planning economic development & five year plans section 4 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 11

Basic objectives of Indian plans are

  1. economic growth
  2. self-reliance
  3. employment generation
  4. population growth

a) 1, 2 and 4

b) 2 and 3

c) 1, 2 and 3

d) 1, 2, 3 and 4

Answer: (c)

Question : 12 [HCS (Pre) 2014]

The slogan of ‘poverty abolition’ was given in which Five Year Plan?

a) Sixth Plan

b) Second Plan

c) Fifth Plan

d) Fourth Plan

Answer: (c)

Question : 13 [HCS (Pre) 2014]

‘Planning from below’ is known as

a) Structural planning

b) Centralised planning

c) Functional planning

d) Decentralised planning

Answer: (d)

Question : 14

Consider the following statements :

  1. The Ninth Five Year Plan was launched in the 50th year of India’s independence.
  2. For the first time in the Indian economy the GDP growth rate of the Ninth Five Year Plan was set at 7%.
Which of the statements given above is/are correct?

a) 1 only

b) Both 1 and 2

c) 2 only

d) Neither 1 nor 2

Answer: (b)

The Ninth Five Year Plan was launched in the 50th year of India’s independence. Under the plan for the first time in the Indian Economy the GDP growth rate was set at 7%.

Question : 15

Consider the following statements

  1. High growth will led to inflation.
  2. High growth will lead to deflation.
Which of the statements given above is/are correct?

a) Only 2

b) Both 1 and 2

c) Only 1

d) Neither 1 nor 2

Answer: (c)

Typically, higher inflation is caused by strong economic growth. If Aggregate demand in an economy expanded faster than aggregate supply, we would expect to see a higher inflation rate.

If demand is rising faster than supply, then this suggests that economic growth is higher than the long-run sustainable rate of growth.

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