Unit 11: Structure of Indian Economy - Practice Quiz

1 The agriculture sector is also commonly referred to as which sector of the economy?

2 In India, the majority of agriculture depends heavily on which of the following?

3 The Green Revolution in India is mainly associated with a large increase in the production of which crops?

4 Which term describes farming carried out mainly to meet the family's own needs rather than for sale?

5 Manufacturing and construction activities are grouped under which sector of the economy?

6 The service sector of the economy is also known as the:

7 Which of the following is an example of a service sector activity?

8 In recent decades, which sector has contributed the largest share to India's GDP?

9 Which of the following is classified as an industrial (secondary sector) activity?

10 The information technology (IT) and software industry in India mainly belongs to which sector?

11 The poverty line is best described as:

12 Which measure is most commonly used to represent income inequality in an economy?

13 A Gini coefficient of represents which situation?

14 The graphical curve used to show the distribution of income in an economy is called the:

15 Poverty measured only by the ability to afford basic minimum needs is known as:

16 Which of the following is a government scheme aimed at reducing rural poverty through guaranteed employment in India?

17 Which of the following is a renewable source of energy?

18 The idea of meeting present needs without compromising future generations' ability to meet theirs is called:

19 Which gas is most commonly linked to global warming and is a target of environmental regulation?

20 A carbon tax is a policy tool mainly designed to:

21 A state where a large share of farmers own less than 1 hectare of land is said to face a problem of fragmented holdings. Which consequence is most directly linked to this fragmentation?

22 The Green Revolution in India primarily raised output through which combination of inputs?

23 Even though agriculture's share in India's GDP has fallen below , its share in employment remains around . This gap indicates that:

24 The Minimum Support Price (MSP) is best described as a policy tool that:

25 If monsoon rainfall in a year is below normal, which short-run effect on the farm sector is most likely?

26 India's growth path is often described as unusual because compared to typical developing economies it:

27 The Make in India initiative is primarily aimed at:

28 A firm classified under the tertiary sector would most likely be engaged in:

29 The New Industrial Policy of 1991 most directly reduced industrial rigidity by:

30 Which factor best explains why India's IT services exports grew rapidly after the 1990s?

31 A key concern about India's services-led growth is that it may create jobless growth because:

32 The poverty line in India is most commonly defined on the basis of:

33 A Gini coefficient rising from to in a country indicates that:

34 The Lorenz curve for a country lies further away from the line of equality than another country's curve. This means the first country has:

35 The Head Count Ratio (HCR) of poverty is calculated as:

36 Suppose the poverty line is ₹1,000 per month and three poor persons earn ₹900, ₹700, and ₹500. The Head Count Ratio ignores which important fact captured by the poverty gap?

37 The MGNREGA scheme reduces poverty mainly by:

38 The energy-economy-environment (3E) framework highlights the trade-off that faster economic growth often leads to:

39 A carbon tax works to reduce emissions primarily by:

40 Under a cap-and-trade (emissions trading) system, firms that pollute less than their allowance can:

41 Despite agriculture's declining share in India's GDP (around –), its share in total employment has remained disproportionately high (around –). This persistent gap is the clearest indicator of which structural problem?

42 A state increases Minimum Support Price (MSP) sharply for wheat and rice while leaving pulses and oilseeds untouched. Over several seasons, the most likely distortion is:

43 The Green Revolution raised output but is often criticised for widening regional inequality. Which mechanism best explains this outcome?

44 If the terms of trade move against agriculture (relative prices of farm goods fall versus manufactured inputs), the immediate real-income effect on net-seller farmers is:

45 India is frequently described as having undergone 'premature deindustrialisation'. The core meaning of this term is:

46 A key criticism of India's growth model is that it 'skipped' the labour-intensive manufacturing stage and leaped to services. The most damaging consequence of this leap is:

47 Consider two sectors: Sector X has high output growth but flat employment growth; Sector Y has moderate output growth with rising employment. For structural transformation that reduces disguised unemployment, policy should prioritise expanding:

48 The employment elasticity of output for Indian manufacturing has often been low or falling. If output grows at and employment grows at , the employment elasticity is:

49 A government offers a Production Linked Incentive (PLI) scheme tied to incremental output. A firm qualifies only if it raises production above a baseline. The main economic rationale is to:

50 The Gini coefficient for two economies is identical at , yet one has far higher absolute poverty. Which factor best explains how equal inequality can coexist with different poverty levels?

51 The Head Count Ratio (HCR) is criticised for a specific insensitivity. What is it?

52 A transfer of income from a poor person just below the poverty line to a much poorer person leaves the Head Count Ratio unchanged but reduces a superior poverty measure. This illustrates which principle?

53 Using the Lorenz curve, if Country A's curve lies entirely inside (closer to the line of equality than) Country B's, we can conclude:

54 Economic growth can reduce absolute poverty even while inequality rises. The decomposition of poverty change into two effects identifies these as:

55 India's climate commitments include reducing 'emissions intensity of GDP'. A country can meet an emissions-intensity target while its absolute emissions still rise. This happens when:

56 In a Pigouvian framework, the socially optimal level of a polluting activity is where:

57 A cap-and-trade (emissions trading) system is generally considered more cost-effective than a uniform command-and-control emission limit because:

58 The 'energy trilemma' facing Indian policymakers involves balancing three sometimes-conflicting objectives. These are:

59 Removing fossil-fuel subsidies is often recommended on efficiency grounds but resisted politically. The primary efficiency argument for removal is that subsidies:

60 The Environmental Kuznets Curve (EKC) hypothesis predicts a specific relationship between per-capita income and pollution. That relationship is: