Indian Economy chapter practice

Growth & Development MCQs

Practise 80+ Growth & Development MCQs for UPSC Prelims in Indian Economy, including 16+ previous year questions. The sample set below is shown with correct answers and explanations.

80
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16
PYQs
12
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Sample Growth & Development questions

12 sample questions are shown here; sign up free to practise all 80.

Q1Indian EconomyGrowth & DevelopmentPYQ 2017

The Global Gender Gap Report, which ranks countries on gender parity, is published by:

  • AWorld Economic ForumCorrect
  • BUN Women
  • CUnited Nations Development Programme (UNDP)
  • DWorld Bank

Explanation

Correct. The Global Gender Gap Report has been published by the World Economic Forum (WEF) since 2006. It benchmarks 146 countries on gender parity across four dimensions: economic participation and opportunity, educational attainment, health and survival, and political empowerment. It should not be confused with UNDP's Gender Inequality Index (GII) or Gender Development Index (GDI).

Q2Indian EconomyGrowth & DevelopmentPYQ 2017

What constitutes a country's social capital?

  • AProportion of literates in the population
  • BStock of buildings, machines and other physical infrastructure
  • CSize of the working-age population
  • DLevel of mutual trust and harmony in societyCorrect

Explanation

Correct. Social capital refers to the networks of relationships, norms of reciprocity, mutual trust, and social harmony within a society. It was popularized by scholars like Robert Putnam and James Coleman. Higher social capital reduces transaction costs, facilitates cooperation, and contributes to economic growth and development by enabling collective action and good governance.

Q3Indian EconomyGrowth & DevelopmentPYQ 2017

Human capital formation in a country means:

  • AAccumulation of more financial capital by individuals
  • BIncreasing the knowledge, skill levels and capacities of the peopleCorrect
  • CAccumulation of tangible wealth such as buildings and machinery
  • DAccumulation of intangible wealth such as goodwill and patents

Explanation

Correct. Human capital formation refers to the process of increasing the knowledge, skills, competencies, and health of the population. It is achieved through investment in education, training, healthcare, and nutrition. Economists like Theodore Schultz and Gary Becker pioneered the concept, arguing that investment in people is as important as investment in physical capital for economic growth.

Q4Indian EconomyGrowth & DevelopmentPYQ 2017

The total fertility rate in an economy is defined as:

  • AThe number of children born per 1,000 people in the population in a year
  • BThe number of children born to a couple in their lifetime
  • CThe birth rate minus the death rate
  • DThe average number of live births a woman would have by the end of her child-bearing ageCorrect

Explanation

Correct. The Total Fertility Rate (TFR) is the average number of live births a woman would have by the end of her child-bearing age (typically 15-49 years), assuming she experiences the current age-specific fertility rates throughout her reproductive period. India's TFR has declined to around 2.0 (NFHS-5), falling below the replacement level of 2.1.

Q5Indian EconomyGrowth & DevelopmentPYQ 2016

Economic growth does not necessarily connote development if:

  • AIndustrial output falls behind agricultural output
  • BAgricultural output falls behind industrial output
  • CPoverty and unemployment increase alongside growthCorrect
  • DImports grow faster than exports

Explanation

Correct. Economic growth (rise in GDP) does not automatically mean development if it is accompanied by increasing poverty and unemployment. Development requires that the benefits of growth are broadly shared, improving living standards, reducing poverty, and creating employment opportunities. Growth that bypasses the poor is 'non-inclusive' growth.

Q6Indian EconomyGrowth & DevelopmentPYQ 2013

To benefit from the demographic dividend, what should India invest in?

  • ASkill developmentCorrect
  • BSocial security schemes for the elderly
  • CReducing infant mortality rate
  • DPrivatization of higher education

Explanation

Correct. Skill development is the most direct investment to harness the demographic dividend. A large working-age population is beneficial only when it is productively employed, which requires relevant skills aligned with market demands. India's National Skill Development Mission and schemes like PMKVY aim precisely at this.

Q7Indian EconomyGrowth & DevelopmentPYQ 2012

Which one of the following organizations publishes the Human Development Report?

  • AWorld Bank
  • BUnited Nations Development Programme (UNDP)Correct
  • CInternational Monetary Fund (IMF)
  • DWorld Economic Forum

Explanation

Correct. The United Nations Development Programme (UNDP) has been publishing the Human Development Report annually since 1990. The report was conceptualized by Pakistani economist Mahbub ul Haq and contains the Human Development Index (HDI), Inequality-adjusted HDI, Gender Inequality Index, and Multidimensional Poverty Index.

Q8Indian EconomyGrowth & DevelopmentPYQ 2012

The correct chronological sequence of demographic transition stages is: 1. High birth rate and high death rate 2. High birth rate and declining death rate 3. Low birth rate and low death rate Select the correct answer:

  • A1, 2, 3Correct
  • B2, 1, 3
  • C2, 3, 1
  • D3, 2, 1

Explanation

Correct. The demographic transition model follows three main stages in sequence: (1) Pre-transition — high birth and death rates leading to slow population growth; (2) Transition — death rates fall due to improved healthcare and sanitation while birth rates remain high, causing rapid population growth; (3) Post-transition — both birth and death rates are low, leading to stable or slow population growth. Developed countries have completed this transition.

Q9Indian EconomyGrowth & DevelopmentPYQ 2012

The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following? 1. Deprivation of education, health, assets and services at household level 2. Purchasing power parity at national level 3. Extent of budget deficit and GDP growth rate at national level Select the correct answer using the codes given below:

  • A1 onlyCorrect
  • B2 and 3 only
  • C1 and 3 only
  • D1, 2 and 3

Explanation

Correct. The MPI measures acute multidimensional poverty at the household level across three dimensions — health (nutrition, child mortality), education (years of schooling, school attendance), and standard of living (cooking fuel, sanitation, drinking water, electricity, housing, assets). It does not use national-level macroeconomic indicators.

Q10Indian EconomyGrowth & DevelopmentPYQ 2011

India is regarded as a country with 'Demographic Dividend'. This is due to:

  • AIts high population in the age group below 15 years
  • BIts high population in the age group of 15-64 yearsCorrect
  • CIts high population in the age group above 65 years
  • DIts high total population

Explanation

Correct. Demographic dividend refers to the economic growth potential arising when the working-age population (15-64 years) is larger than the non-working-age (dependent) population. India's large share of people in this bracket creates a window of opportunity for accelerated economic growth.

Q11Indian EconomyGrowth & DevelopmentPYQ 2011

Which of the following can aid in furthering the Government's objective of inclusive growth? 1. Promoting Self-Help Groups 2. Promoting Micro, Small and Medium Enterprises 3. Implementing the Right to Education Act Select the correct answer using the codes given below:

  • A1 only
  • B1 and 2 only
  • C2 and 3 only
  • D1, 2 and 3Correct

Explanation

Correct. All three promote inclusive growth: SHGs empower marginalized communities through financial inclusion and collective enterprise; MSMEs generate employment across sectors and regions, especially for lower-income groups; and the Right to Education Act ensures universal access to quality education, building human capital equitably.

Q12Indian EconomyGrowth & DevelopmentPYQ 2010

Inclusive growth as enunciated in the Eleventh Five Year Plan does NOT include one of the following:

  • AReduction of poverty
  • BExtension of employment opportunities
  • CStrengthening of capital marketCorrect
  • DReduction of gender inequality

Explanation

Correct. Strengthening of capital market was not a stated objective under the inclusive growth framework of the Eleventh Five Year Plan (2007-2012). Inclusive growth focused on poverty reduction, employment generation, gender equality, health, education, and rural development.

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Frequently asked questions

How many Growth & Development MCQs are available for UPSC Prelims practice?
PrelimsAI currently has 80+ Growth & Development MCQs under Indian Economy. This page shows 12 sample questions in full.
How many Growth & Development previous year questions are included?
16+ questions in this chapter are tagged as UPSC Prelims PYQs. PYQs are prioritised in the visible sample set when available.
Do these Growth & Development questions include explanations?
Yes. The 12 visible sample questions show the correct option and explanation on this page.
Where should I go after practising Growth & Development?
Continue with National Income Accounting or Planning in India, or return to the Indian Economy subject page for more chapter-wise practice.

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