Important MCQ questions for Class 11 Economics Chapter-Rural Development
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MCQ Questions set-1 for chapter-Rural Development class 11 Economics
Economics - MCQ on Rural Development
Class XI
Q.1. What is the major source of livelihood in the rural sector in India?
i) Agriculture
ii) Organic farming
iii) Industry
iv) Fishery –
Answer:
(i) Agriculture.
Expln. India, being a developing nation, the primary activity of our country is agriculture. Most of the rural population is dependent on agriculture. They earn their livelihood from farming activities.
Q.2. What part of rural India still lives in abject of poverty?
i) Three-fourth
ii) One-third
iii) Half
iv) 95%
Answer:
(ii) One-third.
Expln. The major portion of the total population of India is dependent on agriculture. But with increasing population and growing unemployment in this sector, the small and marginal farmers are becoming easy victims of poverty.
Q.3. What is an apex body to coordinate the activities of all institutions involved in the rural financing system?
i) RBI
ii) SHG
iii) MSP
iv) NABARD –
Answer:
(iv) NABARD.
Expln. National Bank for Agricultural and Rural Development (NABARD) was set up in 1982. It does not deal with farmers and rural people directly. It grants assistance to them through cooperative banks, commercial banks and RRBs.
Q.4. How to promote thrift in small proportions by a minimum contribution from each member of the group?
i) SHGs
ii) RBI
iii) NABARD
iii) MSP –
Answer:
(i) SHGs
Expln. Self Help Groups or SHGs operate on the basis of the micro-finance concept.From the pooled money, credit is given to the needy members to be repayable in small installments at reasonable interest rates. By March 2003, more than seven lakh SHGs had reportedly been credit-linked.
Q.5. Diversification of agriculture includes –
i) 3
ii) 2
iii) 4
iv) 5 aspects.
Answer:
(ii) 2.
Expln. First aspect relates to diversification of crops and the other relates to shift of the work-force from agriculture to other allied activities such as livestock, poultry, fisheries etc. and non-agricultural sector.
Q.6. The produce by organic farming is –
i) chemical
ii) cost
iii) nutrition
iv) fertilizer free.
Answer:
(i) chemical.
Expln. The main principle of organic farming is to use local available organic inputs like animal dung, crop residues, green manure bio fertilizers and bio-solids from agro industries as the major source of nutrients for the crop production.
Q.7. On the basis of time period finance or credit can be classified into –
i) two
ii) three
iii) four
iv) five groups.
Answer:
(ii) three.
Expln. The credits can be classified into the following three groups on the basis of time period of finance : a) short term credit, b) medium term credit and c) long term credit.
Q.8. Credit requirement of the farmers on the basis of purpose and use of credit can be classified into
i) two
ii) three
iii) four
iv) five categories.
Answer:
(i) two.
Expln. The classifications are: a) productive credit and
b) Unproductive credit.
Q.9. The current institutional structure of rural banking is a set of
i) single agency
ii) bi-agency
iii) multi level
iv) multi-agency institutions.
Answer:
(iv) multi-agency.
Expln. The formal financial sectors operates through several financial agencies like cooperative banks, commercial banks, RRBs, micro credit schemes etc.
Q.10. What is a system under which fair price shops are set up in different areas to distribute essential commodities, particularly food grains at subsidized rated?
i) MSP
ii) SHGs
iii) PDS
iv) NABARD –
Answer:
(iii) PDS.
Expln. Government has established several fair price shops in different village and town areas where through public distribution system or PDS consumers get agricultural products at right price and the farmers also enjoy the major share of the income from their produce.
Q.11. What is the objective to insulate farmers from income fluctuations resulting from price variations in the free market?
i) organic farming
ii) micro credit systems
iii) diversification of agriculture
iv) support price
Answer:
(iv) Support price.
Expln. Government introduces different support price schemes like Minimum Support Price, Buffers Stocks and PDS to protect the farmers from the harsh effect of fluctuating market prices of agricultural products.
Q.12. A system whereby all the farmers can pool milk produce on cooperative basis and the same is marketed to urban areas through cooperatives is known as
i) golden revolution
ii) operation flood
iii) green revolution
iv) white revolution.
Answer:
(i1) Operation Flood.
Expln. The implementation of Operation Flood from 1966 ensured the successful diversification of agricultural activities into livestock sector.
Q.13. Contribution of Indian agriculture to GDP is
i) 50%
ii) 60%
iii) 23.16%
iv) 23.46%.
Answer:
(iii) 23.16%
Expln. The contribution of agriculture to India’s GDP has a declining trend.
Q.14. How many workers are employed in agriculture.
i) 60%
ii) 75%
iii) 50%
iv) 23.16%
Answer:
(i) 60%
Agriculture being the primary activity of our country the major portion of the total population as well as the total work force depends on it for their livelihood.
Q.15. Kissan Credit card is an initiative by the India government under the category of
i) market regularization
ii) micro credit scheme
iii) cooperative banking
iv) agricultural diversification.
Answer:
(iii) cooperative banking.
Expln. KCC was introduced by the government in 1998-99. it facilitates access to credit from commercial and regional rural banks. Farmers eligible for production credit of Rs.5000 are eligible for the issue of Kissan Credit Card.
Q.16. What was launched in May, 2005 as a major step to bring about diversification in agriculture?
i) NHM
ii) NABARD
iii) PDS
iv) KCC
Answer:
(i) NHM.
Expln. The establishment of National Horticulture Mission (NHM) was a major step to bring about diversification in agriculture and enhance income of farmers through cultivation of high value horticultural crops.
Q.18. What helps in protecting the agricultural environment from the loss of natural ‘bio-diversity’?
i) Crop diversification
ii) Shift of work force to non farm activities
iii) Regularized agricultural markets
iv) Organic farming -
Answer:
(i) Crop diversification.
Expln. Crop rotation provides a natural protection from plant diseases. It increases the fertility of the soil. In this way, it helps to keep the bio-diversity of the environment intact for sustainable development.
Q.19. How much of the total rural credit in India is presently provided by the institutional sources.
i) 65%
ii) 70%
iii) 53%
iv) 39%
Answer:
(ii) 70%
Expln. Due to several draw-backs of non-institutional finance system prevailing in rural India, the government took initiatives to set up a formal financial system. With time these institutions have become really popular among the rural people for their transparency in dealings, low rates of interest and availability of loan for various productive purposes.
Q.20. Intermediaries comprises of
i) cooperative banks
ii) traders and money lenders
iii) farmers
iv) consumers.
Answer:
(ii) traders and money lenders.
Expln. In informal financial set-up the farmers are exploited mostly by these intermediaries who enjoy the major share from the actual earning of the farmer’s total produce at the market rates.
Q.21. What is a key issue for rural development.
i) Land reforms
ii) Land cultivation
iii) Land utilization
iv) Land distribution –
Answer:
(i) Land reforms.
Expln. Land reform is an issue which is challenging and needs fresh initiatives for development in rural India.
Q.22. What was a harbinger of major changes in the credit system.
i) Operation flood
ii) Golden revolution
iii) Green revolution
iv) Organic farming
Answer:
(iii) Green revolution.
Expln. Green revolution led to the diversification of the portfolio of rural credit towards production-oriented lending.
Q.23. Expansion and promotion of the rural banking sector has taken a back seat after
i) independence
ii) reforms
iii) introduction of organic farming
iv) operation flood.
Answer:
(ii)reforms.
Expln. Chronic under performance of the formal credit institutions, increasing rate of defaulters (most of them are willful defaulters), failure in the process of the development of deposit mobilization – all these reasons led to the slower expansion and promotion of the rural banking sector in the 1990s.
Q.24. Rythu Bazars is in
i) Andhra Pradesh
ii) West Bengal
iii) Bihar
iv)Madhya Pradesh.
Answer:
(i) Andhra Pradesh.
Expln. There are several markets of fruits and vegetables like Rythu Bazars in other states also. In these kinds of markets farmers can directly sell their produce to the retail consumers. It increases their share in the price paid by the consumers. Otherwise the intermediaries mostly take away the major portion of the profit from the farmers’ produce.
Q.25. One of the dynamic sub-sectors of agriculture is
i) pottery
ii) crafts
iii) handloom
iv) agro-processing industries.
Answer:
(iv) agro-processing industries.
Expln. As agriculture is already over crowded, a major proportion of the increased labour force needs to find alternate employment opportunities. Agro-processing industries belong to the category of dynamic sub-sector of agriculture in terms of its contribution to GDP and providing employment opportunities to the rural people. This sector is really well equipped in terms of infrastructure and other facilities.
Q.25. _________is a scheme or system whereby all the farmers can pool milk is called
I. White Flood
II. India’s Flood
III. Milk flood
IV. Operation flood
Answer:
(iv) Operation flood
Explanation: Operation flood is a scheme or system whereby all the farmers can pool milk produce on the cooperative basis and same is marketed to urban areas through the cooperatives.
Q.26. What is the current institutional structure of rural banking?
I. Single Agency System
II. Multi Agency System
III. Dual Agency System
IV. Triple Agency System
Answer:
(ii)Multi Agency System
Explanation: The current institutional structure of rural banking is a set of multi-agency institutions.
Q.27. What are organic inputs
I. Wheat Seeds
II. Tractors
III. Bulls and cows
IV. HYV seeds
Answer:
(iv) HYV seeds
Explanation: Organic farming is a system of farming which uses locally produced organic inputs in place of HYV seeds, chemical fertilizers, pesticides etc.
Q.28. What is support price?
I. Guaranteed maximum price
II. Guaranteed minimum price
III. Guaranteed same price
IV. None
Answer:
(iii) Guaranteed minimum price
Explanation: Support price is a guaranteed minimum price at which government procures the specified goods from the farmers.
MCQ Questions set-2 for chapter-Rural Development class 11 Economics
Q. 1. An example of non-farming activity is
(a) ploughing.
(b) dairy.
(c) harvesting.
(d) sowing.
Answer:
(b)
Explanation: Dairy is a non-farming activity. The activities, which are not related to farming activities comes under non-farming activities like dairy, poultry, fishery, etc.
Q 2. An essential factor for expansion of non-farm activities is
(a) land.
(b) road.
(c) labour.
(d) markets.
Answer:
(d)
Explanation: Markets are needed for the expansion of non-farm activities because goods produced needs market to be sold.
Q 3. Even with improved irrigation and modern farming method, farmers are not able to make their living from their land because
(a) farmers are holding small plot of land.
(b) farmers have no other sources of income.
(c) farmers use bad quality of seeds.
(d) farmers still depend on rainfall.
Answer:
(a)
Explanation: Most of the Indian farmers of India don’t have sufficient land for cultivation. Small land holding does not bring adequate income to the farmer family.
Q. 4. In rural areas, the major reason behind taking the credit is
(a) telecommunication.
(b) crop production.
(c) establishment of factory.
(d) for buying luxuries.
Answer:
(b)
Explanation: In rural areas, farmers usually take crop loans at the beginning of the season and repay the loan after harvest.
Q 5. Informal source of loan is
(a) traders.
(b) cooperatives.
(c) banks.
(d) government.
Answer:
(a)
Explanation: Relatives, traders, moneylender are informal sources of taking loan.
Q 6. The borrower is pushed into a painful situation if he takes the credit from
(a) cooperatives.
(b) SHG.
(c) moneylenders.
(d) banks.
Answer:
(c)
Explanation: Credit from informal sector such as traders, relatives, moneylenders etc. pushes the borrower debt trap from where recovery is painful
Q 7. SHG means
(a) Self Help Group.
(b) Service Holder Groups.
(c) Self Housing Groups.
(d) Soul Harassing Groups.
Answer:
(a)
Explanation: SHG stands for Self Help Groups. The idea of SHG is to save money by pooling and then use the collected money as per the needs of the poor.
Q. 8. The largest share in livestock is of
(a) sheep.
(b) poultry.
(c) fisheries.
(d) cattle.
Answer:
(b)
Explanation: Poultry accounts for the largest share in livestock.
Q 9. Agriculture is a seasonal activity
(a) because specific crop requires specific environment.
(b) because only one crop can be sown in a year.
(c) because fertility of land reduces.
(d) because irrigation facilities are not available throughout the year.
Answer:
(a)
Explanation: Agriculture is a seasonal activity because specific crop requires specific environment and specific time.
Q. 10. Operation flood is related with
(a) irrigation.
(b) milk production.
(c) water conservation.
(d) flood control.
Answer:
(b)
Explanation: Operation Flood was a rural development programme started by India's National Dairy Development Board in 1970. One of the largest of its kind, the programme objective was to create a nationwide milk grid.
Q. 11. The state that is known for its milk cooperatives is/
(a) Tamil Nadu.
(b) Rajasthan.
(c) Gujarat.
(d) Kerala.
Answer:
(c)
Explanation: Milk cooperatives in Gujarat aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products.
Q. 12. Organic farming requires more
(a) capital input.
(b) equal amount of capital and labour.
(c) chemical fertilizers.
(d) labour input.
Answer:
(d)
Explanation: Organic farming requires more labour than conventional farming.
Q. 13. The farming that is environmentally sustainable is
(a) modern farming.
(b) chemical farming.
(c) inorganic farming.
(d) organic farming.
Answer:
(d)
Explanation: Organic farming is an agriculture production system that sustains the health of soils, ecosystems and people.