MCQ
1.The sectors are classified into public and private sector on the basis of:
(a) Employment conditions
(b) The nature of economic activities
(c) Number of workers employed
(d) Ownership of enterprises
Ans- (d)
2.When we produce a good by exploiting natural resources, it is an activity of the:
(a) Secondary sector (b) Tertiary sector
(c) Primary sector (d) Organised sector
Ans- (c)
3.The service sector includes activities such as:
(a) agriculture, dairy, fishing and forestry
(b) making sugar, gur and bricks
(c) transport, communication and banking
(d) None of these
Ans- (c)
4.Choose the correct meaning of organised sector:
(a) It covers those enterprises where the terms of employment are regular.
(b) It is outside the control of the government.
(c) Jobs are not regular.
(d) It provides low salaries.
Ans- (a)
5.Which of the following is included in tertiary sector?
(a) ATM booths (b) Call centres
(c) Internet cafe (d) All of them
Ans- (d)
6.Government owns most of the assets and provides all the services:
(a) Private Sector (b) Public Sector
(c) Organised Sector (d) Tertiary Sector
Ans- (b)
7.The value of all final goods and services produced within a country during a particular year is called as:
(a) Gross Domestic Product
(b) Net Domestic Product
(c) National Product
(d) Production of Tertiary Sector
Ans- (a)
8.___________ refers to the activities which are undertaken by people with the object of earning money.
Ans- Economic activities
9.A housewife looking after the household is an example of ___________ .
non-economic activities
10.All goods which are used as raw material for further production of other goods or for resale in the same year are called ___________ .
Ans- intermediate goods
11.The Act guaranteed 100 days of employment in a year or unemployment allowances to the people should be provided by the government is known as ___________ .
Ans- Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005)
12.___________ sector is governed by various laws such as Factories Act, Minimum Wages Act etc.
Ans- Organised
13.There is no provision for overtime, paid leave, holidays etc. in unorganized sector. (True/False)
Ans- True, as the jobs are not regular and lack in security.
14.The objective of public sector is to maximize profits.(True/False)
Ans- False, as the objective of public sector is to promote public welfare and not to maximize profits.
15.Railways comes under public sector. (True/False)
Ans- True, as the government owns them.
16.Capital is the only factor of production. (True/False)
Ans- False, as labour and land are also factors of production.
17.A situation in which more persons are employed on a job than are optimally required is:
(a) Structural unemployment
(b) Disguised unemployment
(c) Cyclical unemployment
(d) Seasonal unemployment
Ans- (b)
18.Out of 200 million children in the school going age group, how many are attending schools?
(a) One-fourth (b) Half
(c) Two-thirds (d) One-fifth
Ans- (c)
19.Central government in India made a law, implementing the Right to Work in how many districts of India?
(a) 150 districts (b) 200 districts
(c) 250 districts (d) 625 districts
Ans- (d)
20.___________ includes production by exploiting natural resources.
Ans- Primary sector
21.___________ and ___________ are the two factors of production.
Ans- Capital; labour
22.The goods which are meant either for consumption by consumers or for investment by firms are called final goods. (True/False)
Ans- True, as they are produced either for consumption or investment.
23.Under NREGA 2005, the government guaranteed 120 days of work to rural household.(True/False)
Ans- False, as under NREGA 2005, the government guaranteed 100 days of work to rural household.
24.When more persons are employed in a job rather than optimally required is seasonal unemployment. (True/False)
Ans- False, as when more persons are employed in a job rather than optimally required it is a case of disguised unemployment.
25.Which one of the following statements is most appropriate regarding transaction made in money?
(a) It is the easiest way.
(c) It is the cheapest way.
(d) It promotes trade.
Ans- (a)
26.Which one of the following is a modern form of currency?
(a) Gold (b) Silver
(c) Copper (d) Paper notes
Ans- (d)
27.Which among the following authorities issues currency notes on behalf of the government?
(a) Government of India
(b) The State Bank of India
(c) National Bank for Agriculture and Rural Development
(d) Reserve Bank of India
Ans- (d)
28.In which of the following systems exchange of goods is done without use of money?
(a) Credit system (b) Barter system
(c) Banking system (d) Collateral system
Ans- (b)
29.Banks provide a higher rate of interest on which of the following accounts?
(a) Saving account
(b) Current account
(c) Fixed deposits for long period
(d) Fixed deposits for very short period
Ans- (c)
30.Banks use the major portion of the deposits to:
(a) Keep as reserve so that people may withdraw
(b) Meet their routine expenses
(c) Extend loans
(d) Meet renovation of bank
Ans- (c)
31.According to Crowther, “___________ can be defined as anything that is generally accepted as a means of exchange and at the same time acts as a measure and as a store of value.”
Ans- Money
32.The modern forms of money include ___________ and ___________ .
Ans- Paper notes; coins
33.A _____________ is the apex institution of monetary system of a country.
Ans- Central Bank (RBI in case of India)
34.Currency (coins and notes) is a ___________ which cannot be refused in payment for transactions.
Ans- Legal tender money
35.The deposits in a bank which are payable on demand are called ___________ .
Ans- Demand deposits
36.___________ is an agreement whereby a financial institution agrees to lend a borrower a maximum amount of money over a given period of time.
Ans- Credit
37.Money eliminates the need for double coincidence of wants. (True/False)
Ans- True, as money acts as the medium of exchange.
38.Credit card is a paper instructing the bank to pay a specific amount from the person’s account to the person in whose name it has been made. (True/False)
Ans- False, as it is cheque which is a paper instructing the bank to pay a specific amount from the person’s account to the person in whose name it has been made.
39.Informal sector credit includes loans from banks and cooperatives. (True/False)
Ans- False, as informal sector credit includes loans from friends, relatives, moneylenders,traders etc.
40.Rich households largely depend on informal sources of credit. (True/False)
Ans- False, as rich households largely depend on formal sources of credit.
41.In formal sector, higher rate of interest is charged. (True/False)
Ans- False, as higher rate of interest is charged in informal sector and not in the formal sector.
42.What percentage of their deposits is kept as cash by the banks in India?
(a) 25% (b) 20%
(c) 15% (d) 10%
Ans- (c)
43.The informal source of credit does not include which one of the following?
(a) Traders
(b) Friends
(c) Cooperative Societies
(d) Moneylenders
Ans- (c)
44.Which one of the following is the new way of providing loans to the rural poor?
(a) Co-operative societies
(b) Traders
(c) Relatives and friends
(d) SHGs
Ans- (d)
45.‘Low rate of interest’ is a feature of ___________ credit.
Ans- Formal
46.___________ includes details regarding interest rate, collateral and documentation requirement, and the mode of payment.
Ans- Terms of Credit
47.The situation when it becomes impossible to repay the loan and the borrower adds on a new debt to pay the existing one is known as ___________ .
Ans- Debt-trap
48.In rural areas, the main demand for credit is for building houses. (True/False)
Ans- False, as in rural areas, the main demand for credit is for crop production.
49.‘Inculcating saving habits in community’ is an objective of Self Help Groups. (True/False)
Ans- True, as the SHGs try to organise rural poor especially to promote the saving habit.
50.Removing barriers or restrictions set by the government is called:
(a) Liberalisation (b) Investment
(c) Fovourable trade (d) Free trade
Ans- (a)
51.Rapid integration or interconnection between countries is known as:
(a) Privatisation (b) Globalisation
(c) Liberalisation (d) Socialisation
Ans- (b)
52.Globalisation has led to improvement in living conditions:
(a) of all the people
(b) of people in the developed countries
(c) of workers in the developing countries
(d) none of the above.
Ans- (c)
53.Which one of the following Indian industries has been hit hard by globalisation?
(a) Information Technology (IT)
(b) Toy making
(c) Jute
(d) Cement
Ans- (b)
54.World Trade Organisation (WTO) was started at the initiative of which one of the following group of countries?
(a) Rich countries
(b) Poor countries
(c) Developed countries
(d) Developing countries
Ans- (c)
55.Which of the following organisations lays stress on liberalisation of foreign trade and foreign investment?
(a) International Labour Organisation
(b) International Monetary Fund
(c) World Health Organisation
(d) World Trade Oraganisation
Ans- (d)
56.Investments made by MNCs are termed as:
(a) Indigenous investment
(b) Foreign investment
(c) Entrepreneur’s investment
(d) None of the above
Ans- (b)
57.Which of the following is not a feature of a Multi-National Company?
(a) It owns/controls production in more than one nation.
(b) It sets up factories where it is close to the markets.
(c) It organises production in complex ways.
(d) It employs labour only from its own country.
Ans- (d)
58._____________ refers to all those different economic reforms or policy measures and changes which aim at increasing the productivity and efficiency by creating an environment of competition in the economy.
Ans- New Economic Policy
59.Indian government felt the need for removing barriers on foreign trade and foreign investment in____________ .
Ans- 1991
60.A _____________ is a company that owns or controls production in more than one nation/country.
Ans- Multinational Corporation (MNC)
61._____________refers to exchange of goods, i.e., purchase and sale, across geographical boundaries of the countries.
Ans- Foreign trade
62.Tax on imports is an example of:
(a) Terms of Trade
(b) Collateral
(c) Trade Barriers
(d) Foreign Trade
Ans- (c)
63.Which one of the following is not characteristic of ‘Special Economic Zone’?
(a) They do not have to pay taxes for long period.
(b) Government has allowed flexibility in labour laws.
(c) They have world class facilities.
(d) They do not have to pay taxes for an initial period of five years.
Ans- (a)
64.Companies who set up production units in the Special Economic Zones (SEZs) do not have to pay taxes for an initial period of:
(a) 2 years (b) 5 years
(c) 4 years (d) 10 years
Ans- (b)
65.It refers to the globalisation which creates opportunities for all and ensures that its benefits are better shared.
(a) Privatisation
(b) Special Economic Zones (SEZs)
(c) World Trade Organisation (WTO)
(d) Fair globalisation
Ans- (d)
66.The main aim of World Trade Organisation is ____________ .
Ans- To liberalise international trade
67.‘Increased job opportunities’ is an impact of ____________ .
Ans- Globalisation
68.The industrial zones which are set up to attract the foreign investment are known as____________ .
Ans- Special Economic Zones (SEZs)
69.‘Ensuring that rules are being followed’ is a function of World Trade Organisation. (True/False)
Ans- True, as it is an international body looking after the free-trade between the numbers.
70.As on July 2016, 175 countries are the members of World Trade Organisation. (True/False)
Ans- False, as on July 2016, nearly 165 countries are the members of World Trade Organisation.
71.UNICEF is one such organisation whose aim is to liberalise international trade. (True/False)
Ans- False, as WTO is one such organisation whose aim is to liberalise international trade and not UNICEF.
72.What was the most important feature of the satyagraha movement advocated by Gandhiji?
Ans- Gandhiji's advocacy of truth and non-violence was the most important feature of satyagraha.
73.Why was satyagraha organised in Champaran in 1916?
Ans- A satyagraha was organised in Champaran to oppose the oppressive plantation system.
74.Why did Gandhiji organise satyagraha in 1917 in Kheda district of Gujarat?
Ans- Gandhiji organised satyagraha in 1917 in Kheda district of Gujarat to protect against high revenue demand from the peasants even after crop failure and crop epidemic.
75.With what object did General Dyer open fire on the peaceful gathering at Jallianwalla Bagh on 13th April, 1919?
Ans- General Dyer’s objective was to create a feeling of terror and awe in the minds of the satyagrahis.
76.What does the term Khalifa refer to?
Ans- The term Khalifa refers to the spiritual leader of the Muslim community.
77.Who led the Khilafat movement in Bombay?
Ans- Muhammad Ali and Shaukat Ali led the Khilafat movement in Bombay.
78.In which Indian National Congress session, the idea of Khilafat–Non-Cooperation Movement was accepted?
Ans- The idea of Khilafat–Non-Cooperation was accepted at the Indian National Congress Session in Calcutta (Kolkata) in September 1920.
79.Who wrote Hind Swaraj?
Ans- Hind Swaraj was written by Mahatma Gandhi.
80.What was the outcome of Congress Session at Nagpur in 1920?
Ans- The adoption of Non-Cooperation programme was the outcome of Congress session at Nagpur in 1920.
81.What is meant by begar?
Ans- Forced labour without payment is called begar.
82.Which act did not permit plantation workers to leave the tea gardens without permission?
Ans- Inland Emigration Act of 1859 did not permit the plantation workers to leave the tea gardens without permission.
83.What did ‘Swaraj’ mean to the plantation workers in Assam?
Ans- For the plantation workers in Assam, Swaraj meant retaining a link with their villages.
84.By whom was the Swaraj Party formed?
Ans- The Swaraj Party was formed by Motilal Nehru and C.R. Das.
85.Why was the Simon Commission sent to India?
Ans- The Simon Commission was sent to India to look into Indian constitutional matters and suggest reforms.
86.Why was the Simon Commission boycotted?
Ans- Simon Commission was boycotted because there was no Indian member in the Commission.
87.At which session of Congress was the resolution of ‘Purna Swaraj’ adopted?
Ans- The resolution of ‘Purna Swaraj’ was adopted at the Lahore Congress Session in December 1929.
88.Why did Gandhiji oppose the Salt Law?
Ans- The British government acquired monopoly rights over manufacture and sale of salt. It led to increase in the price of salt. Therefore, Gandhiji opposed the salt law.
89.Who led the Civil Disobedience Movement in Peshawar?
Ans- Abdul Gaffar Khan, also known as Frontier Gandhi, led the Civil Disobedience Movement in Peshawar.
90.Name two industrial organisations which were established by Indian merchants and industrialists to protect their business interests.
Ans- The two industrial organisations which were established by the Indian merchants and industrialists to protect their business interests were:
(a) The Indian Industrial and Commercial Congress in 1920.
(b) The Federation of Indian Chamber of Commerce and Industry (FICCI) in 1927.
91.Which movement saw the active participation of women for the first time?
Ans- The active participation of women was first seen during the Civil Disobedience Movement.
92.Who organised the dalits into Depressed Classes Association in 1930?
Ans- Dr. B.R. Ambedkar organised the dalits into Depressed Classes Association in 1930.
93.Why did Dr. Ambedkar and Gandhiji clash in the second Round Table Conference?
Ans- Dr. Ambedkar demanded separate electorate for dalits. He thought that a share in political power would help in their upliftment. Gandhiji opposed separate electorates as it would create disunity. So, their viewpoint clashed at the second Round Table Conference.
94.Why was Gandhiji against the demand for separate electorates?
Ans- Gandhiji was against the demand for separate electorates for dalits because he felt that this would slow down the process of integration of dalits into the mainstream of the society.
95.Which agreement gave seats to the depressed classes in provincial and central legislative councils?
Ans- Poona Pact of September 1932 gave seats to the depressed classes in provincial and central legislative councils.
96.What was the main point of difference between the Congress and Muslim League?
Ans- The main point of difference between the Congress and the Muslim League was over the question of representation in the future assemblies that were to be elected.
97.By whom was the first image of Bharat Mata painted?
Ans- The first image of Bharat Mata was painted by Bankim Chandra Chattopadhyay.
98.Who wrote Vande Mataram?
Ans- Bankim Chandra Chattopadhyay wrote Vande Mataram.
99.Why did the nationalists in India tour villages?
Ans- Nationalists in India toured villages to gather folk songs and legends so as to produce a true picture of traditional Indian culture to discover one's identity and restore a sense of pride in one’s past.
100.Why is Alluri Sitaram Raju well-known?
Ans- Alluri Sitaram Raju is well-known for leading the militant movement of tribal peasants in the Gudem Hills of Andhra Pradesh.
More questions-
1. Visit to any one of the following pla ces during summer vacation.
Find out the following information.
i. When it was established?
ii. What was the aim to establish this place?
iii. What information do you gather from this place?
iv. It's importance at national and international level.
Places to visit
• Van Vihar
• Rastriya Manav Sangrahalaya,
• State Museum,
• Bharat Bhavan,
• Boat Club-Water sports activity,
• Regional Science Center
• The malls-It's positive and negative effects