tax evasion

All of the following developments were noticed during 1991 (when economic reforms were enforced) except one. Identify it.

National debt was nearly 60 per cent of the GNP of Indi(a)

Inflation crossed double digits.

Foreign reserves were maintained at a very high level.

Arrange in the right order the contribution of sectors to the GDP from highest to lowest.

Manufacturing, tertiary, agriculture

Agriculture, manufacturing, tertiary

Agriculture, tertiary, manufacturing

Tertiary, manufacturing, agriculture

Manufacturing, tertiary, agriculture

52 + Mcqs in Indian and Global Economic Development in Bachelor of Commerce (B Com) Page 1 McqOptions

1.	Scarcity of capital, technological backwardness and unemployment are generally found in
A.	Developed countries
B.	Underdeveloped countries
C.	Both
D.	None of the above
Answer» C. Both

Discussion

2.	Capital formation in underdeveloped countries is a major bottleneck. The reason can be
A.	Small size of market with no incentive for investment
B.	Low level of income
C.	vicious circle of poverty
D.	All the above
Answer» E.

Discussion

3.	Consider the following statements and identify the right ones. i. Higher level of capital-output ratio indicates efficient use of capital. ii. It reflects the productivity of capital in the economy
A.	I only
B.	ii only
C.	both
D.	none
Answer» C. both

Discussion

4.	Consider the following statements and identify the right ones. i. During independence, Indian economy was heavily dependent on the tertiary sector ii. Development of industrial and services sector was not limited.
A.	I only
B.	ii only
C.	both
D.	none
Answer» E.

Discussion

5.	Consider the following statements and identify the right ones. i. The share of agriculture to the GDP today is less than 5% today ii. The tertiary sector contributes about 55%of the occupational structure. (employment)
A.	I only
B.	ii only
C.	both
D.	none
Answer» E.

Discussion

6.	Business entities engaged in international business activity are commonly known as
A.	State-trading corporations
B.	EOUs
C.	TNCs
D.	NGOs
Answer» D. NGOs

Discussion

7.	____ is a systematic record of all the economic transaction between one country and rest of the would:
A.	Balance of Trade
B.	Balance of Transaction
C.	Budget
D.	Balance of payments
Answer» E.

Discussion

8.	India has witnessed a surplus for the third successive year in which account of the balance of payment?
A.	Trade account of BOP
B.	Current account of BOP
C.	Both (a) and (b)
D.	None of these
Answer» C. Both (a) and (b)

Discussion

9.	As per IMF balance of payment manual, import export of goods should be presented on:
A.	FOB basis
B.	FOR basis
C.	CIF basis
D.	All of these
Answer» B. FOR basis

Discussion

10.	The difference between the value of a nations visible exports and visible import is.
A.	Balance of trade.
B.	Balance of payments.
C.	Balance of current Account.
D.	Balance of Capital Account.
Answer» B. Balance of payments.

Discussion

11.	Which of the following theories suggests that firms seek to penetrate new markets over time?
A.	Imperfect Market Theory
B.	Product cycle theory
C.	Theory of Comparative Advantage
D.	None of the above
Answer» C. Theory of Comparative Advantage

Discussion

12.	The margin for a currency future should be maintained with the clearing house by
A.	The seller
B.	The buyer
C.	Either the buyer or the seller as per the agreement between them
D.	Both the buyer and the seller
Answer» E.

Discussion

13.	Which organisations strain on the liberalisation of foreign investment and foreign trade?
A.	International Monetary Fund
B.	World Health Organisation
C.	World Trade Organisation
D.	International Labour Organisation
Answer» D. International Labour Organisation

Discussion

14.	When did the government remove the barriers for investment and investment in India?
A.	1990
B.	1991
C.	1992
D.	1993
Answer» C. 1992

Discussion

15.	In which among the following year the MRTP act become effective
A.	1980
B.	1960
C.	1970
D.	1990
Answer» D. 1990

Discussion

16.	Which act was removed under NEP
A.	MRMP
B.	MDPE
C.	MRRP
D.	MRTP
Answer» E.

Discussion

17.	The most urgent problem which prompted the introduction of the New Economic Policy in 1991 was
A.	Foreign exchange crisis
B.	All of these
C.	Poor performance of public sector
D.	High tax rate leading to tax evasion
Answer» C. Poor performance of public sector

Discussion

18.	Consider the following statements about India s energy mix: 1. Coal is the source of more than 50% energy needs. 2. Renewable sources of energy contribute more than 15% of energy requirements of India. Which of the statements given above is/are correct?
A.	1`only
B.	2 only
C.	Both 1 and 2
D.	Neither 1 nor 2
Answer» D. Neither 1 nor 2

Discussion

19.	Despite having large reserves of coal, why does India import millions of tonnes of coal? 1. It is the policy of India to save its own coal reserves for the future and import it from other countries for the present use. 2. Most of the power plants in India are coal based, and they are not able to get sufficient supplies of coal from within the country. 3. Steel companies need a large quantity of coking coal, which has to be imported. Which of the statements given above is/are correct?
A.	1`only
B.	2 and 3 only
C.	1 and 3 only
D.	1, 2, and 3
Answer» C. 1 and 3 only

Discussion

20.	Which programme was launched in 2006 with objective of correcting regional imbalances in provision of healthcare?
A.	Pradhan Mantri Swasthya Suraksha Yojna
B.	National Rural Health mission
C.	Janani Suraksha Yojna
D.	Integrated Disease Surveillance
Answer» B. National Rural Health mission

Discussion

21.	All the support structures which facilitates development of a country constitute its (1)
A.	None
B.	Infrastructure
C.	Manufactures
D.	Construction
Answer» C. Manufactures

Discussion

22.	Consider the following statements and identify the right ones. i. Unbalanced growth strategy is also known as Mahalanobis strategy ii. This strategy was adopted in India after the 7th five-year plans.
A.	I only
B.	ii only
C.	both
D.	none
Answer» B. ii only

Discussion

23.	The characteristic features of Indian Agriculture are: 1. Labour surplus economy 2. Structural unemployment 3. Large size of land holding 4. Traditional technology of production Which statements are correct?
A.	1 and 2
B.	2 and 3
C.	1 and 4
D.	3 and 4 Ans:
Answer» D. 3 and 4 Ans:

Discussion

24.	NABARD (National Bank for Agriculture and Rural Development) was established in the?
A.	Fourth Five Year plan
B.	Fifth Five Year plan
C.	Sixth Five Year plan
D.	Eighth Five Year plan
Answer» D. Eighth Five Year plan

Discussion

25.	Which agency is responsible for procurement, distribution and storage of food grain production in India?
A.	Ministry of Agriculture
B.	Food Corporation of India
C.	C. NAFED
D.	TRIFED
Answer» C. C. NAFED

Discussion

26.	Consider the following statements and identify the right ones. i. Each indicator in educational dimension is equally weighted at 1/6 ii. Each indicator in standard of living is equally weighted at 1/8
A.	I only
B.	ii only
C.	both
D.	none
Answer» B. ii only

Discussion

27.	As we know, a lot of people from underdeveloped states migrate to various progressive states as agricultural labour. What are the major problems of agriculture in India owing to which people have to leave their own land and work as laborer on somebody else s farm/land? 1. Lack of irrigation facilities, low productivity of land and uncertain monsoon. 2. Non availability of fertilizers etc. on subsidized rates. 3. Single crop cultivation. Select the correct option
A.	Only 1
B.	Only 2
C.	Only 3
D.	All the three Ans:
Answer» E.

Discussion

28.	Arrange in the right order the contribution of sectors to the GDP from highest to lowest.
A.	Agriculture, manufacturing, tertiary
B.	Agriculture, tertiary, manufacturing
C.	Tertiary, manufacturing, agriculture
D.	Manufacturing, tertiary, agriculture
Answer» D. Manufacturing, tertiary, agriculture

Discussion

29.	Which three indicators are used in the Human Development Index (HDI)? i) Standard of living ii) Education iii) Life expectancy iv) Condition of environment
A.	Only I, II & IV
B.	Only I, II, & III
C.	Only I & II
D.	All of the above
Answer» C. Only I & II

Discussion

30.	What are the real problems of the Indian agriculture? I. Dependence on Erratic Monsoon II. Low productivity III. Constraints of financial resources and indebtedness IV. Lack of land reforms V. Small land size and fragmentation of landholdings
A.	I, II, III and IV only
B.	II and IV only
C.	III and V only
D.	All
Answer» E.

Discussion

31.	Geographic proximity is an important reason for economic integration because consumer tastes are likely to be:
A.	different.
B.	opposite.
C.	similar.
D.	strange.
Answer» D. strange.

Discussion

32.	Apart from India, Pakistan and Bangladesh who are the other member countries of SAARC?
A.	Nepal, Bhutan, Thailand and Singapore
B.	Nepal, Bhutan, Malaysia and Maldives
C.	Nepal, Bhutan, Maldives, Sri Lanka and Afghanistan
D.	None of The Above
Answer» D. None of The Above

Discussion

33.	Which one of the following is NOT one of the dimensions to the Human Development Index?
A.	Health
B.	Education
C.	Living standards
D.	Political freedom
Answer» E.

Discussion

34.	Which of the following types of regional economic integration focuses only on eliminating internal tariffs?
A.	customs union
B.	common market
C.	complete economic integration
D.	free trade area
Answer» E.

Discussion

35.	Which one of the following is NOT one of the indicators for the Human Development Index dimensions?
A.	Life expectancy at birth
B.	Gross domestic product per capita
C.	Mean years of schooling
D.	Expected years of schooling
Answer» C. Mean years of schooling

Discussion

36.	The Green Revolution in India was the outcome of the efforts of who amongst the following?
A.	M.S. Swaminathan
B.	C. Rangrajan
C.	K.V. Kamath
D.	Rakesh Mohan
Answer» B. C. Rangrajan

Discussion

37.	Consider the following statements and identify the right ones. i. The Industrial Policy of 1948 was the first industrial policy statement by the Government ii. It gave leading role to the private sector
A.	I only
B.	ii only
C.	both
D.	none
Answer» B. ii only

Discussion

38.	Consider the following statements and identify the right ones. i. As per the 1948 policy, six industries were under the mixed sector ii. New units could be set up by the private sector
A.	i only
B.	ii only
C.	both
D.	none
Answer» B. ii only

Discussion

39.	The most urgent problem which prompted the introduction of the New Economic Policy in 1991 was
A.	Foreign exchange crisis
B.	All of these
C.	Poor performance of public sector
D.	High tax rate leading to tax evasion
Answer» C. Poor performance of public sector

Discussion

40.	Consider the following statements and identify the right ones i. The Oxford PHI publishes Human Development Report ii. The HDR is published biennially.
A.	I only
B.	ii only
C.	both
D.	none
Answer» E.

Discussion

41.	Consider the following statements and identify the right ones. i. The new manufacturing policy aims to create 100 million jobs and increase share of manufacturing sector in the GDP ii. A special purpose vehicle is created to develop infrastructure on PPP mode
A.	I only
B.	ii only
C.	both
D.	none
Answer» D. none

Discussion

42.	All of the following developments were noticed during 1991 (when economic reforms were enforced) except one. Identify it.
A.	National debt was nearly 60 per cent of the GNP of Indi(a)
B.	Inflation crossed double digits.
C.	Foreign reserves were maintained at a very high level.
D.	None of the above.
Answer» D. None of the above.

Discussion

43.	The National Bank for Agriculture and Rural Development (NABARD) was established in the year?
A.	1970
B.	1975
C.	1977
D.	1982
Answer» E.

Discussion

44.	The economic reforms were intended to take the Indian economy into three specific directions which are
A.	LPG
B.	DPG
C.	LDG
D.	DLP
Answer» B. DPG

Discussion

45.	In which among the following year was liberalized industrial policy in India was announced for the first time?
A.	1992
B.	1995
C.	1991
D.	1996
Answer» D. 1996

Discussion

46.	Under the industrial policy of 1991, the number of industries reserved for the public sector have been reduced from 17 to
A.	8
B.	6
C.	3
D.	5
Answer» B. 6

Discussion

47.	Consider the following statements and identify the right ones. i. The 1980 industrial policy emphasized "economic federalism" ii. Liberal license policies were advocated for agro-based industries
A.	I only
B.	ii only
C.	both
D.	none
Answer» D. none

Discussion

48.	Indian economy today is a i. Developing economy ii. Emerging economy iii. Dual economy iv. Non-agricultural economy
A.	I and ii only
B.	I, ii and iii
C.	I, ii, iii, iv
D.	iii and iv
Answer» C. I, ii, iii, iv

Discussion

49.	Consider the following statements and consider the right ones. i. In India, structure of economy and occupational structure is very similar. ii. Today, Tertiary sector contributes the highest to the GDP.
A.	I only
B.	ii only
C.	both
D.	none
Answer» C. both

Discussion

50.	Arrange in the right order the contribution of sectors to the GDP from highest to lowest.
A.	Agriculture, manufacturing, tertiary
B.	Agriculture, tertiary, manufacturing
C.	Tertiary, manufacturing, agriculture
D.	Manufacturing, tertiary, agriculture
Answer» D. Manufacturing, tertiary, agriculture

Discussion

Explore topic-wise MCQs in Bachelor of Commerce (B Com).

Scarcity of capital, technological backwardness and unemployment are generally found in

Capital formation in underdeveloped countries is a major bottleneck. The reason can be

Consider the following statements and identify the right ones. i. Higher level of capital-output ratio indicates efficient use of capital. ii. It reflects the productivity of capital in the economy

Consider the following statements and identify the right ones. i. During independence, Indian economy was heavily dependent on the tertiary sector ii. Development of industrial and services sector was not limited.

Consider the following statements and identify the right ones. i. The share of agriculture to the GDP today is less than 5% today ii. The tertiary sector contributes about 55%of the occupational structure. (employment)

Business entities engaged in international business activity are commonly known as

____ is a systematic record of all the economic transaction between one country and rest of the would:

India has witnessed a surplus for the third successive year in which account of the balance of payment?

As per IMF balance of payment manual, import export of goods should be presented on:

The difference between the value of a nations visible exports and visible import is.

Which of the following theories suggests that firms seek to penetrate new markets over time?

The margin for a currency future should be maintained with the clearing house by

Which organisations strain on the liberalisation of foreign investment and foreign trade?

When did the government remove the barriers for investment and investment in India?

In which among the following year the MRTP act become effective

Which act was removed under NEP

The most urgent problem which prompted the introduction of the New Economic Policy in 1991 was

Consider the following statements about India s energy mix: 1. Coal is the source of more than 50% energy needs. 2. Renewable sources of energy contribute more than 15% of energy requirements of India. Which of the statements given above is/are correct?

Which programme was launched in 2006 with objective of correcting regional imbalances in provision of healthcare?

All the support structures which facilitates development of a country constitute its (1)

Consider the following statements and identify the right ones. i. Unbalanced growth strategy is also known as Mahalanobis strategy ii. This strategy was adopted in India after the 7th five-year plans.

The characteristic features of Indian Agriculture are: 1. Labour surplus economy 2. Structural unemployment 3. Large size of land holding 4. Traditional technology of production Which statements are correct?

NABARD (National Bank for Agriculture and Rural Development) was established in the?

Which agency is responsible for procurement, distribution and storage of food grain production in India?

Consider the following statements and identify the right ones. i. Each indicator in educational dimension is equally weighted at 1/6 ii. Each indicator in standard of living is equally weighted at 1/8

Arrange in the right order the contribution of sectors to the GDP from highest to lowest.

Which three indicators are used in the Human Development Index (HDI)? i) Standard of living ii) Education iii) Life expectancy iv) Condition of environment

What are the real problems of the Indian agriculture? I. Dependence on Erratic Monsoon II. Low productivity III. Constraints of financial resources and indebtedness IV. Lack of land reforms V. Small land size and fragmentation of landholdings

Geographic proximity is an important reason for economic integration because consumer tastes are likely to be:

Apart from India, Pakistan and Bangladesh who are the other member countries of SAARC?

Which one of the following is NOT one of the dimensions to the Human Development Index?

Which of the following types of regional economic integration focuses only on eliminating internal tariffs?

Which one of the following is NOT one of the indicators for the Human Development Index dimensions?

The Green Revolution in India was the outcome of the efforts of who amongst the following?

Consider the following statements and identify the right ones. i. The Industrial Policy of 1948 was the first industrial policy statement by the Government ii. It gave leading role to the private sector

Consider the following statements and identify the right ones. i. As per the 1948 policy, six industries were under the mixed sector ii. New units could be set up by the private sector

The most urgent problem which prompted the introduction of the New Economic Policy in 1991 was

Consider the following statements and identify the right ones i. The Oxford PHI publishes Human Development Report ii. The HDR is published biennially.

Consider the following statements and identify the right ones. i. The new manufacturing policy aims to create 100 million jobs and increase share of manufacturing sector in the GDP ii. A special purpose vehicle is created to develop infrastructure on PPP mode

All of the following developments were noticed during 1991 (when economic reforms were enforced) except one. Identify it.

The National Bank for Agriculture and Rural Development (NABARD) was established in the year?

The economic reforms were intended to take the Indian economy into three specific directions which are

In which among the following year was liberalized industrial policy in India was announced for the first time?

Under the industrial policy of 1991, the number of industries reserved for the public sector have been reduced from 17 to

Consider the following statements and identify the right ones. i. The 1980 industrial policy emphasized "economic federalism" ii. Liberal license policies were advocated for agro-based industries

Indian economy today is a i. Developing economy ii. Emerging economy iii. Dual economy iv. Non-agricultural economy

Consider the following statements and consider the right ones. i. In India, structure of economy and occupational structure is very similar. ii. Today, Tertiary sector contributes the highest to the GDP.

Arrange in the right order the contribution of sectors to the GDP from highest to lowest.