Chapter MCQ Test 2 — Current Challenges Facing the Indian Economy
10 Questions • 12 min • Chapter MCQ
12:00
Question 1 of 10
Although the percentage below the poverty line has fallen, the challenge remains large because:
The absolute number of poor people is still very high
Poverty has vanished
There is no poverty line
Everyone is rich
Explanation: A falling poverty ratio applied to a huge population still leaves a very large number of poor.
Question 2 of 10
If five family members do work that two could finish on a small farm, the extra three represent:
Disguised unemployment
Open unemployment
Educated unemployment
Full employment
Explanation: Workers whose removal would not reduce output are disguisedly unemployed.
Question 3 of 10
Spending on schools and health centres is called an 'investment' in human capital because it:
Raises future productivity and incomes
Wastes money
Lowers output
Is a tax
Explanation: Healthier, better-educated people produce more, so the spending pays off like any investment.
Question 4 of 10
Institutional rural credit (banks, NABARD, SHGs) helps farmers chiefly by replacing:
Exploitative high-interest moneylenders
The government
Cooperatives
The MSP
Explanation: Formal credit at fair rates frees farmers from the debt trap set by village moneylenders.
Question 5 of 10
The MSP and e-NAM both aim to help farmers get:
A fair and remunerative price for their produce
Free seeds
Lower yields
More moneylenders
Explanation: A guaranteed price and a transparent national market both improve the price farmers receive.
Question 6 of 10
India's young population becomes a 'dividend' rather than a burden only if it is:
Educated, healthy and employed
Left unskilled and idle
Sent abroad
Counted twice
Explanation: Skills, health and jobs turn a large young cohort into a productive force that lifts growth.
Question 7 of 10
Over-extraction of groundwater and heavy pollution from rapid growth show why development must be:
Sustainable
Faster at any cost
Stopped
Only urban
Explanation: Depleting resources and fouling the environment harm future generations, the opposite of sustainability.
Question 8 of 10
A graduate unable to find a job matching their qualifications is an example of:
Educated unemployment
Disguised unemployment
Seasonal unemployment
Full employment
Explanation: Qualified people who cannot find suitable work represent educated unemployment.
Question 9 of 10
Switching to solar and wind energy supports sustainable development because these sources are:
Renewable and less polluting
Exhaustible
Highly polluting
Imported coal
Explanation: Clean, renewable energy meets needs today without depleting resources or harming the climate for the future.
Question 10 of 10
The central challenge of India's development is to grow fast, fairly and:
Sustainably
Without any jobs
Only for cities
By draining resources
Explanation: Balancing rapid growth with equity and environmental sustainability is India's core development task.