Indian Economy & Development – Economic Development & Planning
Assam Public Service Commission (APSC)
Combined Competitive Examination (CCE) – Preliminary Examination
General Studies Paper I (Objective, 200 Marks)
Topic: Indian Economy & Development
Sub-Topic: Economic Development & Planning
Economic Development & Planning – Multiple Choice Questions (MCQs) with Answers & Explanations
Q1. Economic development differs from economic growth because development:
A. Focuses only on GDP growth
B. Includes qualitative improvements in living standards
C. Is limited to industrial growth
D. Excludes social factors
Correct Answer: B
Explanation:
Economic development includes growth along with social, human, and structural improvements, such as health, education, and equity.
Q2. Which indicator is most suitable for measuring economic development?
A. GDP
B. Per capita income
C. Human Development Index
D. Inflation rate
Correct Answer: C
Explanation:
The Human Development Index (HDI) considers income, education, and health, making it a comprehensive development indicator.
Q3. Economic planning in India was formally initiated in:
A. 1947
B. 1950
C. 1951
D. 1956
Correct Answer: C
Explanation:
India’s First Five-Year Plan began in 1951, marking the start of planned development.
Q4. The main objective of economic planning in India has been:
A. Rapid industrialization only
B. Maximization of profits
C. Growth with social justice
D. Export-led growth
Correct Answer: C
Explanation:
Indian planning aimed at economic growth with equity, poverty reduction, and social justice.
Q5. Which institution was responsible for formulating Five-Year Plans?
A. Finance Commission
B. NITI Aayog
C. Planning Commission
D. Reserve Bank of India
Correct Answer: C
Explanation:
The Planning Commission formulated Five-Year Plans until it was replaced in 2015.
Q6. Which Five-Year Plan emphasized rapid industrialization?
A. First Five-Year Plan
B. Second Five-Year Plan
C. Third Five-Year Plan
D. Fourth Five-Year Plan
Correct Answer: B
Explanation:
The Second Five-Year Plan focused on heavy industries and industrial base expansion.
Q7. The Mahalanobis model is associated with:
A. Agricultural development
B. Heavy-industry-led growth
C. Export-oriented growth
D. Service sector expansion
Correct Answer: B
Explanation:
The Mahalanobis model prioritized heavy industries to achieve long-term growth.
Q8. Which Five-Year Plan focused on agriculture and irrigation?
A. Second
B. Third
C. First
D. Fifth
Correct Answer: C
Explanation:
The First Five-Year Plan emphasized agriculture, irrigation, and food security.
Q9. Rolling Plan refers to:
A. Fixed targets for five years
B. Plan without evaluation
C. Plan revised periodically
D. Plan based on private sector
Correct Answer: C
Explanation:
A Rolling Plan allows targets and allocations to be revised regularly.
Q10. Which plan introduced the slogan “Garibi Hatao”?
A. Fourth Five-Year Plan
B. Fifth Five-Year Plan
C. Sixth Five-Year Plan
D. Seventh Five-Year Plan
Correct Answer: B
Explanation:
The Fifth Five-Year Plan focused on poverty eradication under the slogan “Garibi Hatao”.
Q11. Inclusive growth mainly focuses on:
A. Industrial profits
B. Growth without redistribution
C. Equitable distribution of benefits
D. Urban development only
Correct Answer: C
Explanation:
Inclusive growth ensures that all sections of society benefit from development.
Q12. Which sector was emphasized during early planning years?
A. Service sector
B. IT sector
C. Agricultural sector
D. Tourism sector
Correct Answer: C
Explanation:
Early plans focused on agriculture to ensure food security and employment.
Q13. Which concept aims at meeting present needs without harming future generations?
A. Economic growth
B. Sustainable development
C. Inclusive growth
D. Green revolution
Correct Answer: B
Explanation:
Sustainable development balances economic growth with environmental protection.
Q14. The Green Revolution mainly increased:
A. Industrial output
B. Food grain production
C. Export earnings
D. Service sector growth
Correct Answer: B
Explanation:
The Green Revolution significantly boosted food grain production, especially wheat and rice.
Q15. Which plan marked the shift towards economic reforms?
A. Seventh
B. Eighth
C. Ninth
D. Tenth
Correct Answer: B
Explanation:
The Eighth Five-Year Plan (1992–97) aligned with economic liberalization reforms.
Q16. Decentralized planning emphasizes:
A. Centralized control
B. State dominance
C. Local-level planning
D. Foreign investment
Correct Answer: C
Explanation:
Decentralized planning empowers local governments and communities.
Q17. Which body replaced the Planning Commission?
A. Finance Commission
B. GST Council
C. NITI Aayog
D. Economic Advisory Council
Correct Answer: C
Explanation:
NITI Aayog replaced the Planning Commission to promote cooperative federalism.
Q18. Which planning approach involves public and private sectors?
A. Socialist planning
B. Capitalist planning
C. Mixed economy planning
D. Command economy
Correct Answer: C
Explanation:
India follows mixed economy planning, involving both public and private sectors.
Q19. Poverty alleviation programs are part of:
A. Monetary policy
B. Fiscal policy
C. Development planning
D. Trade policy
Correct Answer: C
Explanation:
Poverty alleviation is a core objective of development planning.
Q20. Which indicator reflects quality of life?
A. GDP
B. National income
C. HDI
D. Fiscal deficit
Correct Answer: C
Explanation:
HDI reflects health, education, and income, showing quality of life.
Q21. Which plan focused on self-reliance?
A. First
B. Third
C. Fifth
D. Seventh
Correct Answer: B
Explanation:
The Third Five-Year Plan emphasized self-reliance and balanced growth.
Q22. Balanced regional development aims to:
A. Promote urbanization
B. Reduce regional disparities
C. Encourage migration
D. Concentrate industries
Correct Answer: B
Explanation:
Balanced regional development seeks to reduce inequality among regions.
Q23. Which sector is crucial for employment-oriented growth?
A. Capital-intensive industries
B. Service sector only
C. Agriculture and MSMEs
D. Defence sector
Correct Answer: C
Explanation:
Agriculture and MSMEs generate large-scale employment.
Q24. Human capital formation refers to:
A. Infrastructure investment
B. Skill and education development
C. Capital goods production
D. Industrial licensing
Correct Answer: B
Explanation:
Human capital formation improves skills, education, and health.
Q25. Which plan emphasized modernization and technology?
A. Sixth
B. Seventh
C. Eighth
D. Ninth
Correct Answer: A
Explanation:
The Sixth Five-Year Plan emphasized modernization and technological advancement.
Q26. Planning in India aimed to reduce:
A. Inflation only
B. Poverty and inequality
C. Imports only
D. Exports only
Correct Answer: B
Explanation:
Reducing poverty, unemployment, and inequality has been a key planning objective.
Q27. Which concept links economic growth with environmental protection?
A. Green GDP
B. Sustainable development
C. Inclusive growth
D. Liberalization
Correct Answer: B
Explanation:
Sustainable development integrates economic growth with environmental care.
Q28. Which Five-Year Plan was terminated early due to economic crisis?
A. Fourth
B. Fifth
C. Sixth
D. Ninth
Correct Answer: B
Explanation:
The Fifth Five-Year Plan was terminated early in 1978.
Q29. Planning helps in:
A. Market failure correction
B. Resource allocation
C. Long-term vision
D. All of the above
Correct Answer: D
Explanation:
Planning helps allocate resources efficiently, correct market failures, and set long-term goals.
Q30. The ultimate goal of economic development and planning is:
A. Capital accumulation
B. Industrial growth
C. Human welfare
D. Export promotion
Correct Answer: C
Explanation:
The final objective of development planning is overall human welfare and improved quality of life.
✅ APSC Prelims Smart Tip
For Economic Development & Planning, focus on:
- Growth vs development
- Five-Year Plans & objectives
- Inclusive and sustainable development
- Role of Planning Commission & NITI Aayog
- Poverty, inequality, and human development
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Economic development MCQs APSC
-
Five Year Plans MCQs prelims
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Planning Commission NITI Aayog MCQs
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Growth vs development questions
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Inclusive and sustainable development MCQs
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Indian economy planning GS Paper I
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HDI poverty planning MCQs