12th Class Economics Rural Development Question Bank

done Case Based MCQs - Rural Development in India Total Questions - 20

• question_answer1)

  Direction: Q. 1 to 5

  Read the given case study and answer the questions.

  Generating productive employment is central to sustained poverty reduction as the labour is the main asset for the majority of the poor. The relationship between poverty and employment operates through labour market, quality and quantity of employment. Rural households traditionally depend on agriculture for their livelihoods. It is now recognised that expansion of rural non-farm employment is important for improving the incomes of rural households.

  Rural diversification is important for several reasons. At the economy level, the demographic pressures on land have been increasing significantly in India. With its share of 30 % in GDP, agriculture has to bear the burden of more than 60 % of workers. Therefore, labour productivity has been low in agriculture. Urban areas have their own problems of demographic pressures. As a result, the rural non-farm sector becomes an escape route for agricultural workers.

  In order to increase wages in agriculture and to shift the workers to more productive areas, rural diversification is advocated. However diversification may not always benefit the poor and vulnerable sections. For example, diversification may affect the women as men shift to non-agricultural activities. Women tend to stay back in agriculture, which generally has low productivity.

  The main reason for low productivity in Indian agriculture in the context of given passage is
  A)
  disguised unemployment in agriculture done clear
  B)
  lack of adequate infrastructural facilities done clear
  C)
  lack of adequate funds done clear
  D)
  lack of support from the-government and private sector done clear
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• question_answer2)
  The dynamic linkages that a non-farm sector considers, broadly covers agro-processing and food processing industries, leather industry, tourism, fishing, animal husbandry etc. The given statement is
  A)
  True      done clear
  B)
  False done clear
  C)
  Partially true done clear
  D)
  Partially false done clear
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• question_answer3)
  ......... has emerged as an escape route for the agricultural workers.
  A)
  Taking up jobs in the service sector done clear
  B)
  Rural non-farm sector done clear
  C)
  Become a moneylender with provision of loans at higher rate of interest done clear
  D)
  All of the above done clear
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• question_answer4)
  In search of better employment opportunities, there has been a migration of agricultural workers from rural to urban areas which in turn poses serious demographic challenges in cities. Which of the following is incorrect regarding the nature of such challenges?
  A)
  Waste-disposal problems done clear
  B)
  Insufficient water facility done clear
  C)
  High energy consumption as exacerbated by increasing population density done clear
  D)
  Getting a highly paid skilled job done clear
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• question_answer5)

  Assertion (A) There is a need for diversification which involves not only a change in cropping pattern but also a shift of workforce from agriculture to other allied activities.

  Reason (R) There is uncertainty of income in agriculture caused by factors like crop failure, irregular rainfall, reduction in ground water table etc.

  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 given case study and answer the questions.

  Since ages, farmers in India taken resource to debt. In the earlier times, the same was informal sources. Since independence with the efforts of the government, formal sector has actively come into the picture. Farmers borrow not only to meet their investment needs but also to satisfy their personal needs. Uncertainty of income caused by factors like crop failure caused by irregular rainfall, reduction in ground water table, locust/other pest attack etc.

  These reasons push them into the clutches of the private moneylenders, who charge exorbitant rates of interest which add to their miseries.

  Various governments in India, at different times for different reasons, introduced debt relief/debt waiver schemes. These schemes are used by governments as a quick means to extricate farmers from their indebtedness, helping to restore their capacity to invest and produce, in short to lessen the miseries of the farmers across India. The cost and benefits of such debt relief schemes are, however, a widely debated topic among the economists.

  Some economists argue that such schemes are extremely beneficial to the poor and marginalised farmers while others argue that these schemes add to the fiscal burden of the government, others believe that these schemes may develop the expectation of repeated bailouts among farmers which may spoil the credit culture among farmers.

  Uncertainty of farmers in India is majorly caused by ......... .
  A)
  irregular rainfall done clear
  B)
  unavailability of loans done clear
  C)
  lack of skills done clear
  D)
  None of the above done clear
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• question_answer7)
  Some economists argue that debt waiver schemes are extremely beneficial to the poor and marginalised farmers, as these schemes reduce the burden of .........
  A)
  indebtedness done clear
  B)
  personal expenditure done clear
  C)
  debt of technical education and training done clear
  D)
  All of the above done clear
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• question_answer8)
  The rural banking structure in India consists of a set of multi-agency institutions. Which of the following is expected to dispense credit at cheaper rates for agricultural purposes to farmers?
  A)
  Small Industries Development Bank of India (SIDBI) done clear
  B)
  Federation of Indian Chambers of Commerce and Industry (FICCI) done clear
  C)
  Regional Rural Banks (RRBs) done clear
  D)
  Department of Economic Affairs, Ministry of Finance (DEA) done clear
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• question_answer9)
  ......... is the most prominent body responsible for providing loans for long-term land development.
  A)
  Small Industries Development Bank of India (SIDBI) done clear
  B)
  Federation of Indian Chambers of Commerce and Industry (FICCI) done clear
  C)
  Regional Rural Banks (RRBs) done clear
  D)
  Land Development Banks (LDBs) done clear
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• question_answer10)

  Assertion (A) It is imperative for Indian economy to undertake measures which help promote the rural development.

  Reason (R) Almost two-third of India's population depends on agriculture and nearly one-third of rural India lives under the trap of poverty.

  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_answer11)

  Direction: Q. 11 to 15

  Read the given case study and answer the questions.

  Manufacturing industries not only help in modernising agriculture, which forms the backbone of our economy, they also reduce the heavy dependence of people on agricultural income by providing them jobs in secondary and tertiary sectors. Agricultural and industrial development are preconditions for eradication of unemployment and poverty from our country. This was the main philosophy behind public sector industries and joint sector ventures in India. It was also aimed at bringing down regional disparities by establishing industries in tribal and backward areas.

  Export of manufactured goods expands trade and commerce, and brings in much needed foreign exchange. Countries that transform their raw materials into a wide variety of finished goods of higher value are prosperous. India's prosperity lies in increasing and diversifying its manufacturing industries as quickly as possible. Agriculture and industry are not exclusive of each other. They move hand in hand. For instance, the agro-industries in India have given a major boost to agriculture by raising its productivity.

  Which of the following options does not help in modernising agriculture?
  A)
  Manufacturing farm equipment done clear
  B)
  Providing unskilled labourforce done clear
  C)
  Supplying fertilizers and pesticides done clear
  D)
  Producing tube well pumps and sprinklers done clear
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• question_answer12)
  In order to attract foreign manufacturing firms, a country needs to develop
  A)
  agrarian facilities done clear
  B)
  cultivable lands done clear
  C)
  media facilities done clear
  D)
  infrastructure facilities done clear
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• question_answer13)
  The main thrust of the economic policies pursued by the government considers .........
  A)
  ensuring balanced regional development done clear
  B)
  expanding the urban-rural wage gap done clear
  C)
  a complete switch from agricultural to manufacturing sector done clear
  D)
  None of the above done clear
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• question_answer14)
  Lack of storage and transportation facilities act as a major hindrance towards the mechanism of agricultural marketing in India. The given statement is
  A)
  True done clear
  B)
  False done clear
  C)
  Partially true done clear
  D)
  Partially false done clear
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• question_answer15)
  The role of rural banking system in the process of rural development in India is highlighted from the fact that
  A)
  it helped farmers to avail cheap and adequate credit to meet their production needs done clear
  B)
  we have achieved food security which is reflected in the abundant buffer stocks of grains done clear
  C)
  Both (a) and (b) done clear
  D)
  None of the above done clear
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• question_answer16)

  Direction: Q. 16 to 20

  Read the given case study and answer the questions.

  India's Micro, Small and Medium Enterprises (MSME) sector is poised for a mega transformation in 2020, with the launch of an Alibaba-like e-market place, trendy yet affordable khadi products to appeal to the masses and digital data-based credit ratings to help entrepreneurs avail loans. However, the MSME sector, often considered the bulwark of the economy as it contributes around 29% to the GDP and 48% to the Indian exports. There is an urgent need of major reforms and policy interventions towards ensuring timely availability of low cost credit, improving ease of doing business and technological upgradation, to take on the formidable challenge of creating millions of jobs, ensure equitable distribution of national income and achieving large-scale import substitution. The World Bank has recently approved loan worth 750 million to address the immediate liquidity and credit needs of India's MSME sector that has been severely impacted by the Covid-19 crisis. This will give a push to Atmanirbhar Bharat vision of the government.

  Identify which of the following is not an advantage of the MSME sector?
  A)
  It is suited for the utilisation of local resources done clear
  B)
  It is helpful in creation of employment opportunities done clear
  C)
  It requires more capital than labour done clear
  D)
  It ensures equitable distribution of income in the country done clear
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• question_answer17)
  MSME sector suffered to a large extent in COVID-19 pandemic situation due to ......... .
  A)
  Liquidity crunch done clear
  B)
  Lack of availability of digitalised data done clear
  C)
  Lack of availability of labour done clear
  D)
  All of the above done clear
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• question_answer18)

  Assertion (A) Small scale industries ensure a more equitable distribution of national income and wealth.

  Reason (R) The ownership of small scale industries is more widespread than the ownership of large scale industries.

  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_answer19)
  Small scale industries are the largest employer of labour force in India. The given statement is
  A)
  True done clear
  B)
  False done clear
  C)
  Partially true done clear
  D)
  Can't say done clear
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• question_answer20)
  A small loan amount given to low-income households or groups is called ......... .
  A)
  cash credit done clear
  B)
  micro credit done clear
  C)
  rural credit done clear
  D)
  simple credit done clear
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