planning economic development & five year plans section 3 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 11

Consider the following statements:

  1. In the 11th five-year plan, the growth rate of the export was always positive.
  2. In the middle of the 11th five-year plan, the import growth was negative due to external factors.
Which of the statements given above is/are correct?

a) 2 only

b) 1 and 2

c) 1 only

d) None

Answer: (a)

Regarding to the 11th five-year plan, in the middle of the plan, the import growth was negative due to external factors and the growth rate of the export was negative during certain period.

Question : 12

Which plans and features are wrongly matched?

  1. First Plan - Community development projects
  2. Second - Heavy industries
  3. Third - Green Revolution
  4. Fourth Plan

a) 1 and 4

b) 3 only

c) 3 and 4

d) 1 and 3

Answer: (c)

Question : 13

The Planning Commission was set up in accordance with the directive principles in:

a) Article 39

b) Article 38

c) 5 A

d) Article 42

Answer: (a)

Question : 14

Which of the following is true?

a) Physical planning is more important than financial planning.

b) Physical and financial planning are equally important.

c) Financial planning is more important than physical planning.

d) Physical and financial planning are complementary.

Answer: (d)

Physical planning refers to the allocation of resources in terms of men, materials and machinery. In physical planning, an overall assessment is made of the available real resources such as raw materials, manpower, etc., and how they have to be obtained so that bottlenecks may be eliminated during the plan.

Physical planning requires the fixation of physical targets with regard to agricultural and industrial production, socio-cultural and transportation services, consumption levels and in respect of employment, income and investment levels of the economy.

Physical planning has to be viewed as overall long-term planning rather than short-term piecemeal planning. Financial planning refers to the technique of planning in which resources are allocated in terms of money.

Financial planning is essential in order to remove maladjustments between supplies and demand and for calculating the costs and benefits of the various projects. Thus, Financial planning is thought to secure a balance between demands and supplies, avoid inflation and bring about economic stability.

Question : 15

Consider the following statements:

  1. Bulk of employment in India is in rural areas.
  2. The disguised unemployment in agricultural sector is perennial.
  3. Industrialization has rendered several people jobless in India.
Which of the statement(s) given above is/ are correct?

a) 1 and 2

b) 2 and 3

c) 1 and 3

d) 1, 2 and 3

Answer: (a)

IMPORTANT indian economy mcq EXERCISES

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1202 Five year Plans based indian economy MCQ section 3 question answer with explanation pdf

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