Planning And Development Class 12 MCQs Questions with Answers
Question 1.
What was the concept of becoming more ‘modern’?
(A) Industrialized countries in West
(B) Developing like an own identity of developed nation
(C) Adopting globalization to a higher extent
(D) Adopting western capitalist modal of economy
Answer:
(A) Industrialized countries in West
Explanation:
Modern society of the West is industrial society. It is by undergoing the comprehensive transformation of industrialization that societies become modern.
Question 2.
Why J. C. Kumarappa supported the plan of industrialization of rural areas?
(A) For the ground level development
(B) To help the poor
(C) To escape the vicious circle of poverty
(D) To boost up the economy
Answer:
(C) To escape the vicious circle of poverty
Question 3.
Which one of the following was not a part of the early phase of India’s development policy?
(A) Planning
(B) Self sufficiency
(C) Privatization
(D) Social and economic justice.
Answer:
(C) Privatization
Explanation:
In 1991 just to increase revenue, profitability & efficiency of public enterprises government decided to move towards privatization.
Question 4.
Which of these statements about the Bombay Plan is incorrect?
(A) It was a blueprint for India’s economic future.
(B) It supported state-ownership of industry.
(C) It was made by some leading industrialists.
(D) It supported strongly the idea of planning.
Answer:
(A) It was a blueprint for India’s economic future.
Explanation:
“The Bombay Plan” is the nickname of a 15-year economic plan for India proposed by a group of industrialists and technocrats in January 1944. Initially, it was released for private circulation only. Soon afterwards, the plan was published as a pamphlet in response to the interest generated by it.
Question 5.
The idea of planning in India was drawn from:
(i) the Bombay Plan
(ii) experiences of the Soviet bloc countries
(iii) Gandhian vision of society
(iv) demand by peasant organisations
(A) (ii) and (iv) only
(B) (iii) and (iv) only
(C) (i) and (ii) only
(D) All of the above
Answer:
(D) All of the above
Question 6
acts as a think tank of the Union Government. (CBSE SQP 2020-21)
(A) NITI Aayog
(B) Yojana Aayog
(C) Election Commission of India
(D) Ministry of External Affairs
Answer:
(A) NITI Aayog
Explanation:
It can only recommend long-term, policy changes but cannot influence or see their progress on the ground. NITI Aayog is supposed to be a think tank. This implies that while generating new ideas, it maintains a respectable intellectual distance from the government of the day.
Question 7
Policy has been adopted by Aayog. (CBSE SQP, 2020- 21)
(A) Make in India
(B) Come on India
(C) Start-up India
(D) Swachch Bharat
Answer:
(A) Make in India
Explanation:
On 1st January 2015, Niti Aayog 1 adopted Make In India policy to enhance skill I development and protect intellectual property. I
Question 8
was also associated with the ideas of growth, material progress and scientific rationality.
(A) Democracy
(B) Secularism
(C) Globalization
(D) Modernization
Answer:
(D) Modernization
Question 9.
Identify the stages of modernization:
(A) Agrarian society
(B) Drive to maturity
(C) Age of high consumption
(D) All of the Above
Answer:
(D) All of the Above
Question 10.
Which factor was responsible for discouraging research and development in manufacturing sector?
(A) Goods manufactured by local industries
(B) Poor import and export policy
(C) Export restrictions on goods manufactured in India
(D) All of the above
Answer:
(C) Export restrictions on goods manufactured in India
Question 11.
The principle of land reforms failed across the country:
(A) due to the government policies
(B) due to recession all over the country
(C) because nobody was capable of buying the land
(D) due to political influence and corruption in the society
Answer:
(D) due to political influence and corruption in the society
Explanation:
The land reforms failed because the tenancy contracts were expropriate in nature and tenant exploitation was almost everywhere. Land records were in extremely bad shape giving rise to a mass of litigation. One problem of agriculture was that the land was fragmented into very small parts for commercial farming
Question 12.
When were the restrictions on private industries imposed?
(A) 1960s
(B) 1970s
(C) 1990s
(D) 1950s
Answer:
(A) 1960s
Question 13
play an important role in the economy of developing countries like India.
(A) Private sectors
(B) Public sectors
(C) Union ministers
(D) State government
Answer:
(B) Public sectors
Explanation:
Public sector is important for overall development of a country like India as they fulfill the basic necessities like water, electricity which private sector will provide with high rates.
Question 14.
Why were the tribal hostile to the development of Odisha?
(A) They feared loss of their employment as well as lodgings
(B) They were illiterate
(C) They never liked intrusion of outsiders
(D) All of the above
Answer:
(A) They feared loss of their employment as well as lodgings
Explanation:
The development of Orissa (now Odisha) through the rich iron resources was not greeted openly by the tribals in the state. They feared loss of their employment as well as lodgings. Therefore, the ideas of development have always witnessed conflicts.
Question 15.
On which model was The Planning Commission of India setup?
(A) Calcutta model
(B) Bombay Plan
(C) National Development Model
(D) None of the above
Answer:
(B) Bombay Plan
Explanation:
Private investors seek an open economy without any state control in the flow of capital. Therefore, a section of the big industrialists got together in 1944 and drafted a joint proposal for setting up a planned economy in the country. It was called the Bombay Plan, in which they wanted the state to take major initiatives in industrial and other economic investments. Thus, from left to right, forming planning commission for the development of a country was the most obvious choice.
Question 16.
Which apex body is responsible for decision making and deliberations on development matters in India?
(A) Finance Ministry
(B) NitiAyog
(C) The National Development Council
(D) None of the above
Answer:
(C) The National Development Council
Explanation:
The National Development Council (NDC) or Rashtriya Vikas Parishad is the apex body for decision making and deliberations on development matters in India, presided over by the Prime Minister,
Question 17.
When the NDC was setup?
(A) 6 August 1952
(B) 6 December 1952
(C) 7 August 1952
(D) 10 June 1952
Answer:
(A) 6 August 1952
Explanation:
NDC (The National Development Council) was set up on 6 August 1952 to strengthen and mobilize the effort and resources of the nation in support of the Five Year Plans made by Planning Commission, to promote common economic policies in all vital spheres, and to ensure the balanced and rapid development of all parts of the country.
Question 18.
In 1946, who was chairman of the Planning Advisory Board?
(A) K C Neogy
(B) Sardar Patel
(C) Dr. Ambedkar
(D)None of the above
Answer:
(A) K C Neogy
Question 19.
NITI Aayog was set up:
(A) to bring more accuracy in the development
(B) because people had expectations for growth and development in the administration through their participation
(C) so that departments could be included in Planning Commission
(D) all the above
Answer:
(B) because people had expectations for growth and development in the administration through their participation
Explanation:
The Government of India constituted NITI Aayog to replace the Planning Commission, which had been instituted in 1950. This step was taken to better serve the needs and aspirations of the people.
Assertion and Reason Based MCQs
Directions: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
(A) Both (A) and (R) are true, but (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Question 1.
Assertion: The example of Orissa shows us that it is not enough to say that everyone wants development.
Reason: For ‘development’ has same or similar meanings for different sections of the people.
Answer:
(C) (A) is true, but (R) is false.
Explanation:
Development has different meanings for different sections of the people. People do not have the same notion of development. This is because people have different occupations and different lifestyles. Since people have the different quality of life, so notions of development are not similar to each other.
Question 2.
Assertion: ‘Development’ was about becoming more ‘modern’ and modern was about becoming more like the industrialized countries of the West.
Reason: It was believed that every country would go through the process of modernization as in the West, which involved the breakdown of traditional social structures and the rise of capitalism and liberalism.
Answer:
(A) Both (A) and (R) are true, but (R) is the correct explanation of (A).
Question 3.
Assertion: The nationalist leaders were clear that the economic concerns of the government of free India would have to be different from the narrowly defined commercial functions of the colonial government.
Reason: It was further clear that the eradication of the poverty was not the responsibility of the government, but the people.
Answer:
(C) (A) is true, but (R) is false.
Explanation:
The task of poverty alleviation and social and economic redistribution was being seen primarily as the responsibility of the government because for some people industrialisation was priority while for others, the development of agriculture and alleviation of rural poverty was the priority.
Question 4.
Assertion: Development could not be left to private actors, that there was the need for the government to develop a design or plan for development.
Reason: The Bombay Plan wanted the state to take major initiatives in industrial and other economic investments.
Answer:
(A) Both (A) and (R) are true, but (R) is the correct explanation of (A).
Explanation:
Development could not be left to private actors because the idea of planning as a process of rebuilding economy earned a good deal of public support.
Question 5.
Assertion: The excitement with planning reached its peak with the launching of the Second Five Year Plan in 1956 and continued somewhat till the Third Five Year Plan in 1961.
Reason: Though many criticisms emerged both about the process and the priorities of these plans, the foundation of India’s economic development was firmly in place by then.
Answer:
(A) Both (A) and (R) are true, but (R) is the correct explanation of (A).
Question 6.
Assertion: The First Five Year Plan (1951-1956) sought to get the country’s economy out of the cycle of poverty.
Reason: K. N. Raj, a young economist involved in drafting the plan, argued that India should ‘hasten slowly’ for the first two decades as a fast rate of development might endanger democracy.
Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
Explanation:
The First Five Year Plan addressed the agrarian sector including investment in dams and irrigation. The Plan identified the pattern of land distribution in the country as the principal obstacle in the wray of agricultural growth. It focused on land reforms as the key to the country’s development.
Question 7.
Assertion : Huge allocations were made for large- scale projects like the Bhakhra Nangal Dam.
Reason: Agricultural sector was hit hardest by Partition and needed urgent attention.
Answer:
(A) Both (A) and (R) are true, but (R) is the correct explanation of (A).
Question 8.
Assertion: The Second Five Year Plan stressed on heavy industries. It was drafted by a team of economists and planners under the leadership of P. C. Mahalanobis.
Reason: However, the Second Five Year Plan was responsible for the ruin of the agriculture as it did not have enough funding to support it.
Answer:
(C) (A) is true, but (R) is false.
Explanation:
During this plan, annual plans were made and equal priority was given to agriculture its allied sectors and the industry sector. Agriculture was never left out of the plan at all.
Question 9.
Assertion: The draft of the First Five Year Plan and then the actual Plan Document, released in December 1951, generated a lot of excitement in the country.
Reason: This draft failed to meet the expectations of the country as it did not have anything for common men.
Answer:
(C) (A) is true, but (R) is false.
Explanation: The first year plan was Harrod – Dornar model of development economics. Five Year Plan had a target of 2.1% PA growth in national income. Top priority was given to the development of agricultural sector. The idea was agricultural development would lead to higher rate of economic growth.
Question 10.
Assertion: India did not follow any of the two known paths to development – it did not accept the capitalist model of development in which development was left entirely to the private sector, nor did it follow the socialist model in which private property was abolished and all the production was controlled by the state.
Reason: It was India’s one of the biggest mistakes that India did not adopt any one of the two models suggested above.
Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
Explanation:
Elements of both these models (capitalist and socialist) were taken and mixed together in India and hence, it did not accept the capitalist model of development in which development was left entirely to the private sector, nor did it follow the socialist model in which private property was abolished and all the production was controlled by central authority.
Case-Based MCQs
I. Study the cartoon given below carefully and answer the questions that follow:
Question 1.
Who in the picture is balancing between the public and private sectors?
(A) Nehru
(B) Sardar Patel
(C) K. Kamraj
(D) None of the above
Answer:
(A) Nehru
Question 2.
Why has a big tilt towards the public sector been shown in the cartoon?
(A) The numbers of public sector meant to be increased.
(B) over emphasis given to the public sector.
(C) the ruling parties in India believe to give importance of public sector.
(D) All of the above
Answer:
(B) over emphasis given to the public sector.
Explanation:
The big tilt towards public sector is shown because heavy industries, agricultural sector were controlled by the state.
Question 3.
Which type of economic model was adopted by India?
(A) Capitalist
(B) Socialist
(C) Liberal socialist
(D) Mixed economic principle
Answer:
(D) Mixed economic principle
Explanation:
India did not accept the model in which development was left entirely to the private sector, nor did they follow in which private property was abolished and all the production was controlled by the state. Hence, they took elements from both these models and mixed together. That is why it was described as ‘mixed economy’.
Question 4.
How did the public sector affect the private sector?
(A) The prices in India remained in control
(B) The wealth of public was growing
(C) Public sector paid more tax to government
(D) Private sector was adversely affected
Answer:
(D) Private sector was adversely affected
II. Read the following passage carefully and answer the questions that follow:
On the eve of Independence, India had before it, two models of modem development: the liberal- capitalist model as in much of Europe and the US and the socialist model as in the USSR. There were many in India then who were deeply impressed by the Soviet model of development. These included not just the leaders of the Communist Party of India, but also those of the Socialist Party and leaders like Nehru within the Congress.
There were very few supporters of the American style capitalist development. As in the USSR, the Planning Commission of India opted for Five Year Plans (FYP). The idea is very simple: The Government of India prepares a document that has a plan for all its income and expenditure for the next five years. Accordingly, the budget of the Central and all the State governments is divided into two parts:
‘non-plan’ budget that is spent on routine items on a yearly basis and ‘plan’ budget that is spent on a five-year basis as per the priorities fixed by the plan. A five-year plan has the advantage of permitting the government to focus on the larger picture and make long-term intervention in the economy. The draft of the First Five Year Plan and then the actual Plan Document, released in December 1951, generated a lot of excitement in the country.
Question 1.
Which two models of modern development did India follow?
(A) Liberal-capitalist and Socialist
(B) Liberal and Capitalist
(C) Socialist and Communist
(D) None of the above
Answer:
(A) Liberal-capitalist and Socialist
Explanation:
On the eve of Independence, it India had before it, two models of modern development: the liberal – capitalist model as in much of Europe and the U.S. and the socialist model as in the U.S.S.R. There were many in India then who were deeply impressed by the Soviet model of development.
Question 2.
Which model had least supporters in India?
(A) USSR
(B) Liberal
(C) Capitalist
(D) Socialist
Answer:
(C) Capitalist
Question 3.
The Budget is divided into which two parts?
(A) Planned and semi planned budget
(B) Planned and non-planned budget
(C) Planned and reserved budget
(D) None of the above
Answer:
(B) Planned and non-planned budget
Explanation:
Plan expenditure is spent on productive asset creation through Centrally- sponsored programmes and flagship schemes/ while “Non-plan” refers to all other expenditure such as defence expenditure, subsidies, interest payments, including expenditure on establishment and maintenance activities such as salaries.
Question 4.
When was the draft of first five-year plan was released?
(A) November 1950
(B) December 1950
(C) October 1951
(D) December 1951
Answer:
(D) December 1951
Explanation:
The First Five-year Plan was launched in 1951 which mainly focused in the development of the primary sector.
III. Read the following paragraph and answer the questions that follow:
Aayog or National Institution for Transforming India Aayog is basically a policy think tank of Government of India and State Governments that replaces 65-year old Planning Commission. Union Government of India had announced formation of NITI Aayog on lsl January, 2015.
The body is comprised of a CEO and a Vice Chairperson, to be appointed by the Prime Minister, in addition to some full-time members and two part-time members, while four Union Ministers would serve as ex-officio members. Besides, there would be specific regional councils, while experts and specialists from various fields would be called as special invitees nominated by the Prime Ministers.
Aayog will serve as a “think tank” of the government as a “directional and policy dynamo” and would provide both to the governments at the centre and in the states with strategic and technical advice on key policy matters including economic issues of national and international importance. NITI Aayog will have regional councils to focus on developmental activities on specific areas and is patterned on the National Reforms Development Commission of China.
Question 1.
When was NITI Aayog formed?
(A) 3rd January, 2015
(B) 1st January, 2015
(C) 1st January, 2016
(D) 1st December, 2016
Answer:
(B) 1st January, 2015
Question 2.
The CEO and Vice Chairperson of NITI Aayog is appointed by
(A) President of India
(B) Members of Parliament
(C) Prime Minister of India
(D) Home minister of India
Answer:
(C) Prime Minister of India
Question 3.
How will NITI Aayog serve for India?
(A) Back Bone
(B) Think Tank
(C) Planning Commission
(D) None of the above
Answer:
(B) Think Tank
Explanation:
NITI Aayog is supposed to be a think tank. This implies that while generating new ideas, it maintains a respectable intellectual distance from the government of the day.
Question 4.
Which councils NITI Aayog will have to focus on developmental activities on specific areas and is patterned on the National Reforms Development Commission of China?
(A) National Councils
(B) Internationa] Councils
(C) Regional Councils
(D) All the above
Answer:
(C) Regional Councils
Explanation:
Regional councils are multi-purpose organizations with legal status. Most are voluntary associations and do not have the power to regulate or tax. Primarily funded by local governments and with state and federal funds, the councils are responsible to the representatives of the communities in their regions.
IV. Read the following passage carefully and answer the questions that follow:
The Second Five Year Plan stressed on heavy industries. It was drafted by a team of economists and planners under the leadership of P.C. Mahalanobis. If the first plan had preached patience, the second wanted to bring about quick structural transformation by making changes simultaneously in all possible directions.
Before this plan was finalized, the Congress party at its session held at Avadi near the then Madras city, passed an important resolution. It declared that ‘Socialist pattern of society’ was its goal. This was reflected in the Second Plan. The government imposed substantial tariffs on imports in order to protect domestic industries.
Such protected environment helped both public and private sector industries to grow. As savings and investment were growing in this period, a bulk of these industries like electricity, railways, steel, machineries and communication could be developed in the public sector. Indeed, such a push for industrialisation marked a turning point in India’s development.
Question 1.
Who drafted the Second Five Year Plan?
(A) Dr. Bhimrao Ambedkar
(B) P C. Mahalanobis
(C) MorarjiDesai
(D) Pt. Jawaharlal Nehru
Answer:
(B) P C. Mahalanobis
Explanation:
The Second Plan focused on the development of the public sector and “rapid Industrialization”. The plan followed the Mahalanobis model, an economic development model developed by the Indian statistician Prasanta Chandra Mahalanobis in 1953.
Question 2.
What was anticipated from Second Five Year Plan?
(A) Structural transformation
(B) Economic transformation
(C) Infrastructural development
(D) Eradication of poverty
Answer:
(A) Structural transformation
Explanation:
The main objectives of the Second Plan are an increase of 25 per cent in real national income over the five-year period 1956¬57 to 1960-61; a large expansion of employment opportunities; rapid industrialization; and reduction of economic inequalities.
Question 3.
What goal was declared by the Congress Party at ’ the session held at Avadi?
(A) Religious pattern society
(B) Capitalist pattern society
(C) Socialist pattern society
(D) None of the above
Answer:
(C) Socialist pattern society
Explanation:
“Socialist pattern of society” , according to the planning Commission, means “that the basic criterion for determining the lines of advance must not be private profit but social gain, and that the pattern of development and the structure of socio-economic relations should be so planned so that the result not only in appreciable in creases in national income and employment but also in greater equality in incomes and wealth”.
Question 4.
Why did government impose substantial tariffs on imports?
(A) To increase the income from imports
(B) To create employment in import-export sector
(C) To restrict foreign goods
(D) To protect domestic industries
Answer:
(D) To protect domestic industries
Explanation:
Governments may impose tariffs to raise revenue or to protect domestic industries-especially nascent ones-from foreign competition. By making foreign- produced goods more expensive, tariffs can make domestically produced alternatives seem more attractive.