Chapter- 01 DEVELOPMENT

1. The individuals seek different goals and their motive of national

development is also likely to be different. Under national development,
priority is given to which one of the following?

(a). Benefits large number of people. (b). Benefits given to a small

group

(c). Benefits given to all women (d). Benefit given to the youth.

2. A person who expects more days of work and better wages, quality
local school for his children will be from which following category?

(a) A rich farmer (b) Landless rural farmer

(c) An industrialist. (d) Shopkeeper

3. High family income through hardworking and cheap labour, plus

their children should be able to settle abroad, this can be the
developmental goal of……………………………

(a) Business men from Gujarat (b) Industrial workers of

Ahmedabad

(c) Prosperous farmers from Punjab (d) Poor farmers of Odisha.

4. Money cannot but all the goods and services that we may need to
have a good life. A list of things required for a good life is given below.
Which among the following things money cannot buy?

(a). A pollution free atmosphere in every part of the country

(b). High quality education

(c). High standard of living

(d). Luxury life

5. Assertion: Different person can have different as well as conflicting

nations of country’s development.

Reason: Individuals seek different goals for their personal

development.

(a). Both A and R are true and R is the correct explanation of A

(b). Both A and R are true but R is not the correct explanation of A

(c). A is true but R is false.

(d). A is false but R is true.

6. In Uttar Pradesh most of the industries run on thermal power but in

Gujarat, it is mandatory for the industries to run on solar energy.
Which state do you think has adopted sustainable development?

(a). Uttar Pradesh (b). Gujarat (c). Both the states

(d). None of these

7. Absenteeism is one of the most basic indicators as to what extent

the educational needs of students are met by schools, if the students
are turning their back on the education they are provided. It means
that we need to ask ourselves “Has something happened to our schools
and classrooms that distract from education”?

The researchers are MOST LIKELY referring to the factors that

affect_______.

(a). Average income (b). Net attendance ratio

(c). Public distribution system (d). Net state domestic product.

8. Assertion(A): Human development mentions how much socio-

economic development has happened in a country.

Reason(R): Comparison of the national income of two countries

explains the Human Development Index.

(a). Both A and R are true and R is the correct explanation of A

(b). Both A and R are true but R is not the correct explanation of A

(c). A is true but R is false.

(d). A is false but R is true.

9. Arrange the following countries in decreasing order of life

expectancy at birth as per HDR.

(a). China, India, Srilanka, Pakistan (b). China, Pakistan, India,

Srilanka

(c). Srilanka, India, China, Pakistan (d). Srilanka, China, Pakistan,

India.
10. For comparing countries their income is considered to be one of
the most important attributes. Countries with higher income are more
developed than countries with less income. This is based on the
understanding that more income means more of all things that human
beings need.

Whatever people like and should have, they will be able to get with
greater income. So great income itself is considered to be an important
goal. The rich countries excluding countries of the sMiddle East and
certain other small countries are generally called developed countries.

Which is considered to be one of the most important attributes when

we compare countries at the level of development?

(a). Industrial development

(b). Resources of the country

(c). Income

(d). Import and export.

 Chapter- 2 SECTORS OF INDIAN ECONOMY

01. Which of the following is not the way to Protect Workers in the
Unorganized Sector?

(a) The government can fix the minimum wage rate & working hour

(b) The government can provide cheap & affordable basic services like
education health and food to the worker

(c) The government can frame new laws which provide provision for
overtime, paid leave due to sickness etc.

(d) Providing government job to each and every unorganized sector's worker

02. Which of the following statements are true regarding the organised
sector?

a) Workers in the organized sector enjoy the security of employment.

b) They are expected to work only a fixed number of hours.

c) If they work more, they have to be paid overtime by the employer.

d) All of the above.

03. GDP stands for Gross Domestic Product. What does it show? Pick
up the correct statement given below:

(a) It shows how big is the economy of a country in a given year in terms of
its total

(b) It shows what the total product of a country in a given year without
counting the country’s total resources.

(c) It shows the number of people involved in production in a particular

year.

(d) It shows the total value of trade transactions of a country in a particular

year.
04. Who among the following fall under the organized sector?

(a) Raghu, a daily wage labourer working in a dam site under a contractor.

(b) Nafeesa, a doctor getting all employment benefits.

(c) Purushothaman, a cleaning staff in a private bank.

(d) Ammini, a tailor stitching clothes at his home.

05. Kamal is Kanta's neighbour. He is a daily wage labourer in a nearby

grocery shop. He goes to the shop at 7:30 in the morning and works
till 8:00 p.m. in the evening. He gets no other allowances apart from
his wages. He is not paid for the days he does not work. He has
therefore no leave or paid holidays. Nor was he given any formal letter
saying that he has been employed in the shop. He can be asked to
leave anytime by his employer.

In which sector kanta work?

(a) Unorganized Sector

(b) Organized Sector

(c) Underemployed Sector

(d) None of these

06. Kanta works in an office. She attends her office from 9.30 a.m. to
5.30 p.m. She gets her salary regularly at the end of every month. In
addition to the salary, she also gets provident fund as per the rules laid
down by the government. She also gets medical and other allowances.
Kanta does not go to office on Sundays. This is a paid holiday. When
she joined work, she given an appointment letter stating all the terms
and conditions of work.

In which sector kanta work?

(a) Unorganized Sector

(b) Organized Sector

(c) Underemployed Sector

(d) None of these

07. People working in industrial and service sectors need food. Imagine
what would happen if there is a strike by transporters and lorries
refuse to take vegetables, milk, etc. from rural areas. Food will become
scarce in urban areas whereas farmers will be unable to sell their
products.

WHAT DOES THIS SHOW?

(a) tertiary sector being dependent on the primary.

(b) primary sector being dependent on the tertiary.

(c) Industrial sector being dependent on the primary.

(d) primary sector being dependent on the secondary sector.

08. People working in industrial and service sectors need food. Imagine
what would happen if there is a strike by transporters and lorries
refuse to take vegetables, milk, etc. from rural areas. Food will become
scarce in urban areas whereas farmers will be unable to sell their
products.
WHAT DOES THIS SHOW?

(a) tertiary sector being dependent on the primary.

(b) tertiary sector being dependent on the Industrial.

(c) Industrial sector being dependent on the primary.

(d) primary sector being dependent on the secondary sector.

09. Farmers buy many goods such as tractors, pumpsets, electricity,

pesticides and fertilisers. Imagine what would happen if the price of
fertilisers or pumpsets go up. Cost of cultivation of the farmers will
rise and their profits will be reduced.

WHAT DOES THIS SHOW?

(a) tertiary sector being dependent on the primary.

(b) tertiary sector being dependent on the Industrial.

(c) Industrial sector being dependent on the primary.

(d) primary sector being dependent on the secondary sector.

10. Imagine what would happen to cotton cultivation if companies
decide not to buy from the Indian market and import all cotton they
need from other countries. Indian cotton cultivation will become less
profitable and the farmers may even go bankrupt, if they cannot
quickly switch to other crops. Cotton prices will fall.

WHAT DOES THIS SHOW?

(a) tertiary sector being dependent on the primary.

(b) tertiary sector being dependent on the Industrial.

(c) Industrial sector being dependent on the primary.

(d) primary sector being dependent on the secondary sector.
 Chapter- 3 MONEY AND CREDIT

1) Which of the following statements is true?

a) As per Indian law, apart from RBI, no other individual or organisation is

allowed to issue currency.

b) The law legalises the use of rupees as a medium of payment that cannot

be refused in settling transactions in India

c) No individual in India can legally refuse a payment made in rupees.

d) All of the above.

2) Banks in India these days hold about _________ of their deposits as

cash.

a) 25 per cent b) 20 per cent c) 15 per cent d) 5 per cent

3) Banks use the major portion of the deposits to ______.

a) Extend loans

b) Invest in infrastructure

c) Deposit in foreign banks

d) None of the above

4) In rural areas, the main demand for credit is for ________.

a) Purchasing land

b) Purchasing a house

c) Medical expenses

d) Crop production
5) Which of the following statements is correct?

a) Members of a cooperative pool their resources for cooperation in certain

areas.

b) Besides banks, the other major source of cheap credit in rural areas is

cooperative societies.

c) There are several types of cooperatives possible, such as farmers

cooperatives, weavers cooperatives, and industrial workers cooperatives.

d) All of the above.

6) Which of the following are examples of informal sector loans?

a) Moneylenders

b) Traders

c) Cooperatives

d) Only (a) and (b)

7) Which of the following statements is false?

a) There is no organisation which supervises the credit activities of lenders

in the informal sector.

b) RBI stops the money lenders from using unfair means to get their money

back.

c) Compared to the formal lenders, most of the informal lenders charge

much lesser interest on loans

d) Both (b) and (c)

8) Which of the following statements is true?

a) Periodically, banks do not submit information to the RBI on how much

they are lending, to whom, at what interest rate, etc.

b) The Reserve Bank of India does not supervise the functioning of formal

sources of loans.

c) The RBI monitors the banks in actually maintaining cash balances.

d) None of the above.

9) ___________ of the loans taken by poor households in the urban areas

are from informal sources.

a) 85 per cent

b) 70 per cent

c) 65 per cent

d) 50 per cent

10) Which of the following could lead to a debt trap?

a) The high-interest rate for borrowing can mean that the amount to be
repaid is greater than the income of sthe borrower.

b) Higher cost of borrowing means a larger part of the earnings of the

borrowers is used to repay the loan.

c) The high-interest rate for borrowing can mean that the amount to be

repaid is lesser than the income of the borrower.

d) Both (a) and (b.)