12th Class Economics Indian Economy On The Eve Of Independence Question Bank

done Case Based MCQs - Indian Economy on the Eve of Independence Total Questions - 10

• question_answer1)

  Direction: Q. 1 to 5

  Read the following case study and answer the given questions.

  India's economy under the British colonial rule remained fundamentally agrarian about 85 per cent of the country's population lived mostly in villages and derived livelihood directly or indirectly from agriculture.

  However despite such a major occupation, it experienced frequent deterioration and stagnation. This stagnation in the agricultural sector was caused mainly because of the various systems of land settlement that were introduced by the colonial government.

  Agricultural productivity was quite low in terms of production of food crops, however there is a reliable evidence of relatively high yield in cash crops across different parts of the country due to commercialisation of agriculture. But this could hardly help farmers in improving their economic condition as, instead of producing food crops, now they were producing cash crops which were to be ultimately used by British industries back home. Despite some progress made in irrigation, India's agriculture was starved of investment in terracing, flood-control, drainage and desalinisation of soil.

  Which of the following is the main reason explaining high dependence of the workforce in the agricultural sector?
  A)
  Rampant illiteracy and poverty done clear
  B)
  A vibrant agricultural sector which can engage a large amount of Indian diaspora done clear
  C)
  Developing the agrarian base as there were limited employment opportunities in the manufacturing and service sector done clear
  D)
  All of the above done clear
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• question_answer2)
  Agricultural sector in India is often characterised as having a disguised unemployment. This implies
  A)
  More number of workers are engaged in agriculture than required done clear
  B)
  Marginal productivity of each additional worker is close to zero done clear
  C)
  Less number of workers are engaged in agriculture than required done clear
  D)
  Can be explained by either (a) or (b) done clear
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• question_answer3)
  Commercialisation improved the socio-economic status of farmers during the British India.
  A)
  True      done clear
  B)
  False done clear
  C)
  Can't say done clear
  D)
  Partially true done clear
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• question_answer4)
  The main reason for stagnation of Indian agriculture during colonial rule
  A)
  Land Settlement system done clear
  B)
  Poor level of infrastructure done clear
  C)
  Technological bottlenecks done clear
  D)
  Financial constraints done clear
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• question_answer5)

  Assertion [A] Commercialisation of agriculture means a transitory shift from food-crops to cash crops for sale in the market than domestic consumption.

  Reason [R] This resulted in huge cash flows for domestic cultivators who invested the same to improve the fertility of the soil.

  A)
  Both Assertion [A] and Reason [R] are true and Reason [R] is the correct explanation of Assertion [A] done clear
  B)
  Both Assertion [A] and Reason [R] are true, but Reason [R] is not the correct explanation of Assertion [A] done clear
  C)
  Assertion [A] is true, but Reason [R] is false done clear
  D)
  Assertion [A] is false, but Reason [R] is true done clear
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• question_answer6)

  Direction: Q. 6 to 10

  Read the following case study and answer the given questions.

  The restrictive policies of commodity production, trade and tariff pursued by the colonial government adversely affected the structure, composition and volume of India's foreign trade. Consequently, India became an exporter of primary products and an importer of finished consumer and capital goods like light machinery produced in the factories of Britain. The most important characteristic of India's foreign trade throughout the colonial period was the generation of a large export surplus

  Due to its quality, Indian Indigo was in great demand in Britain. In 1810, almost 95% of the indigo imported into Britain was from India. Indigo production became a very profitable business and many Britishers became Indigo planters. They advanced loans to peasants at high rate and forced them to cultivate indigo in 25% of their land. They paid a low price for the Indigo. As the Indigo plant had deep roots, it exhausted the soil fertility and the land became unfit for rice cultivation.

  What was the treatment given by the Indigo planters to the peasants?
  A)
  They were paid low prices for growing Indigo done clear
  B)
  They were given support measures on how to grow Indigo along with a piece of land done clear
  C)
  Advancement of loans at a lower rate of interest done clear
  D)
  Peasants voluntarily agreed with the Indigo planters to produce Indigo done clear
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• question_answer7)

  Assertion [A] India's foreign trade maintained an export surplus throughout the colonial period but it didn't benefit the domestic economy.

  Reason [R] The export surplus was used to meet the war expenses incurred by colonial setup and to import invisible items

  A)
  Both Assertion [A] and Reason [R] are true and Reason [R] is the correct explanation of Assertion [A] done clear
  B)
  Both Assertion [A] and Reason [R] are true, but Reason [R] is not the correct explanation of Assertion [A] done clear
  C)
  Assertion [A] is true, but Reason [R] is false done clear
  D)
  Assertion [A] is false, but Reason [R] is true done clear
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• question_answer8)
  Production of Indigo brought huge surplus for the ......... .
  A)
  Domestic cultivators done clear
  B)
  Indigo planters done clear
  C)
  The colonial government done clear
  D)
  Zamindars done clear
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• question_answer9)
  Indigo production increased the fertility of soil and brought huge revenues for the domestic cultivators.
  A)
  True done clear
  B)
  False done clear
  C)
  Can't say done clear
  D)
  Partially True done clear
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• question_answer10)
  Which sector was the second largest provider of employment during British India?
  A)
  Agriculture done clear
  B)
  Industry done clear
  C)
  Services done clear
  D)
  All sectors constituted equal proportion of the total workforce done clear
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