Current Challenges Facing Indian Economy MCQ | Class 12 | Economics | Chapter 9

Current Challenges Indian Economy MCQ

Below are some of the very important NCERT MCQ Questions of Current Challenges Indian Economy Class 12 Economics Chapter 9 with Answers. These Current Challenges Indian Economy MCQ have been prepared by expert teachers and subject experts based on the latest syllabus and pattern of term 1 and term 2. We have given these Current Challenges Indian Economy MCQ Class 12 Economics Questions with Answers to help students understand the concept.

MCQ Questions for Class 12 Economics Chapter 9 are very important for the latest CBSE term 1 and term 2 pattern. These MCQs are very important for students who want to score high in CBSE Board.

We have put together these NCERT  Questions of Current Challenges Indian Economy MCQ for Class 12 Economics Chapter 9 with Answers for practice on a regular basis to score high in exams. Refer to these MCQs Questions with Answers here along with a detailed explanation.

Current Challenges Facing Indian Economy MCQ

MCQ

1. With which disparity of income and its distribution are associated?

(a) Absolute Poverty
(b) Relative Poverty
(c) Chronic Poverty
(d) All of the above

2. Relative Poverty is prevalent in

(a) Capitalist Countries
(b) Socialist Countries
(c) Communist Countries 
(d) Developed Countries 

3. Absolute Poverty is prevalent in

(a) Communist Countries 
(b) Developing Economies
(c) Socialist Economies
(d) Developed Countries

4. Estimation of poverty in rural economies is at per day consumption of calories

(a) Less than 2,200
(b) Less than 2,100
(c) Less than 2,400 
(d) Less than 2,000

5. Estimation of poverty in urban areas is at the consumption of per day calories of

(a) Less than
(b) Less than 2,100
(c) Less than 2,400
(d) Less than 2,200

6. What is the main reason of poverty in India in urban areas?

(a) Lack of professional education
(b) Unequal distribution of income
(c) Lack of family planning of income facilities
(d) Money inflation

7. Match the following and find the correct pair.

COLUMN ACOLUMN B
(i) Green Revolution(A) 1962
(ii) PMJAY(B) 2012
(iii) NI–MC(C) 1960
(iv) MGNREGA(D) 2006

(a) (i)-(A)
(b) (ii)-(B)
(c) (iii)-(C)
(d) (iv)-(D)

8. Match the following and find the correct pair.

Column A   Column B  
1. Study Groupa. 1961
2. Task Force on Projections of Minimum Needs and Effective Consumption Demandb. 1979
3. Expert Groupc. 1982
4. Swarna Jayanti Shahari Rozgar Yojana   d. 1989

(a) 1-a
(b) 2-b
(c) 3-c
(d) 4-d

9. Match the following and find the correct pair.

Column A   Column B  
1. Indira Gandhi National Widow Pension Scheme a. Nutritional Programme
2. National Rural Livelihood Missionb. Social Assistance Programme
3. Sampoorna Grameen Rozgaar Yojna c. Wage Employment
4. Mid-day Meal Schemed. Infrastructure Development Programme

(a) 1-a
(b) 2-b
(c) 3-c
(d) 4-d

10. In which category, the loan taken for buying agriculture equipment is generally put

(a) Short-Term Loan
(b) Medium-Term Loan
(c) Long-Term Loan
(d) All of the above

11. Match the following and find the correct pair.

COLUMN 1COLUMN 2
(1) Reserve Bank(a) 1969
(2) Regional Rural Bank(b) 1975
(3) NABARD(c) 1971
(4) Development Bank(d) 1980

(a) 1-a
(b) 2-b
(c) 3-c
(d) 4-d

12. When was NABARD constituted?

(a) July, 1982 
(b) June, 1982 
(c) July, 1980 
(d) July, 1984

13. Which institute does not provide direct loan to farmers? 

(a) NABARD
(b) Commercial Bank
(c) Regional Rural Bank
(d) Primary Agriculture Credit Society

14. Match the following and find the correct pair.

COLUMN 1COLUMN 2
(1) NABARD(a) Apex institute of rural credit
(2) RBI(b) Established in 1975
(3) AXIS Bank(c) Established in July 1982
(4) IDBI(d) Not an institution for credit

(a) 1-a
(b) 2-b
(c) 3-c
(d) 4-d

15. Farmer is forced to sale his products at low price because of:

(a) Ignorance about market information
(b) Financial problems
(c) Both (a) and (b)
(d) None of the above 

16. AGMARK is related with:

(a) Agricultural production in government farms
(b) Standard quality of agricultural produce
(c) Heavy machinery
(d) None of the above 

17. Which of the following is not an institutional credit agency?

(a) Co-operative Societies
(b) Commercial and Regional Rural Bank
(c) NABARD
(d) Desi Banker

18. Credit that farmers need for consumption such as on birth and death, etc. is called:

(a) Productive credit
(b) Unproductive credit
(c) Both (a) and (b)
(d) None of the above 

19. ‘TRYSEM’ a programme made for the:

(a) Employment to retired government employees
(b) Employment to rural youths
(c) Employment to urban youths 
(d) Credit to rural people 

20. The Union Government announced the KUSUM scheme for promoüng solar farming. In the term KUSUM, the letter ‘S’ stands for:

(a) Solar
(b) Suraksha
(c) Samvidhaan
(d) Sarvopari 

21. Which of the following statements is true?

(a) The need of agriculture credit which is required for the completion of agriculture works is known as agriculture productivity.
(b) Short-term credit is required for a period of 9 to 15 months for buying seeds, tools, manure, fertilizers, etc.
(c)  Medium term credit is required for about 1 to 5 years of digging wells, buying machinery etc.
(d) Rural development is the process of given employment to the low income group people living in rural areas and making this development efforts permanent

22. Active factor in production is:

(a) Physical Capital
(b) Human Capital
(c) Both (a) and (b)
(d) None of the above 

23. Human Development is:

(a) An end
(b) A means
(c) Both (a) and (b)
(d) None of the above

24. Match the following and find correct pair.

Column A   Column B  
1. AICTEa. All India Council of Technological Education
2. UGCb. Universal Grant College
3. NCERTc. National Council of Education Research and Technology
4. ICMRd. Indian Council For Medical Research

(a) 1-a  
(b) 2-b   
(c) 3-c   
(d) 4-d

25. Human Capital Formation includes

(a) Expenditure on education
(b) Expenditure on health
(c) Expenditure on training
(d) All of the above

26. A man remains absent from work due to illness. It will affect

(a) Safety of work    
(b) Salary/lncome
(c) Productivity
(d) All of the above

27. Education increases peoples:

(a) Productivity
(b) Skill
(c) Income
(d) All of the above

28. Human Capital includes

(a) Health
(b) Education
(c) Professional Skill
(d) All of the above

29. Match the following and find the correct pair.

Column A   Column B  
1. Sarva Siksha Abhiyan a. Rural Education
2. National Council of Educational Research and Trainingb. Adult Education
3. Indira Gandhi National Open University 
c. Higher Education
4. Kendriya Vidhyalayad. Elementary Education

(a) 1-a  
(b) 2-b   
(c) 3-c   
(d) 4-d

30. Which of the following statements is not true with respect to the problems in Human Development in India?

(a) Problem of estimation of total stock of human capital.
(b) Problem of estimation of growth rate of human capital formation.
(c) Problem of migration from one place to another.
(d) Neglect of on-the-job training programme. 

31. Which of the following statements is true with respect to education in India?

(a) An essential element of human resource development.
(b) All the Indians are highly educated.
(c) There is no problem with drop-outs from school.
(d) The examination system is the best in the world.

32. The difference between labour force and work force is:

(a) Total employed labour
(b) Disguised unemployed labour
(c) Unemployed labour
(d) Seasonal unemployed labour  

33. In an economy, labour force and work force are equal in a situation when the

(a) Population at slower rate
(b) No growth in population
(c) No unemployment
(d) Growth rate of population is greater than the growth rate of employment 

34. A kind of unemployment in which workers  to be working but its contribution to production is negligible called

(a) Seasonal Unemployment
(b) Disguised Unemployment
(c) Industrial Unemployment 
(d) Educated Unemployment

35. Disguised unemployment is a characteristic of

(a) Industry
(b) Trade
(c) Agriculture
(d) Transport

36. Workers who own and operate an enterprise to earn their livelihood are called

(a) Ministers
(b) Public servant
(c) Self employed
(d) Government doctor 

37. Urban people are mainly engaged in the

(a) Primary sector
(b) Service sector
(c) Training
(d) Agriculture 

38. India is an

(a) Industrial country
(b) Scientifically developed country
(c) Agrarian nation
(d) Service developed country

39. Those who are working in the formal sector enjoy

(a) Economic benefits
(b) Social security benefits
(c) Education advantages
(d) Cultural benefits 

40. Owing to the efforts of the following organisation, Indian government initiated modernisation and also provision of social security measures to informal sector workers: 

(a) GNP    
(b) NSSO 
(c) ILO      
(d) LPG 

41. Match the following and answer accordingly.

Column A   Column B  
1. Beginning of Swarna Jayanti
Gram Swarojgar Yojna (SJGSY)
a. 2006
2. Beginning of Sampoorna Grameen Rozgar Yojana b. 2001
3. Beginning of National Rural
Employment Guarantee
Scheme   
c. 1997
4. Beginning of Swarna Jayanti Shahari Rozgar Yojana (SJSRY)    d. 1999

(a) 1-a  
(b) 2-b   
(c) 3-c   
(d) 4-d

42. Unemployment which is caused by the introduction of new machinery, improvement of production techniques, labour saving devices, etc. is called:

(a) frictional unemployment
(b) casual unemployment
(c) structural unemployment
(d) technological unemployment 

43. Which type of unemployment is more in India?

(a) Open unemployment
(b) Disguised unemployment
(c) Seasonal unemployment
(d) Educated unemployment 

44. Find the odd one out: 

(a) Owner of a salon
(b) A cobbler
(c) A cashier in Mother Dairy
(d) A tuition master

45. Find odd one out:

(a) Rickshaw puller who works under a rickshaw owner 
(b) Mason
(c) Mechanic shop worker
(d) Shoe shine boy

46. Which of the following statements is true?

(a) Employment means a situation in which a person willing to work and able to work does not get employment at the prevailing wage rate.
(b) Employment is an indicator of that situation in which a worker is engaged in some productive activity for earning his living.
(c) Labour supply refers to the amount of labour that are unwilling to offer services corresponding to a particular wage rate.
(d) An arrangement in which a worker uses his own resources to make a living is known as casual workers.

47. Which of the following is true the of unemployment in India?

(a) Rapid increase in population 
(b) High rate of economic development
(c) Inadequate economic planning 
(d) The nature of agricultural is Seasonal

48. Match the following and find the correct pair.

Column A   Column B  
1. Structural unemployment a. Arises due to change in demand pattern and supply structure
2. Disguised Unemploymentb. Not working by choice
3. Seasonal Unemployment
c. Invisible in nature
4. Casual unemployment d. Arises due to movement of labour

(a) 1-a 
(b) 2-b  
(c) 3-c  
(d) 4-d

49. Match the following and find the following pair.

Column A   Column B  
1. Self-Employed Labour a. Works in his own company
2. Hired Workerb. Works using his own resources
3. Casual Worker
c. Works whenever they want
4. Regular Workerd. Works all the time

(a) 1-a 
(b) 2-b  
(c) 3-c  
(d) 4-d

50. To which type of infrastructure, transport is related

(a) Economic   
(b) Social
(c) Both (a) and (b) 
(d) None of the above 

51. Social infrastructure helps in production and distribution

(a) In direct form
(b) In indirect form
(c) In no way
(d) In both (a) and (b) 

52. Agriculture waste is the source of energy:

(a) Commercial
(b) Non-Commercial
(c) Both (a) and (b)
(d) None of the above 

53. Match the following and find the correct pair.

Column A   Column B  
1. Pradhan Mantri Jan Dhan Yojanaa. May 2016
2. Pradhan Mantri Ujjwala Yojanab. May 2015
3. Pradhan Mantri Jeevan Jyoti Bima Yojana
c. Aug. 2014
4. Mahatma Gandhi National Rural Employment
Guarantee Act
d. Feb. 2006

(a) 1-a 
(b) 2-b  
(c) 3-c  
(d) 4-d

54. Which of the following statements is not true regarding infrastructure in India?

(a) Infrastructure increases the productivity of productive resources.
(b) Infrastructure raises the standard of living and economic development of the country.
(c) All those factors like-energy, transport, communication, schools, colleges and hospitals do not form part of infrastructure.
(d) Infrastructure refers to the basic supporting structure which is built to provide different kinds of services in an economy.

55. Which of the following statements is not true about the power sector in India?

(a) Government needs to invest on the infrastructure to meet growing demand for electricity, India’s commercial energy supply needs to grow at about 7%.
(b) There has been an increase in profits of State Electricity Boards.
(c) Private sector power generators are yet to play their role in a major way.
(d) There is general public unrest due to high power tariffs and prolonged power cuts in different parts of the country.

56. Match the following and find the following pair.

COLUMN 1COLUMN 2
1. Ayushman Bharat(a) Sep 2018
2. Swachh Bharat Abhiyan(b) Oct 2018
3. Make in India(c) Oct 2015
4. Digital India(d) May 2014

(a) 1-a 
(b) 2-b  
(c) 3-c  
(d) 4-d

57. Match the following and find the correct pair.

Column A   Column B  
1. National Health Protection Scheme   a. 2005-2018
2. National Rural Health Missionb. 2005-2012
3. National Health Insurance Scheme
c. 2015-2017
4. Deendayal Disabled Rehabilitation Schemed. 2012-2018

(a) 1-a 
(b) 2-b  
(c) 3-c  
(d) 4-d

58. Which of the following is not used as a strategy for Sustainable Development?

(a) Use of bio-gas
(b) Use of solar power
(c) Use of thermal power
(d) Use of hydel power

Ans. (A) 

Explanation: Burning oil, liquid natural gas (LNG), coal, and other substances are used to create thermal power, and these substances are non-renewable resources. Thus, thermal power is not a strategy of sustainable development.

59. The essential condition for sustainable growth is:

(a) Protection of natural resources
(b) Pollution free growth
(c) Quality of life
(d) All of the above   

60. Physical environment includes:

(a) Land
(b) Water
(c) Air
(d) All the above 

61. To check water pollution following method can be adopted 

(a) Commerce
(b) Better engine fot cars
(c) Re-use of industrial waste
(d) Use of non-polluting ources for energy. 

62.  Out of following one is non-renewable source:

(a) Forest
(b) Water
(c) Sun rays
(d) Coal

63. Following are included in strategies for sustained development:

(a) Wind Energy
(b) Solar Energy
(c) Bio-compost
(d) All of the above

64. Match the following and find the correct pair.

COLUMN 1COLUMN 2
1. Environment Degradation(a) Soil erosion
2. Land Pollution(b) Future Use
3. Sustainable Development(c) Leads to poverty
4. Air pollution(d) Greenhouse gases

(a) 1-a 
(b) 2-b  
(c) 3-c  
(d) 4-d

MCQ Answers

1. (b)

Relative poverty means poverty defined in comparison to other people’s standing in the economy.

2. (a)

3. (b)

The threshold limit for food consumption has been set to 2,400 calories per day in rural areas below which the individual is considered as poor.

5. (b)

4. (c)

The threshold limit for food consumption has been set to 2,400 calories per day in rural areas below which the individual is considered as poor.

6. (b)

7. (d)

MGNREGA was launched by Govt. of India in 2006, to provide for the enhancement of livelihood security of the households in rural areas.

8. (b)

In 1979, the poverty line was defined by the task force on projection of minimum needs and consumption demand as per capita cost per day to meet the daily requirement of 2400 calories per day in rural areas and 2100 calories per day in urban areas.

9. (c)

The Sampoorna Grameen Rozgar Yojana was a scheme launched by the Government of India to gain the objective of providing gainful employment for the rural poor.

10. (b)

11. (b)

Regional Rural Banks came into existence on Gandhi Jayanti in 1975 with the formation of a Prathama Grameen Bank.

12. (a)

13. (a)

National Bank for Agriculture and Rural Development is an apex regulatory body for overall regulation and licensing of regional rural banks and apex cooperative banks in India.

14. (a)

National Bank for Agriculture and Rural Development is an apex regulatory body for overall regulation and licensing of regional rural banks and apex cooperative banks in India.

15. (c)

16. (b)

AGMARK is a certificate mark in agricultural products in India, which ensures that it complies with the set of standards approved by the Directorate of Marketing and Inspection, an Indian Government agency.

17. (d)

Agriculture credits provided by government institutions are called institutional credit.

18. (b)

Unproductive credit refers to the credit taken to meet consumption expenditures for social and religious purposes.

19. (b)

Trysem was launched in 1979 as a separate national scheme for training rural youth for self employment.

20. (b)

KUSUM: Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan.

21. (c)

Classification of Agricultural Credit:-
Short-Term Credit: It is required for buying tools, manure, fertilizers, etc.
Medium-Term Credit: It is required for digging wells, buying machinery, etc.
Long-Term Credit: It is required for the purchase of tractors, land, and costly equipment. tube wells, etc.

22. (b)

Since the real work of production is done by labour it is considered as the active factor of production.

23. (a)

24. (d)

25. (d)

Human capital formation is a process of adding to human capital over time, Human capital can be developed through the creation of skilled, trained and efficient staff by providing better education, health care facilities, etc.
Highly skilled people can create new ideas and new ways to produce. Therefore, spending on education, health and on-the-job training are important resources for building human capital.

26. (d)

27. (d)

Education enhances productivity and innovation and promotes entrepreneurship and technological advancement. In addition it plays a very important role in protecting economic and social progress and improving income distribution.

28. (d)

Human capital are the amount of knowledge, skills, experience and social attributes that contribute to a person’s ability to perform a function in a way that reflects economic value.

29. (c)

30. (c)

31. (a)

32. (c)

33. (c)

The labour force equals the employed plus the unemployed members the civilian non-institutional population.

34. (b)

Disguised unemployment means that the number of workers employed in a job are much more than actually required. It is invisible in nature but when some workers are withdrawn from work, total production remains unchanged. It is said to be disguised unemployment.

35. (c)

Disguised unemployment is more common in developing countries with overcrowding. It can be characterized by low productivity and is often associated with informal labour markets and agricultural labour markets, which can hold large numbers of workers.

36. (c)

Persons who own and run a business to earn a living are known as self employed.

37. (b)

38. (c)

India is an agrarian economy, as it is called the backbone of the Indian economy. About 60% to 70% of India’s population depends upon agriculture for their livelihood.

39. (b)

Social security benefits are payments made to qualified retirees and disabled people, and to their spouses, children, and survivors.

40. (c)

ILO stands for International Labour Organization that is committed to the promotion of social justice and human and labour rights, pursuing its mission of establishing that workers’ peace is essential for prosperity.

41. (b)

Sampoorna Grameen Rozgar Yojana was launched on 25 September, 2001. The program is geared towards itself in nature and aims to provide employment and food to people in rural areas living below the poverty line.

42. (d)

43. (b)

Sampoorna Grameen Rozgar Yojana was launched on 25 September, 2001. The program is geared towards itself in nature and aims to provide employment and food to people in rural areas living below the poverty line.

44. (c)

Except cashiers in Mother Dairy, all are self-employed.

45. (d)

46. (b)

47. (a)

48. (a)

With the passage of time, when the demand pattern of goods changes there will be change in the demand pattern for labour. Some labour in one sector becomes idle while there may be demand in the other sector. Since labour cannot immediately switch over to a new pattern, therefore, it causes structural unemployment.

49. (a)

Self-employment is the state of working for oneself rather than an employer.

50. (a)

Economic infrastructure is the key institution that directly benefits the production and distribution process in the economy. Roads, railways, systems, waterways, airports, financial institutions, electricity, water supply, etc. are examples of economic infrastructure.

51. (b)

52. (d)

MGNREGA was launched by Govt. of India in 2,006, to provide for the enhancement of livelihood security of the households in rural areas

53.

54. (c)

55. (b)

56. (a)

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana of the Government of India, launched by Prime Minister on September 23, 2018, is A national health insurance scheme that aims to provide free access to health care for law-income people in the country.

57.

58. (b)

National Rural Health Mission (2005-2012) was launched to provide quality health care to rural people, especially the vulnerable group.

59. (d)

60. (d)

61. (c)

62. (d)

63. (d)

64. (d)

Air pollution includes greenhouse gases such as carbon dioxide. Greenhouse gases cause the climate to warm by trapping heat from the sun in the earth’s atmosphere


 Assertion-Reason Based MCQ 

Code

  1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A).
  2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
  3. Assertion (A) is true, but Reason (R) is false.
  4. Assertion (A) is false, but Reason (R) is true.

1. Assertion (A) Casual labourers are most vulnerable in the society.

Reason (R) Casual labourers don’t have a permanent earning facility and their earning varies a lot. They can even lose their jobs with a slight dip in economic growth.

2. Assertion (A) Calorie-based norm is not an adequate measure to idenüfy the poor.

Reason (R) This method does not differentiate between the very poor and the other poor. 

3. Assertion (A) Poverty and unemployment are related to each other.

Reason (R) Unemployment leads to poverty.  

4. Assertion (A) It is essential to develop proper storage facilities in rural areas.

Reason (R) Farmers can wait for a better price for their products in the market. 

5. Assertion (A) In rural India, horticulture plays a vital role in providing food and nutrition to the rural population.

Reason (R) Various horticultural activities in Indian villages have improved the economic conditions of many farmers. Such activities have become a lucrative source of livelihood for many women in rural India.

6. Assertion (A) The Prime Minister urged to increase the rural income by increasing non-farm activities.

Reason (R) Non-farm activities (agro-processing industries, poultry, craft, handloom) provide alternative avenues for sustainable livelihood and may raise the level of income as the risks due to fluctuations in production and market prices is generally less.

7. Assertion (A) Physical capital helps in formation of human capital.

Reason (R) Physical capital is passive in nature.

8. Assertion (A) Human Capital Formation gives birth to innovation, invention and technological improvements.

Reason (R) Investment in education creates ability to adopt newer technologies, facilitates invention and innovation since educated workforce generally adapts to modern technologies and innovation. 

9. Assertion (A) Indian economy is marching ahead towards progress.

Reason (R) The contribution of agriculture in national income is declining but the contribution  of industries and service sector is increasing continuously. It is an indicator of economic development of the Indian Economy.

10. Assertion (A) Less women are found in regular salaried employment.

Reason (R) Women workers accord highest priority to self-employment because of mobility of female labour work force both in urban as well as in rural areas.

11. Assertion (A) Meena is a housewife. Besides taking care of household chores, she works in the cloth shop which is owned and operated by her husband. She is considered a self-employed worker.

Reason (R) Self-employed workers are those who use their own resources to earn and make a living.

12. Assertion (A) Bengaluru in Karnataka is referred to as Silicon Valley of India, as it is the hub of IT based industries.

Reason (R) Presence of world class communication facilities help it to attract many multinational companies that makes it hub of IT based industries.

13. Assertion (A) Investors are reluctant to invest in tidal energy projects 

Reason (R) Tidal energy has high cost and low running cost. As a result, a tidal power scheme may not give returns for years.

14. Assertion (A) Medical Tourism is a great opportunity for India.

Reason (R) Indian health services combine the latest medical technologies with qualified professionals and are cheaper for foreiB1ers. By upgrading health services, it can be a great opportunity for India.

15. Assertion (A) Sustainable development is the only way that will allow the economy to have a proper development.

Reason (R) Sustainable development is the development in which the economy is developed considering the needs of the future generation. 

16. Assertion (A) The Indian government is investing a lot in Solar Energy.

Reason (R) Solar Energy is a clean form of energy and thus does very minimum harm to the environment.

17. Assertion  Soil Erosion is the major environmental problem faced by India 

Reason India is an agricultural economy

Assertion-Reason Based MCQ

1. (1)

2. (1)

This mechanism takes into account expenditure on food and a few other items as a proxy for income. It ignores many other vital factors associated with poverty; for instance, the accessibility to basic education, health care, drinking water and sanitation.

3. (1)

When unemployment prevails, people don’t get income. As a result, they are not able to get necessities of life and they become poor. Unemployment leaves birth to poverty. Therefore, there is a direct relation.

4. (1)

They are forced to sell their crops at very low prices to traders because of the fear of getting damage from fire, rodents or pests due to lack of proper storage facilities.

5. (1)

6. (1)

Agriculture in India is mainly a seasonal occupation, however, during off seasons, it becomes difficult to find employment and stabilize farmer’s income. Thus, the Prime Minister has urged appropriately in the best interest of the farmers of rural India.

7. (4)

Human capital helps in formation of physical capital.

8. (1)

Human Capital Formation not only increases the productivity of available human resources but also stimulates innovation and creates the ability to adopt new technologies.

9. (1)

10. (1)

11. (2)

A person who participates in the production process and contributes to GDP formation is referred to as a worker. As here, Meena works in a cloth store to support her husband and contribute to GDP by donating her services, therefore, she can be considered a worker.

12. (1)

Bangalore is also known as the “Silicon Valley of India” because of its role in promoting the IT industry in India. Infosys, Wipro and other Indian technology organizations have their headquarters in the city.

13. (1)

Tidal energy has a high capital cost i.e., installation cost.

14. (1)

15. (2)

Dimensions of Sustainable Development:
(i) social development
(ii) economic development
(iii) environmental development
As all three aspects are included in sustainable development, thus sustainable development is the only way that will allow the economy to have a proper development.

16. (1)

17. (3)

Soil erosion is the major environmental problem faced by India, because of faulty farming practices.


Case-Study Based MCQ 

1. Read the following following passage and answer accordingly.

Since ages, farmers in India have taken recourse to debt. In the earlier times the same was from informal sources. Since independence with the efforts of the government, the formal sector has actively come into picture. 

Farmers borrow not only to meet their investment needs but also to satisfy their personal needs. Uncertainty of income caused by factors like crop failure caused by irregular rainfall, reduction in Bound water table, locust/other pest attack, etc. 

These reasons push them into the clutches of the private money lenders, who charge exorbitant rates of interest which add to their miseries.

Various governments in India, at different times for different reasons, introduced debt relief/waiver schemes. These schemes are used by governments as a quick means to extricate farmers from their indebtedness, helping to restore their capacity to invest and produce, in short to lessen the miseries of the farmers across India. The costs and benefits of such debt relief schemes are, however, a widely debated topic among economists.

Some economists argue that such schemes are extremely beneficial to the poor and marginalised farmers while others argue that these schemes add to the fiscal burden of the government, others believe that these schemes may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.

(i) Uncertainty of income for farmers in India is majorly caused by

(a) Irregular rainfall
(b) Unavailability of loans
(c) Locust/other pest attack
(d) All of the above

(ii) Some economists argue that debt waiver  are extremely beneficial to the poor and marginalised farmers, as these schemes reduce the burden of 

(a) Indebtedness
(b) Personal Expenditure
(c) Crop failure
(d) None of the above 

(iii) The rural banking structure in India consists of a set of mulå-agency institutions   that are expected to dispense credit at cheaper rates for agricultural purposes to farmers.

(a) Regional Rural Banks
(b) Small Industries Development Bank of India
(c) Both (a) and (b)
(d) None of the above 

(iv) ________ is the most prominent body responsible for providing loans for long term land development. 

(a) Regional Rural Banks
(b) Land Development Banks
(c) Both (a) and (b)
(d) None of the above 

2. Read the following passage and answer accordingly.

New Delhi: Prime Minister Narendra Modi on Saturday launched the Ayushman Bharat Scheme via video-conferencing to extend health insurance coverage to all residents of Jammu and Kashmir. The Prime Minister’s Office said the scheme will ensure universal health coverage, and focus on providing financial risk protection and ensuring quality and affordable essential health services to all individuals and communities.

Union Home Minister Amit Shah and the Union Territory’s Lieutenant Governor, Manoj Sinha, also spoke on the occasion.

The scheme will provide free-of-cost insurance cover to all residents of the UT of Jammu and Kashmir, the PMO said, adding that it will extend financial cover of upto 5 lakhs per family on a floater basis to all residents of the UT.

There is provision for operational extension of the ‘Pradhan Mantri Jan Arogya Yojana’ (PM-JAY) to approximately 15 lakh additional families, the PMO statement said, adding that the scheme will operate on insurance mode in convergence with PM-JAY

The benefits of the scheme will be portable across the counfry. The hospitals empanelled under the PM-JAY scheme shall provide services under this scheme as well, the PMO said.

(i) What does the Ayushman Bharat Scheme provide?

(a) Better health care facility
(b) Cheaper health care facility
(c) Health Insurance
(d) All of the above

(ii) What is the main benefit of the scheme?

(a) Bring a lot of people in the purview of health care
(b) Make health care affordable for the rich in India
(c) Alleviating poverty in India
(d) Improving the education in India

(iii) The financial cover under the scheme is per family.

(a) ₹ 5 Lakhs
(b) ₹ 15 Lakhs
(c) ₹ 1O Lakhs
(d) ₹ 20 Lakhs

(iv) _______ is the other name of the scheme. 

(a) PM-JAY
(b) PM-JAI
(c) PM-AJAY
(d) None of the above 

Case Study Based MCQ Answers

1. (i)(d) (ii)(a) (iii)(a) (iv)(b)

2. (i)(c) (ii)(a) (iii)(a) (iv)(a)


Final Words

From the above article, you have practiced Current Challenges Indian Economy MCQ of class 12 Economics Chapter 9. We hope that the above-mentioned MCQs for term 1 of chapter 9  Current Challenges Indian Economy will surely help you in your exam. 

If you have any doubts or queries regarding Current Challenges Indian Economy MCQ (Multiple Choice Questions) with Answers, feel free to reach us and we will get back to you as early as possible.

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