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IAS Exam : Prelims Economy NCERT Questions – Indian Economy on the Eve of Independence

Dec 29, 2015 17:34 IST

    1. The colonial government never made any sincere attempt to estimate India’s national and per capita income. Who among the following were the Indian estimators who attempted to measure such incomes?


    i) Dadabhai Naoroji    ii) William Digby    iii) V.K.R.V. Rao    iv) Motilal Nehru

    a) I and ii    b) i and iii    c) 1, iii and iv    d) All of these

    Answer 1. b

    Explanation: William Digby was a ‘British’ author who gave his estimations and Motilal Nehru was not among the estimators.

    2. Which of the following statements are correct with reference to the zamindari system:

    i) The profit accruing out of the agriculture sector was proposed to go to the cultivators.

    ii) The main interest of the zamindars was only to collect rent regardless of the economic condition of the cultivators.

    a) Both are correct

    b) Both are incorrect

    c) (i) correct (ii) incorrect

    d) (ii) correct (i) incorrect

    Answer 2. d

    Explanation: The profit accruing out of the agriculture sector went to the zamindars instead of the cultivators. The system was not even proposed for benefiting the cultivators.

    3. With reference to revenue settlement, evaluate the following:

    i) The zamindars adopted coercive attitude irrespective of the provisions of the revenue settlement.

    ii) The zamindars demanded revenues anytime, at their will.

    a) Both are correct

    b) Both are incorrect

    c) (i) correct (ii) incorrect

    d) (ii) correct (i) incorrect

    Answer 3. b

    Explanation: The terms of the revenue settlement were also responsible for the zamindars adopting such an attitude; dates for depositing specified sums of revenue were fixed, failing which the zamindars were to lose their rights.

    4. Which of the following contributed to the dismal level of agricultural productivity during the colonial times?

    i) Low levels of technology,

    ii) Lack of irrigation facilities

    iii) Abundant use of fertilisers

    a) (i) and (ii)

    b) (i) and  (iii)

    c) (ii) and (iii)

    d) All of the above

    Answer 4. a

    Explanation: The use of fertilizers was negligible. It also added up to aggravate the plight of the farmers.

    5. There was a relatively higher yield of cash crops in certain areas of the country due to commercialisation of agriculture.

    i) This greatly helped the farmers in improving their economic condition

    ii) The cash crops produced was ultimately consumed by the urban Indian classes

    a) Both are correct

    b) Both are incorrect

    c) (i) correct (ii) incorrect

    d) (ii) correct (i) incorrect

    Answer 5. b

    Explanation: The commercialisation of agriculture could hardly help farmers in improving their economic condition as, instead of producing food crops, now they were producing cash crops which were to be ultimately used by British industries back home.

    6. Which of the following were/was part of strategy of the colonial government regarding Indian industry?

    i) The intention was to first turn India into a sprawling market for raw materials from other colonies of the British.

    ii) Second, it wanted India to become exporter of its unique handicrafts cheaply to Britain and its colonies.

    a) Both are correct

    b) Both are incorrect

    c) (i) correct (ii) incorrect

    d) (ii) correct (i) incorrect

    Answer 6. b

    Explanation:  The primary motive of the colonial government behind this policy of systematically deindustrialising India was two-fold. The intention was, first, to reduce India to the status of a mere exporter of important raw materials for the upcoming modern industries in Britain and, second, to turn India into a sprawling market for the finished products of those industries so that their continued expansion could be ensured to the maximum advantage of their home country — Britain

    7. Which of the following are correct with reference to the decline of the indigenous handicraft industries during the colonial time?

    i) the demand in the Indian consumer market also declined

    ii) it created massive unemployment

    a) Both are correct

    b) Both are incorrect

    c) (i) correct (ii) incorrect

    d) (ii) correct (i) incorrect

    Answer 7. d

    Explanation: There was a new demand in the Indian consumer market, which was now deprived of the supply of locally made goods. This demand was profitably met by the increasing imports of cheap manufactured goods from Britain.

    8. The modern industry during the second half of the nineteenth century was confined to the setting up of cotton and jute textile mills.

    i) The jute mills, mainly dominated by Indians, were located in the western parts of the country, namely, Maharashtra and Gujarat

    ii) The cotton textile mills, dominated by the foreigners, were mainly concentrated in Bengal.

    a) Both are correct

    b) Both are incorrect

    c) (i) correct (ii) incorrect

    d) (ii) correct (i) incorrect

    Answer 8. b

    Explanation: The cotton textile mills, mainly dominated by Indians, were located in the western parts of the country, namely, Maharashtra and Gujarat, while the jute mills dominated by the foreigners were mainly concentrated in Bengal.

    9. i) Capital goods industry means industries which provide financial capital for setting up of industries and factories only

    ii) A large number of capital goods industries came up in second half of the nineteenth century

    Which of the above sentences are incorrect?

    a) Only (i)
    b) Only (ii)
    c) Both (i) and (ii)
    d) Neither (i) nor (ii)

    Answer 9. b

    Explanation: Capital goods industry means industries which can produce machine tools which are, in turn, used for producing articles for current consumption. There was hardly any capital goods industry to help promote further industrialisation in India.

    i) The manufacturing units were evenly spread throughout the country which suitably substituted the near wholesale displacement of the country’s traditional handicraft industries.

    ii) The area of operation of the public sector became vast and included various other sectors including railways, power generation, communications, ports and some other departmental undertakings.

    10. Which of the above are correct with regard to industrial sector in the second half of the nineteenth century?

    a) Only (i)
    b) Only (ii)
    c) Both (i) and (ii)
    d) Neither (i) nor (ii)

    Answer 10. d

    Explanation: The establishment of a few manufacturing units here and there was no substitute to the near wholesale displacement of the country’s traditional handicraft industries. This sector remained confined only to the railways, power generation, communications, ports and some other departmental undertakings.

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