planning economic development & five year plans section 5 MCQ Questions & Answers Detailed Explanation

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Questions : The Rural infrastructure fund set up in 1995 – 96, is maintained by the

(a) NABARD

(b) State Bank of India

(c) Reserve Bank of India

(d) Regional Rural Bank

The correct answers to the above question in:

Answer: (a)

The rural infrastructure fund was set up by the Government in 1995–96 for financing ongoing rural Infrastructure projects.

The Fund is maintained by the National Bank for Agriculture and Rural Development (NABARD).

Domestic commercial banks contribute to the fund to the extent of their shortfall in stipulated priority sector lending to agriculture.

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Read more planning economic development five year plans Based Indian Economy Questions and Answers

Question : 1

Which of the following programmes is specially directed towards helping women in difficult circumstances or in distress?

a) Swayamsiddha

b) Swadhar

c) Rashtriya Mahila Kosh

d) Mahila Samriddhi Yojana

Answer: (b)

Question : 2

In which of the following Five Year Plan, the High Yielding Varieties Programme (HYVP) was started in India?

a) Second Five Year Plan

b) Third Five Year Plan

c) First Five Year Plan

d) Fourth Five Year Plan

Answer: (b)

The main objective of the third five-year plan was to make the economy self-dependent. The Third Five-year Plan stressed agriculture and improvement in the production of wheat so as to be self-sufficient.

Thus during the planned period, the high yielding varieties programme (HYVP) was started in India to increase the yield of crops.

Question : 3

Which Indian plan ensured high growth rate as compared with targeted growth rate ?

a) Fourth Plan

b) Fifth Plan

c) Eighth Plan

d) Second Plan

Answer: (c)

Question : 4

The second five year plan was based on

a) Nehruvian Model

b) P.C. Mahalnobis Model

c) None of these

d) Harro-Domar Model

Answer: (b)

The second five-year plan was based on P.C. Mahalanobis Model.

The Mahalanobis model is a Neo-Marxist model of economic development, created by statistician Prasanta Chandra Mahalanobis in 953.

Mahalanobis became essentially the key economist of India’s Second Five Year Plan.

Question : 5

How would the size of the labour force and the rate of unemployment be affected if people retrenched from their jobs did not actively seek employment?

a) The labour force would be smaller and the unemployment rate would be higher.

b) The labour force would be smaller and the unemployment rate would be lower.

c) The labour force would be smaller and there would be no change in the unemployment rate.

d) There would be no change in the labour force and the unemployment rate would be higher.

Answer: (a)

Question : 6

The planning process in the industrial sector in India has assumed a relatively less important position in the nineties as compared to that in the earlier period.


Which one of the following is not true in this regard?

a) The nation’s priorities have shifted away from industrial development to rural development

b) With the advent of liberalisation, industrial investments / developments have largely been placed within the domain of private and multinational sector

c) The focus of planning has shifted to sectors like human, resource development, infrastructure, population control and welfare

d) With markets assuming a central place, the role of central planning in many sector has been rendered redundant

Answer: (a)

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