Class 12 Indian Economy 1950-1990 Mock Test (CBSE)

Topics in Indian Economy 1950-1990

• The goals of five year plans
• Growth, modernisation, self-reliance and equity
• Agriculture: land reforms
• Green Revolution
• Industry and trade
• Public and private sectors in Indian industrial development
• Industrial Policy Resolution 1956
• Small-scale industry
• Trade policy: import substitution
• Effect of policies on industrial development

Indian Economy 1950-1990 practice questions with answers

1. Q1Multiple choice·1 mark
   In 1950, a small-scale industrial unit was defined with reference to the maximum investment allowed on the assets of the unit. What was this investment limit?

   1. (a)Rs 25 lakh
   2. (b)Rs 1 lakh
   3. (c)Rs 10 lakh
   4. (d)Rs 5 lakh
   Show answer and step marks

   1. Correct option: (d) Rs 5 lakh. In 1950, a small-scale industrial unit was defined as a unit with a maximum investment limit of rupees five lakh.+1

   Answer: (d)
2. Q2Multiple choice·1 mark
   Which of the following correctly describes the classification of industries under the Industrial Policy Resolution (IPR) of 1956?

   1. (a)Three categories: Schedule A (exclusive public sector), Schedule B (state-owned with private supplementation), and Schedule C (private sector)
   2. (b)Four categories based on capital investment limits
   3. (c)Two categories: Public sector and Private sector
   4. (d)Two categories: Domestic industries and Export-oriented industries
   Show answer and step marks

   1. Correct option: (a) Three categories: Schedule A (exclusive public sector), Schedule B (state-owned with private supplementation), and Schedule C (private sector). The Industrial Policy Resolution of 1956 classified industries into three categories to serve as the basis of the Second Five Year Plan.+1

   Answer: (a)
3. Q3Short answer·3 marks
   State the four long-term goals of India's five-year plans. Briefly explain how 'growth' and 'modernisation' are interlinked as core objectives of economic planning.
   Show answer and step marks

   1. Goal: growth.+0.5
   2. Goal: modernisation.+0.5
   3. Goal: self-reliance.+0.5
   4. Goal: equity.+0.5
   5. Interlinkage: growth is an increase in the country's capacity to produce goods and services, and modernisation is the adoption of new technology (with social change); new technology raises productivity and output, so modernisation drives growth.+1

   Answer: Goals are Growth, Modernisation, Self-reliance, and Equity. Growth and modernisation are interlinked because technological modernisation enhances productivity, which directly drives economic growth.

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