Every Book Back multiple-choice question from Economics of Development and Planning (12th Standard Economics, Samacheer Kalvi) — each with the correct option highlighted and a clear, worked explanation. Free to read in English and Tamil.
Q1
"Redistribution with Growth" became a popular slogan of which approach?
- A. Traditional approach
- B. New welfare oriented approachCorrect
- C. Industrial approach
- D. None of the above
Explanation. The welfare-oriented approach redefined economic development in the 1970s by focusing on redistribution alongside growth to reduce poverty, inequality, and unemployment.
Q2
Which of the following is not a feature of economic growth?
- A. Concerned with developed nations
- B. Gradual change
- C. Concerned with quantitative aspect
- D. Wider conceptCorrect
Explanation. Economic growth is a narrower concept compared to economic development, as growth primarily deals with quantitative increases in output rather than structural changes.
Q3
Which among the following is a characteristic of underdevelopment?
- A. Vicious circle of povertyCorrect
- B. Rising mass consumption
- C. Growth of Industries
- D. High rate of urbanization
Explanation. Underdeveloped countries are characterized by the vicious circle of poverty, which is a circular constellation of forces that keeps a poor country in a state of poverty.
Q4
Identify the non-economic determinant of economic development.
- A. Natural resources
- B. Human resourceCorrect
- C. Capital formation
- D. Foreign trade
Explanation. Human resource, along with social organization and political freedom, is classified as a non-economic determinant, whereas natural resources and capital formation are economic determinants.
Q5
Economic growth measures the ___________.
- A. Growth of productivity
- B. Increase in nominal income
- C. Increase in outputCorrect
- D. None of the above
Explanation. Economic growth is a quantitative concept that directly refers to a gradual and steady increase in the total output or production of an economy over the long run.
Q6
The supply-side vicious circle of poverty suggests that poor nations remain poor because ___________.
- A. Saving remains low
- B. Investment remains low
- C. There is a lack of effective government
- D. a and b aboveCorrect
Explanation. On the supply side, low real income leads to low savings. Low savings restrict investment and capital formation, leading to low productivity and completing the vicious circle.
Q7
Which of the following plans focused on the agriculture and rural economy?
- A. People's Plan
- B. Bombay Plan
- C. Gandhian PlanCorrect
- D. Vishveshwarayya Plan
Explanation. The Gandhian Plan, drafted by S. N. Agarwal in 1944, specifically focused on developing the rural economy and promoting agricultural sector growth.
Q8
Arrange the following plans in the correct chronological order:
(i) People's Plan
(ii) Bombay Plan
(iii) Jawaharlal Nehru Plan
(iv) Vishveshwarayya Plan
- A. (i) (ii) (iii) (iv)
- B. (iv) (iii) (ii) (i)Correct
- C. (i) (ii) (iv) (iii)
- D. (ii) (i) (iv) (iii)
Explanation. The correct sequence is Vishveshwarayya Plan (1934), Jawaharlal Nehru's Committee (1938), Bombay Plan (1940), and People's Plan (1945), representing chronological order from oldest to newest.
Q9
M.N. Roy was associated with which of the following plans?
- A. Congress Plan
- B. People's PlanCorrect
- C. Bombay Plan
- D. None of the above
Explanation. In 1945, M.N. Roy drafted the 'People's Plan', which advocated state-controlled mechanization of agricultural production and distribution.
Q10
Which of the following countries adopts indicative planning?
- A. FranceCorrect
- B. Germany
- C. Italy
- D. Russia
Explanation. France is the pioneer of indicative planning, having implemented it since the Monnet Plan of 1947–1950 to coordinate private and public sectors.
Q11
Short-term plan is also known as ___________.
- A. Controlling PlansCorrect
- B. De-controlling Plans
- C. Rolling Plans
- D. De-rolling Plans
Explanation. Short-term plans, which usually cover a duration of one year, are also referred to as controlling or operational plans.
Q12
Long-term plan is also known as ___________.
- A. Progressive Plans
- B. Non-progressive Plans
- C. Perspective PlansCorrect
- D. Non-perspective Plans
Explanation. Long-term plans span across a period of ten to thirty years and are widely known as perspective plans.
Q13
The basic philosophy behind long-term planning is to bring ___________ changes in the economy.
- A. Financial
- B. Agricultural
- C. Industrial
- D. StructuralCorrect
Explanation. Perspective or long-term plans are designed to target and execute foundational structural changes in the socio-economic framework of an economy.
Q14
Sarvodaya Plan was advocated by ___________.
- A. Mahatma Gandhi
- B. J.P. NarayanCorrect
- C. S. N Agarwal
- D. M.N. Roy
Explanation. In 1950, J.P. Narayan advocated the 'Sarvodaya Plan', incorporating Gandhian concepts and Vinoba Bhave's philosophy to encourage rural and cottage industries.
Q15
The Planning Commission of India was set up in the year ___________.
- A. 1950Correct
- B. 1951
- C. 1947
- D. 1948
Explanation. The Planning Commission was established on March 15, 1950, to formulate the five-year development plans under the chairmanship of Jawaharlal Nehru.
Q16
Who wrote the book 'The Road to Serfdom'?
- A. Friedrich HayekCorrect
- B. H.R. Hicks
- C. David Ricardo
- D. Thomas Robert Malthus
Explanation. Friedrich Hayek authored this classic work in 1944, presenting a powerful warning about the dangers of tyranny and loss of individual liberties under centralized economic planning.
Q17
Perspective plan is also known as ----
- A. Short-term plan
- B. Medium-term plan
- C. Long-term planCorrect
- D. None of the above
Explanation. Perspective plans are long-term developmental blueprints spanning ten to thirty years, aimed at implementing fundamental structural shifts in an economy.
Q18
NITI Aayog is formed through------------------------
- A. Presidential Ordinance
- B. Allocation of business rules by President of India
- C. Cabinet resolutionCorrect
- D. None of the above
Explanation. NITI Aayog was established on January 1, 2015, through a cabinet resolution passed by the executive branch of the Indian government to succeed the Planning Commission.
Q19
Expansion of NITI Aayog?
- A. National Institute to Transform India
- B. National Institute for Transforming India
- C. National Institution to Transform India
- D. National Institution for Transforming IndiaCorrect
Explanation. The official expansion of NITI is the National Institution for Transforming India, representing the premier policy formulation body of the country.
Q20
The Chair Person of NITI Aayog is
- A. Prime MinisterCorrect
- B. President
- C. Vice – President
- D. Finance Minister
Explanation. The Prime Minister of India serves as the ex-officio Chairperson of NITI Aayog, leading its strategic direction and governing council.
