1. The central problems of an economy are mainly related to:
A) Production, Distribution, Employment
B) What to produce, How to produce, For whom to produce
C) Consumption, Saving, Investment
D) Inflation, Deflation, Stagflation
Answer: B
Explanation: Every economy faces scarcity, leading to three basic problems: What, How, and For whom to produce.
2. The problem of “for whom to produce” is related to:
A) Resource allocation
B) Distribution of goods and services
C) Techniques of production
D) Public sector enterprises
Answer: B
Explanation: It determines how output is distributed among different sections of society.
3. “How to produce” problem refers to:
A) Choosing which goods to produce
B) Selecting the technology of production
C) Deciding the scale of production
D) Fixing the market price
Answer: B
Explanation: This relates to choice between labor-intensive and capital-intensive techniques.
4. The scarcity of resources arises because:
A) Resources are unlimited
B) Human wants are limited
C) Resources are limited, wants are unlimited
D) Government controls all resources
Answer: C
Explanation: Scarcity is due to limited resources but unlimited wants.
5. Opportunity cost means:
A) Cost of production
B) Cost of alternative foregone
C) Marginal cost
D) Average cost
Answer: B
Explanation: It is the value of the next best alternative forgone.
6. The central problem of an economy is:
A) Price rise
B) Scarcity
C) Planning
D) Black money
Answer: B
Explanation: Scarcity forces every economy to make choices.
7. In a capitalist economy, decisions are taken by:
A) Government
B) Market forces (demand and supply)
C) Planning commission
D) Judiciary
Answer: B
Explanation: Price mechanism plays the central role.
8. In a socialist economy, decisions are made by:
A) Consumers
B) Producers
C) Central Planning Authority
D) Market forces
Answer: C
Explanation: In socialism, central planning directs allocation.
9. Mixed economy is a combination of:
A) Capitalism + Feudalism
B) Socialism + Communism
C) Capitalism + Socialism
D) Public sector + Primary sector
Answer: C
Explanation: India follows a mixed economy with both market and government roles.
10. India adopted a mixed economy model in:
A) 1947
B) 1950
C) 1951
D) 1991
Answer: C
Explanation: The First Five-Year Plan (1951) adopted the mixed economy framework.
11. The economic problem is universal because:
A) Unlimited wants exist everywhere
B) Limited resources are everywhere
C) Both A and B
D) None
Answer: C
12. Who is regarded as the Father of Economics?
A) Karl Marx
B) Adam Smith
C) Alfred Marshall
D) Keynes
Answer: B
Explanation: Adam Smith, author of Wealth of Nations, is called father of economics.
13. The concept of “Invisible Hand” is given by:
A) J.M. Keynes
B) Adam Smith
C) Ricardo
D) Karl Marx
Answer: B
14. The concept of opportunity cost was first introduced by:
A) Robbins
B) Marshall
C) Adam Smith
D) Haberler
Answer: D
15. Microeconomics deals with:
A) Whole economy
B) National income and employment
C) Individual units like households & firms
D) Inflation and Deflation
Answer: C
16. Macroeconomics deals with:
A) Small units
B) Individual demand
C) Aggregate economy variables
D) Cost of production
Answer: C
17. Positive economics deals with:
A) What is
B) What ought to be
C) Value judgments
D) None
Answer: A
18. Normative economics deals with:
A) What is
B) What ought to be
C) Statistical facts
D) Equilibrium
Answer: B
19. In India, economic planning was formally launched in:
A) 1947
B) 1950
C) 1951
D) 1960
Answer: C
20. The first country to adopt central planning was:
A) India
B) USSR
C) USA
D) China
Answer: B
21. Which type of economy exists in India?
A) Socialist
B) Capitalist
C) Mixed
D) Command
Answer: C
22. Which of the following is NOT a central problem?
A) What to produce
B) How to produce
C) How to minimize wants
D) For whom to produce
Answer: C
23. ‘Tragedy of Commons’ is related to:
A) Overuse of public resources
B) Capitalist profit
C) Socialist planning
D) Inflation
Answer: A
24.The concept of “Scarcity” in economics was emphasized by:
A) Robbins
B) Keynes
C) Adam Smith
D) Ricardo
Answer: A
Explanation: Lionel Robbins defined economics as the science of scarcity.
25. Which system emphasizes maximum welfare of maximum people?
A) Socialism
B) Capitalism
C) Communism
D) Mixed
Answer: A
26. The First Five-Year Plan in India was launched in:
A) 1947
B) 1950
C) 1951
D) 1956
Answer: C
Explanation: The first plan started in April 1951, focusing on agriculture and irrigation.
27. The First Five-Year Plan was based on:
A) Harrod–Domar model
B) Mahalanobis model
C) Solow model
D) Keynesian model
Answer: A
Explanation: It used Harrod–Domar model focusing on capital accumulation.
28. Who is regarded as the architect of Indian Planning?
A) Jawaharlal Nehru
B) Prasanta Chandra Mahalanobis
C) B.R. Ambedkar
D) D.R. Gadgil
Answer: B
Explanation: Mahalanobis prepared the framework of the Second Plan and beyond.
29. The period of the First Five-Year Plan was:
A) 1947–52
B) 1950–55
C) 1951–56
D) 1952–57
Answer: C
30. The main focus of the First Five-Year Plan was:
A) Industry
B) Services
C) Agriculture & irrigation
D) Infrastructure
Answer: C
31. The growth rate achieved in the First Plan (1951–56) was:
A) 3.6%
B) 4.5%
C) 5.5%
D) 2.1%
Answer: A
Explanation: Target was 2.1%, actual growth 3.6%.
32. The Second Five-Year Plan period was:
A) 1951–56
B) 1956–61
C) 1961–66
D) 1969–74
Answer: B
33. The Second Plan focused on:
A) Heavy industries
B) Green Revolution
C) Services sector
D) Privatization
Answer: A
Explanation: It was Mahalanobis model emphasizing industrialization.
34 .The growth target of the Second Plan was 4.5%. The actual achievement was:
A) 3.8%
B) 4.0%
C) 4.2%
D) 4.5%
Answer: C
35. The slogan “Socialistic pattern of society” was adopted during:
A) First Plan
B) Second Plan
C) Third Plan
D) Fourth Plan
Answer: B
36. The Third Five-Year Plan period was:
A) 1961–66
B) 1966–71
C) 1956–61
D) 1969–74
Answer: A
37. The main aim of the Third Plan was:
A) Agriculture
B) Self-reliance and heavy industry
C) Green Revolution
D) Transport sector
Answer: B
38. Which war disrupted the Third Five-Year Plan?
A) 1947 war
B) 1962 war with China
C) 1965 war with Pakistan
D) Both B and C
Answer: D
Explanation: Both wars badly impacted economy during the Third Plan.
39. Due to failure of the Third Plan, India adopted:
A) Rolling plans
B) Annual plans (1966–69)
C) Zero-based planning
D) Perspective planning
Answer: B
40. The growth target of the Third Plan was 5.6%, but the actual achievement was:
A) 2.4%
B) 3.2%
C) 4.1%
D) 1.5%
Answer: A
41. The Fourth Plan period was:
A) 1966–71
B) 1969–74
C) 1971–76
D) 1972–77
Answer: B
42. The main focus of the Fourth Plan was:
A) Green Revolution and self-reliance
B) Liberalization
C) Export promotion
D) Heavy industries
Answer: A
43. The slogan “Garibi Hatao” (Remove Poverty) was launched during:
A) Second Plan
B) Third Plan
C) Fourth Plan
D) Fifth Plan
Answer: C
Explanation: Indira Gandhi gave this slogan during the Fourth Plan.
44. The growth target of the Fourth Plan was 5.7%, but actual growth was:
A) 3.2%
B) 4.1%
C) 4.4%
D) 3.8%
Answer: B
45. The Fifth Five-Year Plan period was:
A) 1971–76
B) 1972–77
C) 1974–79
D) 1975–80
Answer: B
Explanation: Officially 1974–79, but later changed to 1972–77 under rolling plan adjustments.
46. The main focus of the Fifth Plan was:
A) Growth with stability and self-reliance
B) Agriculture only
C) Export-oriented growth
D) Services sector
Answer: A
47. Who introduced the Rolling Plan in 1978–79?
A) Indira Gandhi
B) Morarji Desai
C) Rajiv Gandhi
D) Manmohan Singh
Answer: B
48. The growth target of the Fifth Plan was 4.4%. Actual achievement was:
A) 3.8%
B) 4.1%
C) 5.0%
D) 4.8%
Answer: C
49. The Fifth Plan gave importance to:
A) Minimum Needs Programme
B) Green Revolution
C) IT sector
D) Globalization
Answer: A
50. The Planning Commission prepared Five-Year Plans until it was replaced by:
A) Finance Commission
B) RBI
C) NITI Aayog
D) Central Statistics Office
Answer: C
Explanation: In 2015, NITI Aayog replaced the Planning Commission.
51. The Sixth Five-Year Plan period was:
A) 1974–79
B) 1978–83
C) 1980–85
D) 1985–90
Answer: C
Explanation: Sixth Plan (1980–85) focused on poverty reduction and modernization.
52. The main objective of the Sixth Plan was:
A) Growth with stability
B) Poverty eradication and technology modernization
C) Green Revolution
D) Employment generation only
Answer: B
53. The growth target of the Sixth Plan was 5.2%. The actual achievement was:
A) 4.5%
B) 5.2%
C) 5.7%
D) 6.0%
Answer: C
54. The Seventh Five-Year Plan period was:
A) 1980–85
B) 1985–90
C) 1986–91
D) 1991–96
Answer: B
55. The main objective of the Seventh Plan was:
A) “Food, Work & Productivity”
B) Infrastructure development
C) Rural employment
D) Liberalization
Answer: A
56. The growth target of the Seventh Plan was 5.0%. Actual achievement was:
A) 4.8%
B) 5.5%
C) 5.8%
D) 6.0%
Answer: C
57. Which event led to two Annual Plans (1990–92) instead of the Eighth Plan starting in 1990?
A) China war
B) Gulf War and economic crisis
C) Political instability
D) Both B and C
Answer: D
58. The Eighth Five-Year Plan period was:
A) 1985–90
B) 1990–95
C) 1992–97
D) 1991–96
Answer: C
59. The Eighth Plan marked the beginning of:
A) Industrial revolution
B) Green Revolution
C) Liberalization, Privatization, Globalization (LPG)
D) Rolling plans
Answer: C
60. The growth target of the Eighth Plan was 5.6%. Actual achievement was:
A) 5.4%
B) 6.7%
C) 6.0%
D) 6.8%
Answer: B
61. The Ninth Five-Year Plan period was:
A) 1992–97
B) 1997–2002
C) 2000–05
D) 1991–96
Answer: B
62. The main objective of the Ninth Plan was:
A) Inclusive growth
B) “Growth with social justice and equality”
C) Liberalization
D) Poverty removal only
Answer: B
63. The growth target of the Ninth Plan was 6.5%. Actual achievement was:
A) 5.4%
B) 5.8%
C) 6.1%
D) 4.8%
Answer: A
64. The Tenth Five-Year Plan period was:
A) 1997–2002
B) 2002–07
C) 2005–10
D) 2001–06
Answer: B
65. The slogan of the Tenth Plan was:
A) “Garibi Hatao”
B) “More inclusive growth”
C) “Faster, more broad-based growth”
D) “Growth with justice”
Answer: C
66. The growth target of the Tenth Plan was 8.0%. Actual achievement was:
A) 6.9%
B) 7.6%
C) 7.2%
D) 7.8%
Answer: B
67. The Eleventh Five-Year Plan period was:
A) 2002–07
B) 2007–12
C) 2006–11
D) 2008–13
Answer: B
68. The main objective of the Eleventh Plan was:
A) Growth with stability
B) More inclusive growth
C) Globalization
D) Privatization
Answer: B
69. The growth target of the Eleventh Plan was 9.0%. Actual achievement was:
A) 7.5%
B) 8.0%
C) 8.3%
D) 7.9%
Answer: C
70. The Twelfth Five-Year Plan period was:
A) 2010–15
B) 2012–17
C) 2011–16
D) 2013–18
Answer: B
71. The main theme of the Twelfth Plan was:
A) Poverty removal
B) “Faster, Sustainable and More Inclusive Growth”
C) Self-reliance
D) Green Revolution
Answer: B
72. The growth target of the Twelfth Plan was:
A) 7%
B) 8%
C) 9%
D) 10%
Answer: C
73. The actual growth achieved during the Twelfth Plan was around:
A) 6.0%
B) 6.8%
C) 7.2%
D) 5.8%
Answer: A
74. The Twelfth Plan was the last official Five-Year Plan of India because:
A) Planning Commission was dissolved in 2015
B) NITI Aayog was formed in 2015
C) India shifted to three-year action plans
D) All of the above
Answer: D
75. Which plan is often called the “People’s Plan” for its emphasis on inclusive growth and welfare?
A) Second Plan
B) Fifth Plan
C) Eleventh Plan
D) Twelfth Plan
Answer: C
Explanation: Eleventh Plan (2007–12) is remembered for “inclusive growth.”
76. NITI Aayog was established in:
A) 2013
B) 2014
C) 2015
D) 2016
Answer: C
Explanation: NITI Aayog replaced Planning Commission on 1 January 2015.
77. The full form of NITI Aayog is:
A) National Institute for Transforming India
B) National Institution for Transforming India
C) National Information & Technology Institute
D) National Innovation for Technological India
Answer: B
78. Who is the Chairperson of NITI Aayog?
A) Finance Minister
B) Prime Minister
C) President
D) Vice-President
Answer: B
79. The Vice-Chairperson of NITI Aayog is appointed by:
A) Prime Minister
B) President
C) Cabinet Committee
D) Finance Commission
Answer: A
80. Who was the first Vice-Chairperson of NITI Aayog?
A) Rajiv Kumar
B) Bibek Debroy
C) Arvind Panagariya
D) Amitabh Kant
Answer: C
81. The CEO of NITI Aayog is appointed by:
A) President
B) Prime Minister
C) Government of India
D) Finance Minister
Answer: C
82. The NITI Aayog replaced:
A) Finance Commission
B) Planning Commission
C) Economic Advisory Council
D) National Development Council
Answer: B
83. The main difference between NITI Aayog and Planning Commission is:
A) NITI is bottom-up, Planning Commission was top-down
B) NITI deals with states’ cooperation
C) NITI acts as a policy think tank
D) All of the above
Answer: D
84. NITI Aayog promotes the principle of:
A) Centralized planning
B) Cooperative federalism
C) Nationalization
D) Command economy
Answer: B
85. The Governing Council of NITI Aayog consists of:
A) Prime Minister + Cabinet Ministers
B) Prime Minister + Chief Ministers + Lt. Governors
C) President + Governors
D) Finance Minister + RBI Governor
Answer: B
86. NITI Aayog publishes:
A) Human Development Report
B) India Innovation Index
C) Global Competitiveness Report
D) World Economic Outlook
Answer: B
87. The “Three-Year Action Agenda” of NITI Aayog covered the period:
A) 2015–18
B) 2016–19
C) 2017–20
D) 2018–21
Answer: C
88. The “Strategy for New India @75” was prepared by:
A) Finance Commission
B) NITI Aayog
C) RBI
D) Economic Advisory Council
Answer: B
Explanation: Launched in 2018 for achieving targets by 2022–23.
89. The Atal Innovation Mission (AIM) is implemented by:
A) Planning Commission
B) RBI
C) NITI Aayog
D) SEBI
Answer: C
90. Aspirational Districts Programme is coordinated by:
A) Ministry of Home Affairs
B) Ministry of Rural Development
C) NITI Aayog
D) State Governments
Answer: C
91. Which index is published by NITI Aayog to track progress towards SDGs?
A) Global Competitiveness Index
B) SDG India Index
C) Human Development Index
D) Ease of Doing Business Index
Answer: B
92. The chairperson of the Governing Council of NITI Aayog is:
A) Vice-President
B) Prime Minister
C) Finance Minister
D) Home Minister
Answer: B
93. The National Development Council (NDC) was abolished along with:
A) RBI reforms
B) Planning Commission
C) NITI Aayog creation
D) GST Council formation
Answer: B
94. Which program is NOT under NITI Aayog?
A) Digital India
B) Atal Tinkering Labs
C) Aspirational Districts Programme
D) SDG India Index
Answer: A
Explanation: Digital India is under the Ministry of Electronics & IT.
95. NITI Aayog prepares:
A) Five-Year Plans
B) Budget
C) Vision documents and strategies
D) Monetary policy
Answer: C
96. Which concept is associated with NITI Aayog’s planning framework?
A) Zero-based planning
B) Perspective planning
C) Cooperative and competitive federalism
D) Rolling plans
Answer: C
97. The 15-year Vision Document (till 2030) was prepared by:
A) Finance Commission
B) Planning Commission
C) NITI Aayog
D) Reserve Bank of India
Answer: C
98. In 2020, NITI Aayog launched the National Data & Analytics Platform (NDAP) to:
A) Strengthen tax collection
B) Provide open access to government data
C) Manage defense procurement
D) Support agriculture only
Answer: B
99. In 2021, NITI Aayog released the Export Preparedness Index to:
A) Promote rural exports only
B) Assess readiness of states for export promotion
C) Rank industries
D) Support IT exports
Answer: B
100. The role of NITI Aayog in India’s economic planning is best described as:
A) Fund allocation authority
B) Policy think tank and strategy advisor
C) Centralized planner
D) Command economy regulator
Answer: B