MCQs on Indian Economy 1950-1990

The Indian economy during the era of 1950-1990 was largely following a socialist model with a greater focus on building the public sector for the welfare of the people of that country. There were a number of changes made in the economy from the time of the British Raj, and it led to self-reliance and greater participation of the industrialists in the nation-building exercise during that era.

We have collated a list of multiple-choice questions on Indian Economy 1950-1990 to help students get a more nuanced understanding of this topic.

1. Which of the following statements is true about the licensing policy followed by the Indian Economy in the 1950-1990 era?
   1. It helped to promote regional equality in the industry
   2. It helped to check the undue expansion of the industrial sector
   3. It helped to promote regional equality in the industry as well as to check the undue expansion of the industrial sector
   4. None of the above

Answer: c

2. Which of the following is the main differentiation between the small scale units and large scale units?
   1. The amount of investment
   2. The volume of output
   3. The size of the unit area
   4. The volume of sale

Answer: a

3. What was the main reason behind the private sector not coming forward to start the capital goods industries?
   1. The private sector suffered from a lack of capital
   2. The private sector suffered from a lack of demand for their finished goods
   3. The private sector suffered from a lack of capital as well as a lack of demand for their finished goods
   4. None of the above

Answer: c

4. Which of the following statements about the Indian Economy is true during the Era of 1950-1990?
   1. The abolition of intermediaries was a part of the industrial reforms in India
   2. The abolition of intermediaries was a part of the external sector reforms in India
   3. The abolition of intermediaries was a part of the land reforms in India
   4. The abolition of intermediaries was a part of the banking reforms in India

Answer: c

5. Which of the following statements is true about the Indian Economy in the 1950-1990 era?
   1. India had adopted the socialist form of economic system in the 1950-1990 era
   2. India had adopted the capitalist form of economic system in the 1950-1990 era
   3. India had adopted the mixed form of economic system in the 1950-1990 era
   4. India had adopted the traditional form of economic system in the 1950-1990 era

Answer: a

6. Which of the following statements accurately reflects the trade policy followed by the Indian Government during the 1950-1990 era?
   1. The Government made use of quotas to protect the goods produced in India from the imports
   2. The Government made use of tariffs to protect the goods produced in India from the imports
   3. The Government made use of export promotion to protect the goods produced in India from the imports
   4. All of the above

Answer: d

7. Which of the following statements is true about land ceilings?
   1. The land ceiling refers to fixing rural landholdings at their existing levels
   2. The land ceiling refers to fixing the land areas for the purpose of irrigation
   3. The land ceiling refers to fixing the urban landholdings at the existing levels
   4. The land ceiling refers to fixing the total quantum of land that is held by an individual

Answer: d

8. Which of the following is not true about the planning commission of India?
   1. The main aim of the planning commission is to ensure economic growth in the country
   2. The main aim of the planning commission is to ensure equity in the country
   3. The main aim of the planning commission is to ensure the conservation of resources in the country
   4. The main aim of the planning commission is to ensure self-reliance in the country

Answer: c

9. Which of the following is a good indicator of the economic growth of a country?
   1. Gross domestic product
   2. Gross national product
   3. Net domestic product
   4. Net national product

Answer: a

10. Which of the following statements is true about the industrial policy adopted by the Indian Government in the first seven five year plans?
    1. The Indian Government adopted a trade strategy that was partially outward looking
    2. The Indian Government adopted a trade strategy that was partially inward looking
    3. The Indian Government adopted a trade strategy that was totally outward looking
    4. The Indian Government adopted a trade strategy that was totally inward looking

Answer: d

11. What was the main reason behind providing protection to the small scale industries by the Indian Governments during the 1950-1990 era?
    1. They are not able to compete with the large industries
    2. They are much more suitable for the purpose of rural development
    3. They help to keep a check on the private sector
    4. They help to provide large scale employment in the rural sector

Answer: a

12. Which of the following statements is true about the central problem of an economy?
    1. The central problem of an economy is what to produce
    2. The central problem of an economy is how to produce
    3. The central problem of an economy is for whom to produce
    4. All of the above

Answer: d

13. When was the first five-year plan launched in India?
    1. 1959 to 1964
    2. 1948 to 1953
    3. 1955 to 1960
    4. 1951 to 1956

Answer: d

14. Which of the crops benefited the most as a result of the green revolution?
    1. Rice
    2. Wheat
    3. Both a and b are correct
    4. Both a and b are incorrect

Answer: c

15. Which of the following statements was the main aim of land reforms undertaken in the Indian Economy in the 1950-1990 era?
    1. To solve problems related to the distribution of land
    2. To solve problems related to the ownership of land
    3. To solve problems related to the exploitation of farmers
    4. All of the above

Answer: d

Also See:

• Mcq on Central Problems of an Economy
• Differences Between Capitalist and Socialist Economy
• Difference Between Standard Costing and Budgetary Control
• Balanced Surplus and Deficit Budget
• Government Budget Meaning and Its Components