CBSE Class 11 Economics Indian Economy On The Eve Of Independence Worksheet

MCQ Questions for NCERT Class 11 Economics Indian Economy on The Eve of Independence

Question: When was the 1st census data compiled during the British Raj? ( Choose the correct alternative)
a)1882
b)1881
c)1981
d)1985
Answer: 1881

Question: Worst Bengal Famine occurred in _____________. ( Fill up the blank with correct answer)
Answer: 1943

Question: Tata Iron and Steel company (TISCO) was incorporated in India in year_________. ( Fill up the blank with correct answer)
Answer: 1907

Question: During British Period India‘s life expectancy was______ years and ow it is--------- years. ( Fill in the blank with correct answer)
Answer: As per the government issued data, life expectancy during British India was 44 years and today it is 68 years.

Question: Swez Canal was opened in year____________. ( Fill in the blank with correct answer)
Answer: 1869

Question: Which of the following is not true about Suez canal
a) Suez canal connects Mediterranean Sea with red sea
b) It reduced the transportation cost as the distance was reduced
c) It was a natural canal in north eastern Egypt
d) It connects Port Said to Suez
Answer: (c)

Question: When were the Railways introduced in India?
a) 1830
b) 1860
c) 1853
d) 1900
Answer: 1853

Question: IMR (Infant Mortality Rate) during British India was_____________ children per thousand live birth. ( Fill up the blank with correct answer)
Answer: It was 218 per 1000

Question: Which of the following was not correct about muslin? ( Choose the correct option)
a) A world fame exquisite type of cotton textile
b) Finest quality of muslin was called malmal
c) It originated in Pakistan 
d) foreign travellers refer to the cloth as malmal shahi and malmal khas
Answer: (c)

Question: India was particularly well known for which of its handicraft industries at the advent of British period: i)cotton textiles, ii) silk textiles iii) metal work iv) precious stone works Choose the correct option
a) i) & iv only
b) i), ii) & iv)
c) i), ii) & iii)
d) all the above
Answer: d) all the above

Question:  ________ and __________industries were adversely affected during the partition of India?
Answer: The Textile and Jute industries

Question: Excess of export over import is called as ________________. ( Fill up the blank with correct answer)
Answer: export surplus. Export Surplus = Export – Import (In positive)

Question: Most of the studies disclosed that India‘s growth of aggregate real output during the first half of the twentieth century was less than___________. ( Fill in the blanks with correct options)
a) >0.5%
b) >5%
c) >2%
d) >1.5%
Answer: c)

Question: During British rule ___________ percent growth was recorded in Per capita output per year. ( Fill up the blank with correct answer)
Answer: 0.5%

Question: The year1921 is described as the ―Year of Great Divide ‖because of
a) High birth rate and high death rate
b) High birth rate and low death rate
c) Low birth rate and high death rate d) Low birth rate and low death rate
Answer: b)

Question: Who introduced Zamindari system in India?
Answer: Zamindari system was introduced by Lord Cornwallis in India, in the year 1793 via the Permanent Settlement Act (PSA). It was introduced in the provinces of Varanasi, Bihar, Bengal and Orissa. The Zamindars were considered and recognised as the landlords as long as they paid the revenue to the East India Company regularly.

Question: Who was NOT among few individuals who tried to estimate colonial India‘s per capita income.
a) R.C. Desai
b) V.K.R.V. Rao
c)J ohnson Digboy
d) Findlay Shirras
Answer: c) 

Question: Whether the following statement is true or false? ‗The overall literacy level was less than 16 per cent. Out of this, the female literacy level was at a negligible low of about seven percent.‘
Answer: True

Question: Tata Airlines, a division of Tata and Sons, was established in year ___________ inaugurating the aviation sector in India. ( Fill up the blank with correct answer)
Answer: 1932

Question: ‘Export surplus lead to an economic drain of wealth during the colonial rule‘. Which of the following statement does not explain the correct reason?
a) Used for military payment
b) expenses on administrative office in Britain
c) Remittances to Britishers
d) to invest in Indian industries
Answer: d)

Question: _____& _____% of labour that was employed in the manufacturing and service sector in pre-independent India. Fill up the blank with correctanswer)
Answer: 10% of the workforce was engaged in manufacturing and 18 % was engaged in the service sector.

Question: Tata Iron & Steel company was set up at __________________ which is now in Jharkhand. (Fill up the blank with correct answer)
Answer: Jamshedpur

Question: Book ‗ Poverty and Famines‘ was written by Nobel Laureate in economics______________. ( Fill up the blank with correct answer)
Answer: Amartya Sen

Question: State whether the following statement is true or false?
The concept of  Economic Drain was given by Dadabhai Naoroji in his book Economic drain‘
Answer: True

Question: According to French Traveller, Bernier who described seventeenth century Bengal, which of the statements are not true: ( Choose the correct alternative) a)India exported abundance of cotton, silk, rice, sugar and butter.
b) Produced abundance of gold and diamonds
c) huge production of vegetable, grains, wheat, fowls, duck, geese, pigs, sheep, goats, fish etc.
d) endless number of canals were there for navigation and irrigation.
Answer: b) 

Question: First Railway bridge linking Bombay with Thane was constructed in year_______.(1850/1853/1854) ( Fill in the blank with correct option)
Answer: 1854 

Question: Name some notable economists who estimated India’s per capita income during the colonial period.
Answer: Some notable economists who estimated India‘s per capita income during the colonial period are as follows:
- DadabhaiNaoroji
- William Digbi
- Findlay Shirras
- V K R V Rao
- R C Desai

Question: Which of the following is not an element of fiscal reforms?
(a) Contraction of public sector
(b) Disinvestment in public sector enterprises
(c) Sale of Public sector’s shares
(d) Purchase of industrial shares by the government
Answer: D

Question: What does the export surplus mean? When
(a) Revenue from exports is equal to imports
(b) Revenue from exports is greater than imports
(c) Revenue from exports is less than imports
(d) None of above
Answer: B

Question: What was the condition of foreign trade under British rule?
(a) Surplus on account of foreign trade was spent on war expenses
(b) Net exporter of raw materials
(c) Net importer of finished goods reproduced by British India
(d) All of these
Answer: B

Question: Most developed infrastructure during British period
(a) Waterways
(b) Airways
(c) Railways
(d) Roadways
Answer : C

Question: What was the motive behind the de-industrialization by the colonial Govt. in India?
(a) To get raw material from India at cheap rate
(b) To sell British manufactured goods in Indian market at high-rate prices
(c) Both of above
(d) None of above
Answer : C

Question: Which crops name showed bumper production in Green Revolution period? Wheat & rice
(a) Wheat and potato
(b) Rice and coffee
(c) Rice and tea
(d) wheat and rice
Answer : A

Question: In which year, the second industrial policy in India was declared?
(a) 1956
(b) 1948
(c) 1978
(d) 1965
Answer : A

Question: Which industries were adversely affected due to partition?
(a) Silk
(b) Cotton & Jute textiles
(c) Ivory
Answer: B

Question: In which year new economic policy was initiated?
(a) 1999
(b) 1991
(c) 2000
(d) 2001
Answer: B

Question: One of the following statements about Indian economy is not true. Identify the false statement
a) Indian agriculture was flourishing before the advent of the British
b) India’s foreign trade throughout the colonial period was marked by a large export surplus
c) India had a sound industrial base under the British
d) British developed the Railway system in India for their own benefit
Answer : C

Question: The jute mills dominated by foreigners during the British rule, were mainly concentrated in:
a) Bengal
b) Gujarat
c) Maharashtra
d) d) Kerala
Answer : A

Question: The Tata Iron and Steel Company was incorporated in the year:
a) 1907
b) 1947
c) 1908
d) 1950
Answer : A

Question: Which year is described as the “year of Great Divide”?
a) 1881
b) 1907
c) 1921
d) 1931
Answer : C

Question: Occupational structure refers to
a) Distribution of working force among the different occupations
b) Nature of different occupations
c) Size of working force in a country
d) Number of people living in a country
Answer : A

Question: The finest variety of muslin was called:
a) Malmal
b) Malmalkhas
c) Malmalshahi
d) All of these
Answer : D

Question: Suez canal was opened for transport in :
a) 1850
b) 1869
c) 1853
d) 1901
Answer : B

Question: Major contribution to the GDP of the country on the eve of independence was from:
a) Tertiary sector
b) Secondary sector
c) Primary sector
d) Both primary and secondary sector
Answer : C

Question: The impact of British policy on India economic structure was
a) India becomes supplier of raw materials and consumer of finished industrial products from Britain
b) India became supplier of finished product to Britain
c) India became supplier of finished industrial products and consumer of raw materials from Britain
d) Both B and C
Answer : A

Question: The main interest of the Zamidar was:
a) To collect rent
b) To improve the condition of agriculture
c) to product food crops
d) to produce cash crops
Answer : A

Question: Under colonial dispensation the economic policies of the government were concerned with
a) Development of handicraft industries
b) Development of the colonized country
c) Promotion of British economic interest
d) None of these

Answer : C

Question: Before 1921, India was in the ______________ of demographic transition.
a) First stage
b) Second stage
c) Third stage
d) None of the above

Answer : A

Question: The Indian economy on the eve of the independence was:
a) Developed
b) Stagnant
c) Underdeveloped
d) (b) and (c)

Answer : D

Question: _ _ _ _ _ _ _ _ was the Indian Finance Minister in 1991, acknowledged for the capabilities to steer away the economic crisis looming large on the erstwhile Indian Economy.
(Choose the correct alternative)
(a) Dr. Subhramanian Swamy
(b) Dr Manmohan Singh
(c) Pranab Mukherjee
(d) Dr. Urjit Patel

Answer: B

Question: Demonetisation is the _________ policy wherein the legal status of a currency unit is cancelled and new one comes into circulation . (Choose the correct alternative)
(a) Social
(b) Legal
(c) Economic
(d) Political

Answer: C

Question: In ___________ (Fifth / Seventh ) Five Year Plan, India emphasized on human capital formation.

Answer: Seventh

Question: India announced the New Economic Policy after agreeing to the conditions of:(Choose the correct alternative)
(a) World Bank
(b) International Monetary Fund
(c) Reserve Bank of India
(d) Both (a) and (b)

Answer: D

Question: What was the one major proposal of new industrial policy (1991). (Choose the correctalternative)
(a) NRI’s will not be allowed for capital investment in India.
(b) Facility of FDI up to 51 percent in high priority industries.
(c Import restrictions on technical knowhow for one year.
(d) Abolition of industrial licensing except for five industries.

Answer: D

Question: Which of the following is the strategy to promote globalization of the Indian economy?
(a) Partially convertibility
(b) Reduction in tariffs
(c ) Increase in equity limit of foreign investment
(d) All of these

Answer: D

Question: Liberalisation of the economy under the new economic policy changed the role of RBI in theeconomy:
(a) From a ‘regulator’ to a ‘facilitator’ of the financial sector
(b) from a ‘controller’ to a ‘manager’ of the government debt
(c ) both (a) and (b)
(d) none of these

Answer: A

Assertion ( A ) and Reason (R) type questions:

Question: Read the following statements – Assertion (A) and Reason (R). (Choose one of the correct alternatives given below)
Assertion (A): Every year government fixes a target for disinvestment of Public Sector Enterprises ).
Reason ( R) : Disinvestment is an excellent tool for discarding the loss incurring Public Sector Enterprises
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R ) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R ) is not the correct explanation of Assertion (A).
( c) Assertion (A) is true but Reason (R ) is false
(d) Assertion (A) is false but Reason (R ) is true. 

Answer: B

Question: Read the following statements – Assertion (A) and Reason (R). (Choose one of the correct alternatives given below):
Assertion (A): Privatisation process leads to a change in management with a change in ownership.
Reason ( R): Change in management is not a necessary condition for the process of privatization.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R ) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R ) is not the correct explanation of Assertion (A).
( c) Assertion (A) is true but Reason (R ) is false
(d) Assertion (A) is false but Reason (R ) is true.

Answer: B

Question: Read the following statements – Assertion (A) and Reason (R). (Choose one of the correct alternatives given below):
Assertion (A): GST consists of three components such as Central GST (CGST ) , State GST (SGST) and Integrated GST (IGST).
Reason ( R): Central GST (CGST) and State GST (SGST) will apply to all transactions goods and services.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R ) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R ) is not the correct explanation of Assertion (A).
( c) Assertion (A) is true but Reason (R ) is false
(d) Assertion (A) is false but Reason (R ) is true.

Answer: B

Question: Read the following statements – Assertion (A) and Reason (R). (Choose one of the correct alternatives given below):
Assertion (A): Under NEP, roe of RBI shifted from that of facilitator to a regulator.
Reason ( R): Now, market forces decide interest rate structure, volume and the pattern of investment.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R ) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R ) is not the correct explanation of Assertion (A).
( c) Assertion (A) is true but Reason (R ) is false
(d) Assertion (A) is false but Reason (R ) is true.

Answer: D

Question: Read the following statements – Assertion (A) and Reason (R). (Choose one of the correct alternatives given below):
Assertion (A): New Economic Policy (NEP), 1991 was focused on liberalization, privatization and globalization.
Reason ( R): The policy was necessitated because of the crisis situation in the economy in 1991.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R ) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R ) is not the correct explanation of Assertion (A).
( c) Assertion (A) is true but Reason (R ) is false
(d) Assertion (A) is false but Reason (R ) is true.

Answer: A

Question: Read the following statements – Assertion (A) and Reason (R). (Choose one of the correct alternatives given below):
Assertion (A): Globalisation means integration of various economies of the world leasing towards emergence of a cohesive global economy
Reason ( R): For globalization, the important ingredient is to facilitate the migration of human resources.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R ) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R ) is not the correct explanation of Assertion (A).
( c) Assertion (A) is true but Reason (R ) is false
(d) Assertion (A) is false but Reason (R ) is true.

Answer: B

CASE STUDY BASE QUESTIONS

CASE STUDY- 1

Read the following hypothetical text and answer the given questions: -

Before colonial period, India was exporting manufactured goods which enjoyed worldwide demand. Under the colonial rule, India was reduced to a supplier of raw materials like jute, cotton, indigo, wool, sugar etc. and importer of finished consumer goods like silk and woolen clothes and light machinery manufactured in the factories of Britain. Additionally, the opening of Suez Canal intensified this control of Britishers over Indian foreign trade. The remaining volume of foreign trade was allowed with a handful of countries namely
China, Ceylon (Sri Lanka) and Persia (Iran). Interestingly, even this trade was heavily monitored by the colonials. As a matter of fact, there was a large generation of export surplus under the British Raj. India was a large exporter in the colonial period. However, it did not affect the country’s economy. Commodities like food grains, cloths, kerosene hit the country hard with its scarcity. Ironically, this export surplus never made its way to India. It was used to make payments for an office set up in Britain, war expenses of the British and import of invisible items. Such brutalities eventually led to the dawn of a rising foreign trade aspect of India.

Question: The opening of Suez Canal served as a direct route for ship operating between:
a) India and America
b) India and Sri Lanka
c) India and Pakistan
d) India and Britain
Answer: D

Question: “The export surplus was used for the welfare of Indian Industry.”
a) True
b) False
Answer: B

Question: (A): India became an exporter of primary products and an importer of finished consumer and capital goods produced in Britain.
(R): Restrictive policies of commodity production, trade and tariff structure, composition and volume of India’s foreign trade.
a) Both Assertion (A) and Reason (R)are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R)is not the correct explanation of Assertion (A)
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R)is true.
Answer: A

CASE STUDY- 2

Read the following hypothetical text and answer the given questions: -
India’s economy under the British colonial rule remained fundamentally agrarian — about 85 per cent of the country’s population lived mostly in villages and derived livelihood directly or indirectly from agriculture (See Box 1.2). However, despite being the occupation of such a large population, the agricultural sector continued to experience stagnation and, not infrequently, unusual deterioration. Agricultural pro-ductility became low though, in absolute terms, the sector experienced some growth due to the expansion of the aggregate area under cultivation. This stagnation in the agricultural sector was caused mainly because of the various systems of land settlement that were introduced by the colonial government. Particularly, under the zamindari system which was implemented in the then Bengal Presidency comprising parts of India’s present-day eastern states,

Question: The main reason for stagnation in the agriculture sector the British rule was:
a) Technological deceleration
b) Problems of irrigation facilities
c) Land settlement system
d) De- industrialization
Answer: C

Question: “Commercialisation of agriculture increased the burden of revenue on farmers.”
a) Lower productive
b) Lower profit
c) Due to higher margins of Middlemen’s
d) All above
Answer: D

CASE STUDY- 3

Read the following hypothetical text and answer the given questions: -
The various social development indicators were also not quite encouraging. The overall literacy level was less than 16 per cent. Out of this, the female literacy level was at a negligible low of about seven per cent. Public health facilities were either unavailable to large chunks of population or, when available, were highly inadequate. Consequently, water and air-borne diseases were rampant and took a huge toll on life. No wonder, the overall mortality rate was very high and in that, particularly, the infant mortality rate was quite alarming—about 218 per thousand in contrast to the present infant mortality rate of 63 per thousand. Life expectancy was also very low—44 years in contrast to the present 66
years. In the absence of reliable data, it is difficult to specify the extent of poverty at that time but there is no doubt that extensive poverty prevailed in India during the colonial period which contributed to the worsening profile of India’s population

Question: Which year is described as a “year of Great Divide”?
a) 1931
b) 1921
c) 1941
d) 1911
Answer: B

Question: What were the causes of higher infant motility rate during the British period?
a) Poor health care
b) Lack of education
c) Traditional outlook of society
d) All of above
Answer: D

Question: During colonial period, India’s demographic profile showed:
a) High birth rate
b) High death rate
c) High infant mortality
d) All of these
Answer: D

Question: (A): Zamindari (Semi Feudal Economy) in the colonial era were also responsible for the misery of the cultivators.
(R): The terms of revenue settlement system introduced were harsh on the Zamindars.
a) Both Assertion (A) and Reason (R)are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R)is true.
Answer: C

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