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Economy Practice Set 08

Authored practice, not a verbatim PYQ. 25 CAPF-level economy MCQs (harder) with answer key and one-line explanations, span across planning, agriculture, industry, poverty, employment and inclusive growth.

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PaperPaper ISubjectEconomy

Authored practice, not a verbatim PYQ. Twenty-five single-correct MCQs in CAPF Paper I objective style, weighted towards planning and NITI Aayog, agriculture, industry and infrastructure, and poverty, unemployment and inclusive growth. Attempt closed-book, then check the key. For year-sensitive figures, verify the latest.

Questions

Q1The Planning Commission of India was replaced in 2015 by the:
  1. AFinance Commission
  2. BNITI Aayog
  3. CReserve Bank
  4. DElection Commission
Q2India's Five-Year Plans were modelled in their early phase on the experience of:
  1. AThe United States
  2. BThe Soviet Union (planned development)
  3. CJapan
  4. DBrazil
Q3The Second Five-Year Plan, emphasising heavy industry, was based on a model associated with:
  1. AP C Mahalanobis
  2. BAmartya Sen
  3. CManmohan Singh
  4. DRaj Krishna
Q4"NITI Aayog" functions chiefly as a:
  1. AFunds-allocating body with statutory powers
  2. BThink tank and policy advisory body promoting cooperative federalism
  3. CTax-collecting authority
  4. DRegulator of banks
Q5The economic reforms of 1991 are best described as a shift towards:
  1. AGreater state control
  2. BLiberalisation, privatisation and globalisation
  3. CAutarky
  4. DCollectivisation of farms
Q6The "Green Revolution" raised foodgrain output mainly through:
  1. ALand redistribution alone
  2. BHigh-yielding varieties, irrigation, fertilisers and improved practices
  3. CReducing the cultivated area
  4. DBanning mechanisation
Q7The "White Revolution" in India refers to a sharp rise in the production of:
  1. AFoodgrains
  2. BMilk (Operation Flood)
  3. CCotton
  4. DFish
Q8Minimum Support Prices (MSP) are announced to:
  1. ACap consumer prices
  2. BAssure farmers a minimum price for certain crops
  3. CSet import tariffs
  4. DFix bank interest
Q9The body that recommends MSP to the government is the:
  1. ARBI
  2. BCommission for Agricultural Costs and Prices (CACP)
  3. CSEBI
  4. DFinance Commission
Q10"Disguised unemployment" is most commonly associated with:
  1. AThe IT sector
  2. BIndian agriculture, where more people work on land than needed
  3. CBanking
  4. DCivil aviation
Q11"Structural unemployment" arises mainly from:
  1. ASeasonal variation
  2. BA mismatch between workers' skills and available jobs due to changes in the economy
  3. CA temporary downturn
  4. DVoluntary job search
Q12The Mahatma Gandhi National Rural Employment Guarantee Act guarantees, to rural households, wage employment of:
  1. A50 days a year
  2. B100 days a year per household
  3. C365 days a year
  4. DNo fixed number of days
Q13The "poverty line" in India has traditionally been defined with reference to:
  1. AOwnership of a car
  2. BA minimum level of consumption expenditure (often calorie-based)
  3. CPossession of a passport
  4. DEducation level only
Q14"Multidimensional poverty" measures deprivation in:
  1. AIncome alone
  2. BHealth, education and standard of living together
  3. CLand ownership only
  4. DStock holdings
Q15A sector that contributes the largest share to India's GDP is the:
  1. AAgriculture sector
  2. BServices sector
  3. CMining sector
  4. DFisheries sector
Q16"Make in India", launched to boost manufacturing, aims primarily to:
  1. AReduce manufacturing
  2. BPromote domestic and foreign investment in manufacturing and jobs
  3. CBan imports entirely
  4. DPrivatise agriculture
Q17"Micro, Small and Medium Enterprises" (MSMEs) are significant because they:
  1. AContribute little to employment
  2. BGenerate large-scale employment and output across the economy
  3. COnly export luxury goods
  4. DAre banned in India
Q18The "Public Distribution System" (PDS) is mainly intended to:
  1. ADistribute petroleum to industry
  2. BSupply subsidised foodgrains to the poor through fair price shops
  3. CManage stock markets
  4. DBuild highways
Q19"Inclusive growth" emphasises growth that:
  1. ABenefits only urban elites
  2. BReaches all sections, reducing poverty and inequality
  3. CIgnores employment
  4. DExcludes rural areas
Q20The largest employer of the Indian workforce, by share of people engaged, has historically been:
  1. AManufacturing
  2. BAgriculture and allied activities
  3. CInformation technology
  4. DMining
Q21A "Special Economic Zone" (SEZ) is a designated area that:
  1. AHas separate trade and investment rules to promote exports and investment
  2. BBans all economic activity
  3. CIs reserved for agriculture only
  4. DLevies no laws at all
Q22The "informal" or "unorganised" sector in India is characterised by:
  1. AFull social security and regulation
  2. BLimited job security, low regulation and the bulk of employment
  3. COnly multinational firms
  4. DGovernment employees only
Q23The Pradhan Mantri Awas Yojana is a scheme aimed at:
  1. ARural employment
  2. BAffordable housing
  3. CCrop insurance
  4. DSkill training
Q24"Skill India" and similar missions address which problem most directly?
  1. AInflation
  2. BThe skill gap and employability of the workforce
  3. CTrade deficits
  4. DCurrency volatility
Q25Which of the following best summarises the structural change in the Indian economy since 1991?
  1. AA shift from services to agriculture
  2. BA rising share of services and gradual industrial growth, with agriculture's GDP share falling while it still employs a large workforce
  3. CComplete collapse of manufacturing
  4. DTotal dependence on imports

Answer key

Reveal the answer key and full worked solutions
Q Answer Why
1 (b) NITI Aayog replaced the Planning Commission in 2015.
2 (b) Early Indian planning drew on the Soviet planned-development experience.
3 (a) The Second Plan's heavy-industry model is linked to P C Mahalanobis.
4 (b) NITI Aayog is a think tank promoting cooperative federalism, not a funds allocator.
5 (b) The 1991 reforms ushered in liberalisation, privatisation and globalisation.
6 (b) The Green Revolution used high-yielding varieties, irrigation and inputs.
7 (b) The White Revolution (Operation Flood) raised milk production.
8 (b) MSP assures farmers a minimum price for certain crops.
9 (b) The CACP recommends MSP to the government.
10 (b) Disguised unemployment is common in Indian agriculture.
11 (b) Structural unemployment stems from skill-job mismatches.
12 (b) MGNREGA guarantees 100 days of wage employment per rural household.
13 (b) The poverty line is based on a minimum consumption expenditure.
14 (b) Multidimensional poverty covers health, education and living standards.
15 (b) The services sector contributes the largest share of India's GDP.
16 (b) Make in India promotes manufacturing investment and jobs.
17 (b) MSMEs generate large-scale employment and output.
18 (b) The PDS supplies subsidised foodgrains to the poor.
19 (b) Inclusive growth reaches all sections and reduces poverty and inequality.
20 (b) Agriculture and allied activities employ the largest share of workers.
21 (a) An SEZ has special trade and investment rules to spur exports and investment.
22 (b) The informal sector has low security and regulation but most employment.
23 (b) Pradhan Mantri Awas Yojana targets affordable housing.
24 (b) Skill India addresses the skill gap and employability.
25 (b) Services rose and agriculture's GDP share fell while still employing many.

Cross-references

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