Planning Questions and Answers

Multiple Choice Questions and Answers (MCQ) on Planning for Civil Services

Question 1 : The government has replaced five-year plans with

a) Annual plan

b) 10 – year transformational change document

c) 15 – year vision document

d) 20 – year golden period era

Answer : c

Question 2 : Which of the following is not among the aims of the Second Five-year plan (1956-57 to 1960-61) ?

a) Rapid industrialization with particular emphasis on the development of basic and heavy industries

b) Large expansion of employment opportunities

c) Achieve self-sufficiency in food grains and increase agricultural production to meet the requirements of industry and exports

d) Reduction in inequalities in income and wealth and a more even distribution of economic power

Answer : c

Question 3 : The Nehru – Mahalanobis strategy of development guided the planning practice in India from the

a) First Five-year Plan

b) Fourth Five-year Plan

c) Second Five-year Plan

d) Tenth Five-year Plan

Answer : c

Question 4 : The plans since 1991 are different from the earlier ones. The critical difference lies in the fact that

a) They have a considerably larger outlay compared to the earlier plans

b) They have  a major thrust on agricultural and rural development

c) Considerable emphasis is placed on infrastructure growth

d) Industrial licensing has been abolished

Answer : d

Question 5 : The planning process in the industrial sector in India has assumed a relatively less important position in the 1990s as compared to that in the earlier period. which one of the following is not true in this regard ?

a) With the advent of liberalization, industrial investment/development have largely been placed within the domain of the private sector .

b) With markets assuming a central place, the role of central planning in many sectors has been rendered redundant.

c) The focus of planning has shifted to sectors such as human resource development, infrastructure, population control, and welfare .

d) The nation’s priorities have shifted away from industrial development to rural development .

Answer : d

Question 6 :  Which one of the following pairs is not correctly matched ?

Five-year Plan                                Duration

a) Tenth Five-year Plan                       2002-07

b) Eighth Five-year Plan                     1992-97

c) Seventh Five-year Plan                   1985-90

d) First Five-year Plan                        1952-57

Answer : d

Question 7 : Post-liberalization, the government’s role has been reduced in the economy. In which of the following sectors, the government does not play a major role as an investor ?

a) Education

b) Health

c) Social security

d) Real estate

Answer : d

Question 8 : The Eighth Five-year Plan was delayed by 2 years, which of the following problems was faced by the Indian economy that led to this delay ?

a) There was a significant shortfall in foreign exchange reserves of India .

b) Indian currency underwent severe depreciation .

c) India’s debt situation come under grave threat .

d) There was high inflation in the Indian economy .

Answer : a

Question 9 : Consider the following statements relating to target of the Twelfth Five-year Plan :

1) Faster growth refers to quick increase in gross domestic product and per capital income.

2) Inclusive growth means that the poor and weaker sections of the society also enjoy the benefits of economic growth.

3) Sustainable growth means that the economic momentum arrived at in this plan will be carried in the next plans as well.

Which of the statements given above is/are correct ?

a) 1, 2, and 3

b) 1 and 2 only

c) 1 only

d)2 and 3 only

Answer : b

Question 10 : Consider the following statements :

1) In imperative planning, the market, the market mechanism is completely replaced by a command hierarchy, while in indicative planning, command hierarchy is completely replaced by market mechanism.

2) In imperative planning, all economic activities belong to the public sector, while in indicative planning, it belongs to the private sector.

Which of the statements given above is/are correct ?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Answer : d