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MCQ Questions for Class 10 Economics Chapter 4 Globalisation and the Indian Economy

Globalisation and the Indian Economy Class 10 MCQ Questions With Answers

Question 1.

Read the given statements in context of ‘globalization’ and choose the correct option:

(A) It is the only way for economic development of the country
(B) Interlinks only production based activities in dispersed locations in the world
(C) It has always given only positive results in all the countries
(D) Leads to spread of technology, cultures and diseases from one region to another
Answer:
(D) Leads to spread of technology, cultures and diseases from one region to another

Explanation:
Due to intermingling of people from different parts of the world, not only does the spread of technology takes place but it also leads to the intermixing of culture and spread of diseases to various parts of the world.

Question 2.

What is foreign investment?

(A) Investment made by the foreign governments
(B) Investment made by the foreign banks
(C) Investment made by the MNCs
(D) Investment made by the IMF and World Bank
Answer:
(C) Investment made by the MNCs

Question 3.

An organization whose aim is to liberate international trade is

(A) World Bank
(B) International Monetary Fund (IMF)
(C) World Trade Organisation (WTO)
(D) United Nations Organisation (UNO)
Answer:
(C) World Trade Organisation (WTO)

Explanation:
The World Trade Organization provides a common platform to negotiate trade agreements among member countries and to resolve any trade disputes.

Question 4.

What is the idea behind the development of Special Economic Zones (SEZs) in India?

(A) To boost Indian industries
(B) To solve the problem of unemployment
(C) To produce handicrafts
(D) To attract foreign investment
Answer:
(D) To attract foreign investment

Question 5.

Removing barriers or restrictions set by the government is known as

(A) Privatisation
(B) Liberalisation
(C) Globalisation
(B) Industrialisation
Answer:
(B) Industrialisation

Question 6.

When and where did the Ford Motors set up their large plant in India?

(A) In 1975 at Chennai
(B) In 1985 at Chennai
(C) In 1995 at Chennai
(D) In 2005 at Chennai
Answer:
(C) In 1995 at Chennai

Question 7.

Column A	Column B
(i) MNCs buy at cheap rates from small producers	(A) Automobiles
(ii) Quotas and taxes on imports are used to regulate trade	(B) Garments, foot-wear,sports items
(iii) Indian companies who have invested abroad	(C) Tata Motors, In- fosys, Ranbaxy
(iv) Several MNCs have invested in setting up factories in India for production	(D) Trade barriers

(A) (i)-(A),(ii)-(B),(iii)-(C),(iv)-(D)
(B) (i)-(B),(ii)-(C),(iii)-(A),(iv)-(D)
(C) (i)-(B),(ii)-(D),(iii)-(C),(iV)-(A)
(D) (i)-(A),(ii)-(C),(iii)-(D),(iv)-(B)
Answer:
(C) (i)-(B),(ii)-(D),(iii)-(C),(iV)-(A)

Explanation:
MNCs buy garments, footwear, sports items at cheap rales from small producers. because it reduces Lheir cost of production and using their brand value they sell them lhigh prices and earn profits. Quotas and taxes on imports are used to regulate trade items received through import.

Question 8.

Column A	Column B
(i) Tata Motors	(A) Nuts and Bolts
(ii) Asian Paints	(B) IT
(iii) Infosys	(C) Automobiles
(iv) Sundaram Fasten-ers	(D) Paints

(A) (i)-(C), (ii)-(D), (iii)-(B), (iv)-(A)
(B) (i)-(A), (ii)-(C), (iii)-(D), (iv)-(B)
(C) (i) -(D), (ii) -(A), (iii)-(C), (iv)-(B)
(D) (i)-(C), (ii)-(B), (iii)-(A), (iv)-(D)
Answer:
(A) (i)-(C), (ii)-(D), (iii)-(B), (iv)-(A)

Question 9.

Arrange the following in the correct Sequence:

(i) Meanwhile, the company’s customer care is carried out through call centres located in India.
(ii) And then has the components manufactured in China.
(iii) A large MNC, Producing industrial equipment, designs its products in research centres in the United States.
(iv) These are then shipped to Mexico and Eastern Europe where the products are assembled and the finished products are sold all over the world.
Options:
(A) (iv) – (iii) – (ii) – (i)
(B) (i) – (ii) – (iii) – (iv)
(C) (ii) – (iii) – (i) – (iv)
(D) (iii) – (ii) – (iv) – (i)
Answer:
(D) (iii) – (ii) – (iv) – (i)

Explanation:
The manufacturing process of industrial equipment begins with designing, manufacturing of components, assembling of the machine and then selling the finished product.

Question 10.

Arrange the following in the correct Sequence:

(i) A news magazine published for London readers is to be designed and printed in Delhi.
(ii) The designing is done on a Computer. After printing the magazines are sent by air to London.
(iii) The payment of money for designing and printing from a bank in London to a bank in Delhi is done instantly through the Internet (E-banking)
(iv) The text of the magazines is sent through is sent through Internet to the Delhi office The designers in Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities.
Options:
(A) (iii) – (iv) – (i) – (ii)
(B) (i) – (iv) – (ii) – (iii)
(C) (iv) – (i) – (ii) – (iii)
(D) (ii) – (iv) – (iii) – (i)
Answer:
(B) (i) – (iv) – (ii) – (iii)

Explanation:
lechnological advancements have reduced the costs of transportation and communication across nations and thereby facilitate global sourcing of raw materials and other inputs. the technological advancement has helped a lot in creation and growth of a global market.

Question 11.

Analyze the information given below, considering one of the following correct options:
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products.

(A) Trade and Commerce
(B) Agricultural products
(C) Trade barriers
(D) World Trade Organization
Answer:
(D) World Trade Organization

Question 12.

Analyze the information given below, considering one of the following correct options:
A news magazine published for London readers is to be designed and printed in Delhi. The text of the magazine is sent through Internet to the Delhi office. The designers in the Delhi office get orders on how to design the magazine from the office in London using telecommunication facilities. The designing is done on a computer. After printing, the magazines are sent by air to London. Even the payment of money for designing and printing from a bank in London to a bank in Delhi is done

(A) Fair globalisation would create opportunities for all.
(B) MNCs are playing a major role in the globalisation process.
(C) Globalisation has led to improvement in living conditions of all the people.
(D) MNCs have increased their investment in India over the past 20 years.
Answer:
(C) Globalisation has led to improvement in living conditions of all the people.

Explanation:
Globalization has led to improvement in living condition of educated, skilled and wealthy people as now they have access to the best facilities available across the globe.

Question 13.

Find the incorrect option from the following:

Explanation:
Globalization has led to improve¬ment in living condition of educated, skilled and wealthy people as now they have access to the best facilities available across the globe.

Question 14.

Find the incorrect option from the following:

(A) MNCs play an important role in the liberalization process.
(B) MNCs control production in more than one instantly through the Internet (e-banking)
(C) MNCs compete with the local producers directly.
(D) MNCs set up their production units close to market.
Answer:
(A) MNCs play an important role in the liberalization process.

Explanation:
MNCs is not only selling its finished products globally, but more important, the goods and services are produced globally. The production process is divided into small parts and spread out across the global. Due to MNCs more and more technology, services, goods etc. are moving between countries.

Assertion and Reason Based MCQs

Directions: In the following questions, A statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as.
(A) Both A and R are true and R is the correct explanation of A.
(B) Both A and R are true but R is NOT the correct explanation of A.
(C) A is true but R is false.
(D) A is false and R is true.

Question 1.

Assertion (A): The Indian government, after independence, had put barriers to foreign trade and foreign investment.
Reason (R): The government considered it necessary to protect the producers within the country from foreign competition.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Question 2.

Assertion (A): The car manufacturing plant of Maruti Udyog Ltd in India produces cars for Indian markets.
Reason (R): It also exports cars to other developing countries and exports car components for its many factories around the world.

Answer:
(C) A is true but R is false.

Explanation:
It was established with the objectives of producing indigenous utility cars for the growing needs of the Indian population.

Question 3.

Assertion (A): Global production has a complex structure.
Reason (R): Production of one good may take place in different parts of the world. For instance, an equipment may be formed by combining components produced in different countries.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Explanation:
Globalization leads to connectivity of different countries and goods and services can be transported across the world. Goods, components produced in different parts of the world can be used for production in any country.

Question 4.

Assertion (A): Local businesses may set up joint production process with MNCs and earn higher profits.
Reason (R): MNCs can provide money for additional investments, like buying new machines for faster production.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Explanation:
At times, MNCs set up production jointly with some of the local companies of the host countries. The benefit to the local company from such joint production is two-fold as MNCs can provide for additional investments and can bring in newer technology of production that result in fast-paced production.

Question 5.

Assertion (A): MNCs can exert a strong influence on production at distant locations.
Reason (R): MNCs set up partnerships with local companies, use local companies for supplies, compete with the local companies or buy them up.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Explanation:
By setting up partnerships with local companies, by using the local companies for supplies, by closely competing with the local companies or buying them up, MNCs are exerting a strong influence on production at distant locations. As a result, production in widely dispersed locations is getting interlinked.

Question 6.

Assertion (A): Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
Reason (R): Foreign trade expands the choice of goods beyond what is domestically produced.

Answer:
(B) Both A and R are true but R is NOT the correct explanation of A.

Explanation:
Foreign trade creates an opportunity for the producers to reach beyond the domestic markets and thus expands the choices available for consumers.

Case-Based MCQs

I. Read the source given below and answer the questions that follows:
India has become a second home to many multinationals’ over the years. MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. This is done so that the cost of production is low and the MNCs can earn greater profits. MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs; and where the availability of other factors of production is assured. But the most common route for MNC investments is to buy up local companies and then to expand production.
MNCs with huge wealth can quite easily do so. To take an example, Cargill Foods, a very large American MNC, has bought over smaller Indian companies such as Parakh Foods. Parakh Foods had built a large marketing network in various parts of India, where its brand was well-reputed. Also, Parakh Foods had four oil refineries, whose control has now shifted to Cargill.

Cargill is now the largest producer of edible oil in India, with a capacity to make 5 million pouches daily. Large MNCs in developed countries place orders for production with small producers. Garments, footwear, sports items are examples of industries where production is carried out by a large number of small producers around the world. The products are supplied to the MNCs, which then sell these under their own brand names to the customers. These large MNCs have tremendous power to determine price, quality, delivery, and labour conditions for these distant producers. Ford Motors, an American company, is one of the world’s largest automobile manufacturers with production spread over 26 countries of the world. Ford Motors came to India in 1995 and spent Rs. 1700 crore to set up a large plant near Chennai. This was done in collaboration with Mahindra and Mahindra, a major Indian manufacturer of jeeps and trucks.

Answer the following MCQs by choosing the most appropriate option

Question 1.

In which regions MNCs set up offices and factories for production?

(A) Close to the market.
(B) Availability of skilled/unskilled labour at low cost.
(C) Favourable government policies.
(D) All of the above
Answer:
(D) All of the above

Explanation:
MNCs set up their offices and factories in those regions where they get cheap labour and other resources because they bring down the cost of production and ensure more profits for themselves.

Question 2.

Ford Motors entered the Indian automobile business in collaboration with which Indian manufacturer?

(A) Mahindra and Mahindra
(B) Tata Motors
(C) Maruti Suzuki
(D) None of the above
Answer:
(A) Mahindra and Mahindra

Question 3.

Investment made by MNCs is called

(A) Investment
(B) Foreign trade
(C) Foreign investment
(D) Foreign direct investment
Answer:
(C) Foreign investment

Explanation:
Foreign investment refers to the investment in domestic companies and assets of another country by a foreign investor.

Question 4.

MNCs do not increase

(A) Competition
(B) Price war
(C) Quality
(D) None of the above
Answer:
(D) None of the above

II. Read the extract given below and answer the questions that follows:
Globalization expands and accelerates the movement and exchange of ideas and commodities over vast distances. Globalisation has created more competitive environment in India. In the past two to three decades, more and more MNCs have been looking for locations around the world which would be cheap for their production. Foreign investment by MNCs in these countries has been rising. At the same time, foreign trade between countries has been rising rapidly. A large part of the foreign trade is also controlled by MNCs. The result of greater foreign investment and greater foreign trade has been greater integration of production and markets across countries. Globalisation is this process of rapid integration or interconnection between countries. MNCs are playing a major role in the globalisation process.

More and more goods and services, investments and technology are moving between countries. Besides the movements of goods, services, investments and technology, there is one more way in which the countries can be connected. This is through the movement of people between countries. People usually move from one country to another in search of better income, better jobs or better education. Rapid improvement in technology has been one major factor that has stimulated the Globalisation process. Even more remarkable have been the developments in information and communication technology. Globalisation and greater competition among producers both local and foreign producers – has been of advantage to consumers, particularly the well-off sections in the urban areas. There is greater choice before these consumers who now enjoy improved quality and lower prices for several products. As a result, these people today, enjoy much higher standards of living than was possible earlier. Globalisation has also created new opportunities for companies providing services, particularly those involving IT.

Answer the following MCQs by choosing the most appropriate option

Question 1.

Process of integration of different countries is called

(A) Liberalization
(B) Privatization
(C) Globalization
(D) None of the above
Answer:
(C) Globalization

Explanation:
Globalisation is the process of rapid integration. It integrates the country with other economies of the world through trade, capital flow and technology.

Question 2.

Globalisation has led to higher standards of living of:

(A) Well-off consumers
(B) Poor consumers
(C) Big producers
(D) None of the above
Answer:
(A) Well-off consumers

Explanation:
There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.

Question 3.

Globalisation has created new opportunities of:

(A) Employment
(B) Emerging multinationals
(C) Providing services
(D) All of the above
Answer:
(D) All of the above

Question 4.

Globalisation has posed major challenges for:

(A) Big Producers
(B) Small Producers
(C) Rural Poor
(D) None of these
Answer:
(B) Small Producers

Explanation:
Globalization has posed a major challenge to the small scale producers having low capital investment and poor strategies to develop. They have been hit hard due to severe competition. Several units have been shut down rendering many workers jobless.

III. Read the extract given below and answer the questions that follows:
In the last twenty years, globalisation of the Indian economy has come a long way. What has been its effect on the lives of people? Let us look at some of the evidence. Globalisation and greater competition among producers – both local and foreign producers – has been of advantage to consumers, particularly the well-off sections in the urban areas. There is greater choice before these consumers who now enjoy improved quality and lower prices for several products. As a result, these people today, enjoy much higher standards of living than was possible earlier. Among producers and workers, the impact of globalisation has not been uniform. Firstly, MNCs have increased their investments in India over the past 20 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, auto mobiles, electronics, soft drinks, fast food orservices such as banking in urban areas.

These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered. Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards. Some have gained from successful collaborations with foreign companies.

Moreover, globalisation has enabled some large Indian companies to emerge as multinationals themselves! Tata Motors (automobiles), Infosys(IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide. Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Answer the following MCQs by choosing the most appropriate option

Question 1.

Why have MNCs have increased their investments in India over the past 20 years?

(A) To attract costumers
(B) To evade taxes
(C) To make use of the market potential
(D) To do social service
Answer:
(C) To make use of the market potential

Explanation:
India’s market potential, skilled workforce and political stability are the three key reasons that make India a favoured MNC destination.

Question 2.

Why do people have a preference for foreign products?

(A) They think foreign products are of better quality.
(B) They think it will improve their social status.
(C) They think the product is much cheaper than Indian product.
(D) None of the Above.
Answer:
(A) They think foreign products are of better quality.

Explanation:
Various companies and brands make similar products and this has made the consumer very confused. But people prefer to buy foreign products thinking that it is of better quality.

Question 3.

How several of the top Indian companies have been able to benefit from the increased competition?

(A) They have invested in newer technology
(B) They have no rivals in the market
(C) They get to travel the world
(D) They can work in isolation
Answer:
(A) They have invested in newer technology

Explanation:
Investment in newer technology has helped in increasing the efficiency of the companies.

Question 4.

Globalisation has been advantageous to :

(A) Consumers
(B) Producers
(C) Consumers and producers
(D) Limited sector of the society
Answer:
(C) Consumers and producers

Explanation:
Consumers now enjoy numerous choices as well as better quality since it is now an international market. Many domestic companies have improved technology and production methods due to competition from MNCs.

MCQ Questions for Class 10 Social Science with Answers

MCQ Questions for Class 10 Economics Chapter 4 Globalisation and the Indian Economy Read More »

MCQ Questions for Class 10 Economics Chapter 3 Money and Credit

MCQ Questions / Prasanna

Money and Credit Class 10 MCQ Questions With Answers

Question 1.

Which one of the following options describe ‘Collateral’?

(A) Double coincidence of wants
(B) Certain products for barter system
(C) Trade in barter system
(D) Asset as guarantee for loan
Answer:
(D) Asset as guarantee for loan

Explanation:
The collateral acts as a form of protection for the lender. That is, if the borrower defaults on their loan payments, the lender can seize the collateral and sell it to recoup some or all of its losses.

Question 2.

Which one of the following is not a limitation of the barter system?

(A) lack of double coincidence of wants
(B) certain products can’t be divided
(C) most often double coincidence of wants is not available
(D) None of the above
Answer:
(D) None of the above

Explanation:
Barter system had many limitations like lack of double coincidence of wants, lack of a common unit of value, difficulty of future payments or contractual payments and difficulty of storage of value and transfer of value.

Question 3.

Which one of the following was not a traditional form of money?

(A) Grains
(B) Paper notes
(C) Cattle
(D) Gold coins
Answer:
(B) Paper notes

Explanation:
Paper notes were introduced very late. Sheep, camels, and other livestock, were the first and oldest form of money.

Question 4.

Who issues currency notes in India?

(A) Reserve Bank of India
(B) State Bank of India
(C) Ministry of Finance
(D) Government of India
Answer:
(A) Reserve Bank of India

Explanation:
The Reserve Bank of India is Central bank. It is responsible for the issue and supply of the Indian rupee and the regulation of the Indian banking system.

Question 5.

A cheque like currency notes act as

(A) cash
(B) a store of value
(C) a medium of exchange
(D) a demand deposit
Answer:
(C) a medium of exchange

Explanation:
Money is accepted as a medium of exchange because: The currency is authorised by the government of the country. The Reserve Bank of India issues currency notes on behalf of the Central Government.

Question 6.

A deposit with a bank that can be withdrawn whenever the depositor likes to do so, is termed as-

(A) a demand deposit
(B) a time deposit
(C) a fixed deposit
(D) a legitimate deposi
Answer:
(A) a demand deposit

Question 7.

Which of the following does not constitute a part of informal credit in India?

(A) Commercial Bank
(B) Moneylenders
(C) Friends and relatives
(D) Zamindars
Answer:
(A) Commercial Bank

Explanation:
Commercial banks are a part of formal credit as the bank’s funds come from money deposited by the bank customers in saving accounts, checking accounts, money market accounts.

Question 8.

The functioning of the formal source of credit are supervised by

(A) Government of India
(B) Reserve Bank of India
(C) Ministry of Finance
(D) None of the above
Answer:
(B) Reserve Bank of India

Explanation:

The RBI supervises the functioning of formal sources of credit in India. The RBI monitors that the banks actually maintain the required cash balance out of the deposits they receive.

Question 9.

Banks do not give loans to

(A) small farmer
(B) marginal farmers
(C) industries
(D) people without proper collateral and documents
Answer:
(D) people without proper collateral and documents

Explanation:
Banks require it to know financial condition of borrower and make sure he/ she can pay loan on time .

Question 10.

The number of members in a typical SHG varies between

(A) 5 and 10
(B) 15 and 20
(C) 15 and 25
(D) 20 and 30
Answer:
(B) 15 and 20

Explanation:
A Self-help group (SHG) is a financial intermediary committee usually composed of 15 to 20 local women or men.

Question 11.

Column A	Column B
(i) Barter system	(A) Supervises the functioning of banks
(ii) Debt-trap	(B) Commodity for commodity ex-change system
(iii) Formal sector loans	(C) Pushes the bor-rower into a situation from which recovery is very painful
(iv) Reserve Bank of India	(D) Loans from banks and coop-eratives

(A) (i)-(C), (ii)-(D), (iii)-(B), (iv)-(A)
(B) (i)-(A), (ii)-(B), (iii)-(C), (iv)-(D)
(C) (i)-(B), (ii)-(A), (iii)-(D), (iv)-(C)
(D) (i)-(D), (ii)-(C), (iii)-(A), (iv)-(B)
Answer:
(A) (i)-(C), (ii)-(D), (iii)-(B), (iv)-(A)

Question 12.

Column A	Column B
(i) Financial Formal Institutions	(A) Payments which are to be made in future
(ii) Financial Informal Institutions	(B) The actual amount of investment
(iii) Actual Investment	(C) Commercial banks, coopera-tives, Rural Banks
(iv) Deferred Payments	(D) Moneylenders, landlords, employers, rela-tives, friends etc

(A) (i)-(c), (ii) (D),-(iii) (B), (iv)-(A)
(B) (i)-(B), (ii)-(B), (iii)-(C), (iv)-(D)
(C) (i)-(B), (ii)-(A), (iii)-(D), (iv)-(C)
(D) (i)-(D), (ii)-(C), (iii)-(A),(iv)-(B)
Answer:
(A) (i)-(c), (ii) (D),-(iii) (B), (iv)-(A)

Question 13.

Arrange the following in the correct sequence:

(i) Online payment, Debit card, Credit cards
(ii) Precious metal coins (gold, silver, copper)
(iii) Grain and Cattle
(iv) Modern Currency-Paper notes and coins

Options:
(A) (iv) – (i) – (ii) – (iii)
(B) (iii) – (ii) – (i) – (iv)
(C) (iii) – (ii) – (iv) – (i)
(D) (ii) – (iv) – (iii) – (i)
Answer:
(C) (iii) – (ii) – (iv) – (i)

Explanation:
Initially grains and cattle were used as money. Before the introduction of coins, a variety of objects was used as money. Thereafter came the use of metallic coins. As time progressed, trade increased and a global market was created. With the global market came the need for a more convenient medium of exchange. Thus was born the modern forms of money – paper notes (currency) and coin. With the advancement of technology, online payments have become the new form of contactless payment.

Question 14.

Analyze the information given below, considering one of the following correct options: Rita has taken a loan of ₹ 7 lakhs from the bank to purchase a car. The annual interest rate on the loan is 14.5 per cent and the loan is to be repaid in 3 years in monthly instalments. The bank retained the papers of the new car as collateral, which will be returned to Rita only when she repays the entire loan with interest.

(A) Mode of re-payment
(B) Terms of credit
(C) Interest on loan
(D) Deposit criteria
Answer:
(B) Terms of credit

Explanation:
Terms of credit are the requirements need to be satisfied for any credit arrangements. It includes interest rate, collateral, documentation and mode of repayment. However the terms of credit vary depending upon the nature of lender, borrower and loan.

Question 15.

Analyze the information given below, considering one of the following correct options: Mohan is an agricultural labourer. There are several months in a year when he has no work and needs credit to meet his daily expenses. He depends upon his employer, the landowner for credit who charges an interest rate of 5 per cent per month. Mohan repays the money by working physically for the landowner on his farmland. Over the years his debt will

(A) Increase – because of increasing interest and non-payment of monthly amount
(B) Remain constant – as he is working for the employer but is repaying less
(C) Reduce – as amount equivalent to his salary is being counted as monthly repayment
(D) Be totally repaid – as he is repaying the debt in the form of physical labour
Answer:
(A) Increase – because of increasing interest and non-payment of monthly amount

Explanation:
Compared to the formal lenders, most of the informal lenders charge a much higher interest on loans. Thus, the cost to the borrower of informal loans is much higher.

Question 16.

Analyze the information given below, considering one of the following correct options:
Mahesh is a small farmer. He has taken a loan of ₹2 lakhs from the money leader to meet the expenses of cultivation. The annual interest rate on the loan is very high, so he is unable to repay the loan and he is caught in a debt. He has to sell a part of the land to pay off the debt.

(A) Terms of credit
(B) Interest on loan
(C) Debt-trap
(D) Mode of repayment
Answer:
(C) Debt-trap

Explanation:
Debt -trap is a situation in which a poor person falls in dept i.e he/she is not able to pay the interest rate or loans .

Question 17.

Analyze the information given below, considering one of the following correct options: Ramu is a shoe manufacturer and he wants to directly exchange shoes for rice without the use of money. Now he will have to look for a rice growing farmer who not only wants to sell rice but also wants to buy the shoes in exchange.

(A) Double coincidence of wants
(B) Goods exchange with goods
(C) Goods exchange with money
(D) None of the above
Answer:
(A) Double coincidence of wants

Question 18.

Analyze the information given below, considering one of the following correct options: Megha has taken a loan of ₹ 6 lakhs from the bank to purchase a house. The annual interest rate on the loan is 14 per cent and the loan is to be repaid in 12 years in monthly installments. Megha had to submit to the bank, documents showing her employment records and salary before the bank agreed to give her the loan.

(A) Interest on loan
(B) Formal source of loan
(C) Informal source of loan
(D) None of the above
Answer:
(B) Formal source of loan

Explanation:
Formal source of loan demands the submission of collateral and all loan related documentation before processing the loan.

Question 19.

Analyze the information given below, considering one of the following correct options : A shopkeeper Sudha has to make a payment to the wholesaler and writes a cheque for a specific amount to the wholesaler. The wholesaler takes this cheque, and deposits it in his own account in the bank. The money is transferred form one bank account to another bank account in a couple of days. The transaction is completed without any payment of cash.

(A) Check payment
(B) Interest on deposits
(C) Demand deposit
(D) Money transfer
Answer:
(C) Demand deposit

Explanation:
In case of Demand Deposit deposited funds can be withdrawn at any time, without advance notice.

Question 20.

Find the incorrect option from the following:

(A) Demand deposit share the essential features of money
(B) With demand deposit payments can be made without cash
(C) Demand deposits are safe way of money transformation
(D) Demand deposit facility is like cheque
Answer:
(D) Demand deposit facility is like cheque

Explanation:
The facility of cheques against demand deposits makes it possible to directly settle payments without the use of cash. Since demand deposits are accepted widely as a means of payment, along with currency, they constitute money in the modern economy.

Question 21.

Find the incorrect option from the following:

(A) Banks accept deposit and also pay an amount as interest.
(B) People’s money is safe with banks.
(C) Banks provide loans only to profit-making businesses.
(D) It is easy for individuals to get credit who have savings and current account in the banks.
Answer:
(C) Banks provide loans only to profit-making businesses.

Question 22.

Find the incorrect option from the following :

(A) Poor households still depend on informal sources of credit.
(B) RBI supervises the functioning of informal sources of loans.
(C) Banks are not present everywhere in the rural areas.
(D) RBI monitors the banks in actually maintaining cash balance.
Answer:
(B) RBI supervises the functioning of informal sources of loans.

Explanation:
The RBI monitors the banks in actually maintaining cash balance. Periodically banks have to submit information to the RBI on how much they are lending to whom at what interest rate etc.

Assertion and Raeson Based MCQs

Question 1.

Assertion (A): No individual or organisation is allowed to issue currency notes in India.
Reason (R): In India, only RBI issues currency notes on behalf of the Central Government.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Question 2.

Assertion (A): Banks keeps a small proportion of their deposits as cash with themselves.
Reason (R): This is kept to meet the loan requirements of the people.

Answer:
(C) A is correct but R is wrong.

Explanation:
Banks keep only a small proportion of their deposits as cash with themselves. This is kept as a provision to pay the depositors who might come to withdraw money from the bank on any given day.

Question 3.

Assertion (A): Banks give loans not only to profit-making businesses but also to small cultivators.
Reason (R): The RBI supervises the functioning of formal sources of loans.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Explanation:
The RBI sees the the banks give loan not just to profit -‘making business and traders but also to small cultivators, small-scale industries, small borrowers, etc. Periodically, banks have to submit information to the RBI on how much they are lending, to whom, at what interest rate, etc.

Question 4.

Assertion (A): Periodically, banks have to submit information to the Finance Minister on how much they are lending, to whom, at what interest rate, etc.
Reason (R): The Finance Minister monitors the banks in actually maintaining cash balance.

Answer:
(D) A is wrong and R is correct.

Explanation:
The RBI monitors that the banks actually maintain the cash balance.

Question 5.

Assertion (A): The facility of demand deposits makes it possible to settle payments without the use of cash.
Reason (R): Demand deposits are paper orders which make it possible to transfer money from one person’s account to another person’s account.

Answer:
(D) A is wrong and R is correct.

Explanation:

The facility of cheques against demand deposits makes it possible to directly settle payments without the use of cash. Since demand deposits are accepted widely as a means of payment, along with currency; they constitute money in the modern economy.

Question 6.

Assertion (A): Banks charge a higher interest rate on loans than what they offer on deposits.
Reason (R): The difference between what is charged from borrowers and what is paid to depositors is their main source of income.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Case-Based MCQs

I. Read the extract given below and answer the questions that follows:
Bartering is the act of trading one good or service for another without using a medium of exchange such as money. A bartering economy differs from a monetary economy in a variety of ways. When barter was used as an exchange medium, the needs of people were very limited. This trading method doesn’t involve money and it relies solely on exchanging goods and services for other services and goods in return. The use of money spans a very large part of our everyday life. To understand the usefulness of money, we must consider what the world would be like without money. How would people exchange goods and services? Economies without money typically engage in the barter system.

Barter is highly inefficient for trying to coordinate the trades in a modern advanced economy. In an economy without money, an exchange between two people would involve a double coincidence of wants, a situation in which both the parties have to agree to sell and buy each other’s commodities. This is known as double coincidence of wants. What a person desires to sell is exactly what the other wishes to buy. In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature.

Another problem with the barter system is that it does not allow us to easily enter into future contracts for purchasing many goods and services. Money solves the problems that the barter system creates. Money serves as a medium of exchange, which means that money acts as an intermediary between the buyer and the seller. Modem forms of money include currency paper notes and coins. The other form in which people hold money is as deposits with banks.

Answer the following MCQs by choosing the most appropriate option

Question 1.

Which of the following can be considered as modern form of Money?

(A) Paper note
(B) Gold Coins
(C) Silver Coins
(D) Copper coins
Answer:
(B) Gold Coins

Explanation:
They are accepted as a modern form of money because of government authorization.

Question 2.

Which of the following has an essential feature of double coincidence?

(A) Money system
(B) Barter system
(C) Financial system
(D) Banking system
Answer:
(B) Barter system

Explanation:
Barter system is direct exchange of goods and services. It requires the double coincidence of wants. Barter system eliminates the use of money. It generally flourishes among uncivilized and backward communities. Barter system is possible where the area of exchange is limited.

Question 3.

In a barter system:

(A) Goods are exchanged for money
(B) Goods are exchanged for foreign currency
(C) Goods are exchanged without the use of money
(D) Goods are exchanged on credit.
Answer:
(C) Goods are exchanged without the use of money

Explanation:
Barter is an act of trading goods or services between two or more parties without the use of money. Barter system involves the provision of one good or service by one party in return for another good or service from another party.

Question 4.

Which of the following feature of money acts as an intermediate in the exchange process?

(A) Medium of exchange
(B) Unit of value
(C) Store of value
(D) None of the above
Answer:
(A) Medium of exchange

Explanation:
By serving as a medium of exchange money removes the difficulties associated with the Barter System. Money is authorised by the government of the country and nobody can legally refuse it as a medium of exchange for goods or services.

II. Read the source given below and answer the questions that follows:
Banks use the major portion of the deposits to extend loans. There is a huge demand for loans for various economic activities. Banks make use of the deposits to meet the loan requirements of the people. In this way, banks mediate between those who have surplus funds (the depositors) and those who are in need of these funds (the borrowers). Banks charge a higher interest rate on loans than what they offer on deposits. A large number of transactions in our day-to-day activities involve credit in some form or the other. Credit (loan) refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment. In rural areas, the main demand for credit is for crop production. Crop production involves considerable costs on seeds, fertilisers, pesticides, water, electricity, repair of equipment, etc. he various types of loans can be conveniently grouped as formal sector loans and informal sector loans. Among the former are loans from banks and cooperatives.

The informal lenders include moneylenders, traders, employers, relatives and friends, etc. The Reserve Bank of India supervises the functioning of formal sources of loans. For instance, we have seen that the banks maintain a minimum cash balance out of the deposits they receive. The RBI monitors the banks in actually maintaining cash balance. There is no organisation which supervises the credit activities of lenders in the informal sector. They can lend at whatever interest rate they choose. There is no one to stop them from using unfair means to get their money back. Compared to the formal lenders, most of the informal lenders charge a much higher interest on loans. Thus, the cost to the borrower of informal loans is much higher. In recent years, people have tried out some newer ways of providing loans to the poor. The idea is to organise rural poor, in particular women, into small Self-Help Groups (SHGs) and pool (collect) their savings.

Answer the following MCQs by choosing the most appropriate option

Question 1.

Compared to the formal lenders, most of the informal lenders charge a much interest on loans

(A) Lower
(B) Constant
(C) Higher
(D) No interest
Answer:
(C) Higher

Explanation:
Informal lenders charges high rate interest. They make loans very expensive as they are no external organizations controlling the credit activities of lenders

Question 2.

Formal sector loans include loans from

(I) Banks
(II) Moneylenders
(ID) Cooperatives
(IV) Traders

(A) (i) and (iii)
(B) (ii) and (iv)
(C) (ii) and (iii)
(D) (i) and (iv)
Answer:
(A) (i) and (iii)

Explanation:
These organizations provide cheap and affordable loans and their rate of interest is monitored by RBI.

Question 3.

An agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment.

(A) Credit (loan)
(B) Chit fund
(C) Bank
(D) Cheque
Answer:
(A) Credit (loan)

Explanation:
Credit is generally defined as a contract agreement in which a borrower receives a slim of money or something of value and repays the lender at a later date, generally with interest.

Question 4.

Banks use the major portion of the deposits to

(A) Keep as a reserve so that people may withdraw
(B) Meet their routine expenses
(C) Extend loans
(D) Meet renovation of the bank
Answer:
(C) Extend loans

Explanation:
Major portion of the deposits is used by banks for extending loans to borrowers.

III. Read the source given below and answer the questions that follows:
The use of money spans a very large part of our everyday life. Look around you and you would easily be able to identify several transactions involving money in any single day, Gan you make a list of these? In many of these transactions, goods are being bought and sold with the use of money. In some of these transactions, services are being exchanged with money. For some, there might not be any actual transfer of money taking place now but a promise to pay money later- Hayq you ever wondered why transactions are made in money? The reason is simple. A person holding money can easily exchange it for any commodity or service that he or she might want. Thus everyone prefers to receive payments in money and then exchange the money for things that they want. Take the case of a shoe manufacturer. He wants to sell shoes in the market and buy wheat. The shoe manufacturer will first exchange shoes that he has produced for money, and then exchange the money for wheat.

Imagine how much more difficult it would be if the shoe manufacturer had to directly exchange shoes for wheat without the use of money. He would have to look for a wheat growing farmer who not only wants to sell wheat but also wants to buy the shoes in exchange. That is, both parties have to agree to sell and buy each other’s commodities. This is known as double coincidence of wants. What a person desires to sell is exactly what the other wishes to buy. In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature. In contrast, in an economy where money is in use, money by providing the crucial intermediate step eliminates the need for double coincidence of wants. It is no longer necessary for the shoe manufacturer to look for a farmer who will buy his shoes and at the same time sell him wheat. All he has to do is find a buyer for his shoes. Once he has exchanged his shoes for money, he can purchase wheat or any other commodity in the market. Since money acts as an intermediate in the exchange process, it is called a medium of exchange.

Answer the following MCQs by choosing the most appropriate option Question 1. Why transactions are made in money?

(A) Money is easy to get.
(B) Money is accepted as a medium of exchange.
(C) Everyone has money reserves in their house.
(D) All of the Above.
Answer:
(B) Money is accepted as a medium of exchange.

Explanation:
Money is accepted as a medium of exchange because the currency is authorised by the Government of India.

Question 2.

In …….. both parties have to agree to sell and buy each other’s commodities.

(A) Double Coincidence of wants
(B) Barter System
(C) Bank Regulation
(D) Personal Agreements
Answer:
(B) Barter System

Explanation:
Barter svstem is exchange of commodities of two parties, without paying or? taking money. In double coincidence of wants a person willing to sell something is bought by another person.

Question 3.

How would had the shoe manufacturer directly exchanged shoes for wheat without the use of money?

(A) Both parties have to agree to sell and buy each other’s commodities.
(B) He compels the farmer to give him wheat on compassionate grounds.
(C) He forces the farmer to take the shoes from him in exchange of wheat.
(D) He approaches the bank authorities.
Answer:
(A) Both parties have to agree to sell and buy each other’s commodities.

Explanation:
When two parties agree to sell and buy each other’s commodities, this situation is known as ‘double coincidence of wants*; That is, what a person desires to sell is exactly what the other wishes to buy. Such a situation is a feature of the barter system.

Question 4.

Why barter system is no longer practiced?

(A) Considered illegal
(B) People do not have that much things to exchange
(C) It is difficult to find two parties that have something they both want to trade
(D) Government keeps a check on such an activity
Answer:
(C) It is difficult to find two parties that have something they both want to trade

Explanation:
A barter system lacked not only a common medium of exchange but also a standard unit of account in which prices could be measured and quoted.

MCQ Questions for Class 10 Social Science with Answers

MCQ Questions for Class 10 Economics Chapter 3 Money and Credit Read More »

MCQ Questions for Class 10 Economics Chapter 2 Sectors of Indian Economy

MCQ Questions / Prasanna

Sectors of Indian Economy Class 10 MCQ Questions With Answers

Question 1.

Which of the following profession belongs to the Tertiary sector of economy?

(A) Fisherman
(B) Farmer
(C) Factory worker
(D) Teacher
Answer:
(D) Teacher

Explanation:
Tertiary jobs involve providing a I service, hence teaching falls in tertiary sector.

Question 2.

Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of the following statements about this sector is correct?

(A) There are govt, bodies to supervise informal sector
(B) Money lenders ask for a reasonable rate of interest
(C) Cost of informal loans to the borrower is quite high
(D) Money lenders use fair means to get their money back.
Answer:
(C) Cost of informal loans to the borrower is quite high

Explanation:
It is because the lender in the informal sector give more money, without any collateral. In the informal sector the lender asks for a huge interest which the borrower is unable to sometimes pay back eventually falls into debt trap.

Question 3.

Production of a commodity, mostly through the natural process, is an activity in…….. sector.

(A) primary
(B) secondary
(C) tertiary
(D) information technology
Answer:
(A) primary

Explanation:
Primary activity includes those occupations which are closely related to man’s natural environment.

Question 4.

GDP is the total value of……… produced during a particular year.

(A) all goods and services
(B) all final goods and services
(C) all intermediate goods and services
(D) all intermediate and final goods and services
Answer:
(B) all final goods and services

Explanation:
GDP represents the total monetary value of all final goods and services produced (and sold on the market) within a country during a period of time (typically 1 year).

Question 5.

In terms of GDP the share of tertiary sector in 2013-14 is:

(A) between 20 to 30 percent
(B) between 30 to 40 percent
(C) between 50 to 60 percent
(D) between 60 to 70 percent
Answer:
(D) between 60 to 70 percent

Question 6.

Economic Survey is published by the:

(A) National Sample Survey Organisation
(B) Ministry of Statistics and Planning
(C) Ministry of Finance
(D) Ministry of Commerce and Trade
Answer:
(C) Ministry of Finance

Explanation:
The Economic Survey published by the Ministry of Finance presents a review of how the Indian economy performed in the financial year, features the performance of major development programmes and highlights the policy initiatives of the government.

Question 7.

The sector which has emerged as the largest producing sector in India is:

(A) Primary sector
(B) Secondary sector
(C) Tertiary sector
(D) None of the above
Answer:
(C) Tertiary sector

Explanation:
This has happened because the demand for Tertiary sector activities like transport, storage and trade have increased substantially with the development of the Primary and Secondary sectors.

Question 8.

In our country, NREGA 2005 aims to provide to all those who are able to, and are willing to work, a minimum of

(A) 200 days of employment in a year.
(B) 100 days of employment in a year.
(C) 300 days of employment in a year.
(D) 365 days of employment in a year.
Answer:
(B) 100 days of employment in a year.

Explanation:
The mandate of the MGNREGA is to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. This Act is an important step towards the realization of the right to work.

Question 9.

The sectors are classified into Public and Private sector on the basis of

(A) employment conditions
(B) the nature of economic activity
(C) ownership of enterprises
(D) number of workers employed in the enterprise
Answer:
(C) ownership of enterprises

Question 10.

Which sector of economy is the largest employer?

(A) Industrial sector
(B) Agriculture sector
(C) Primary sector
(D) None of the above
Answer:
(C) Primary sector

Explanation:
More than half of the workers in the country are working in the primary, mainly in agriculture, producing only a quarter of the GDP

Question 11.

Which one of the following occupations suffers from underemployment?

(A) Teacher
(B) Casual labour
(C) Bank employee
(D) Police constable

Explanation:
Casual labour suffers from under employment because sometimes the supply of labourers is greater than its demand.

Question 12.

Column-I	Column-II
(i) Organised sector	(A) Railways
(ii) Public sector	(B) Tata Iron and Steel Company Limited
(iii) Private sector	(C) Agriculture and farming
(iv) Primary sector	(D) Job security

(A) (i)-(D), (ii)-(A), (iii) -(B), (iv)-(C)
(B) (i)-(D), (ii)-(C), (iii)-(A), (iv)-(B)
(C) (i)-(C), (ii)-(A),(iii)-(B), (iv)-(D)
(D) (i) -(B), (ii)-(c ), (iii)-(D), (iv)-(A)
Answer:
(A) (i)-(D), (ii)-(A), (iii) -(B), (iv)-(C)

Explanation:
In terms of operations, the Indian economy is divided into organized and unorganized. While for ownership, it is divided into the public sector and the private sector.

Question 13

Column ‘A’	Column ‘B’
(i) Primary Sector	(A) Service Sector
(ii) Tertiary Sector	(B) Industrial Sector
(iii) Secondary Sector	(C) Unorganised Sector
(iv) Small and scat-tered units	(D) Agriculture and related sector

(A) (i)-(C), (ii)-(D), (iii)-(A),(iv)-(B)
(B) (i)-(D), (ii)-(A), (iii)-(B), (iv)-(C)
(C) (i)-(C), (ii)-(A), (iii)-(B), (iv)-(D)
(D) (i)-(D), (ii)-(C), (iii)-(A),(iv)-(B)
Answer:
Option (B) is correct.

Explanation: They are three sectors in the Indian economy- primary economy, secondary economy, and tertiary economy. The various production activities in the primary, secondary and tertiary sectors produce a very large number of goods and services. All the three sectors are interdependent on each other.

Question 14.

Arrange the following in the correct sequence:

(i) Transporting cloth to the workshops
(ii) Sale in shops and showrooms
(iii) Spinning the yarn
(iv) Weaving of the fabric

Options:
(A) (i) – (iv) – (iii) – (ii)
(B) (iii) – (iv) – (i) – (ii)
(C) (iv) – (i) – (ii) – (iii)
(D) (iii) – (iv) – (ii) – (i)
Answer:
(B) (iii) – (iv) – (i) – (ii)

Explanation:
These activities contribute to the 5 textile industry which is categorized under the secondary sector. ‘I Once the raw materials are received, the process of spinning starts to convert it into varn which is the predecessor of the fabric to be created.The fibres could be natural or man-made.

Question 15.

Arrange the following in the correct sequence:

(i) Harvesting the crop
(ii) Selling the surplus production in the market
(iii) Sowing the seeds in the soil
(iv) Cultivating the soil Options:

(A) (iii) – (i) – (ii) – (iv)
(B) (i) – (ii) – (iii) – (iv) ‘
(C) (iv) – (iii) – (ii) – (i)
(D) (iii) – (iv) – (i) – (ii)
Answer:
(D) (iii) – (iv) – (i) – (ii)

Explanation:
These activities contribute to the agriculture sector which is categorized under the primary sector of the economy.

Question 16.

Arrange the following in the correct sequence:

(i) Transporting flowers to the vendors.
(ii) Plucking flowers from the plants
(iii) Selling garlands at the shops
(iv) Making garlands with flowers

Options:
(A) (ii) – (iv) – (i) – (iii)
(B) (ii) – (i) – (iv) – (iii)
(C) (i) – (ii) – (iii) – (iv)
(D) (iii) – (i) – (ii) – (iv)
Answer:
(B) (ii) – (i) – (iv) – (iii)

Explanation:
These activities belong to horticulture industry. The horticulture industry embraces the production, processing and shipping of and the market for fruits and vegetables. It is part of agriculture which falls under primary sector.

Question 17.

Analyze the information given below, considering one of the following correct options: Sushila is a worker in garment export industry of Agra. She gets facilities like health insurance provident fund, overtime at a double rate, medical leave, etc. She is working in :

(A) Tertiary sector
(B) Organised sector
(C) Unorganised sector
(D) None of the above
Answer:
(B) Organised sector

Explanation:
Sushila is employed in an organised sector where she works under fixed terms of employment and cannot he terminated in a casual manner without notice.

Question 18.

Analyze the information given below, considering one of the following correct options: There are many activities that are undertaken by directly using natural resources. For example, the cultivation of cotton beekeeping, dairy farming, etc.

(A) Tertiary sector
(B) Private sector
(C) Secondary sector
(D) Primary sector
Answer:
(D) Primary sector

Explanation:
The primary sector of the economy includes any industry involved in ; the extraction and prod uction of raw materials, such as farming, logging, hunting, fishing, and V mining.

Question 19.

Analyze the information given below, considering one of the following correct options: Laxmi, owning about three hectares of unirrigated land dependent only on rain and growing crops like jowar and arhar. All seven members of her family work in the field throughout the year. You will see that everyone is working, none remains idle, but in actual fact their labour effort gets divided. Each one is doing some work but no one is fully employed.

(A) Underemployment
(B) Disguised unemployment
(C) Seasonal unemployment
(D) Both (A) and (B).
Answer:
(D) Both (A) and (B).

Question 20.

Analyze the information given below, considering one of the following correct options: Kamal works in rice mill. Jobs here are low-paid and often not regular. There is no provision for overtime paid leave holidays, etc. Employment is not secure. People can be asked to leave without any reason.

(A) Organised sector
(B) Private sector
(C) Unorganized sector
(D) Joint sector
Answer:
(C) Unorganized sector

Explanation:
Unorganised sector is one where the employment terms are not fixed and regular, as well as the enterprises, are not registered with the government.

Question 21.

Rakesh works in a automobile unit in Gurugram. But he does not get any facility like health insurance, medical leave provident fund, gratuity, etc.

(A) Public sector
(B) Organised sector
(C) Private sector
(D) Unorganised sector
Answer:
(D) Unorganised sector

Explanation:
Rakesh’s works in an unorganised sector wherein his employment is not secure , he is generally low paid and is not regularly paid. His employers do not make provision for overtime payment, paid leaves or holidays, medical facilities, gratuity and provident fund.

Question 22.

Choose the incorrect option from the following :

List-I	List-II
(A) Courier	(i) Tertiary Sector
(B) Fisherman	(ii) Primary Sector
(C) Carpenter	(iii) Primary Sector
(D) Banker	(iv) Tertiary Sector

Answer:
Option (C) is correct.

Explanation:
Since carpenters use woods or timber as the main raw materials(provided by the timber industry which belongs to primary sector) to produce or manufacture furniture and other wooden structures, it falls in primary sector.

Question 23.

Find the incorrect option from the following:

(A) Secondary sector provides employment to a large number of people.
(B) Secondary sector is also called the service sector.
(C) Secondary sector uses mechanical power and modern use of labour.
(D) Secondary sector produces goods for local and international consumers.
Answer:
(B) Secondary sector is also called the service sector.

Explanation:
Secondary sector is also called industrial because the secondary sector is mostly associated with industries.

Question 24.

Find the incorrect option from the following:

(A) MGNREGA has been implemented in 625 districts of India
(B) MGNREGA guarantees 200 days of assured work to the people who are able and in need of work
(C) If the government fails to provide unemployment allowances to the people.
(D) One third of the jobs are reserved for women.
Answer:
(B) MGNREGA guarantees 200 days of assured work to the people who are able and in need of work

Question 25.

Find the incorrect option from the following:

(A) Underemployment means more people engaged in a job than needed.
(B) Underemployment is found only in agricultural sector
(C) Underemployment is also called disguised unemployment.
(D) Underemployment is also found in other sectors.
Answer:
(B) Underemployment is found only in agricultural sector

Explanation:
Population pressure, landlessness, environmental constraints, and technological changes in agriculture are some of the causes of underemployment in agriculture.

Assertion and Reason Based MCQs

Directions: In the following questions, A statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as. [U]
(A) Both A and R are true and R is the correct explanation of A.
(B) Both A and R are true but R is NOT the correct explanation of A.
(C) A is true but R is false.
(D) A is false and R is true.

Question 1.

Assertion (A): Not every good or service that is produced and sold needs to be counted to know the total production in each sector.
Reason (R): The value of final goods already includes the value of all the intermediate goods.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Explanation:
The value of final goods already includes the value of all intermediate goods that are being used in the process of producing the final good, e.g. a farmer sold wheat to a flourmill for Rs. 10 per kg. The mill grinds the wheat and sold the flour to a biscuit company for Rs. 12 per kg.

Question 2.

Assertion (A): Under MGNREGA 2005, those who are able to, and are in need to work in rural areas are guaranteed 100 days of employment in a year.
Reason (R): The Central government in India made a law implementing the Right to work in about 625 districts of India.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Question 3.

Assertion (A): Rakesh is an educated and skilled worker who earns a high monthly salary as he is employed in a private bank in a city.
Reason (R): All service sectors in India are growing extremely well and each individual engaged in any kind of tertiary activity earns a high income.

Answer:
(C) A is true but R is false.

Explanation:
In India, not the entire service sector is growing equally well. Service sector in India employs many different kinds of people. At one end there are a limited number of services that employ highly skilled and educated workers. At the other end, there are a very large number of workers engaged in services such as small shopkeepers, repair persons, transport persons, etc. These people barely manage to earn a living and yet they perform these services because no alternative opportunities for work are available to them.

Question 4.

Assertion (A): The development of agriculture and industry leads to the development of service sector.
Reason (R): As the primary and secondary sectors develops, the demand for transport, storage structures, banks, insurance, etc., increases.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Question 5.

Assertion (A): In India, over the forty years between 1973-74 and 2013-14, while production in all the three sectors has increased, it has increased the most in the tertiary sector.
Reason (R): Tertiary sector is the only organized sector in the economy so the government spends a lot of money for creating jobs in tertiary sector.

Answer:
(C) A is true but R is false.

Explanation: There are several reasons for increased production in tertiary sector such as increase in demand for education, health, communication and transportation, development of agriculture sector, increase in level of income and development of information and technology sector.

Question 6.

Assertion (A): Reliance industries is a privately- owned firm.
Reason (R): Government is a major stakeholder is reliance industries.

Answer:
(C) A is true but R is false.

Explanation:
Reliance industry is a privately- owned firm as the assets and delivery of goods and services in Reliance is controlled by private individuals.

Case-Based MCQs

I. Read the extract given below and answer the questions that follows:
There are many activities that are undertaken by directly using natural resources. When we produce a good by exploiting natural resources, it is an activity of the primary sector. Since most of the natural products we get are from agriculture, dairy, fishing, forestry, this sector is also called agriculture and related sector. The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. It is the next step after primary. The product is not produced by nature but has to be made and therefore some process of manufacturing is essential. After Primary and Secondary, there is a third category of activities that falls under Tertiary sector and is different from the above two. These are activities that help in the development of the Primary and Secondary sectors. These activities, by themselves, do not produce a good but they are an aid or a support for the production process.

The various production activities in the Primary, Secondary and Tertiary sectors produce a very large number of goods and services. Also, the three sectors have a large number of people working in them to produce these goods and services. The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year. And the sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country. It is the value of all final goods and services produced within a country during a particular year. GDP shows how big the economy is.

Answer the following MCQs by choosing the most appropriate option

Question 1.

Production of a commodity, mostly through ways of manufacturing is an activity of which sector?

(A) Primary sector
(B) Secondary sector
(C) Tertiary sector .
(D) Norie of the above
Answer:
(B) Secondary sector

Explanation:
The secondary sector of the economy is an economic sector that describes the role of manufacturing. It encompasses industries that produce a finished, usable product or are involved in construction.

Question 2.

Which of the following is an example of Tertiary activities?

(A) Cotton
(B) Transport
(C) Sugar
(D) All of the above
Answer:
(B) Transport

Question 3.

Which of the following statement is not true?

(A) When we produce a good by exploiting natural resources, it is an activity of the Primary Sector.
(B) The Secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing.
(C) Service sector is also called the industrial sector.
(D) None of the above.
Answer:
(C) Service sector is also called the industrial sector.

Explanation:
Secondary sector is also called industrial because the secondary sector is mostly associated with industries. For example, textile industry, steel industry, etc.

Question 4.

Match the following list of occupations with their sectors:

Occupation	Sector
1. Workers in wood factory	(i) Primary
2. Dairy	(ii) Secondary
3. Banking	(iii) Tertiary

(A) 1 – (i), 2 – (iii), 3 – (ii)
(B) 1 – (ii), 2 – (i), 3 – (iii)
(C) 1 – (iii), 2 – (ii), 3 – (i)
(D) None of the above.
Answer:
(B) 1 – (ii), 2 – (i), 3 – (iii)

I. Read the source given below and answer the questions that follows:
Rajesh works in a bank as a bank manager. He goes regularly to his bank and attends his bank services from 9.00 a.m. to 6:00 p.m. He gets his salary at the end of every month. In addition to the salary he also gets provident fund as per the rules laid down by the government. He also gets earned leaves, sick leaves and casual leaves. Apart from leaves, he receives medical and other allowances. Rajesh does not go to bank on Saturdays and Sundays. This is a paid holiday. When he joined bank, he was given an appointment letter stating all the terms and conditions of work and his job is secure.

Ram is Rajesh’s neighbour. He is a daily wage labourer in a nearby grocery shop. He goes to the shop at 7:00 am in the morning and works till 10:00 p.m. in the evening. He gets no other allowances apart from his wages. He is not paid for the days he does not work. He has therefore no leave or paid holidays. Nor was he given any formal appointment letter saying that he has been employed in the shop. He can be asked to leave anytime by his employer if his job is not found satisfactory. His job is not secure. Rajesh works in the organized sector whereas Ram works in an unorganized sector.

Answer the following MCQs by choosing the most appropriate option

Question 1.

Which of the following statement is not true with respect to organized sector?

(A) Organized sector is registered by the government
(B) In organized sector the workers enjoy the security of employment
(C) In organized sector workers does not get several benefits
(D) All of the above
Answer:
(C) In organized sector workers does not get several benefits

Explanation:
Workers in the organised sector get paid leave, payment during holidays, provident fund, gratuity etc

Question 2.

Which of the following statements is an example of unorganised sector activities?

(A) A teacher taking classes in a school
(B) A daily wage labourer working under a contractor
(C) A doctor in a hospital treating a patient
(D) A factory worker going to work in a big factory
Answer:
(B) A daily wage labourer working under a contractor

Explanation:
The unorganized sector jobs are mostly exemplified by daily wage employment or temporary hired labor work which usually does not have a fixed salary or income such as in any organized employment.

Question 3.

In the rural areas, the unorganized sector mostly comprises of

(A) Landless agricultural labourers
(B) Small and marginal farmers
(C) Sharecroppers and artisans
(D) All of the above
Answer:
(D) All of the above

Explanation:
Most of the people working in unorganised sector belong to backward communities. These workers face social discrimination. Their terms of employment render them liable to be terminated at any time.

Question 4.

In the urban areas, unorganised sector comprises mainly of

(A) Workers in small-scale industry
(B) Casual workers in construction
(C) Both (A) and (B)
(D) None of the above
Answer:
(C) Both (A) and (B)

Explanation:
These workers come to rural areas in search of employment.

II. Read the source given below and answer the questions that follows:
With so many thousands of goods and services produced, you might think this is an impossible task! Not only would the task be enormous, you might also wonder how we can add up cars and computers and nails and furniture. It won’t make sense You are right in thinking so. To get around this problem, economists suggest that the values of goods and services should be used rather than adding up the actual numbers. For example, if 10,000 kgs of wheat is sold at Rs 8 per kg, the value of wheat will be Rs 80,000. The value of 5000 coconuts at Rs 10 per coconut will be Rs 50,000. Similarly, the value of goods and services in the three sectors are calculated, and then added up. Remember, there is one precaution one has to take. Not every good (or service) that is produced and sold needs to be counted. It makes sense only to include the final goods and services.

Take, for instance, a farmer who sells wheat to a flour mill for Rs 8 per kg. The mill grinds the wheat and sells the flour to a biscuit company for Rs 10 per kg. The biscuit company uses the flour and things such as sugar and oil to make four packets of biscuits. It sells biscuits in the market to the consumers for Rs 60 (Rs 15 per packet). Biscuits are the final goods, i.e., goods that reach the consumers. Why are only ‘final goods and services’ counted? In contrast to final goods, goods such as wheat and the wheat flour in this example are intermediate goods. Intermediate goods are used up in producing final goods and services. The value of final goods already includes the value of all the intermediate goods that are used in making the final good. Hence, the value of Rs 60 for the biscuits (final good) already includes the value of flour (Rs 10). Similarly, the value of all other intermediate goods would have been included. To count the value of the flour and wheat separately is therefore not correct because then we would be counting the value of the same things a number of times.

First as wheat, then as flour and finally as biscuits. The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year. And the sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country. It is the value of all final goods and services produced within a country during a particular year. GDP shows how big the economy is. In India, the mammoth task of measuring GDP is undertaken by a central government ministry. This Ministry, with the help of various government departments of all the Indian states and union territories, collects information relating to total volume of goods and services and their prices and then estimates the GDP

Answer the following MCQs by choosing the most appropriate option

Question 1.

What method does the Economists suggest in counting the various goods and services?

(A) Value of goods and services should be used rather than adding up the actual numbers.
(B) Values of actual numbers to be used.
(C) Values of intermediate goods to be used.
(D) None of the Above
Answer:
(A) Value of goods and services should be used rather than adding up the actual numbers.

Explanation:
The value of final goods already includes the value of all intermediate goods that are being used in the process of producing the final good, e.g. a farmer sold wheat to a flour mill for Rs. 10 per kg. The mill grinds the wheat and sold the flour to a biscuit company for Rs. 12 per kg.

Question 2.

What is the role of Central government Ministry in measuring GDP?

(A) Collects information relating to total volume of goods and services and their prices and then estimates the GDP
(B) Collects targets relating to total volume of goods and services and their prices and then defines the GDP
(C) Collects estimates relating to total volume of goods and services and their prices and then sums up the GDE
(D) Collects information relating to GDP then estimates the total value of goods and services.
Answer:
(A) Collects information relating to total volume of goods and services and their prices and then estimates the GDP

Explanation:
In India, the task of measuring GDP is undertaken by a Central Government Ministry. This ministry, with the help of various government departments of all the Indian states and union territories, collects information relating to total volume of goods and services and their prices and then estimates the GDP ‘

Question 3.

Why not every good (or service) that is produced and sold needs to be counted?

(A) Because the value of intermediate goods only includes the value of all the intermediate goods
(B) Because the value of final goods already includes the value of all the intermediate goods.
(C) Because the value of intermediate goods already includes the value of all the final goods.
(D) Because the valueof services goods already includes the value of all the intermediate goods.
Answer:
(B) Because the value of final goods already includes the value of all the intermediate goods.

Question 4.

Give an example of intermediate goods.

(A) Wheat
(B) Flour
(C) Bread
(D) Biscuit
Answer:
(A) Wheat

Explanation:
Wheat used by a flour mill is an intermediate product since wheat is used as raw material by flour mill. Value is yet to be added to wheat by converting it into flour.

MCQ Questions for Class 10 Social Science with Answers

MCQ Questions for Class 10 Economics Chapter 2 Sectors of Indian Economy Read More »

MCQ Questions for Class 10 Economics Chapter 1 Development

MCQ Questions / Prasanna

Development Class 10 MCQ Questions With Answers

Question 1.

Read the given data and find out which country has most equitable distribution of income.

Countries	Monthly Income of Citizens in four countries in 2018
	Citizen 1	Citizen 2	Citizen 3	Citizen 4	Citizen 5	Citizen 6
Country A	10500	11200	10800	11000	10700	10840
Country B	600	5000	600	600	600	1480
Country C	550	10500	400	7500	2000	4190
Country D	800	4800	700	5000	750	2410

(A) Country A
(B) Country B
(C) Country C
(D) Country D
Answer:
(A) Country A

Explanation:
In country A, the variation of income from Citizen to Citizen is very less as compared to other countries.

Question 2.

Which of the following statements defines Sustainable Development ?

(A) Sustainable use of natural resources without considering the need of the future generation.
(B) Present generation fulfils its needs while considering the needs of the future generation as well.
(C) It means utilization of natural resources by the past, present and forthcoming future generation.
(D) To meet the needs of the future generations even if the needs of present generation go unmet.
Answer:
(B) Present generation fulfils its needs while considering the needs of the future generation as well.

Question 3.

Column A	Column B
(A) Landless rural la-bourers	(i) More days of work and better wages
(B) Prosperous farmers from Punjab	(ii) Availability of other sources of irrigation
(C) Farmers who depend only or rain for growing crops	(iii) Assured a higher support prices for their crops.
(D) A rural woman	(iv) Regular job and from a land own-high wages toing family increase her income.

Answer:
Option (B) is correct

Explanation:
Enough groundwater reserves available in Punjab & Western U.P

Question 4.

Development of a country can generally be determined by

(A) its per capita income
(B) its average literacy level
(C) health status of its people
(D) All of the above
Answer:
(D) All of the above

Question 5.

By national income, we mean the money value of

(A) all goods produced during a year.
(B) all final goods produced during a year.
(C) all services produced during a year.
(D) all final goods and services produced during a year.
Answer:
(D) all final goods and services produced during a year.

Question 6.

According to per capita income prepared by the World Bank in 2017, in which category is India included

(A) rich countries
(B) middle income countries
(C) low middle income countries
(D) None of the above
Answer:
(C) low middle income countries

Question 7.

Which of the following is not a criterion for comparing development of different countries?

(A) Educational level of the people
(B) People’s material possessions
(C) Their health status
(D) Their per capita income
Answer:
(B) People’s material possessions

Explanation:
To compare the development of different countries, we need to take common features of all those countries. Material possessions like, furniture, vehicles, accessories and equipments etc. cannot be a part of common feature.

Question 8.

Kerala has a low Infant Mortality Rate because

(A) people of the state are very rich.
(B) the climate of Kerala is very congenial and cosy.
(C) state has adequate provisions of basic health and educational facilities.
(D) people take nutritious diet and are not addicted to drugs.
Answer:
(C) state has adequate provisions of basic health and educational facilities.

Question 9.

A person is considered undernourished if his BMI is

(A) less than 30.5
(B) less than 25.7
(C) less than 20.9
(D) less than 18.5
Answer:
(D) less than 18.5

Question 10.

Study the following table and answer the question that follows:

Region/Country	Reserves (2017) (Thousand Million Barrels)	Number of Years Reserves will last
Middle East	808	70
United States of America	50	10-5
World 1697	1697	50-2

For how many years will the reserves of crude oil last in middle east, if they continue extracting it at the present rate?
(A) 50 years
(B) 10 years
(C) 70 years
(D) 40 years
Answer:
(C) 70 years

Question 11.

Column A	Column B
(i) The total number of children enrolled in or attending primary school, as a percentage of total number of children of primary school age.	(A) Per Capita Income
(ii) This is the total percentage of the population of an area at a particu¬lar time aged 7 years or above, who can read and write with understanding at least one language.	(B) Life expectancy at birth
(iii) This is the total National Income (GDP) divided by the total population	(C) Net Attendance Ratio
(iv) This is the total National Income (GDP) divided by the total population	(D) Literacy Rate

(A) (i)-(B), (ii)-(A), (iii)-(D), (iv)-(C)
(B) (i)-(D), (ii)-(C), (iii)-(B), (iv)-(A)
(C) (i)-(C), (ii)-(D), (iii)-(A), (iv)-(B)
(D) (i)-(D), (ii)-(A), (iii)-(C), (iv)-(D)
Answer:
(C) (i)-(C), (ii)-(D), (iii)-(A), (iv)-(B)

Question 12.

Country	Gross National Income
(i) Sri Lanka	(A) 2,471
(ii) India	(B) 5,331
(iii) Myanmar	(C) 11,326
(iv) Pakistan	(D) 5,567
(v) Nepal	(E) 6,353

(A) (i)-(D), (ii)-(A), (iii)-(B), (iv)-(E), (v)-(C)
(B) (i)-(C), (ii)-(E), (iii)-(D), (iv)-(B), (v)-(A)
(C) (i)-(B), (ii)-(C), (iii)-(E), (iv)-(D), (v)-(A)
(D) (i)-(E), (ii)-(D), (iii)-(A), (iv)-(C), (v)-(B)
Answer:
(B) (i)-(C), (ii)-(E), (iii)-(D), (iv)-(B), (v)-(A)

Question 13.

Arrange the following in the correct sequence:

(i) Convert the height recorded in centimeters into meters,
(ii) Take the weight of each individual in kilograms (kg).
(iii) Take the height by drawing up a scale on the wall and measure accurately with the head straight.
(iv) Divide the weight in kg by the square of the height. Options are:

(A) (i) – (ii) – (iv) – (iii)
(B) (iv) – (ii) – (i) – (iii)
(C) (ii) – (iii) – (i) – (iv)
(D) (iii) – (iv) – (i) – (ii)
Answer:
(C) (ii) – (iii) – (i) – (iv)

Explanation:
BMI=Weight/ Height x Height Weight should be in kilograms & Height in metres.

Question 14.

Analyze the information given below, considering one of the following correct options:
‘However, for comparison between countries, total income is not such a useful measure. Since, countries have different populations, comparing total income will not tell us what an average person is likely to earn. Are people in one country better off than others in a different country? Hence, we compare the average income which is the total income of the country divided by its total population. The average income is also called per capita income.’

(A) Comparison between countries
(B) Comparison of total population
(C) Comparison of average income
(D) Per capita income
Answer:
(D) Per capita income

Question 15.

Analyze the information given below, considering one of the following correct options:

‘The idea of development or progress has always been with us. We have aspirations or desires about what we would like to do and how we would like to live. Similarly, we have ideas about what a country should be like. What are the essential things that we require ? Can life be better for all ? How should people live together ? Can there be more equality ? Development involves thinking about these questions and about the ways in which we can work towards achieving these goals.’

(A) Development
(B) Progress
(C) Aspirations
(D) Desires
Answer:
(A) Development

Question 16.

Find the incorrect option from the following:

(A) For development, people look at a mix of goals.
(B) It is true that if women are engaged in paid work, their dignity in the household and society decreases.
(C) However, it is also the case that if there is respect for women there would be more sharing of housework and a greater acceptance of women working outside.
(D) A safe and secure environment may allow more women to take up a variety of jobs or run a business. ,
Answer:
(B) It is true that if women are engaged in paid work, their dignity in the household and society decreases.

Explanation:
In Indian society, dignity of a person is measured by their work or job. So if women are engaged in paid work, their dignity increases in the society.

Question 17.

Find the incorrect option from the following:

(A) Countries with per capita income of US $ 12,056 per annum and above in 2017, are called rich countries.
(B) And those with per capita income of US $ 755 or less are called low-income countries.
(C) India comes in the category of low middle income countries.
(D) Its per capita income in 2017 was just US$ 1820 per annum.
Answer:
(B) And those with per capita income of US $ 755 or less are called low-income countries.

Explanation:
And those with per capita income of US$ 955 or less are called low-income countries.

Assertion and Raeson Based MCQs

Question 1.

Assertion (A): Different people have different development goals.
Reason (R): People want freedom, equality, security and respect.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Question 2.

Assertion (A): Groundwater is an example of renewable resources.
Reason (R): If we use more than what is being replenished by rain then we would be overusing this resource.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Question 3.

Assertion (A): Normally, your money cannot buy you a pollution-free environment or ensure you that you get unadulterated medicines.
Reason (R): Money may also not be able to protect you from infectious diseases, unless the whole of your community takes preventive steps.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Question 4.

Assertion (A): Sustainable development is essential for the economic growth of the countries.
Reason (R): Sustainable development ensures that environment hostile measures are adopted for carrying out mining processes.

Answer:
(C) A is true but R is false.

Explanation:
Sustainable development is essential for the economic growth as it includes judicious use of resources by reducing wastages.

Question 5.

Assertion (A): Non Renewable resources can be replenished over a period of time. Non Renewable resources are abundant in nature.
Reason (R): Non Renewable resources are fixed in nature.

Answer:
(D) A is false and R is true

Explanation:
Non- Renewable resources are fixed in amount and will get exhausted after several years of usage.

I. Read the source given below and answer the questions that follows:
Different persons can have different developmental goals. What may be development for one may not be development for the other. It may even be destructive for the other. Each one of us seeks different things. We seek things that are most important for them, i.e., that which can fulfil their aspirations or desires. In fact, at times, two persons or groups of persons may seek things which are conflicting. A girl expects as much freedom and opportunity as her brother, and that he also shares in the household work.

Her brother may not like this. Similarly, to get more electricity, industrialists may want more dams. But this may submerge the land and disrupt the lives of people who are displaced such as tribal. They might resent this and may prefer small check dams or tanks to irrigate their land. Besides seeking more income, one way or the other, people also seek things like equal treatment, freedom, security, and respect of others. They resent discrimination. All these are important goals.

In fact, in some cases, these may be more important than more income or more consumption because material goods are not all that you need to live. Money, or material things that one can buy with it, is one factor on which our life depends. But the quality of our life also depends on non- material things mentioned above. For development, people look at a mix of goals. Hence, the developmental goals that people have are not only about better income but also about other important things in life.

Answer the following MCQs by choosing the most appropriate option

Question 1.

What can be the development goals for landless rural laborers?

(A) More days of work and better wages
(B) Local school is able to provide quality education for their children
(C) No social discrimination
(D) All of the above
Answer:
(D) All of the above

Question 2.

Which of the following statement is true with respect to development?

(A) Different persons can have different developmental goals
(B) What may be development for one may not be development for The other.
(C) Development may even be destructive for the other.
(D) All of the above
Answer:
(D) All of the above

Question 3.

Apart from income, which of the following, people do not look for development?

(A) Equal treatment
(B) Discrimination
(C) Freedom
(D) Security
Answer:
(C) Freedom

Explanation:
Discrimination creates differences between two people where one treats others as an inferior. Hence, it could never be a part of anyone’s development.

Question 4.

Why do different persons have different notions of development?

(A) Because people are different.
(B) Because life situations of persons are different.
(C) Both (A) and (B).
(D) None of the above.
Answer:
(C) Both (A) and (B).

II. Read the source given below and answer the questions that follows:
For comparing countries, their income is considered to be one of the most important attributes. Countries with higher income are more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need. Whatever people like, and should have, they will be able to get with greater income. So, greater income itself is considered to be one important goal. The income of the country is the income of all the residents of the’country.

This give us the total income of the country. However, for comparison between countries, total income is not such a useful measure. Since, countries have different populations, comparing total income will not tell us what an average person is likely to earn. Are people in one country better off than others in a different country? Hence, we compare the average income which is the total income of the country divided by its total population. The average income is also called per capita income. In World Development Reports, brought out by the World Bank, this criterion is used in classifying countries.

Countries with per capita income of US$ 12,056 per annum and above in 2017, are called rich countries and those with per capita income of US$ 955 or less are called low-income countries. India comes in the category of low middle- income countries because its per capita income in 2017 was just US$ 1820 per annum. The rich countries, excluding countries of Middle East and certain other small countries, are generally called developed countries. Human Development Report published by UNDP compares countries based on the educational levels of the people, their health status and per capita income.

Answer the following MCQs by choosing the most appropriate option

Question 1.

Per capita income is also called as:

(A) Average income
(B) Total income
(C) Marginal income
(D) None of the above
Answer:
(A) Average income

Explanation:
Per capita income can be used to evaluate each person’s standard of living and their income on an average note.

Question 2.

What is the main criterion used by the World Bank in classifying different countries?

(A) Per capita income
(B) Educational levels
(C) Health status
(D) None of the above.
Answer:
(A) Per capita income

Question 3.

According to the World Development Report 2006, countries with per capital income of ? 4,53,000 per annum and above in 2004 are called:

(A) Rich countries
(B) Low income countries
(C) Middle income countries
(D) None of the above.
Answer:
(A) Rich countries

Question 4.

Who compares the development of the countries on the basis of literacy rate, gross enrolment ratio and health status of their people?

(A) UNDP
(B) World Bank
(C) Both (A) and (B)
(D) None of the above
Answer:
(A) UNDP

Explanation:
The United Nations Development Programme promotes co-operation among the member of the UN.

MCQ Questions for Class 10 Social Science with Answers

MCQ Questions for Class 10 Economics Chapter 1 Development Read More »

MCQ Questions for Class 10 Civics Chapter 7 Outcomes of Democracy

MCQ Questions / Prasanna

Outcomes of Democracy Class 10 MCQ Questions With Answers

Question 1.

Modern democracies maintain check and balance system. Identify the correct option based on the horizontal power sharing arrangement.

(A) Central government, State government, Local bodies.
(B) Legislature, executive, judiciary.
(C) Among different social groups.
(D) Among different pressure groups.
Answer:
(B) Legislature, executive, judiciary.

Explanation:
The constitution provides for a proper check and balance system. For that purpose, the legislature, executive and judiciary have horizontal powers that maintain a balance in the system. The legislature has powers over executive and judiciary. Executive has power over legislative and judiciary.

Question 2.

Study the picture and the answer the question that follows

Which of the following options best signifies this cartoon?

(A) Demand for separate state from democratic government.
(B) Democratic government is facing territorial issues with the bordering states.
(C) Democratic government is coping with multiple pressures through accommodation.
(D) Democratic government accepts demands based on separate state.
Answer:
(C) Democratic government is coping with multiple pressures through accommodation.

Explanation:
Democratic Government is coping with multiple pressures through accommodation. Society has different groups in terms of social and cultural aspects. Democracy develops a procedure to be best suited to evolve the mechanism to negotiate these differences.

Question 3.

Why is democratic government better than other alternatives?

(A) It promotes equality among political parties.
(B) It helps in economic growth.
(C) It helps in creating a pollution-free environment.
(D) It promotes equality among citizens.
Answer:
(D) It promotes equality among citizens.

Explanation:
Democratic government enhances dignity of the individual and no individual is discriminated against on the basis of caste, religion, colour or creed.

Question 4.

Which form of government is considered best?

(A) Monarchy
(B) Democracy
(C) Communist
(D) Anarchy
Answer:
(B) Democracy

Explanation:
Democracy improves the quality of decision-making. It provides a method to deal with differences and conflicts. It enhances the dignity of citizens. It allows correcting its own mistakes.

Question 5.

What is meant by an accountable government?

(A) In an accountable government, people have the right to elect the leaders to form government and if possible they participate in decision-making process.
(B) In an accountable government, people do not have the right to elect the leaders.
(C) In an accountable government, people are a part of decision-making process.
(D) In an accountable government, only privileged section of the society is allowed to vote.
Answer:
(A) In an accountable government, people have the right to elect the leaders to form government and if possible they participate in decision-making process.

Explanation:
A government is said to be accountable when it allows its citizen to participate in its decision making and also frames or develops various laws or policies by which citizens can hold the government responsible for any of their policies or programmes.

Question 6.

What is meant by economic inequality?

(A) It is a situation of equal distribution of wealth.
(B) It is the unequal distribution of income and opportunity between different groups in society.
(C) It is the distribution of wealth on the basis of gender.
(D) It is the distribution of wealth on the basis of education.
Answer:
(B) It is the unequal distribution of income and opportunity between different groups in society.

Explanation:
Economic inequality refers to the disparities in incomes and wealth in a society.

Question 7.

In which area does democracy fail to achieve the same results as in dictatorship?

(A) Social development
(B) Economic development
(C) Political development
(D) Development on the basis of religion
Answer:
(B) Economic development

Explanation:
People are discriminated according to their caste , creed , religion , sex , rich or poor which is not the case in dictatorship form of government.

Question 8.

Which system can reduce the possibility of tension and conflict among different groups of society?

(A) Monarchy
(B) Anarchy
(C) Communism
(D) Democracy
Answer:
(D) Democracy

Explanation:
Democracy has a possibility of reducing the social differences, diversion and conflicts because they have evolved a mechanism to negotiate the differences.

Question 9.

Column A	Column B
(i) Democracy	(A) Able to handle social divisions and conflicts
(ii) Non-democratic regimes	(B) Have higher rate of economic growth
(iii) Dictatorships	(C) Suppress internal social differences
(iv) Democratic regimes	(D) Promotes equali¬ty among citizens

(A) (i)-(A),(ii)-(B),(iii)-(C),(iv)-(D)
(B) (i)-(D),(ii)-(C), (iii)-(B),(iv)-(A)
(C) (i)-(C),(ii)-(A),(iii)-(D),(iv)-(B)
(D) (i)-(B),(ii)-(D),(iii)-(A),(iv)-(C)
Answer:
(B) (i)-(D),(ii)-(C), (iii)-(B),(iv)-(A)

Explanation:
There are different forms of government found around the world. Some of the different types of government include a Democracy, Socialism, Communism, Dictatorship. The common form of government is democracy.

Question 10.

Column A	Column B
(i) Transparency and decision-making	(A) Social outcome of democracy
(ii) Dignity and free-dom of women	(B) Political outcome of democ-racy
(iii) Economic growth and development	(C) Political outcome of democ-racy
(iv) Accountable and	(D) Economic out- responsive gov-come of democ-ernment racy

(A) (i)-(A), (ii)-(B), (iii)-(C), (iv)-(B)
(B) (i) -(B), (ii)-(C), (iii)-(D), (iv)-(A)
(C) (i)-(B), (ii)-(A),(iii)-(D),(iv)-(C)
(D) (i)-(C),(ii)-(A),(iii)-(D),(iv)-(B)
Answer:
(C) (i)-(B), (ii)-(A),(iii)-(D),(iv)-(C)

Explanation:
Each government has certain political outcomes which helps the people to understand what kind of political institute will produce the best results.

Question 11.

Analyze the information given below, considering one of the following correct options:
“It is expected from a government that it should bring economic growth and development. But many democracies of the world are unable to fulfill this expectation because of population size, global situation, cooperation from other, countries, economic priorities, etc.”

(A) Economic outcomes
(B) Economic growth and development
(C) Legitimate government
(D) Reduction of inequality and poverty
Answer:
(B) Economic growth and development

Question 12.

Analyze the information given below, considering one of the following correct options:
“Democracy stands much superior to any other form of government in promoting dignity and freedom of the individual. Every individual wants to receive respect from fellow beings. Often conflicts arise among individuals because some feel that they are not treated with due respect. The passion for respect and freedom are the basis of democracy.”

(A) Dignity and freedom of disadvantaged groups.
(B) Dignity and freedom of women.
(C) Dignity and freedom of the citizens
(D) Accommodation of social diversity
Answer:
(C) Dignity and freedom of the citizens

Question 13.

Find the incorrect option from the following:

(A) Democracy enhances the dignity of the individual.
(B) It provides a method to resolve conflicts.
(C) Improves the quality of decision making.
(D) Allows room to make more mistakes.
Answer:
(D) Allows room to make more mistakes.

Explanation:
In democracy there is a space for public discussion on the mistakes committed. As in democracy, the main power is with the citizens so’ if they make a wrong choice in choosing the representative then it can be changed they can vote others and the mistake would be corrected.

Question 14.

Find the incorrect option from the following:

(A) Most societies across the world were historically female dominated societies.
(B) Long struggles by women have created some sensitivity today.
(C) Respect and equal treatment of women are ingredients of a democratic society.
(D) That does not mean that women are actually always treated with respect.
Answer:
(A) Most societies across the world were historically female dominated societies.

Explanation:
The world order has since inception been a patriarchy defined. Almost all the societies are male dominated for one or other reason which led to the oppression and suppression of women or where it is not so, women were not given opportunities to prove themselves or to claim their independence alongside the men.

Assertion and Reason Based MCQs

Question 1.

Assertion (A): Transparency means openness, communication and accountability of the government.
Reason (R): Transparency is considered missing in a democratic government.

Answer:
(C) A is correct but R is wrong.

Explanation:
Transparency is when a citizen has the right and the tools to know how a decision has been taken by the government. A democracy ensures that decision making will be based on certain norms and procedures. A citizen who wants to know if a decision was taken through correct procedures can find this out.

Question 2.

Assertion (A): Bangladesh is a country where more than half of its population lives in luxury.
Reason (R): Sometimes the poor find it difficult to meet their basic needs of life, such as food, clothing, house, education and health.

Answer:
(D) A is wrong and R is correct.

Explanation:
Some of the main reasons for high poverty rate in Bangladesh are calamitous weather, weak infrastructure and gender inequality that prevents women from contributing to the economy. One of the factors that generate poverty is the prevalence of natural disasters.

Question 3.

Assertion (A): At least one fourth of the globe is still not under democratic government.
Reason (R): Because the challenge for democracy in these parts of the world is very stark.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Explanation:
The reason is that these countries face foundational challenges of transitioning to a democracy. It also involves bringing down the existing government which proves to be economically, socially and politically difficult.

Question 4.

Assertion (A): Power sharing is the spirit of democracy.
Reason (R): As the rights of the people are not limited to the right to vote, stand in elections and form political organizations.

Answer:
(B) Both A and R are true but R is NOT the correct explanation of A.

Explanation:
Power sharing is the spirit of democracy because it is one of the foundational principles on which the concept of democratic rule is based. In a democracy, the people have a right to be consulted on how they should be governed and all the citizens tend to have the same political and legal rights.

Case-Based MCQs

I. Read the given extract and answer the questions that follows:
In a democracy, we are most concerned with ensuring that people will have the right to choose their rulers and people will have control over the rulers. Whenever possible and necessary, citizens should be able to participate in decision making, that affects them all. Therefore, the most basic outcome of democracy should be that it produces a government that is accountable to the citizens, and responsive to the needs and expectations of the citizens. Some people think that democracy produces less effective government.

It is, of course, true that non- democratic rulers are very quick and efficient in decision making and implementation, whereas, democracy is based on the idea of deliberation and negotiation. So, some delay is bound to take place. But, because it has followed procedures, its decisions may be both more acceptable to the people and more effective. Moreover, when citizens want to know if a decision was taken through the correct procedures, they can find this out. They have the right and the means to examine the process of decision making. This is known as transparency. This factor is often missing from a non- democratic government. There is another aspect in which democratic government is certainly better than its alternatives: democratic government is legitimate government.

Answer the following MCQs by choosing the most appropriate options:

Question 1.

People’s right to choose their own rulers is called as the:

(A) Right to Initiate
(B) Right to Plebiscite
(C) Right to Vote
(D) Right to Referendum
Answer:
(C) Right to Vote

Question 2.

Which of the following options helps in promoting transparency in the governance?

(A) Right to education
(B) Right to information
(C) Right against exploitation
(D) Right to speech and expression
Answer:
(B) Right to information

Explanation:
Right to Information” means the right to ask for and obtain information of public importance.

Question 3.

………….. make/s the government legitimate.

(A) Credibility of politicians
(B) People’s movements
(C) Free and fair elections
(D) Holding of powers
Answer:
(C) Free and fair elections

Explanation:
Free and fair elections helping to promote peaceful, democratic political transformation that lead to increased stability and prosperity in a democratic nation.

Question 4.

Decisions in a democracy are more acceptable to the people because they are:

(A) Taken swiftly and implemented quickly
(B) Taken by giving privileges to the people
(C) Taken through elites’ votes
(D) Taken after following due processes
Answer:
(D) Taken after following due processes

II. Read the given extract and answer the questions that follows:
If democracies are expected to produce good governments, then is it not fair to expect that they would also produce development? Evidence shows that in practice many democracies did not fulfil this expectation. If you consider all democracies and all dictatorships for the fifty years between 1950 and 2000, dictatorships have slightly higher rate of economic growth. The inability of democracy to achieve higher economic development worries us. But this alone cannot be the reason to reject democracy.

As you have already studied in economics, economic development depends on several factors: country’s population size, global situation, cooperation from other countries, economic priorities adopted by the country, etc. However, the difference in the rates of economic development between less developed countries with dictatorships and democracies is negligible. Overall, we cannot say that democracy is a guarantee of economic development. But we can expect democracy not to lag behind dictatorship in this respect. When we find such significant difference in the rates of economic growth between countries under dictatorship and democracy, it is better to prefer democracy as it has several other positive outcomes.

Answer the following MCQs by choosing the most appropriate options:

Question 1.

Between Democracies and Dictatorships, who had slightly higher rate of economic growth?

(A) Democracies
(B) Dictatorships
(C) Both
(D) None of them
Answer:
(B) Dictatorships

Explanation:
In dictatorial regimes, the rules and regulations are rigid and compulsory. The citizens who disobey are severely punished.
In democratic regimes, as the leaders and bureaucrats think about their profits only, the government is not much keen to remove poverty and develop the coun try economically.

Question 2.

The difference in the rates of economic development between less development countries with dictatorships and democracies is:

(A) Very vast
(B) Slightly noticeable
(C) Very low
(D) Negligible
Answer:
(C) Very low

Explanation:
The economic growth rate in all dictatorial regimes was 4.42 per cent as compared to all democratic regimes’ 3.95 per cent during the period 1995-2000.

Question 3.

What is meant by economic inequality?

Explanation:
Income inequality varies by social factors such as sexual identity, gender identity, age, and race or ethnicity, leading to a wider gap between the upper and working class.

Question 4.

Which development depends on country’s population, size, global situation and co-operation from other countries?

(A) Social Development
(B) Financial Development
(C) Economic Development
(D) Political Development
Answer:
(C) Economic Development

Explanation:
Economic development of a country can be measured by its per capita income, literacy rate, health status, infant mortality rate and life expectancy of persons living in that country.

III. Read the given extract and answer the questions that follows:
Democracies are based on political equality. All individuals have equal weight in electing representatives. Parallel to the process of bringing individuals into the political arena on an equal footing, we find growing economic inequalities. A small number of ultra-rich enjoy a highly disproportionate share of wealth and incomes. Not only that, their share in the total income of the country has been increasing.

Those at the bottom of the society have very little to depend upon. Their incomes have been declining. Sometimes they find it difficult to meet their basic needs of life, such as food, clothing, house, education and health. In actual life, democracies do not appear to be very successful in reducing economic inequalities. The poor constitute a large proportion of our voters and no party will like to lose their votes. The situation is much worse in some other countries. In Bangladesh, more than half of its population lives in poverty. People in several poor countries are now dependent on the rich countries even for food supplies.

Answer the following MCQs by choosing the most appropriate options:

Question 1.

Democracies are based on political .

(A) consequences
(B) equality
(C) diversity
(D) leaders
Answer:
(B) equality

Explanation:
Democracies are based on political equalities as all citizens have equal role in electing their representatives.

Question 2.

Which country’s more than 50% population lives in poverty?

(A) Myanmar
(B) Pakistan
(C) Bangladesh
(D) India
Answer:
(C) Bangladesh

Question 3.

How the share of poor people affects the total income of a democratic country?

(A) Decreasing
(B) Constant
(C) Increasing
(D) None of these
Answer:
(A) Decreasing

Question 4.

People in poor countries are dependent on the rich countries for.

(A) Food
(B) Clothing
(C) Education
(D) All of the above
Answer:
(D) All of the above

Explanation:
Rich countries have a inoral obligation to aid poor countries.

MCQ Questions for Class 10 Social Science with Answers

MCQ Questions for Class 10 Civics Chapter 7 Outcomes of Democracy Read More »

MCQ Questions for Class 10 Civics Chapter 6 Political Parties

MCQ Questions / Prasanna

Political Parties Class 10 MCQ Questions With Answers

Question 1.

What is meant by political Party’?

(A) A group of politically sound people.
(B) A group of people come together to contest elections to hold power in the government.
(C) A group of people who want to be in power.
(D) A group of people who want to amend the Constitution.
Answer:
(B) A group of people come together to contest elections to hold power in the government.

Explanation:
A political party is an organization that coordinates candidates to compete in a specific country’s elections.

Question 2.

Name the alliance formed by the Congress Party

(A) National Democratic Alliance (NDA)
(B) All India Congress (AIC)
(C) All India Congress Committee (AICC)
(D) United Progressive Alliance (UFA)
Answer:
(D) United Progressive Alliance (UFA)

Explanation:
United Progressive Alliance is a coalition of predominantly centre-left political parties in India formed after the 2004 general election. The largest member party of the UPA is the Indian National Congress, whose President Sonia Gandhi is chairperson of the UPA.

Question 3.

What is the guiding philosophy of Bharatiya Janata Party?

(A) Cultural nationalism.
(B) Religion above all.
(C) No discrimination on the basis of caste.
(D) Equal opportunity for all.
Answer:
(A) Cultural nationalism.

Explanation:
The essence of cultural nationalism is that it unites people of different races in a single and recognized culturally nationalistic society. It holds importance in a society filled with multiple racial sections.

Question 4.

The Bahnjan Samaj Party stands for what cause?

(A) Securing the interest of the oppressed people.
(B) Equal rights for women.
(G) No discrimination on the basis of religion.
(D) Economic emancipation of women.
Answer:
(A) Securing the interest of the oppressed people.

Explanation:

The Bahujan Samaj Party (BSP) was formed to represent Bahujans, referring to Scheduled Castes, Scheduled Tribes, and Other Backward Classes (OBC), along with religious minorities.

Question 5.

If the decisions of a political party made by a single family and all other members are neglected, then what challenge is being faced by that party

(A) Challenge of alliance formation.
(B) Challenge of dynastic succession.
(C) Challenge of partial elections.
(D) Challenge of power.
Answer:
(B) Challenge of dynastic succession.

Explanation:
Dynastic succession is one of the most serious challenges before political party because in this the leader of the party chooses his family member as the next political leader and by this only the leaders family can come into power and rest of the people who work in the party never come in front.

Question 6.

Study the following picture and Answer the question that follows :

Which of the following best signifies this cartoon ?

(A) People hate politics.
(B) People want to throw away the politicians in Niagara Falls.
(C) Political parties are one of the least trusted institutions all over the world.
(D) People of Canada think that the Liberals should be in power.
Answer:
(C) Political parties are one of the least trusted institutions all over the world.

Explanation:
It is often said that political parties are facing a crisis because they are very unpopular and the citizens are indifferent to political parties, most political leaders are corrupt. Most of the politicians are involved in scams which tend to make the people feel that politics does not have good leaders.

Question 7.

Study the following picture and Answer the question that follows :

Which of the following leaders is shown in this cartoon?

(A) Berlusconi
(B) Putin
(C) Kwame Nkrumah
(D) Mussolini
Answer:
(A) Berlusconi

Question 8.

Who among the following is the founder of the Bahujan Samaj Party?

(A) Kanshi Ram
(B) B. R. Ambedkar
(C) Shahu Maharaj
(D) Jyotiba Phule
Answer:
(A) Kanshi Ram

Question 9.

What is the guiding philosophy of the Bharatiya Janata Party?

(A) Bahujan Samaj
(B) Revolutionary democracy
(C) Integral humanism
(D) Modernity
Answer:
(C) Integral humanism

Explanation:
Integral humanism was a set of . concepts drafted by Deendayal Upadhyaya as a political program and adopted in 1965 as the official doctrine of the BJP ‘

Question 10.

Column A	Column B
(i) Congress Party	(A) National Demo-cratic Alliance
(ii) Bharatiya Janata Party	(B) State Party
(iii) Communist Party of India – Marxist	(C) United Progres-sive Alliance
(iv) Telugu Desam Party	(D) Left Front

(A) (i)-(D), (ii)- (C), (iii)-(B), (iv)-(A)
(B) (i)-(C), (ii)-(A), (iii) -(D), (iv)-(B)
(C) (i) -(A), (ii)-(B), (iii)-(C), (iv)-(D)
(D) (i)-(D), (ii)-(C), (iii)-(B), (iv) -(A)
Answer:
(B) (i)-(C), (ii)-(A), (iii) -(D), (iv)-(B)

Explanation:
(i) United Progressive Alliance (UPA) is a coalition of predominantly centre-left political parties . The largest member party of the UPA is the Indian National Congress.
(ii) National Democratic Alliance (NDA) is an alliance made up of predominantly right-wing political parties and led by the Bharatiya Janata Party.
(iii) Communist Party of India (Marxist) is the dominant party in the coalition of Left Front an alliance of political parties in West Bengal.
(iv) Telegu Desam Party is a regional Indian political party active in the southern states of Andhra Pradesh and Telangana.

Question 11.

Column A	Column B
(i) All India Trin- amool Congress	(AITC) (A) 1925

Assertion and Reason Based MCQs

Question 1.

Assertion (A): Parties play a decisive role in making laws for a country.
Reason (R): Opposition parties also mobilize opposition to the government.

Answer:
(B) Both A and R are true but R is NOT the correct explanation of A.

Explanation:
Parties play a decisive role in making laws for a country. Formally, laws are debated in the form of first, second and third readings and then by popular voting, the bill is passed.

Question 2.

Assertion (A): India has multi party system.
Reason (R): The multi party system often appears very messy and leads to political instability.

Answer:
(B) Both A and R are true but R is NOT the correct explanation of A.

Explanation:
The multi-partv system often appears very messy and leads to political instability. All the parties present different objectives and so create confusion among the people. The government formed is through . coalition, which in itself is unstable and may . be the cause of breaking up of the government formed.

Question 3.

Assertion (A): Political parties are easily one of the most visible institutions in a democracy.
Reason (R): For most ordinary citizens, democracy is equal to political parties.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Question 4.

Assertion (A): Most people tend to be very critical of political parties.
Reason (R): They tend to blame parties for all that is wrong without democracy and our political life.

Answer:
(A) Both A and R are true and R is the correct explanation of A.

Question 5.

Assertion (A): Parties put forward different policies and programmes and the voters choose from them.
Reason (R): Each of us have similar opinions and views on what policies are suitable for society.

Answer:
(C) A is true but R is false.

Explanation:
Each of us may have different opinions and views on what policies are suitable for the society. But no government can handle su.ch a large variety of views.

Question 6.

Assertion (A) : Council members form and run governments.
Reason (R): Parties recruit leaders, train them and then make them ministers to run the government in thg way they want.

Answer:
(D) A is false and R is hue.

Explanation:
Political parties elect their leaders. The political parties win majority of the seats in the elections is invited to form the government.

Question 7.

Assertion (A): The rise of political parties is – directly linked to the emergence of representative democracies.
Reason (R): As societies became large and organised, they do not need any agency to gather different views on various issues and to present these to the government.

Answer:
(C) A is true but R is false.

Explanation:
he rise of parties is directly linked with representative form of democracy because based on large territory and large population it is not possible for people to assemble together and make policies for themselves, therefore representatives from parties are to be chosen. When these parties are putin piace, they therefore act as the voices of the masses.

Case-Based MCQs

I. Read the given extract and Answer:the questions that follows:
Democracies that follow a federal system all over the world tend to have two kinds of political parties: parties that are present in only one of the federal units and parties that are present in several or all units of the federation. This is the case in India as well. There are some countrywide parties, which are called National parties. These parties have their units in various states. But by and large, all these units follow the same policies,programmes and strategy that is decided at the National level. Every party in the country has to register with the Election Commission. While the Commission treats all parties equally, it offers some special facilities to large and established parties. These parties are given a unique symbol – only the official candidates of that party can use that election symbol. Parties that get this privilege and some other special facilities are ‘recognised’ by the Election Commission for this purpose. That is why these parties are called, ‘Recognised Political Parties’. The Election Commission has laid down detailed criteria of the proportion of votes and seats that a party must get in order to be a recognised party. A party that secures at least } six per cent of the total votes in an election to the Legislative Assembly of a State and wins at least , two seats is recognised as a State party. A party that secures at least six per cent of the total votes in Lok Sabha elections or Assembly elections in four States and wins at least four seats in the Lok Sabha is recognised as a National Party.

Answer the following MCQs by choosing the most appropriate options:

Question 1.

What does the Election Commission of India allot to all Parties so that they are called ‘Recognised Political Parties’?

(A) Emblem
(B) Motif
(C) Symbol
(D) Flag
Answer:
(C) Symbol

Explanation:
The Election Commission provides symbols to provide for specification, reservation, choice and allotment of symbols at elections for the recognition of political parties in relation thereto and for matters connected therewith.

Question 2.

A party is called ‘National Party’ only when it polls………. of total valid votes in at least states………….. and in addition it wins Lok Sabha Seats.

(A) 2%, Four, 4
(B) 6%, Four, 4
(C) 4%, Four, 4
(D) 2%, Four, 3

Answer:
(B) 6%, Four, 4

Question 3.

Every party in the country has to register with :

(A) Prime Minister
(B) President
(C) Election Commission
(D) All of these
Answer:
(C) Election Commission

Question 4.

Two regional parties of West Bengal are:

(A) Forward Bloc and Trinamool Congress
(B) All India Trinamool Congress and Forward Bloc
(C) National Congress Party and Forward Bloc
(D) Indian National Congress and Forward Bloc
Answer:
(A) Forward Bloc and Trinamool Congress

II. Read the given extract and Answer the questions

Let us look at some of the recent efforts and suggestions in our country to reform political parties and its leaders: The Constitution was amended to prevent elected ML As and MPs from changing parties. This was done because many elected representatives were indulging in DEFECTION in order to become ministers or for cash rewards. Now the law says that if any MLA or MP changes parties, he or she will lose the seat in the legislature. This new law has helped bring defection down. At the same time this has made any dissent even more difficult. MPs and MLAs have to accept whatever the party leaders decide. The Supreme Court passed an order to reduce the influence of money and criminals. Now, it is mandatory for every candidate who contests elections to file an AFFIDAVIT giving details of his property and criminal cases pending against him. The new system has made a lot of information available to the public. But there is no system of check if the information given by the candidates is true. As yet we do not know if it has led to decline in the influence of the rich and the criminals. The Election Commission passed an order making it necessary for political parties to hold their organisational elections and file their income tax returns. The parties have started doing so but sometimes it is mere formality. It is not clear if this step has led to greater internal democracy in political parties. Besides these, many suggestions are often made to reform political parties A law should be made to regulate the internal affairs of political parties. It should be made compulsory for political parties to maintain a register of its members, to follow its own constitution, to have an independent authority, to act as a judge in case of party disputes, to hold open elections to the highest posts. It should be made mandatory for political parties to give a minimum number of tickets, about one- third, to women candidates. Similarly, there should be a quota for women in the decision-making bodies qf the party. There should be state funding of elections. The government should give parties money to support their election expenses. This support could be given in kind: petrol, paper, telephone, etc. Or it could be given in cash on the basis of the votes secured by the party in the last election.

Answer the following MCQs by choosing the most appropriate options:

Question 1.

Changing Parly allegiance from the Party on which a person got elected (to a legislative body) to a different Party was done normally by:

(A) Only MPs
(B) By both MPs and MLAs
(C) Only MLAs
(D) By none of them
Answer:
(B) By both MPs and MLAs

Question 2.

The Supreme Court has passed an order to file ………. giving details of property and criminal cases pending against every candidate who contests elections.

(A) writ
(B) case
(C) an affidavit
(D) charge
Answer:
(C) an affidavit

Explanation:
An affidavit is a declaration of facts made in writing and sworn before a person having the authority to administer oath. All affidavits need to be drawn up in the first person and should contain facts and not inferences.

Question 3.

It should be made mandatory for Political Parties to give a minimum of about one-third tickets to:

(A) Women
(B) SCs
(C) STs
(D) All of them
Answer:
(A) Women

Question 4.

The government should give parties state funding of elections as:

(A) Diesel, Petrol, Kerosene oil, etc.
(B) Paper, Stationery, Printed forms, etc.
(C) Mobile Phones, Telephones, Computer, etc.
(D) Petrol, Paper, Telephone, etc.
Answer:
(D) Petrol, Paper, Telephone, etc.

Explanation:
This should be done to stop the misappropriate use of money given to the parties.

III. Read the given extract and Answer:the questions that the follows:
In some countries, power usually changes between two main parties. Several other parties may exist, contest elections and win a few seats in the National legislatures. But only the two main parties have a serious chance of winning majority of seats to form government. Such a party system is called two- party system. The United States of America and the United Kingdom are examples of two-party system. If several parties compete for power, and more than two parties have a reasonable chance of coming to power either on their own strength or in alliance with others, we call it a multi party system. Thus, in India, we have a multi party system. In this system, the government is formed by various parties coming together in a coalition. When several parties in a multi-party system join hands for the purpose of contesting elections and winning power, it is called an alliance or a front. For example, in India there were three such major alliances in 2004 parliamentary elections- the National Democratic Alliance, the United Progressive Alliance and the Left Front. The multi¬party system often appears very messy and leads to political instability. At the same time, this system allows a variety of interests and opinions to enjoy political representation.

Answer the following MCQs by choosing the most appropriate options:

Question 1.

Countries having Bi- party system:

(A) USA
(B) India
(C) China
(D) All of these
Answer:
(A) USA

Explanation:
The Bi-party system encourage the existence of two major parties, as smaller parties face great difficulty in winning elective office.

Question 2.

The multi-party system:

(A) appears very messy
(B) leads to political instability
(C) not free to form political party
(D) Only’A’and’B’
Answer:
(D) Only’A’and’B’

Question 3.

The government is formed by various parties coming together in a/an ………….

(A) alliance
(B) front
(C) coalition
(D) opposition
Answer:
(C) coalition

Explanation:
The usual reason for an arrangement of coalition is that no single party has achieved an absolute majority after an election.

Question 4.

Which party leads the ruling NDA government at the Centre?

(A) Indian National Congress
(B) Bharatiya Janata Party
(C) Bahujan Samaj Party
(D) Communist Party of India
Answer:
(B) Bharatiya Janata Party

MCQ Questions for Class 10 Social Science with Answers

MCQ Questions for Class 10 Civics Chapter 6 Political Parties Read More »

Author name: Prasanna

Globalisation and the Indian Economy Class 10 MCQ Questions With Answers

Read the given statements in context of ‘globalization’ and choose the correct option:

What is foreign investment?

An organization whose aim is to liberate international trade is

What is the idea behind the development of Special Economic Zones (SEZs) in India?

Removing barriers or restrictions set by the government is known as

When and where did the Ford Motors set up their large plant in India?

Arrange the following in the correct Sequence:

Arrange the following in the correct Sequence:

Find the incorrect option from the following:

Find the incorrect option from the following:

Assertion (A): The Indian government, after independence, had put barriers to foreign trade and foreign investment. Reason (R): The government considered it necessary to protect the producers within the country from foreign competition.

Assertion (A): The car manufacturing plant of Maruti Udyog Ltd in India produces cars for Indian markets. Reason (R): It also exports cars to other developing countries and exports car components for its many factories around the world.

Assertion (A): Global production has a complex structure. Reason (R): Production of one good may take place in different parts of the world. For instance, an equipment may be formed by combining components produced in different countries.

Assertion (A): Local businesses may set up joint production process with MNCs and earn higher profits. Reason (R): MNCs can provide money for additional investments, like buying new machines for faster production.

Assertion (A): MNCs can exert a strong influence on production at distant locations. Reason (R): MNCs set up partnerships with local companies, use local companies for supplies, compete with the local companies or buy them up.

Assertion (A): Foreign trade creates an opportunity for the producers to reach beyond the domestic markets. Reason (R): Foreign trade expands the choice of goods beyond what is domestically produced.

In which regions MNCs set up offices and factories for production?

Ford Motors entered the Indian automobile business in collaboration with which Indian manufacturer?

Investment made by MNCs is called

MNCs do not increase

Process of integration of different countries is called

Globalisation has led to higher standards of living of:

Globalisation has created new opportunities of:

Globalisation has posed major challenges for:

Why have MNCs have increased their investments in India over the past 20 years?

Why do people have a preference for foreign products?

How several of the top Indian companies have been able to benefit from the increased competition?

Globalisation has been advantageous to :

Money and Credit Class 10 MCQ Questions With Answers

Which one of the following options describe ‘Collateral’?

Which one of the following is not a limitation of the barter system?

Which one of the following was not a traditional form of money?

Who issues currency notes in India?

A cheque like currency notes act as

A deposit with a bank that can be withdrawn whenever the depositor likes to do so, is termed as-

Which of the following does not constitute a part of informal credit in India?

The functioning of the formal source of credit are supervised by

Banks do not give loans to

The number of members in a typical SHG varies between

Arrange the following in the correct sequence:

Find the incorrect option from the following:

Find the incorrect option from the following:

Find the incorrect option from the following :

Assertion (A): No individual or organisation is allowed to issue currency notes in India. Reason (R): In India, only RBI issues currency notes on behalf of the Central Government.

Assertion (A): Banks keeps a small proportion of their deposits as cash with themselves. Reason (R): This is kept to meet the loan requirements of the people.

Assertion (A): Banks give loans not only to profit-making businesses but also to small cultivators. Reason (R): The RBI supervises the functioning of formal sources of loans.

Assertion (A): Periodically, banks have to submit information to the Finance Minister on how much they are lending, to whom, at what interest rate, etc. Reason (R): The Finance Minister monitors the banks in actually maintaining cash balance.

Assertion (A): The facility of demand deposits makes it possible to settle payments without the use of cash. Reason (R): Demand deposits are paper orders which make it possible to transfer money from one person’s account to another person’s account.

Assertion (A): Banks charge a higher interest rate on loans than what they offer on deposits. Reason (R): The difference between what is charged from borrowers and what is paid to depositors is their main source of income.

Which of the following can be considered as modern form of Money?

Which of the following has an essential feature of double coincidence?

In a barter system:

Which of the following feature of money acts as an intermediate in the exchange process?

Compared to the formal lenders, most of the informal lenders charge a much interest on loans

Formal sector loans include loans from

An agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment.

Banks use the major portion of the deposits to

In …….. both parties have to agree to sell and buy each other’s commodities.

How would had the shoe manufacturer directly exchanged shoes for wheat without the use of money?

Why barter system is no longer practiced?

Sectors of Indian Economy Class 10 MCQ Questions With Answers

Which of the following profession belongs to the Tertiary sector of economy?

Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of the following statements about this sector is correct?

Production of a commodity, mostly through the natural process, is an activity in…….. sector.

GDP is the total value of……… produced during a particular year.

In terms of GDP the share of tertiary sector in 2013-14 is:

Economic Survey is published by the:

The sector which has emerged as the largest producing sector in India is:

In our country, NREGA 2005 aims to provide to all those who are able to, and are willing to work, a minimum of

The sectors are classified into Public and Private sector on the basis of

Which sector of economy is the largest employer?

Which one of the following occupations suffers from underemployment?

Arrange the following in the correct sequence:

Arrange the following in the correct sequence:

Arrange the following in the correct sequence:

Analyze the information given below, considering one of the following correct options: Sushila is a worker in garment export industry of Agra. She gets facilities like health insurance provident fund, overtime at a double rate, medical leave, etc. She is working in :

Analyze the information given below, considering one of the following correct options: There are many activities that are undertaken by directly using natural resources. For example, the cultivation of cotton beekeeping, dairy farming, etc.

Analyze the information given below, considering one of the following correct options: Kamal works in rice mill. Jobs here are low-paid and often not regular. There is no provision for overtime paid leave holidays, etc. Employment is not secure. People can be asked to leave without any reason.

Assertion (A): The Indian government, after independence, had put barriers to foreign trade and foreign investment.
Reason (R): The government considered it necessary to protect the producers within the country from foreign competition.

Assertion (A): The car manufacturing plant of Maruti Udyog Ltd in India produces cars for Indian markets.
Reason (R): It also exports cars to other developing countries and exports car components for its many factories around the world.

Assertion (A): Global production has a complex structure.
Reason (R): Production of one good may take place in different parts of the world. For instance, an equipment may be formed by combining components produced in different countries.

Assertion (A): Local businesses may set up joint production process with MNCs and earn higher profits.
Reason (R): MNCs can provide money for additional investments, like buying new machines for faster production.

Assertion (A): MNCs can exert a strong influence on production at distant locations.
Reason (R): MNCs set up partnerships with local companies, use local companies for supplies, compete with the local companies or buy them up.

Assertion (A): Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
Reason (R): Foreign trade expands the choice of goods beyond what is domestically produced.

Assertion (A): No individual or organisation is allowed to issue currency notes in India.
Reason (R): In India, only RBI issues currency notes on behalf of the Central Government.

Assertion (A): Banks keeps a small proportion of their deposits as cash with themselves.
Reason (R): This is kept to meet the loan requirements of the people.

Assertion (A): Banks give loans not only to profit-making businesses but also to small cultivators.
Reason (R): The RBI supervises the functioning of formal sources of loans.

Assertion (A): Periodically, banks have to submit information to the Finance Minister on how much they are lending, to whom, at what interest rate, etc.
Reason (R): The Finance Minister monitors the banks in actually maintaining cash balance.

Assertion (A): The facility of demand deposits makes it possible to settle payments without the use of cash.
Reason (R): Demand deposits are paper orders which make it possible to transfer money from one person’s account to another person’s account.

Assertion (A): Banks charge a higher interest rate on loans than what they offer on deposits.
Reason (R): The difference between what is charged from borrowers and what is paid to depositors is their main source of income.

Assertion (A): Not every good or service that is produced and sold needs to be counted to know the total production in each sector.
Reason (R): The value of final goods already includes the value of all the intermediate goods.

Assertion (A): Under MGNREGA 2005, those who are able to, and are in need to work in rural areas are guaranteed 100 days of employment in a year.
Reason (R): The Central government in India made a law implementing the Right to work in about 625 districts of India.

Assertion (A): Rakesh is an educated and skilled worker who earns a high monthly salary as he is employed in a private bank in a city.
Reason (R): All service sectors in India are growing extremely well and each individual engaged in any kind of tertiary activity earns a high income.

Assertion (A): The development of agriculture and industry leads to the development of service sector.
Reason (R): As the primary and secondary sectors develops, the demand for transport, storage structures, banks, insurance, etc., increases.

Assertion (A): Reliance industries is a privately- owned firm.
Reason (R): Government is a major stakeholder is reliance industries.

Assertion (A): Different people have different development goals.
Reason (R): People want freedom, equality, security and respect.

Assertion (A): Groundwater is an example of renewable resources.
Reason (R): If we use more than what is being replenished by rain then we would be overusing this resource.

Assertion (A): Normally, your money cannot buy you a pollution-free environment or ensure you that you get unadulterated medicines.
Reason (R): Money may also not be able to protect you from infectious diseases, unless the whole of your community takes preventive steps.

Assertion (A): Sustainable development is essential for the economic growth of the countries.
Reason (R): Sustainable development ensures that environment hostile measures are adopted for carrying out mining processes.

Assertion (A): Non Renewable resources can be replenished over a period of time. Non Renewable resources are abundant in nature.
Reason (R): Non Renewable resources are fixed in nature.