Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

Read the passage and answer the following questions.

Shubham works for Ministry of External Affairs and was given a chance to visit China for work purpose. In China, he noticed that people didn’t even have basic rights like freedom to speak and had no right over the production activities they performed. He was disappointed with their state and came home happily realizing that in India everyone can exercise their rights without any bondage from the government or any other entity. But the question which came in his mind was that if India has such an efficient economic system then why we still face such a huge level of unemployment. He went to his friend Rajan who worked for Planning Commission of India. He asked Ranjan, "What do you think is the solution to the problem of unemployment?" to which Ranjan replied, "Strengthening the Manufacturing sector will lead to reduction in unemployment."

What does the department of Ranjan do?

Options:

Plan for the expenditure to be incurred on election

Plan for spreading awareness of rights of individual

Plan to use the scarce resources of economy in an efficient way

All of the above

Correct Answer:

Plan to use the scarce resources of economy in an efficient way

Explanation:

Planning Commission of India makes long term and short term plans for the development of the economy. It creates an objective to be achieved and allocate the resources accordingly in an efficient manner.