Public Finance MCQs Part 1 – Objective Economics for Government Exam Prep

  1. The term “Plan Holiday” was declared after which Five-Year Plan?
    • (a) First Five-Year Plan
    • (b) Second Five-Year Plan
    • (c) Third Five-Year Plan
    • (d) Fourth Five-Year Plan
      Ans: (c) Third Five-Year Plan
  2. The Second Five-Year Plan was based on which model?
    • (a) Mahalanobis Model
    • (b) Wakil and Brahmanand Model
    • (c) Herald-Domar Growth Model
    • (d) Solo Growth Model
      Ans: (a) Mahalanobis Model
  3. The Planning Commission of India was constituted in which year?
    • (a) 1942
    • (b) 1947
    • (c) 1950
    • (d) 1955
      Ans: (c) 1950
  4. Who advocated the adoption of the PURA model to eradicate rural poverty?
    • (a) M.S. Swaminathan
    • (b) Maulana Abul Kalam Azad
    • (c) Dr. A.P.J. Abdul Kalam
    • (d) Verghese Kurien
      Ans: (c) Dr. A.P.J. Abdul Kalam

Unemployment

  1. Disguised unemployment is generally found in which sector?
    • (a) Agriculture
    • (b) Industry
    • (c) Transport
    • (d) IT
      Ans: (a) Agriculture
  2. Structural unemployment arises due to which reason?
    • (a) Changes in demand and technology
    • (b) Seasonal variations in employment
    • (c) Friction in labor markets
    • (d) Government policies
      Ans: (a) Changes in demand and technology
  3. Which is the main cause of educated unemployment in India?
    • (a) Lack of educational institutions
    • (b) Rapid population growth
    • (c) Mismatch between skills and jobs
    • (d) Over-industrialization
      Ans: (c) Mismatch between skills and jobs

Agriculture Development

  1. What is the term for cattle rearing along with farming?
    • (a) Mixed Farming
    • (b) Mixed Agriculture
    • (c) Dairy Farming
    • (d) Truck Agriculture
      Ans: (a) Mixed Farming
  2. Which revolution is associated with the increase in the production of milk?
    • (a) White Revolution
    • (b) Blue Revolution
    • (c) Green Revolution
    • (d) Yellow Revolution
      Ans: (a) White Revolution
  3. What is the minimum support price (MSP) for agricultural crops aimed at?
  • (a) Helping traders gain profits
  • (b) Providing insurance to farmers
  • (c) Ensuring farmers receive a minimum price
  • (d) Encouraging imports of agricultural products
    Ans: (c) Ensuring farmers receive a minimum price

Poverty and Economic Development

  1. Which poverty estimation committee introduced the concept of the Tendulkar methodology?
  • (a) Y.K. Alagh Committee
  • (b) Suresh Tendulkar Committee
  • (c) Niti Aayog
  • (d) Rangarajan Committee
    Ans: (b) Suresh Tendulkar Committee
  1. The concept of “Trickle Down Hypothesis” is related to which aspect of poverty?
  • (a) Direct government intervention
  • (b) Redistribution of wealth
  • (c) Economic growth reducing poverty
  • (d) Rural development programs
    Ans: (c) Economic growth reducing poverty
  1. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) guarantees how many days of employment in a year?
  • (a) 50 days
  • (b) 75 days
  • (c) 100 days
  • (d) 150 days
    Ans: (c) 100 days
  1. What is the full form of IRDP?
  • (a) Integrated Rural Development Programme
  • (b) Indian Rural Development Policy
  • (c) Industrial and Rural Development Program
  • (d) Income and Rural Development Plan
    Ans: (a) Integrated Rural Development Programme
  1. The term “Garibi Hatao” was associated with which Five-Year Plan?
  • (a) Second Plan
  • (b) Fourth Plan
  • (c) Fifth Plan
  • (d) Sixth Plan
    Ans: (c) Fifth Plan
  1. The largest number of people below the poverty line in India are found in which sector?
  • (a) Urban informal sector
  • (b) Agricultural sector
  • (c) Industrial sector
  • (d) IT sector
    Ans: (b) Agricultural sector

Rural Economy and Development

  1. What is the aim of the Rashtriya Krishi Vikas Yojana?
  • (a) To enhance farmer income
  • (b) Promote urban farming
  • (c) Encourage imports of farm products
  • (d) Strengthen land redistribution
    Ans: (a) To enhance farmer income
  1. The concept of “Land Ceiling” is related to which?
  • (a) Fixing minimum land size for agriculture
  • (b) Fixing the maximum limit of landholding
  • (c) Tax on landowners
  • (d) Encouraging large-scale farming
    Ans: (b) Fixing the maximum limit of landholding
  1. The “Green Revolution” mainly focused on increasing the production of which crops?
  • (a) Pulses
  • (b) Oilseeds
  • (c) Wheat and Rice
  • (d) Cotton and Jute
    Ans: (c) Wheat and Rice
  1. Which financial institution provides credit to farmers for agriculture?
  • (a) NABARD
  • (b) SIDBI
  • (c) RBI
  • (d) SEBI
    Ans: (a) NABARD

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