\nService (Tertiary)<\/td>\n 28.0<\/td>\n 40.5<\/td>\n 52.5<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nAs observed in the case of many developed economies of the world, the share of agriculture declines while the industrial sector becomes dominant with development. Further, if a country\u2019s service sector contributes maximum to the country’s GDP then the country is considered to be at the higher level of development. However, it may also sometimes depend upon the resources a country specialises in.<\/p>\n
Question 12. \nWhy was public sector given a leading role in industrial development during the planning period? \nAnswer: \nPublic sector was given a leading role in industrial development during the planning period due to the following reasons:<\/p>\n
\nPrivate industrialists had limited capital to undertake investment in industrial ventures necessary to have strong industrial base in the economy.<\/li>\n The state wanted to generate large scale employment opportunities through public sector.<\/li>\n While private sector strives to maximise their own profits, public sector ensures equitable distribution of income and wealth.<\/li>\n<\/ul>\n <\/p>\n
Question 13. \nExplain the statement that green revolution enabled the government to procure sufficient foodgrains to build its stocks that could be used during times of shortage. \nAnswer: \nThe spread of green revolution technology enabled India to achieve self-sufficiency in foodgrains. Our country is no longer dependant on foreign nations to meet our food requirements. Due to surplus, the price of good grains declined relative to other consumption items.<\/p>\n
The low income groups, who used spend a large percentage of their income on food, benefited from this decline in relative price. The green revolution enabled the government to procure sufficient amount of foodgrains to build a stock that could be used at the time of food shortage.<\/p>\n
Question 14. \nWhile subsidies encourage farmers to use new technology, they are a huge burden on government finances. Discuss the usefulness of subsidies in the light of this fact. \nAnswer: \nSubsidies are benefits provided by the government to the domestic producers to encourage production. Subsidies are the incentives for adoption of the new HYV technology by farmers. Some economists favour the elimination of subsidies due to the following reasons:<\/p>\n
\nThe purpose of subsidies is already served.<\/li>\n Subsidies are benefitting the farmers in the more prosperous region. It is no more benefitting the target groups.<\/li>\n They are a huge burden on government finances.<\/li>\n<\/ul>\nHowever, some believe that the government should continue with agricultural subsidies because farming in India is a risky business. Most farmers are very poor, who would be unable to afford the required input without subsidy. Eliminating subsidies will increase the inequality between rich and poor farmers and hence, violate the goal of equity. The correct policy, therefore, would be to analyse the system and ensure that the benefits of subsidies reach the poor farmers only.<\/p>\n
<\/p>\n
Question 15. \nWhy, despite the implementation of green revolution, 65 percent of our population continued to be engaged in the agricultural sector till 1990? \nAnswer: \nAlthough the proportion of GDP contribution by agricultural has declined over the years, the proportion of population working in the sector has not declined considerably. This is because the industrial and service sectors have not absorbed the workforce working in the agricultural sector.<\/p>\n
Question 16. \nThough public sector is very essential for industries, many public sector undertakings incur huge losses and are a drain on the economy\u2019s resources. Discuss the usefulness of public sector undertakings in the light of this fact. \nAnswer: \nThe presence of public sector is important because:<\/p>\n
\nIt helps in creating strong base for heavy industries.<\/li>\n It contributes towards the development of infrastructure.<\/li>\n It develops the backward areas.<\/li>\n It mobilises savings and foreign exchange in right direction.<\/li>\n It prevents concentration of economic power in a few strong hands.<\/li>\n It promotes equality through equal distribution of wealth.<\/li>\n \u00a0It creates large scale employment opportunities.<\/li>\n<\/ul>\nQuestion 17. \nExplain how import substitution can protect domestic industry? \nAnswer: \nImport substitution is the policy which aims to replace or substitute imported goods by domestically ; produced goods and protect the domestic industries from foreign competition, The government may restrict imports and protect domestic industries from foreign competition through tariffs and quotas,<\/p>\n
\nTariffs are tax on imported goods. They make imported goods more expensive and discourage their use.<\/li>\n Quotas specify the quantity of goods which can be imported.<\/li>\n<\/ul>\nThe effect of tariffs and quotas is that, they restrict import and therefore, protect the domestic firms from foreign competition.<\/p>\n
Question 18. \nWhy and how was private sector regulated under the IPR 1956? \nAnswer: \nThe aim of the private sector is to maximise profit. In fulfilling this aim, it tends to ignore the welfare of the people. The purpose of IPR, 1956 was to promote regional equality and to ensure that the quantity of goods produced was not more than what the economy required. According to the IPR, the private sector was under the control of the state through the system of licenses.<\/p>\n
No new industry was allowed to set up unless a license was obtained from the government. This policy primarily aimed at promoting industries in backward regions. It was easier to obtain a license for an industrial unit to be established in an economically backward region. Moreover, such industrial units were given certain concessions such as tax benefits and electricity at a lower tariff.<\/p>\n
<\/p>\n
Question 19. \nMatch the following:<\/p>\n
\n\n\n1. Prime Minister<\/td>\n A. Seeds that give large proportion of output<\/td>\n<\/tr>\n \n2. Gross Domestic Product<\/td>\n B. Quantity of goods that can be imported<\/td>\n<\/tr>\n \n3. Quota<\/td>\n C. Chairperson of the planning commission<\/td>\n<\/tr>\n \n4. Land Reforms<\/td>\n D. The money value otall the final goods and services produced within the economy in one year<\/td>\n<\/tr>\n \n5. HYV Seeds<\/td>\n \u00a0E. Improvements, in the field of agriculture to increase its productivity<\/td>\n<\/tr>\n \n6. Subsidy<\/td>\n \u00a0F. The monetary assistance given by government for production activities<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nAnswer: \n1. (C), 2. (D.), 3. (B.), 4. (E.), 5. (A.), 6 (F.)<\/p>\n","protected":false},"excerpt":{"rendered":"
Detailed, Step-by-Step NCERT Solutions for Class 12 Economics Chapter 8 Indian Economy 1950-1990 Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation. Indian Economy 1950-1990 NCERT Solutions for Class 12 Economics Chapter 8 Indian Economy 1950-1990 Questions and Answers Class 12 …<\/p>\n
NCERT Solutions for Class 12 Economics Chapter 8 Indian Economy 1950-1990<\/span> Read More »<\/a><\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":""},"categories":[3],"tags":[],"yoast_head":"\nNCERT Solutions for Class 12 Economics Chapter 8 Indian Economy 1950-1990 - MCQ Questions<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n