KENDRIYA VIDYALAYA SANGTHAN, AHMEDABAD REGION

STUDY MATERIAL FOR THE SESSION 2020-21

SUBJECT: - SOCIAL SCIENCE
CLASS X
MULTIPLE CHOICE AND DESCRIPTIVE TYPE QUESTIONS
ECONOMICS
CHAPTER: - DEVELOPMENT
Q1. What will be the top priority in the developmental goal of a landless
labourer?
(a) Expansion of rural banking
(b) More days of work and better wages
(c) Metal roads for transportation
(d) Establishment of a high school
Answer: (b) More days of work and better wages
Q2. What will be the aspiration of an educated urban unemployed youth?
(a) An educated urban unemployed youth will aspire for better opportunities
in agriculture.
(b) Support from government at every step in life for his upward movement.
(c) An urban educated unemployed will aspire for good job
opportunities where his education can be made use of.
(d) Better facilities of recreation for his leisure time.
Answer: (c) An urban educated unemployed will aspire for good job
opportunities where his education can be made use of.
Q3. Pick out the correct meaning listed below to define „average income‟.
(a) Average income of the country means the total income of the country.
(b) The average income in a country is the income of only employed people.
(c) The average income is the same as per capita income.
(d) The average income includes the value of property held.
Answer: (c) The average income is the same as per capita income.
Q4. Which country can be considered as a developed country in the modern
world? Select your answer from the following statements.
(a) Countries which have accumulated huge amount of wealth and always
secure the future of their citizens. These countries are considered to be
developed.
(b) Countries which are among the highest in the ‘Human
Development Index’ are considered to be the developed countries.
(c) Only rich countries are considered to be developed because people have
money to buy everything needed for human beings—both material and non-
material.
(d) Iran is a rich country and therefore it is a developed country.
Answer: (b) Countries which are among the highest in the ‘Human
Development Index’ are considered to be the developed countries.
Q5. Money cannot buy 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 are things money cannot buy?
(i) Full protection from infectious diseases
(ii) High quality education
(in) A luxury home
(iv) A pollution-free atmosphere in every part of the country
(a) (i) and(ii)
(b) (ii) and (iii)
(c) (i), (ii) and (in)
(d) (i) and (iv)
Answer: (d) (i) and (iv)
Q6. HDI stands for „Human Development Index‟ that focuses on Fill in the
blanks with one of the following options:
(a) Life expectancy
(b) Gross enrolment ratio for three levels of schooling
(c) National income
(d) All the above
Answer: (d) All the above
Q7. Kerala has a low infant mortality rate. What could be the reason? Find
the correct answer from the following:
(a) Kerala has a low infant mortality rate because all the girls are trained at
the primary level schooling to look after a newborn child.
(b) Because most of the girls are nurses in Kerala.
(c) Because Kerala has very high female literacy rate and adequate health
facilities are available for both mothers and children.
(d) Kerala‟s good climatic condition helps infants to survive.
Answer: (b) Because most of the girls are nurses in Kerala
Q8. What would be the most promising source of energy fifty years from
now and why?
(a) Petroleum energy, because it is obtained from fossil fuels.
(b) Solar energy, because it is not exhaustible.
(c) Coal based energy, because it is pollution- free.
(d) Forest product based energy, because India has abundant forests.
Answer: (b) Solar energy, because it is not exhaustible.
Q9. Pick out the cause (from below) that enhances environmental
degradation:
(a) Planting of trees.
(b) Prevention of factory wastes getting mixed up with river water.
(c) Ban on use of plastic bags.
(d) Allowing increase in the level of exhaust fumes emitted by cars,
buses, trucks, etc.
Answer: (d) Allowing increase in the level of exhaust fumes emitted
by cars, buses, trucks, etc.
Q10. Human Development Report is published by
(a) UNDP
(b) World Bank
(c) IMF
(d) WHO
Answer: (a) UNDP
Q11. What was the literacy rate in Kerala in 2011?
(a) 82 (b) 94 (c) 62 (d) 50
Answer: (b) 94
Q12. Which of the following is the most important component for comparing
different countries?
(a) Population (b) Income (c) Per capita income (d) Resources
Answer: (c) Per capita income
Q13. In which state of India is the infant mortality rate lowest?
(a) Goa (b) Bihar (c) Uttar Pradesh (d) Kerala
Answer: (a) Goa
Q14. Which of the following countries has higher HDI rank than India?
(a) Sri Lanka
(b) Nepal
(c) Bangladesh
(d) Pakistan
Answer: (a) Sri Lanka
Q15. What proportion of the country is over using their groundwater
reserves?
(a) One-Fourth
(b) One-Tenth
(c) One-Third
(d) Half
Answer: (c) One-Third
Q16. Development goals of different sections of our society can be achieved
by:
(a) Force
(b) Democratic political process
(c) Violent agitation
(d) Terrorism
Answer: (b) Democratic political process
Q17. Which one of the following statements defines „Literacy Rate‟?
(a) Total literate population divided by total population
(b) Total literate population divided by literate population
(c) Proportion of illiterate population in the 18 and above age group.
(d) It measures the proportion of literate proportion in the 7 years and
above age group.
Answer: (c) Proportion of illiterate population in the 18 and above
age group.
Q18. Which one of the following is not a feature of developing country?
(a) Agriculture as the major occupation
(b) High technological development
(c) Mass poverty
(d) Mass illiteracy
Answer: (b) High technological development

Q19. The developmental goal for a girl from a rich family is:
(a) To get more days of work
(b) To get as much freedom as her brother gets
(c) To get electricity
(d) To get better wages
Answer: (b) to get as much freedom as her brother gets
Q20. Which one of the following is a developmental goal for industrialists?
(a) To get more days of work
(b) To get better wages
(c) To get more electricity
(d) All the above
Answer: (c) To get more electricity
Q21. Which one of the following criteria is the basis to measure the
development of a country according to UNDP?
(a) Per capita income
(b) Educational levels of the people
(c) Health status of the people
(d) All the above
Answer: (d) All the above
Q22. Which one of the following states has the highest Human Development
Index (HDI)?
(a) Kerala
(b) Punjab
(c) Uttar Pradesh
(d) West Bengal
Answer: (a) Kerala
Q23. Which is the most important attribute for comparing the development
of countries?
(a) Resources (b) Population
(c) Average income (d) None of these
Answer: (d) None of these
Q24. Which of the following countries has higher HDI rank than India?
(a) Sri Lanka
(b) Nepal
(c) Bangladesh
(d) Pakistan
Answer: (a) Sri Lanka
Q25. Kerala has low Infant Mortality Rate because:
(a) It has good climatic condition
(b) It has adequate infrastructure
(c) It has adequate provision of basic health and educational
facilities
(d) It has poor net attendance ratio
Answer: (c) it has adequate provision of basic health and educational
facilities
Q26. Human Development Index compares countries based on which of the
following levels of the people?
(a) Educational level
(b) Health status
(c) Per capita Income
(d) All the above
Answer: (d) All the above
Q27. Cause of high infant mortality rate is :
(a) Inadequate facilities of health
(b) Lack of infrastructural facilities
(c) Lack of awareness
(d) Both (a) and (b)
Answer: (d) both (a) and (b)
Q28. Which of the following neighboring countries has better performance in
terms of human development rank than India?
(a) Bhutan (b) Sri Lanka (c) Nepal (d) None of the above
Answer: (b) Sri Lanka
Q29. Proportion of literate population in the 7 years and above age group is
termed as
(a) Education index
(b) Mortality ratio
(c) Literacy rate
(d) Gross enrolment ratio
Answer: (c) Literacy rate
Q30. Per capita income is:
(a) Income per person (b) Income per family
(c) Income per earning person (d) Income per month
Answer: (a) income per person
Q31. The countries with per capita income of US $955 (2017) or less are
termed as
(a) Low income countries (b) Developing countries
(c) Developed countries (d) Rich countries
Answer: (a) Low income countries
Source-based Questions:
Q32. Read the following passage on „Groundwater in India‟ given on
Textbook Page 14 and then answer the questions that follow:
Groundwater in India: “Recent evidence suggests that the groundwater is
under serious threat of overuse in many parts of the country. About 300
districts have reported a water level decline of over 4 meters during the past
20 years. Nearly one- third of the country is overusing their groundwater
reserves. In another 25 years,60 per cent of the country would be doing the
same if the present way of using this resource continues. Groundwater
overuse is particularly found in the agriculturally prosperous regions of
Punjab and Western U.P., hard rock plateau areas of central and south India,
some coastal areas and the rapidly growing urban settlements.
(a) Why ground water is overused?
(b) Can there be development without overuse?
(i) Why is groundwater overused?
(ii) Can there be development without overuse?
Answer:
(i) Groundwater is used for the purpose of agriculture.
(ii) Yes. There can be development without the overuse of
groundwater. Since this natural resource is easily available, we don’t
value it much and use it recklessly for our selfish purposes. We must
stop overusing it so that it may be there for our future generations.
Q33. Read the following passage on „Exhaustion of Natural Resources‟ given
on Textbook Page 15 and then answer the questions that follow:
Exhaustion of Natural Resources: Look at the following data for crude oil.

Table 1.7 Crude Oil Reserves

Source: BP Statistical Review of World Energy, June 2014

The table gives an estimate of reserves of crude oil (column 1). More
important, it also tells us for how many years the stock of crude oil will last
if people continue to extract it at the present rate. The reserves would last
only 53 years more. This is for the world as a whole. However, different
countries face different situations. Countries like India depend on importing
oil from abroad because they do not have enough stocks of their own. If
prices of oil increase this becomes a burden for everyone. There are
countries like USA which have low reserves and hence want to secure oil
through military or economic power. The question of sustainability of
development raises many fundamentally new issues about the nature and
process of development.
Questions:
(i) Is crude oil essential for the development process in a country? Discuss.
(ii) India has to import crude oil. What problems do you anticipate for the
country looking at the above situation?
Answer:
(i) Yes, crude oil plays an important role in the development process
in a country. It can generate heat, drive machinery and fuel vehicle
and airplanes. Its components are used to manufacture almost all
chemical products, such as plastics, detergents, paints and even
medicines.
(ii) The future is bleak because the reserves of oil would last only 53
years more. It is high time to think collectively. It will be in favour of
all.
Q34. Development of a country can generally be determined by its:
(a) Per capita income
(b) Average literacy level
(c) Health status of its people
(d) None of these
Answer: (a) Per capita income
Q35. Different persons could have different as well as conflicting notions of a
country‟s development. A fair and just path for all should be achieved.
Interpret the concept being discussed here.
(a) Social development
(b) Cultural development
(c) National development
(d) Economic development
Answer: (c) National development
Q36. Countries with higher income are _____________ than others with less
income.
(a) Less developed
(b) More developed
(c) Less stronger
(d) More organized
Answer: (b) More developed
Q37. Total income of the country divided by its total population is known as:
(a) Capital Income
(b) National Income
(c) Per capita income
(d) GDP
Answer: (c) Per capita income

Q38. Proportion of literate population in the 7 and above age group is called
as:
(a) Knowledge rate
(b) Literacy rate
(c) Attendance rate
(d) Excellence Rate
Answer: (b) Literacy rate
Q39. Which age group of children is included for calculating Net Attendance
Ratio?
(a) 6-10
(b) 7-11
(c) 5-9
(d) 14-15
Answer: (d) 14-15
Q40. For calculating Body Mass Index (BMI), weight of the person is divided
by the:
(a) Square of the weight
(b) Square of the height
(c) Square root of the height
(d) Square of the sum of height and weight
Answer: (b) Square of the height
Q41. If BMI is less than 18.5 then the person would be considered: v
(a) Over weight
(b) Long height
(c) Under nourished
(d) Short height
Answer: (c) Under nourished
Q42. What proportion of the country is over using their groundwater
reserves?
(a) One-Fourth
(b) One-Tenth
(c) One-Third
(d) Half
Answer: (c) One-Third

Q43. Resources which will get exhausted after years of use are:
(a) Renewable resources
(b) Non-durable resources
(c) Non-renewable resources
(d) Competing resources
Answer: (c) Non-renewable resources
Q44. What will be the top priority in the developmental goal of a landless
labourer?
(a) Expansion of rural banking
(b) More days of work and better wages
(c) Metal roads for transportation
(d) Establishment of a high school
Answer: (b) More days of work and better wages
Q45. What will be the aspiration of an educated urban unemployed youth?
(a) An educated urban unemployed youth will aspire for better opportunities
in agriculture.
(b) Support from government at every step in life for his upward movement.
(c) An urban educated unemployed will aspire for good job
opportunities where his education can be made use of.
(d) Better facilities of recreation for his leisure time.
Answer: (c) An urban educated unemployed will aspire for good job
opportunities where his education can be made use of.
Q46. Pick out the correct meaning listed below to define „average income‟.
(a) Average income of the country means the total income of the country.
(b) The average income in a country is the income of only employed people.
(c) The average income is the same as per capita income.
(d) The average income includes the value of property held.
Answer: (c) The average income is the same as per capita income.
Q47. Which country can be considered as a developed country in the modern
world? Select your answer from the following statements.
(a) Countries which have accumulated huge amount of wealth and always
secures the future of their citizens. These countries are considered to be
developed.
(b) Countries which are among the highest in the ‘Human
Development Index’ are considered to be the developed countries.
(c) Only rich countries are considered to be developed because people have
money to buy everything needed for human beings—both material and non-
material.
(d) Iran is a rich country and therefore it is a developed country.
Answer: (b) Countries which are among the highest in the ‘Human
Development Index’ are considered to be the developed countries.
Q48. Money cannot buy 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 are things money cannot buy?
(i) Full protection from infectious diseases
(ii) High quality education
(in) A luxury home
(iv) A pollution-free atmosphere in every part of the country
(a) (i) and(ii) (b) (ii) and (iii)
(c) (i), (ii) and (in) (d) (i) and (iv)
Answer: (d) (i) and (iv)
Q49. HDI stands for „Human Development Index‟ that focuses on Fill in the
blanks with one of the following options:
(a) Life expectancy
(b) Gross enrolment ratio for three levels of schooling
(c) National income
(d) All the above
Answer: (d) All the above
Q50. Kerala has a low infant mortality rate. What could be the reason? Find
the correct answer from the following:
(a) Kerala has a low infant mortality rate because all the girls are trained at
the primary level schooling to look after a newborn child.
(b) Because most of the girls are nurses in Kerala.
(c) Because Kerala has very high female literacy rate and adequate health
facilities are available for both mothers and children.
(d) Kerala‟s good climatic condition helps infants to survive.
Answer: (b) Because most of the girls are nurses in Kerala.
Q51. What would be the most promising source of energy fifty years from
now and why?
(a) Petroleum energy, because it is obtained from fossil fuels.
(b) Solar energy, because it is not exhaustible.
(c) Coal based energy, because it is pollution- free.
(d) Forest product based energy, because India has abundant forests.
Answer: (b) Solar energy, because it is not exhaustible.
Q52. Pick out the cause (from below) that enhances environmental
degradation:
(a) Planting of trees.
(b) Prevention of factory wastes getting mixed up with river water.
(c) Ban on use of plastic bags.
(d) Allowing increase in the level of exhaust fumes emitted by cars,
buses, trucks, etc.
Answer: (d) Allowing increase in the level of exhaust fumes emitted
by cars, buses, trucks, etc.
Q53. _____________ is a comprehensive term which includes increase in
real per capita income, improvement in living standard of people, reduction
in poverty, illiteracy, crime rate, etc.
Answer: Explanation: Development
Q54. _____________ indicates the number of years a new bom is expected
to live.
Answer: Explanation: Life expectancy at birth
Q55. The development that should take place without damaging the
environment, and development in the present should not compromise with
the needs of the future generations is known as _____________ .
Answer:
Explanation: Sustainable Economic Development

Q56. _____________ means sustained increase in real per capita income

that promotes economic welfare by reducing poverty, unemployment and
inequalities in distribution of income.
Answer:
Explanation: Economic development
Q57. Two important aspects of our lives other than income are
_____________ and _____________ .
Answer: Explanation: Equal treatment; freedom
Q58. _____________ ensures availability of essential commodities like
wheat, rice, sugar, edible oils and kerosene, etc. to the consumers through a
network of outlets or fair price shops.
Answer:
Explanation: Public Distribution System (PDS)
Q58. The two developmental goals of landless rural labourers are
_____________ and _____________ .
Answer: Explanation: More days of work; better wages
Q59. The level of efficiency and productivity is low in a _____________
country.
Answer:
Explanation: Developing
Q60. Economic development is a wider term as compared to human
development. (True/False)
Answer:
Explanation: False, as economic development is a narrower term.
Q61. According to recent World Development Report, countries which had
per capita income of US dollar 12236 per annum are rich countries.
(True/False)
Answer: Explanation: True
Q62. Kerala has low infant mortality rate. (True/False)
Answer: Explanation: True
Q63. A decent standard of living is a variable of Human Development Index.
(True/False)
Answer: Explanation: True
Q64. Longevity implies how long a newborn is expected to live. (True/False)
Answer/Explanation
Answer: Explanation: True

Q65. The Human Development Index (HDI) rank of India in the world is 151
as per 2016. (True/False)
Answer:
Explanation:
False, as the HDI rank of India in the world is 131 as per 2016.
Q66. What do people need to get more income?
Answer/Explanation
Answer:
Explanation:
People need regular work, better wages and decent price for crops to get
more income.
Q67. Why do different people have different developmental goals?
Answer/Explanation
Answer:
Explanation:
Different people have different developmental goals because people
have diverse wishes, likes and dislikes, and aspirations.
Q68. Give any two common developmental goals of the people. [CBSE 2015]
Answer:
Explanation:
The two common developmental goals of the people are as follows.
(a) Peace and security
(b) Better living conditions
Q69. State any two goals of development other than income. [CBSE 2018]
Answer:
Explanation:
The development goals other than income are:-
(a) Good standard of living
(b) Security
(c) Satisfaction
(d) Equal treatment and respect
(e) Freedom
(f) Ample opportunities
Q70. What does national development refer to?
Answer: Explanation: National development refers to the ability of a
county to improve the social welfare of the people. For example, by
providing social amenities such as quality education, potable water,
transportation, infrastructure and medical care.
Q71. Why is the total income of countries not used to make comparisons
between them?
Answer:
Explanation: The total income of the countries is not used to make
comparisons between them because the population of different
countries is different.
Q72. Define average income. [CBSE 2015]
Answer:
Explanation:
Per capita income or average income is calculated by dividing the
total income of a country with its population.
Q73. Besides the size of per capita income, which other property of income
is important in comparing two or more countries?
Answer:
Explanation: Per capita income is an important but not the only
criterion for development. Along with average income, equitable
distribution of income in a country should also be considered.
Q74. Suppose there are 4 families in a country with per capita income of
$15,000. The income of 3 families is $10,000, $20,000 and $12,000
respectively. What is the income of the 4th family? [CBSE 2014]
Answer/Explanation
Answer:
Explanation:
Let the income of the 4th family be x.
MCQ Questions for Class 10 Social Science Development with Answers
∴ The income of the 4th family is $ 18,000.

Q75. Among Haryana, Kerala and Bihar, which state in India has the least
per capita income in 2015-16?
Answer: Explanation: Bihar has recorded the least per capita income in
the year 2015-16.
Q76. Define sex ratio.
Answer:
Explanation: The total number of females per thousand males in a
country is termed as sex ratio.
Q77. Define infant mortality rate.
Answer:
Explanation: The number of children that die before the age of one
year as a proportion of 1000 live children boom in that particular
year is known as infant mortality rate.
Q78. Why does Kerala have low infant mortality rate?
Answer:
Explanation: Kerala has low infant mortality rate because it has
adequate provisions of basic health and educational facilities.
Q79. What is net attendance ratio?
Answer:
Explanation: Net attendance ratio is the total number of children of
age group 14 and 15 years attending school as a percentage of total
number of children in the same age group.
Q80. What does HDI stand for?
Answer: Explanation: HDI stands for Human Development Index. It is
a tool developed by the United Nations to measure a country’s
overall achievement in its social and economic dimensions.
Q81. What is Life Expectancy at Birth?
Answer: Explanation: Life Expectancy at Birth is the average expected
length of life of a person at the time of birth.
Q82. Name the two neighbor countries of India which have low per capita
income than India, yet they are better than India in life expectancy
according to Human Development Report 2016.
Answer/Explanation
Answer: Explanation: Nepal and Bangladesh.

Q83. Define sustainable development.

Answer: Explanation: Sustainable development refers to the
development that meets the needs of the present without
compromising the needs of the future generation.
Q84. Which neighboring country of India has better performance in terms of
human development than India?
Answer:
Explanation: Sri Lanka has better performance in terms of human
development than India.
Q85. What are public facilities? Give examples.
Answer: Explanation:
Public facilities are the provisions aimed for welfare of masses.
Every individual has equal access to such facilities. These facilities
cannot be owned or maintained by one individual, nor can an
individual use them alone for his/her personal interest. These
facilities are required for an overall development of the citizens of a
country or an area.
Examples of public facilities are- public transportation and
communication, roads, bridges, hospitals, pollution-free
environment, etc
 SECTORS OF THE INDIAN ECONOMY
Q1. 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
Answer: (d) Ownership of enterprises
Q2. 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) Organized sector
Answer: (c) Primary sector
Q3. 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
Answer: (c) Transport, communication and banking
Q4. Choose the correct meaning of organized 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.
Answer: (a) It covers those enterprises where the terms of
employment are regular
Q5. Which of the following is included in tertiary sector?
(a) ATM booths
(b) Call centers
(c) Internet cafe
(d) All of them
Answer: (d) All of them
Q6. Government owns most of the assets and provides all the services:
(a) Private Sector
(b) Public Sector
(c) Organized Sector
(d) Tertiary Sector
Answer: (b) Public Sector
Q7. 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
Answer: (a) Gross Domestic Product
Q8. 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
Answer: (b) Disguised unemployment
Q9. 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
Answer: (c) Two-thirds
Q10. 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
Answer: (d) 625 districts
Q11. GDP stands for Gross Domestic Product. What does it show? Pick up
the correct statement given below:
(a) It shows how big the economy of a country is in a given year in
terms of its total output.
(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 trans-actions of a country in a particular
year.
Answer: (a) It shows how big the economy of a country is in a given
year in terms of its total output.
Q12. Employment figures of a country are based on data collected from 5-
yearly survey on employment and unemployment. Which organization
conducts this survey?

(a) NSSO—National Sample Survey Organization

(b) NREGA 2005—National Rural Employment Guarantee Act, 2005
(c) ILO — International Labour Organization
(d) Census of India
Answer: (b) NREGA 2005—National Rural Employment Guarantee Act,
2005
Q13. Identify the natural product from the list of items given below:
(a) Textile
(b) Wheat flour
(c) Cotton
(d) Tomtao sauce
Answer: (c) Cotton
Q14. Which of the following examples does not fall under unorganized
sector?
(a) A farmer irrigating his field.
(b) A daily wage labourer working for a contractor.
(c) A doctor in a hospital treating a patient.
(d) A handloom weaver working on a loom in her house.
Answer: (c) A doctor in a hospital treating a patient
Q15. Identify the correct answer from the alternatives provided.
Both Tisco and Reliance Industries are owned by :
(a) The government
(b) Private company
(c) A cooperative society
(d) Jointly by private companies and the govt.
Answer: (c) A cooperative society
Q16. NREGA (National Rural Employment Guarantee Act of 2005) has
guaranteed ………. days of employment in a year in many districts of India.
What are the correct number of days?
(a) 200 days
(b) 100 days
(c) 30 days
(d) 60 days
Answer: (b) 100 days
Q17. Choose one correct statement from the following:
Underemployment occurs —
(a) When people are not willing to work.
(b) When people are working slowly.
(c) When people are working less than what they are capable of
doing.
(d) When people are not paid for their jobs.
Answer: (c) When people are working less than what they are
capable of doing.
Q18. Which sector has emerged as the largest producing sector in India.
Select one from the following alternatives:
(a) Secondary sector
(b) Tertiary sector
(c) Primary sector
(d) Science and Technology sector
Answer: (b) Tertiary sector
Q19. Where will you find the disguised unemployment most? Select the
correct option from those given below:
(a) Among agricultural workers working for small farm lands
(b) Among part-time industrial workers
(c) In most of the government offices
(d) In big private companies
Answer: (a) Among agricultural workers working for small farm lands
Q20. How do big private companies contribute in the development of a
nation?
(a) By increasing the demands for their products through advertisements.
(b) By increasing their profits.
(c) By increasing productivity of the country in the manufacturing of
industrial goods.
(d) By providing private hospital facilities for the rich.
Answer: (c) By increasing productivity of the country in the
manufacturing of industrial goods.
Q21. ____________ refers to the activities which are undertaken by people
with the object of earning money.
Answer: Explanation: Economic activities
Q22. A housewife looking after the household is an example of
____________ Answer/Explanation
Answer: Explanation: Non-economic activities
Q23. All goods which are used as raw material for further production of other
goods or for resale in the same year are called ____________ .
Answer/Explanation
Answer:
Explanation: Intermediate goods
Q24. 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 ____________ .
Answer: Explanation:
Mahatma Gandhi National Rural Employment Guarantee Act 2005
(MGNREGA 2005)
Q25. ____________ sector is governed by various laws such as Factories
Act, Minimum Wages Act etc.
Answer: Explanation: Organized
Q26. ____________ includes production by exploiting natural resources.
Answer:
Explanation: Primary sector
Q27. ____________ and ____________ are the two factors of production.
Answer: Explanation: Capital; labour
28. There is no provision for overtime, paid leave, holidays etc. in
unorganized sector. (True/False)
Answer: Explanation: True, as the jobs are not regular and lack in
security.
Q29. The objective of public sector is to maximize profits. (True/False)
Answer:
Explanation: False, as the objective of public sector is to promote
public welfare and not to maximize profits.
Q30. A railway comes under public sector. (True/False)
Answer: Explanation: True, as the government owns them.
Q31. Capital is the only factor of production. (True/False)
Answer: Explanation: False, as labour and land are also factors of
production.
Q32. The goods which are meant either for consumption by consumers or for
investment by firms are called final goods. (True/False)
Answer:
Explanation: True, as they are produced either for consumption or
investment.
Q33. Under NREGA 2005, the government guaranteed 120 days of work to
rural household. (True/False)
Answer:
Explanation: False, as under NREGA 2005, the government
guaranteed 100 days of work to rural household.
Q34. When more persons are employed in a job rather than optimally
required is seasonal unemployment. (True/False)
Answer:
Explanation: False, as when more persons are employed in a job
rather than optimally required it is a case of disguised
unemployment.
Q35. What is economic development?
Answer:
Explanation: Economic development means that the rate of production
must be faster than the rate of increase in population. In other
words, we can say that it makes people better off by increasing their
command over goods and services and the choices open to them.
Q36. Name any activity done in primary sector? [CBSE 2018]
Answer: Explanation: In primary sector, goods are produced by
exploiting natural resources.
Q37. Why primary sector is also called agriculture and related sector?
Answer: Explanation: Primary sector is also called agriculture and
related sector because most of the natural products we get are from
agriculture, diary, fishing, forests etc.
Q38. What activities are done in the secondary sector?
Answer/Explanation
Answer:
Explanation: In secondary sector, natural products are changed into
other forms through different ways of manufacturing.
Q39. Distinguish between „primary‟ and „secondary‟ sectors.
Answer:
Explanation: Primary sector exploits natural resources to produce
goods whereas secondary sector change natural products into other
forms through manufacturing.
Q40. What does the tertiary sector include?
Answer:
Explanation: Tertiary sector includes distribution of services, training
and support.
Q41. Identify any two services included in the tertiary sector in the recent
times.
Answer: Explanation: Internet cafe, ATM booths, call centres,
software companies etc. (any two)
Q42. Define GDP.
Answer: Explanation: GDP refers to Gross Domestic Product. It is the
value of all final goods and services produced within a country
during a particular year.
Q43. Which sector has grown considerably in the recent years?
Answer:
Explanation: In the recent years, the tertiary sector has shown a
considerable growth.
Q44. Which sector has contributed the most to the employment?
Answer:
Explanation:
Primary sector has contributed the most to the employment.
Q45. Where are most of the underemployed people found?
Answer: Explanation: Most of the underemployed people are found in
agriculture.
Q46. What is double counting?
Answer: Explanation:
When the value of a product is counted more than once, it is called
double counting. This leads to the overestimation of the value of
goods and services produced.
Q47. Which sector generates services rather than goods?
Answer:
Explanation:
Tertiary or Service sector generates services rather than goods.
Q48. Name two vulnerable groups in urban areas.
Answer:
Explanation:
Two vulnerable groups in urban areas are rag pickers and street
vendors.
Q49. What are intermediate goods?
Answer:
Explanation:
Intermediate goods are those goods which are used up in the
production process to make final goods and services.
Q50. What are final goods and services?
Answer:
Explanation: Final goods and services are those which reach the
consumers for final consumption or capital formation.
Q51. Fill in the Blanks
1. Tertiary sector is also called ……….. .
2. Communication and banking come under ……….. sector.
3. Cotton cultivation falls under ……….. sector.
4. In the public sector, the ……….. owns most of the assets and provides all
services.
5. In the Private sector, the ownership lies in the hands of ……….. .
6. Most of the jobs are ……….. and ……….. paid in the unorganised sector.
7. Protection and support to the unorganised sector is needed for both
……….. and ……….. development.
8. Bankers and truck drivers belong to ……….. sector of the economy.
Answers.

1. Service sector
2. Tertiary
3. Primary
4. Government
5. Private companies
6. Unsecure, lowly
7. Economic and social
8. Tertiary
Q52. Which of the following activities does not belong to the primary sector?
(a) Fishing
(b) Banking
(c) Mining
(d) Forestry
Answer: (b) Banking
Q53. Which of the following sectors is the largest employer in India?
(a) Primary Sector
(b) Secondary Sector
(c) Tertiary Sector
(d) IT Sector
Answer: (a) Primary Sector
Q54. The task of measuring GDP is undertaken by the
(a) Central government
(b) State government
(c) Provincial government
(d) All of the above
Answer: (a) Central government
Q55. Life insurance is an activity of the
(a) Primary sector
(b) Secondary sector
(c) Service sector
(d) None of the above
Answer: (c) service sector
Q56. The motive of the public sector enterprises is
(a) Profit making
(b) Entertainment
(c) Social welfare and security
(d) None of the above
Answer: (c) Social welfare and security
Q57. How do big private companies contribute in the development of a
nation?
(a) By increasing the demands for their products through advertisements.
(b) By increasing their profits.
(c) By increasing productivity of the country in the manufacturing of
industrial goods.
(d) By providing private hospital facilities for the rich.
Answer: (c) By increasing productivity of the country in the
manufacturing of industrial goods.
Q58. Which sector has emerged as the largest producing sector in India?
Select one from the following alternatives:
(a) Secondary sector
(b) Tertiary sector
(c) Primary sector
(d) Science and Technology sector
Answer: (b) Tertiary sector
Q59. The money value of all final goods and services produced within a
country during a particular year is called:
(a) Gross domestic product
(b) Net domestic product
(c) National product
(d) Production of secondary sector
Answer: (a) Gross domestic product
Q60. Which of the following activities is not the activity of Primary Sector?
(a) Milking
(b) Fishing
(c) Making of sugar
(d) Farming
Answer: (c) Making of sugar
Q61. What is meant by GDP?
(a) Gross Dairy Product
(b) Gross Domestic Product
(c) Great Development Project
(d) Great Domestic Product
Answer: (b) Gross Domestic Product
Q63. Which of the following is not applicable for a worker, who works in the
organized sector?
(a) She gets a regular salary at the end of the month
(b) She is not paid for leave
(c) She gets medical allowance
(d) She got an appointment letter stating the terms and conditions of work
when she joins work.
Answer: (b) She is not paid for leave
Q64. The motive of public sector enterprises is:
(a) Profit making (b) Entertainment
(c) Social welfare and security (d) None of the above
Answer: (c) Social welfare and security
Q65. Which one of the following economic activities is not in the tertiary
sector?
(a) Banking (b) Bee keeping
(c) Teaching (d) Working in a call Centre
Answer: (b) Bee keeping
Q60. 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
Answer: (c) Transport, communication and banking
Q61. Which of the following types of activities are covered in the secondary
sector?
(a) It generates services rather than goods.
(b) Natural products are changed through manufacturing.
(c) Goods are produced by exploiting natural resources.
(d) It includes agriculture, forestry and dairy.
Answer: (b) Natural products are changed through manufacturing.
days
Q62. Information and communication technology is associated with
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) None of the above
Answer: (c) Tertiary sector
Q63. In which sector activities are not guided by profit motive?
(a) Organized sector
(b) Public sector
(c) Private sector
(d) Unorganized sector
Answer: (b) public sector
Q64. Manufacturing sector is associated with
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Private sector
Answer: (b) Secondary sector
Q65. Primary sector is related to
(a) Agriculture
(b) Dairy, forestry
(c) Fishing, mining
(d) All the above
Answer: (d) All the above
Q66. Who carries economic activities?
(a) Individuals
(b) Firms
(c) Government
(d) All the above
Answer: (d) All the above
Q67. The economy is classified into public and private sectors on the basis of
(a) Employment conditions
(b) The nature of economic activity
(c) Ownership of enterprises
(d) Number of workers employed in the enterprise
Answer: (c) ownership of enterprises
 MONEY AND CREDIT
Q1. Which one of the following statements is most appropriate regarding
transaction made in money?
(a) It is the easiest way.
(b) It is the safest way.
(c) It is the cheapest way.
(d) It promotes trade.
Answer: (a) It is the easiest way.
Q2. Which one of the following is a modem form of currency?
(a) Gold
(b) Silver
(c) Copper
(d) Paper notes
Answer: d) Paper notes
Q3. 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
Answer: (d) Reserve Bank of India
Q4. 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
Answer: (b) Barter system
Q5. 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
Answer: (c) Fixed deposits for long period
Q6. 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
Answer: (c) Extend loans
Q7. What percentage of their deposits is kept as cash by the banks in India?
(a) 25% (b) 20% (c) 15% (d) 10%
Answer: (c) 15%
Q8. The informal source of credit does not include which one of the
following?
(a) Traders
(b) Friends
(c) Cooperative Societies
(d) Moneylenders
Answer: (c) Cooperative Societies
Q9. Which one of the following is the new way of providing loans to the mral
poor?
(a) Co-operative societies
(b) Traders
(c) Relatives and friends
(d) SHGs
Answer: (d) SHGs
Q10. Why is currency accepted as a medium of exchange?
(a) Because the currency is authorized by the government of the
country.
(b) Because it is liked by the people who use it.
(c) Because the use of currency has its origin in ancient times.
(d) Because the currency is authorized by the World Bank.
Answer: (a) Because the currency is authorized by the government of
the country.
Q11. Who issues the currency notes in India?
(a) Currency notes are issued by the Finance Commission.
(b) All the nationalized banks can issue the currency notes.
(c) Only Reserve Bank of India can issue currency notes.
(d) Any individual or organization can issue currency notes with the
permission of the govt.
Answer: (c) Only Reserve Bank of India can issue currency notes.
Q12. What do the banks do with the deposits which I they accept from the
customers?
(a) Banks use these deposits for charitable activities.
(b) Banks use a major portion of deposits to extend loans.
(c) Banks use deposits to give bonus to their employees.
(d) Banks use deposits to set up more branches in the country.
Answer: (b) Banks use a major portion of deposits to extend loans.
Q13. What is the main source of income of a bank?
(a) Bank charges that the depositors pay for; keeping their money safe is
the main; source of the bank‟s income.
(b) The difference between what is charged from the borrowers and
paid to the depositors is the main source of bank’s income.
(c) Banks earn huge amounts of money by investing the money of the
depositors in various company shares.
(d) The Government of India gives huge amounts of money to the banks to
help their smooth functioning.
Answer: (b) The difference between what is charged from the
borrowers and paid to the depositors is the main source of bank’s
income.
Q14. An agreement in which the lender supplies the borrower with money,
goods or services in return for the promise of future payment refers to
(a) Debt (b) Deposit (c) Credit (d) Collateral
Answer: (c) Credit
Q15. Which body (authority) supervises the functioning of formal sources of
loans?
(a) Finance Ministry
(b) Head Office of each Bank
(c) Reserve Bank
(d) Cooperative Societies
Answer: (c) Reserve Bank
Q16. Money-lenders usually demand a „security‟ from the borrower. What is
the formal word used for the „security‟, such as land, vehicle, livestock,
building, etc.?
(a) Deposit
(b) Collateral
(c) Credit
(d) Guarantee
Answer: (b) Collateral
Q17. Which among the following options will be the cheapest source of credit
in rural areas?
(a) Bank
(b) Cooperative Society
(c) Money-lender
(d) Finance Company
Answer: (b) Collateral
Q18. In which country is the Grameen Bank meeting the credit needs of over
6 million poor people?
(a) Bhuta
(b) Sri Lanka
(c) Bangladesh
(d) Nepal
Answer: (c) Bangladesh
Q19. A typical Self Help Group usually has
(a) 100-200 members
(b) 50-100 members
(c) Less than 10 members
(d) 15-20 members
Answer: (d) 15-20 members
Q20. Which of the following is not an informal source of credit?
(a) Money-lender
(b) Relatives and Friends
(c) Commercial Banks
(d) Traders
Answer: (c) Commercial Banks
Q21. 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.”
Answer:
Explanation: Money
Q22. The modern forms of money include ____________ and
____________
Answer: Explanation: Paper notes; coins
Q23. A ____________ is the apex institution of monetary system of a
country.
Answer: Explanation: Central Bank (RBI in case of India)
Q24. Currency (coins and notes) is a ____________ which cannot be
refused in payment for transactions.
Answer:
Explanation: Legal tender money
Q25. The deposits in a bank which are payable on demand are called
____________ .
Answer: Explanation: Demand deposits
Q26. ____________ is an agreement whereby a financial institution agrees
to lend a borrower a maximum amount of money over a given period of
time.
Answer: Explanation: Credit
Q27. „Low rate of interest‟ is a feature of ____________ credit.
Answer/Explanation
Answer: Explanation: Formal
Q28. ____________ includes details regarding interest rate, collateral and
documentation requirement, and the mode of payment.
Answer:
Explanation: Terms of Credit
Q29. 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
_________ .
Answer:
Explanation: Debt-trap
Q30. Money eliminates the need for double coincidence of wants.
(True/False)
Answer:
Explanation: True, as money acts as the medium of exchange.
Q31. 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)
Answer:
Explanation: 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.
Q32. Informal sector credit includes loans from banks and cooperatives.
(True/False)
Answer: Explanation: False, as informal sector credit includes loans
from friends, relatives, moneylenders, traders etc.
Q33. Rich households largely depend on informal sources of credit.
(True/False)
Answer:
Explanation: False, as rich households largely depend on formal
sources of credit.
Q34. In formal sector, higher rate of interest is charged. (True/False)
Answer:
Explanation: False, as higher rate of interest is charged in informal
sector and not in the formal sector.
Q35. In rural areas, the main demand for credit is for building houses.
(True/False)
Answer:
Explanation: False, as in rural areas, the main demand for credit is for
crop production.
Q36. „Inculcating saving habits in community‟ is an objective of Self Help
Groups, (True/False)
Answer:
Explanation: True, as the SHGs try to organize rural poor especially to
promote the saving habit.
Q37. What is demonetization?
Answer:
Explanation: On November 8, 2016, currency notes of? 500 and?
1,000 were declared invalid. People were asked to deposit these
notes to the banks by a specific period and receive new currency
notes. This is known as demonetization.
Q38. List various ways through which digital transactions are made.
Answer:
Explanation: Internet or mobile phones, cheques, ATM cards, credit
cards, and POS swipe machines.
Q39. What is the main objective to promote digital transactions?
Answer:
Explanation: To reduce the requirement of cash for transactions and
also control corruption.
Q40. What is meant by double coincidence of wants?
Answer:
Explanation: Double coincidence of wants means owner of good X, say
shoes, to find someone else with good Y, say a bag of wheat, and
both being in need of each other’s good.
Q41. What is the meaning of barter system? [Delhi 2015]
Answer: Explanation: A system where goods are directly exchanged,
without the use of money, is called barter system.
Q42. Define money.
Answer:
Explanation: Money is anything which has common acceptability as a
means of exchange, a measure and a store of value.
Q43. Why is money called „a medium of exchange‟? [All India 2017]
Answer:
Explanation: Money acts as an intermediary in the exchange process,
thus it is called a medium of exchange.
Q44. What objects were used as money in India, before the introduction of
coins?
Answer:
Explanation: Foodgrains and cattle were used as money before the
introduction of coins in India.
Q45. Which metals were used for making coins in India in later stages?
Answer:
Explanation: Gold, silver and copper coins were used for making coins
in later stages in India.
Q46. Give the modem forms of money.
Answer:
Explanation: The modern forms of money include currency-paper
notes and coins and plastic money.
Q47. The modern currency is accepted as a medium of exchange. Why?
Answer:
Explanation: It is accepted as a medium of exchange because it is
authorized by the Government of India.
Q48. Why one cannot refuse a payment made in mopes in India?
Answer/Explanation
Answer:
Explanation: One cannot refuse a payment made in rupees in India
because it is authorized by the Indian government.
Q49. Define a bank.
Answer:
Explanation: A bank is a financial institution whose demand deposits
are widely accepted as money for making payments and has the
power to create money.
Q50. What are demand deposits?
Answer:
Explanation: Deposits in the bank accounts, which can be withdrawn
on demand are called demand deposits.
Q51. What is a cheque? [Foreign 2015]
Answer:
Explanation: A cheque is an instrument instructing the bank to pay a
specific amount from the person’s account to the person in whose
name the cheque has been issued.
Q52. What determines the main source of income for the banks?
Answer:
Explanation: It is the difference between what is charged from the
borrowers and what is paid to the depositors or savers, which
determines the income of the banks.
Q53. Define credit.
Answer:
Explanation: Credit or loan refers to an agreement in which the lender
supplies the borrower with money, goods or services in return for
the promise of future repayment.
Q54. For what purpose credit is mainly demanded in rural areas?
Answer:
Explanation: Credit is mainly demanded for the purpose of crop
production in rural areas.
Q55. What is a debt-trap?
Answer:
Explanation: A debt-trap is a situation when it becomes impossible to
repay the loan and the borrower adds on a new debt to pay the
existing debt.
Q56. What is collateral?
Answer:
Explanation: Collateral is an asset, such as land, vehicle, building,
livestock and deposits with banks, that the borrower owns and uses
this as a guarantee to a lender until the loan is repaid.
Q57. What are the main „terms of credit‟?
Answer:
Explanation:
Interest rate, collateral, documentation requirements and the mode
of repayment together comprise ‘terms of credit’.
Q58. Which are the two major sources of formal loan for rural households?
Answer: Explanation: Banks and Cooperatives
Q59. Who supervises the functioning of formal sources of loans?
Answer: Explanation: Reserve Bank of India
Q60. Why are banks unwilling to lend loans to small farmers?
Answer:
Explanation: Banks provide loans after collateral and documentation
securities, which generally the small farmers fail to comply with.
Therefore, banks are unwilling to give loans to small farmers.
Q61. What kind of credit is crucial for a country‟s development?
Answer:
Explanation: Cheap and affordable credit plays a crucial role in a
country’s development.
Q62. Besides banks, what are the other sources of credit from which the
small farmers borrow?
Answer:
Explanation: Besides banks, the small farmers borrow from landlords,
moneylenders, traders, relatives and friends etc.
Q63. What are SHGs?
Answer:
Explanation: They are Self-Help Groups formed by the poor rural
women.
Q64. What does the stock of money consist of?
Answer:
Explanation:
The stock of money consists of currency held by the public and the
demand deposits that they hold with the banks.
Q65. Who issues the currency notes in India?
Answer:
Explanation:
In India, the currency notes are issued by the Reserve Bank of India (RBI)
on behalf of the central government.
Q66. For which purpose are a major portion of the deposits with the banks
used?
Answer:
Explanation: Banks use the major portion of their deposits to extend
loans.
Q67. Fill in the Blanks
1. …………. implies the direct exchange of goods against goods without the
use of money.
2. …………. may be defined as anything which is generally accepted by people
in exchange of goods and services or in repayment of debts.
3. In India, the law legalizes the use of …………. as a medium of payment that
cannot be refused in settling any transaction.
4. Money as a medium of exchange has removed the problem of …………. of
wants.
5. Modern forms of money include currencies which are …………. and ………….
6. …………. help in pooling the savings of their members, who are poor
women to meet their credit needs.
7. The share of formal sector credit is …………. for the richer households as
compared to the poor households in India.
8. Absence of …………. as a guarantee is a major cause that prevents poor
people from obtaining loans from formal sector sources, such as commercial
banks.
Answers
1. Barter system
2. Money
3. Rupee
4. Double coincidence
5. Paper notes, coins
6. Self Help Groups
7. Higher
8. Collateral
Q68. What is the main source of income of a bank?
(a) Bank charges that the depositors pay for ; keeping their money safe is
the main ; source of the bank‟s income.
(b) The difference between what is charged from the borrowers and
paid to the depositors is the main source of bank’s income.
(c) Banks earn huge amounts of money by investing the money of the
depositors in various company shares.
(d) The Government of India gives huge amounts of money to the banks to
help their smooth functioning.
Answer: (b) The difference between what is charged from the
borrowers and paid to the depositors is the main source of bank’s
income.
Q69. Money-lenders usually demand a „security‟ from the borrower. What is
the formal word used for the „security‟, such as land, vehicle, livestock,
building, etc.?
(a) Deposit
(b) Collateral
(c) Credit
(d) Guarantee
Answer: (b) Collateral
Q70. Which among the following options will be the cheapest source of credit
in rural areas?
(a) Bank
(b) Cooperative Society
(c) Money-lender
(d) Finance Company
Answer: (b) Cooperative Society
Q71. In which country is the Grameen Bank meeting the credit needs of over
6 million poor people?
(a) Bhutan
(b) Sri Lanka
(c) Bangladesh
(d) Nepal
Answer: (c) Bangladesh
Q72. A typical Self Help Group usually has
(a) 100-200 members
(b) 50-100 members
(c) Less than 10 members
(d) 15-20 members
Answer: (d) 15-20 members
 GLOBALIZATION AND THE INDIAN ECONOMY
Q1. Removing barriers or restrictions set by the government is called:
(a) Liberalization
(b) Investment
(c) Favorable trade
(d) Free trade
Answer: (a) Liberalization
Q2. Rapid integration or interconnection between countries is known as:
(a) Privatization
(b) Globalization
(c) Liberalization
(d) Socialization
Answer: (b) Globalization
Q3. Globalization 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.
Answer: (c) Of workers in the developing countries
Q4. Which one of the following Indian industries has been hit hard by
globalization?
(a) Information Technology (IT)
(b) Toy making
(c) Jute
(d) Cement
Answer: (b) Toy making
Q5. World Trade Organization (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
Answer: (c) Developed countries
Q6. Which of the following organizations lays stress on liberalization of
foreign trade and foreign investment?
(a) International Labour Organization
(b) International Monetary Fund
(c) World Health Organization
(d) World Trade Organization
Answer: (d) World Trade Organization
Q7. Investments made by MNCs are termed as:
(a) Indigenous investment
(b) Foreign investment
(c) Entrepreneur‟s investment
(d) None of the above
Answer: (b) Foreign investment
Q8. 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 organizes production in complex ways.
(d) It employs labour only from its own country.
Answer: (d) It employs labour only from its own country.
Q9. Tax on imports is an example of:
(a) Terms of Trade
(b) Collateral
(c) Trade Barriers
(d) Foreign Trade
Answer: (c) Trade Barriers
Q10. 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.
Answer: (a) They do not have to pay taxes for long period.
Q11. 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
Answer: (b) 5 years
Q12. It refers to the globalization which creates opportunities for all and
ensures that its benefits are better shared.
(a) Privatization
(b) Special Economic Zones (SEZs)
(c) World Trade Organization (WTO)
(d) Fair globalization
Answer: (d) Fair globalization
Q13. An MNC is a company that owns or controls production in
(a) One country
(b) More than one country
(c) Only developing countries
(d) Only developed countries
Answer: (b) More than one country
Q14. The process of rapid integration or interconnection between countries
through free trade, free mobility of capital and labour is called
(a) Foreign trade
(b) Liberalization
(c) Globalizations
(d) Privatization
Answer: (c) Globalizations
Q15. What were the main channel connecting countries in the past?
(a) Labour (b) Religion (c) Technology (d) Trade
Answer: (a) Labour
Q16. „The impact of globalizations has not been fair.‟ Who among the
following people have not benefitted from globalization?
(a) Well off consumers
(b) Small producers and workers
(c) Skilled and educated producers
(d) Large wealthy producers
Answer: (b) Small producers and workers
Q17. What is the main motive behind the investments of MNCs?
(a) The main motive is to increase their assets and earn profits.
(b) The main motive is the welfare of the poor people.
(c) The main motive of an MNCs is to offer financial support to the
government of their country.
(d) The main motive is to benefit foreign countries.
Answer: (a) The main motive is to increase their assets and earn
profits.
Q18. “MNCs keep in mind certain factors before setting up production”.
Identify the incorrect option from the choices given below
(a) Availability of cheap skilled and unskilled labour
(b) Proximity to markets
(c) Presence of a large number of local competitors
(d) Favorable government policies
Answer: (c) Presence of a large number of local competitors
Q19. Which Indian company was bought over by Cargill Foods—a large
American MNC? Pick out the name from the alternatives provided
(a) Amul
(b) Fun Foods Ltd.
(c) Agro Tech Foods Ltd.
(d) Parakh Foods
Answer: (d) Parakh Foods
Q20. Which organization supports liberalization of foreign trade and
investments in India?
(a) International Labour Organization (ILO)
(b) World Bank
(c) World Trade Organization (WTO)
(d) International Monetary Fund (IMF)
Answer: (c) World Trade Organization (WTO)
Q21. In which year did the government decide to remove barriers on foreign
trade and investment in India?
(a) 1993
(b) 1992
(c) 1991
(d) 1990
Answer: (c) 1991
Q22. Which of the following industries have been hard hit by foreign
competition?
(a) Dairy products
(b) Leather industry
(c) Cloth industry
(d) Vehicle industry
Answer: (a) Dairy products
Q23. _____________ 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.
Answer: Explanation: New Economic Policy
Q24. Indian government felt the need for removing barriers on foreign trade
and foreign investment in ____________ .
Answer: Explanation: 1991
Q25. A _____________ is a company that owns or controls production in
more than one nation/country.
Answer: Explanation: Multinational Corporation (MNC)
Q26. _____________ refers to exchange of goods, i.e., purchase and sale,
across geographical boundaries of the countries.
Answer: Explanation: Foreign trade
Q27. The main aim of World Trade Organization is _____________ .
Answer: Explanation: To liberalize international trade
Q28. „Increased job opportunities‟ is an impact of _____________ .
Answer:
Explanation: Globalization
Q29. The industrial zones which are set up to attract the foreign investment
are known as _____________ .
Answer:
Explanation: Special Economic Zones (SEZs)
Q30. „Increase in GNP‟ is a positive impact of liberalization. (True/False)
Answer:
Explanation: True, as with the trade and investment barriers being removed,
international trade and investments would get promoted.
Q31. „Deregulation of Industries‟ is a feature of economic reforms introduced
in 1991 in India. (True/False)
Answer: Explanation: True, as the government imposes less restrictions and
is more liberal.
Q32. Rapid integration or interconnection between countries is known as
socialization. (True/False)
Answer: Explanation: False, as rapid integration or interconnection
between countries is known as globalization.
Q33. World Trade Organization (WTO) was started at the initiative of
developing countries. (True/False)
Explanation: False, as World Trade Organization (WTO) was started at
the initiative of developed countries.
Q34. „Ensuring that rules are being followed‟ is a function of World Trade
Organization. (True/False)
Answer: Explanation: True, as it is an international body looking after
the free-trade between the numbers.
Q35. As on July 2016, 175 countries are the members of World Trade
Organization. (True/False)
Answer:
Explanation: False, as on July 2016, nearly 165 countries are the
members of World Trade Organization.
Q36. UNICEF is one such organization whose aim is to liberalize international
trade. (True/False)
Answer:
Explanation: False, as WTO is one such organization whose aim is to
liberalize international trade and not UNICEF.
Q37. Define a Multinational Corporation (MNC).
Answer:
Explanation: A Multinational Corporation (MNC) is a company that
owns or controls production in more than one nation.
Q38. Why do MNCs set up their offices and factories in those regions where
they get cheap labour and other resources? [All India 2016]
Answer: Explanation: To redu.ee their cost of production and increase
their profits.
Q39. Define investment.
Answer: Explanation: Money that is spent to buy assets such as land,
building, machines and other equipment is called investment.
Q40. What is foreign investment?
Answer: Explanation: Investment made by MNCs to buy assets like
land, building, machines and other equipment is called foreign
investment.
Q41. Mention two benefits that local companies get when they set up
production units in association with the MNCs.
Answer: Explanation:
The benefits that local companies can get are:
(a) MNCs can provide money for additional investment like buying
latest and new machines for faster production.
(b ) MNCs might bring the latest technology of production with
them.
Q42. How are the MNCs spreading their production across the globe?
Answer:
Explanation: MNCs are spreading their production across the globe by
setting up partnerships with local companies, by using the local
companies for supplies and by closely competing with local
companies or buying them up.
Q43. What happens to the sales of the Indian toys when Chinese toys invade
the domestic market?
Answer:
Explanation: As a result of the invasion of Chinese toys in the
domestic market, the sale of Indian toys falls.
Q44. Define globalization.
Answer:
Explanation: Globalization is the process of rapid integration or
interconnection between countries.
Q45. Due to which reason the latest models of different items are available
within our reach? [Foreign 2016]
Answer:
Explanation: Due to Globalization, the latest variety of different items
is available within our reach.
Q46. Give one major factor that has stimulated the globalization process.
Answer:
Explanation: Rapid improvement in technology has stimulated the
globalization process.
Q47. What is meant by trade barrier? [All India 2016]
Answer:
Explanation: Tax on imports by the government is called trade barrier.
It is called a barrier because some restrictions have been set up.
Q48. How government can use trade barriers?
Answer:
Explanation: Government can use trade barriers to increase or
decrease foreign trade and to decide what kind of goods and how
much of each good should come into the country.
Q49. Why had the Indian Government put barriers to foreign trade and
foreign investment after independence? State any one reason. [Delhi 2015]
Answer:
Explanation: To save domestic producers from international
competition so that they may develop.
Q50. Why did the Indian Government remove barriers to a large extent on
foreign trade and foreign investment? [Foreign 2015]
Answer:
Explanation: Indian Government felt that time has come for Indian
producers to compete in international markets.
Q51. What is liberalization? [All India 2017(C)]
Answer:
Explanation: Removing barriers or restrictions set by the government
is known as liberalization.
Q52. What is the aim of World Trade Organization?
Answer:
Explanation: The aim of World Trade Organization is to liberalize
international trade.
Q53. How many countries of the world were members of the World Trade
Organization in July 2016?
Answer:
Explanation: As on July 2016, about 165 countries of the world were
the members of the World Trade Organization.
Q54. Who forced the developing countries to remove the trade barriers?
Answer:
Explanation:
World Trade Organization (WTO) forced the developing countries to
remove the trade barriers.
Q55. How has globalization benefited the well- off consumers?
Answer:
Explanation:
Globalization benefited the well-off consumers as there is greater
choice before these consumers who now enjoy improved quality and
lower prices for several products. As a result, these consumers,
today, enjoy much higher standards of living than was possible
earlier.
Q56. What are the benefits of goods or products produced by the MNCs?
Explanation:
The goods or products produced by the MNCs have a larger number
of well-off buyers. In MNCs, new jobs have been created. Also, local
companies supplying raw materials etc. to these industries have
prospered.
Q57. Give two examples of Indian Companies which have emerged as
Multinational Companies.
Answer:
Explanation: Infosys (IT) and Tata Motors (automobiles)
Q58. Which industries have been hit hard by the competition?
Answer:
Explanation: Industries which have been hit hard by the competition are
small-scale industries.
Q59. What are SEZs?
Answer: Explanation:
Indian government has taken special steps to attract the foreign
investors to invest in India. Industrial Zones called Special Economic
Zones (SEZs) are being set up for the same purpose. SEZs are to
have world class facilities such as electricity, water, roads and
transport.
Q60. What special benefit is offered to the companies setting up their
production units in the Special Economic Zones (SEZs)?
Answer:
Explanation: The companies which set up their production units in the
SEZs do not have to pay taxes for an initial period of five years.
Q61. What do you mean by fair globalization?
Answer: Explanation: Fair globalization means creating opportunities for all.
It also ensures better sharing of the benefits of globalization.
Q62. What do you think can be done so that trade between countries is
more fair?
Answer: Explanation: All countries should remove trade barriers to
make for a fair international trade. Developed countries should
desist from forcing the developing countries in agreements which
they themselves may not obey.
Q63. Differentiate between investment and foreign investment. [Delhi 2016]
Answer:
Explanation: The money that is spent to buy assets such as land,
building, machine and other equipment is known as investment
whereas investment made by a MNC is known as foreign investment.
64. What is the basic function of foreign trade?
Answer: Explanation: Foreign trade creates an opportunity for the
producers to reach beyond the domestic market, i.e., markets of
their own countries.
Q65. What prompts people to move from one country to another?
Answer: Explanation: People usually move from one country to another
in search of better income, jobs and education.
Q66. Which factor is responsible for the faster delivery of goods across the
world in recent times?
Answer: Explanation: Improvement in transportation technology.
Q67. After independence, which items were allowed to be imported by the
government of India?
Answer: Explanation: The government of India allowed imports of only
essential items such as machinery, fertilizers, petroleum etc. after
independence.
Q68. After independence, which items were allowed to be imported by the
government of India?
Answer:
Explanation: MNCs have been interested in industries such as cell
phones, automobiles, electronics, soft drinks and fast food.
Q69. What has brought about the availability of greater choice of goods in
the market for the consumers?
Answer:
Explanation: The entry of MNCs in the market has led to the
availability of greater choice of goods for the consumers.
Q70. In which two different forms do we participate in the market?
Answer:
Explanation: We participate as producers and consumers in the market.
Choose the correct option:
Q71. Entry of MNCs in a domestic market may prove harmful for:
(a) All large scale producers.
(b) All domestic producers.
(c) All substandard domestic producers.
(d) All small scale producers.
Answer: (d) All small scale producers.
Q72. Which one of the following has benefited least because of globalisation
in India?
(a) Agriculture Sector
(b) Industrial Sector
(c) Service Sector
(d) Secondary Sector
Answer: (a) Agriculture Sector
Q73. Which one of the following is a major benefit of joint production
between a local company and a Multi-National Company?
(a) MNC can bring latest technology in the production
(b) MNC can control the increase in the price
(c) MNC can buy the local company
(d) MNC can sell the products under their brand name
Answer: (a) MNC can bring latest technology in the production
Q74. Which one of the following is not true regarding the World Trade
Organization?
(a) It allows free trade to all countries without any trade barriers.
(b) Its aim is to liberalize international trade.
(c) It establishes rules regarding international trade.
(d) WTO rules have forced the developing countries to remove trade
barriers.
Answer: (a) It allows free trade to all countries without any trade
barriers.
Q75. Integration of markets means
(a) Operating beyond the domestic markets
(b) Wider choice of goods
(c) Competitive price
(d) All the above
Answer: (d) All the above
Q76. Which of the following contributes to globalization?
(a) Internal trade
(b) External trade
(c) Large scale trade
(d) Small scale trade
Answer: (b) External trade
Q77. Investment means spending on
(a) Factory building
(b) Machines
(c) Equipment
(d) All the above
Answer: (d) all the above
Q78. Multinational corporations have succeeded in entering global markets
through
(a) WTO
(b) UNO
(c) UNESCO
(d) None of the above
Answer: (a) WTO
Q79. FDI (Foreign Direct Investment) attracted by globalization in India
belongs to the
(a) World Bank
(b) Multinationals
(c) Foreign governments
(d) None of the above
Answer: (b) Multinationals
Q80. Which of the following factors has not facilitated globalization?
(a) Technology
(b) Liberalization of trade
(c) WTO
(d) Nationalization of banks
Answer: (d) Nationalization of banks
Q81. Globalization so far has been more in favor of:
(a) Developed countries
(b) Developing countries
(c) Poor countries
(d) None of the above
Answer: (a) Developed countries
Q82. Cheaper imports, inadequate investment in infrastructure lead to
(a) Slowdown in agricultural sector
(b) Replace the demand for domestic production
(c) Slowdown in industrial sector
(d) All the above
Answer: (d) all the above
Q83. Which sector has not benefited by the policy of globalisation?
(a) Agricultural sector
(b) Manufacturing sector
(c) Service sector
(d) All the above
Answer: (a) Agricultural sector
Q84. Fair globalization refers to ensuring benefits to:
(a) Laborers
(b) Producers
(c) Consumers
(d) All the above
Answer: (d) All the above