MCQ Questions For Class 11 Economics Chapter 1 Indian Economy on the Eve of Independence

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Indian Economy on the Eve of Independence MCQ Questions for Class 11 Economics with Answers

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Class 11 Economics Indian economy on the eve of independence MCQ PDF has been gathered for students to rehearse. Students can prepare for this MCQ of Indian economy on the eve of independence to score good marks in their exams. Each question has four choices with answers. Firstly, Solve all these Questions and check your answer with the given answer. If your answers do not match with the right answer, Don’t worry try again because You need to prepare daily to score higher marks in the Class 11 Economics Exam.

Question. High value of which of the following indicators reflected social backwardness during the British rule in India?
(a) Literacy Rate
(b) Female literacy
(c) Infant Mortality Rate
(d) Life Expectancy

Question. On the basis of the workforce engaged in various sectors in pre-independent India, the following are ranked from the highest to the lowest? (Choose correct alternative)
(a) Primary sector, Secondary sector, Tertiary sector
(b) Tertiary sector, Primary sector, Secondary sector
(c) Secondary sector, Tertiary sector, Primary sector
(d) Primary sector, Tertiary sector, Secondary sector

Question. Which industry suffered a major setback during the British rule?
(a) Cement
(b) Iron and steel
(c) Handicraft
(d) Paper

Question. The motive of British government behind de-industrialisation was:
(i) To get raw material from India at cheap rate
(ii) To sell British manufactured goods in Indian market at high prices
(iii) To focus on development of agriculture
(iv) To get finished products from India at cheap rate
(a) Both (i) and (ii) above
(b) Both (ii) and (iv) above
(c) Only (iii) above
(d) Only (iv) above

Question. The decline of handicraft industries led to:
(i) Large scale unemployment
(ii) Encouraged the import of manufactured goods from Britain
(iii) Development of capital goods industries in India
(iv) Encouraged the export of manufactured goods to Britain
(a) (i), (ii) and (iii) above
(b) (i), (iii) and (iv) above
(c) Both (i) and (ii) above
(d) Both (i) and (iv) above

Question. Which year is described as the “Year of Great Divide”?
(a) 1881
(b) 1921
(c) 1907
(d) 1931

Question. The opening of Suez Canal served as a direct route for ships operating between:
(a) India and America
(b) India and Sri Lanka
(c) India and Pakistan
(d) India and Britain

Question. The British introduced railways in India in the year_________ .
(a) 1849
(b) 1850
(c) 1851
(d) 1859

Question. Which of the following statements is not true with regard to the development of railways by the British?
(a) It helped in breaking geographical and cultural barriers among people.
(b) It promoted commercialisation of Indian agriculture.
(c) The social benefits accruing due to development of railways outweighed the country’s huge economic loss.
(d) It increased the volume of India’s exports.

Question. The export surplus generated during the British rule was used:
(a) To meet administrative expenses of the British government
(b) To meet expenses on war fought by the British government
(c) To import invisible items
(d) All of the above

Question. The main reason for stagnation in agriculture during the British rule was:
(a) Lack of technology
(b) Commercialisation of agriculture
(c) Land tenure system
(d) De–industrialisation

Question. The literacy rate and the female literacy rate of India at the time of independence were:
(a) 16 per cent, 7 per cent
(b) 12 per cent, 7 per cent
(c) 32 per cent, 16 per cent
(d) 16 per cent, 12 per cent

Question. Mortality rate is one of the indicators of __________of an economy.
(a) Occupational structure
(b) Unemployment
(c) Demographic profile
(d) Foreign trade 

Question. Which of the following statements is not true about the Indian economy during the British rule?
(a) Slow growth of agricultural and industrial sector
(b) The area of operation of public sector was very limited
(c) Drain of India’s wealth despite export surplus.
(d) During the colonial period, the service sector accounted for the largest share of workforce.

Question. __________ was the main source of livelihood for most people in pre-independent India.   

Question. The economic policies pursued by the colonial government in India transformed the country into supplier of __________ and consumer of __________ products from industries in Britain.

Question. One of the notable economist who made significant contribution to the estimation of India’s national and per capita income during British rule was __________ .   

Question. __________ is defined as the total national income of a country divided by its population during a given period.

Question. The growth of aggregate real output was less than __________ per cent and the growth of per capita output was just __________ per cent during the first half of the 20th century in India. 

Question. The most prominent cause of the stagnation of agricultural sector was the __________ system which was introduced by the British rulers in India.

Question. The triangular relationship among the government, the owner and tiller of the soil is known as __________ system.

Question. __________ of agriculture implies production of agricultural crops for sale in the market rather than for self-consumption.

Question. What is meant by commercialisation of agriculture?

Question. How did the partition of the country adversely effect India’s agriculture?

Question. What was the motive behind the systematic de-industrialisation by the colonial government in India? 

Question. What was the adverse impact of the decline of handicraft industries in India?

Question. Which industries were adversely affected due to partition and why?

Question. When was the Tata Iron and Steel Company (TISCO) incorporated?

Question. Give the names of some of the main modern industries which were in operation at the time of independence.

Question. What was the impact of discriminatory tariff policy on the Indian economy?

Question. What does the term ‘export surplus’ imply? 

Question. What do you understand by the drain of India’s wealth (or economic drain) during the colonial period?

Question. When was India’s first official census conducted?

Question. What was the state of primary sector in the time of Independence.
Ans. 1. Forced Commercialization of agriculture
2. Land Revenue system under the British Raj
3. High Degree of Vulnerability
4. A wedge between owners of the soil and Tiller soft h soil
5. Low Level of Productivity

Question. Briefly explain about industrial sector at the time of independence.
Ans. 1. Very few Modern Industries
2. Dominance of Trading and money lending class.
3. Agriculture-based industries
4. Lack of capital goods industries

Question. What was the state of foreign trade at the time of independence.
Ans. 1. Composition
2. Terms of trade
3. Direction
4. Volume of trade.

Question. When did British introduce Railways in India?
Ans. Railways were introduced in India by the British in 1850.

Question. Give the meaning of Gross Domestic product(GDP).
Ans.GDP is the market value of all officially recognized final goods and services produced within a country during a given period of time.

Question. What was the effect of the systematic de-industrialization policy followed by the British?
Ans. The effects of the policy of de-industrialization followed by the British were:
(a) De-industrialization
(b) ecline of the traditional handicraft
(c)The fall in supply of locally made goods.

Question. Explain the objectives of British government for promoting the railways in India.
Ans. (1) The railways were developed in India by the British to promote commercialization of Indian agriculture. This adversely affected the selfsufficiency of the village economy in India.
(2) Railways were introduced to protect and promote the British economic interests of transforming India into supplier of raw materials and consumer of finished industrial products from Britain.

Question. Explain any three positive contributions made by the British in India.
Ans. Some of the positive contributions made by the British in India were:
(1) Introduction of railways enabled the people to undertake long-distance travel. This facilitated The breaking of the geographical and cultural barriers.
(2) British rulers also developed water transport and introduced the air transport in 1932 by way of establishing Tata airlines in 1932 and thereby inaugurated the aviation sector in India.
(3) In 1837, the British introduced the modern postal system. The Expensive electric telegraph System was introduced in India, Which was useful for the purpose of maintaining law and order. Thus, the postal services served a useful public purpose.

Question. Which airlines inaugurated the aviation sector in India?
Ans. It was Tata Airlines, Which inaugurated the aviation sector in India.

Question. How did the construction of railways affect the structure of the Indian economy?
Ans. The British introduced the railways in India in 1850. Though the motive behind the setting up of railways by British in India was selfish, it is considered as one of their most important contribution. It affected the structure of the Indian railways in many ways:
(1) It enabled people to undertake long distance travel and thereby break geographical and cultural barriers.
(2) It fostered commercialization of Indian agriculture which adversely affected the self-sufficiency of the village economies in India.
(3) The volume of India’s export trade undoubtedly expanded.

Question. What is vicious circle of poverty?
Ans. Vicious circle of poverty is the occurrence of low incomes leading to low savings, Which results in low productivity and further lower levels of income. This further perpetuates poverty in the economy.

Question. How can India be described as a depleted economy on the eve of independence?
Ans. India was left with a large debt, mostly owed to the British Empire. This debt had increased over time because of the large expenditure that the British incurred in ruling over India. They maintained the army and the administrative staff to rule over India. India had also paid high taxes for import of raw material and other goods used in the making of roads, railways and coaches. All this drained the Indian treasury.

Question. Explain the challenges for the Indian economy on the eve of Independence.
Ans. 1. Vicious cycle of poverty
2. Backward technology
3. Negligible industrial growth
4.conditions of living
5. Partition of India.
6. Unemployment and underemployment
7. Rural economy
8. Limited size of market
9. High growth rate of population

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