Class 12 Economics Chapter 1|English Medium: We are going to provide important MCQs from Class 12 Economics Chapter – 1, Part B: Indian Economic Development, which are frequently asked in board exams. These questions cover major historical, economic, and developmental aspects of the Indian economy before and after Independence.

Class 12 Economics Chapter 1|English Medium

Class 12 Economics Chapter – 1

PART – B: INDIAN ECONOMIC DEVELOPMENT

MCQs

1. In 1947, the dominant sector by share in national income was:
(i) Secondary sector.
(ii) Primary sector.
(iii) Tertiary sector.
(iv) Public sector.
Ans: (ii) Primary sector.

2. Approximate sectoral shares in 1947 (at 1938–39 prices) were:
(i) Primary 27%, Secondary 58.7%, Tertiary 14.3%.
(ii) Primary 58.7%, Secondary 14.3%, Tertiary 27%.
(iii) Primary 14.3%, Secondary 27%, Tertiary 58.7%.
(iv) Primary 50%, Secondary 25%, Tertiary 25%.
Ans: (ii) Primary 58.7%, Secondary 14.3%, Tertiary 27%.

3. A “colonial (feeder) economy” means India was primarily:
(i) Exporting finished goods to Britain.
(ii) Supplying raw materials and absorbing British manufactures.
(iii) Self-sufficient and closed to trade.
(iv) Dominated by public enterprises.
Ans: (ii) Supplying raw materials and absorbing British manufactures.

4. “Semi-feudal economy” at Independence implies:
(i) Only capitalist relations existed.
(ii) Only feudal relations existed.
(iii) Coexistence of feudal agriculture and emerging capitalist industry.
(iv) A fully socialist economy.
Ans: (iii) Coexistence of feudal agriculture and emerging capitalist industry.

5. During early 20th century, India’s real output growth was:
(i) Above 5% per year.
(ii) About 3–4% per year.
(iii) Less than 2% per year.
(iv) Negative.
Ans: (iii) Less than 2% per year.

6. Who is known as the “Father of National Income” in India?
(i) R.C. Dutt.
(ii) V.K.R.V. Rao.
(iii) Dadabhai Naoroji.
(iv) William Digby.
Ans: (iii) Dadabhai Naoroji.

7. Dadabhai Naoroji’s first NI estimate refers to the year:
(i) 1793.
(ii) 1853.
(iii) 1867–68.
(iv) 1931–32.
Ans: (iii) 1867–68.

8. The first scientific NI estimate (1931–32) was by:
(i) Findlay Shirras.
(ii) V.K.R.V. Rao.
(iii) R.C. Desai.
(iv) R.C. Dutt.
Ans: (ii) V.K.R.V. Rao.

9. The Suez Canal opened in:
(i) 1793.
(ii) 1853.
(iii) 1869.
(iv) 1907.
Ans: (iii) 1869.

10. The first railway in India started in:
(i) 1793.
(ii) 1853.
(iii) 1869.
(iv) 1947.
Ans: (ii) 1853.

11. The Permanent Settlement (Zamindari) was introduced in:
(i) 1793.
(ii) 1893.
(iii) 1907.
(iv) 1931.
Ans: (i) 1793.

12. The “Year of Great Divide” in Indian population studies is:
(i) 1853.
(ii) 1869.
(iii) 1921.
(iv) 1951.
Ans: (iii) 1921.

13. Around Independence, overall literacy was about:
(i) 7%.
(ii) 16%.
(iii) 32%.
(iv) 58.7%.
Ans: (ii) 16%.

14. Female literacy around Independence was roughly:
(i) 27%.
(ii) 16%.
(iii) 7%.
(iv) 40%.
Ans: (iii) 7%.

15. Life expectancy at birth around Independence was about:
(i) 60 years.
(ii) 45 years.
(iii) 32 years.
(iv) 25 years.
Ans: (iii) 32 years.

16. Infant mortality rate (deaths before age 1 per 1000 live births) around Independence was about:
(i) 33.
(ii) 120.
(iii) 218.
(iv) 400.
Ans: (iii) 218.

17. Under colonial rule, India became mainly an exporter of:
(i) Capital goods.
(ii) Primary/raw materials.
(iii) High-tech services.
(iv) Automobiles.
Ans: (ii) Primary/raw materials.

18. India’s export surplus under British rule largely financed:
(i) Gold inflows to India.
(ii) Massive domestic investment.
(iii) Home charges and invisibles to Britain.
(iv) Rural employment schemes.
Ans: (iii) Home charges and invisibles to Britain.

19. “Drain of wealth” was prominently argued by:
(i) R.C. Dutt.
(ii) Dadabhai Naoroji.
(iii) V.K.R.V. Rao.
(iv) Lord Cornwallis.
Ans: (ii) Dadabhai Naoroji.

20. After Partition, approximately what share of undivided India’s territory remained with India?
(i) 60%.
(ii) 70%.
(iii) 77%.
(iv) 82%.
Ans: (iii) 77%.

21. Post-Partition, India’s annual food deficit was estimated around:
(i) 7.5 lakh tonnes.
(ii) 15 lakh tonnes.
(iii) 30 lakh tonnes.
(iv) 60 lakh tonnes.
Ans: (iii) 30 lakh tonnes.

22. The jute/cotton raw material–mill mismatch after Partition arose because:
(i) Mills moved to Pakistan.
(ii) Raw jute/cotton areas largely went to Pakistan while mills stayed in India.
(iii) Both mills and raw material areas stayed in India.
(iv) Britain banned Indian jute.
Ans: (ii) Raw jute/cotton areas largely went to Pakistan while mills stayed in India.

23. By Independence, total railway route length in undivided India was about 50,100 km; India obtained approximately:
(i) 22,000 km.
(ii) 39,300 km.
(iii) 43,000 km.
(iv) 50,100 km.
Ans: (ii) 39,300 km.

24. Around 1950–51, irrigation covered roughly what share of net sown area?
(i) 5.8%.
(ii) 17.7%.
(iii) 37.1%.
(iv) 57.1%.
Ans: (ii) 17.7%.

25. In 1950–51, the largest source in total power generation mix was:
(i) Water.
(ii) Nuclear.
(iii) Coal.
(iv) Oil & gas.
Ans: (iii) Coal.

26. TISCO (a basic industry) was established in:
(i) 1793.
(ii) 1853.
(iii) 1907.
(iv) 1931.
Ans: (iii) 1907.

27. A “depleted economy” at Independence meant:
(i) High foreign exchange reserves.
(ii) Capital stock heavily worn out with inadequate replacement capacity.
(iii) Surplus of engineering and capital goods industries.
(iv) Overabundance of inventories.
Ans: (ii) Capital stock heavily worn out with inadequate replacement capacity.

28. “Dependent economy” under colonial rule implies:
(i) Self-sufficient village economies and minimal trade.
(ii) Dependence on imports for goods once domestically produced; loss of self-reliance.
(iii) Complete autarky.
(iv) Only agricultural dependence.
Ans: (ii) Dependence on imports for goods once domestically produced; loss of self-reliance.

29. Occupational structure circa 1951 showed about what proportion engaged in agriculture?
(i) 25–30%.
(ii) 40–50%.
(iii) 70–75%.
(iv) 85–90%.
Ans: (iii) 70–75%.

30. Which was a limited sphere of public sector activity before 1947?
(i) Heavy capital goods manufacturing across the board.
(ii) Railways, power, ports, communications.
(iii) Consumer durables production.
(iv) Nationwide fertilizer plants.
Ans: (ii) Railways, power, ports, communications.