MCQ on Indian economy on eve of Independence

MCQs made on 'Indian economy on the eve of Independence' Chapter 2 of Datt & Sundharam Eco book
Take a paper & write ans first. Check your progress with answers given at the end. Good luck.

1) Throughout the colonial period there was a generation of a large export ________?
a) Deficit b) surplus c) no conclusive data available

2) Life expectancy during colonial period in India?
a) 30yrs b)50 yrs c) 60 yrs d) 63yrs

3) Muslin which had its origin in Bengal had enjoyed world wide market in Pre-Colonial period. Indian 'Daccai Muslin' had gained fame for its exquisite quality. What is muslin?
a) very fine quality jute ropes b) silk textile (c) a type of cotton textile (d) an exquisite gem stone e) none of these

4) Jute is 2nd most important vegetable fiber after cotton, in terms of usage & global production. Jute is also known as ______?
a) Brown Fiber b) Affordable fiber  c) Yellow fiber d) Golden Fiber e) none of these

5) What is meant by 'progressive ruralization' or 'deindustrialization of India' which characterized colonial rule?
a) There was no industries till colonial period to deindustrialize. b) rural areas were made more progressive to export more raw materials back to UK. c) the trend of growing proportion of the working force in agriculture. d) none of these.

6) The largest source of revenue for Britishers in India was from ______?
a) Textile & Jute industry b) Gems & stone industry. c) Temple tax d) Land revenue e) none of these.

7) In order to bring stability in Agriculture the Britishers introduced land settlement in 1773. Where was it first introduced?
a) fertile lands of Punjab province b) Bombay province c) all directly British ruled areas d) Bengal e) none of these.

8) To enhance land returns a type of 'permanent settlement' which raised the status of revenue collectors to that of Private landlords introduced in Bengal by Britishers is called _____ ?
a) Ryotwari settlement b) Zamindari system c) Bengal Land settlement system d) none of these.

9) Permanent settlement system was brain-child of ______?
a) Philip Francis, English MP in House of Commons. b) William Bentick. c) Warren Hastings. d) Lord Cornwallis. e) none of these

10) How is Ryotwari system introduced by Britishers in large parts of Bombay, Madras, north-eastern & north-western parts of India is different from Zamindari system?
a) Land revenues were excessive in former.
b) Just the name was different for easy understanding by locals otherwise both systems were same.
c) Under Ryotwari system revenues can be collected in both cash & kind.
d) Each peasant holding a plot of land was recognised as landlord & was directly responsible to state for annual land revenue payment.

11) With completion of Industrial revolution in UK during 1850-1947, raw matarials like cotton, jute, sugarcane etc. were in high demand by UK's industry. So much was the policy conditions & high market price that the farmers started production of crops for industrial sale rather than for family consumption, this was called _______?

a) Modernisation of Indian Agriculture b) Commercialisation of Indian Agriculture c) its nothing but 'normal sales of Marketable surplus'. d) Marketed surplus. e) none of these.

12) Which of the following(s) is/are cause(s) of slow growth of private enterprises in India's industrialization (1850-1957)?
a) Unimaginative private enterprise, short-sighted Indian industrialists.
b) complete absense of financial institutions to help transfer of savings to industrial investment.
c) Banking was not highly developed & was more concerned with commerce rather than industry.
d) Lack of support from British government e) all of these

13) The company agents who would sign bonds with local artisans to deliver cotton & silk fabrics much below market price are called
a) Gomastas b) Izaredars c) Thakurs d) Seths e) none of these.

14) What among the following(s) did not characterize "Imperial Preference" clause in the Policy of Discriminating protection adopted by Britishers in response to Indian National Movement?
a) Imports from UK has no/zero duties, while exports to UK are preferred.
b) to help Indian business to undertake investments in India.
c) to help British capital find safe & secure avenues of Investment in India.
d) to help maintain British trade monopoly in India & stop any other country to enter the Indian market. e) all of these.

15) RBI's first census of India's foreign Assets & Liability as on 30 June 1948 revealed total foreign business investments of Rs 302 cr, out of it what was the % of British investments in India?
a) 51% b) 60% c) 72% d) 91% e) 100%.

16) What is meant by Home charges, one of the ways of economic drain of India?
a) Charges for establishment of industries in India. b) Incentives for exporting raw material to UK. c) Remuneration paid to British officials for working in India. d) Payments on account of interest on foreign debts incurred by India, remittances of Salaries, Savings, Pension by Britishers etc. e) none of these.

17) First train on India soil was run on 1853 between?
a) Bombay to Thane. b) Thane to Bombay. c) Bombay to Surat. d) none of these.

18) Who among the following are some of the notable economists who estimated India’s per capita income during the colonial period.
a) Dadabhai Naoroji. b) William Digby. c) Findlay Shirras d) V.K.R.V. Rao.  e) R.C. Desai


1. ANS: B
2. Ans: A
3. Ans: C.  Egyptian mummies dating back 2000 BC were wrapped in Indian Muslin. Greeks called it Gangetika.
4. Ans: D
5. C. The unemployed craftsmen & artisans shifted to agriculture also described as back-to-the-land movement. In mid nineteenth century 55%, in 1901 68%, in 1931 72% of population was dependent on Agri.
6. D.
7. D. First 'Izaredari system' was introduced by Warren Hastings. In it the right to collect revenue was given to the highest bidder (who may change). Izaredars then squeezed everybody to pay to the Company. This 'bidding' process was later changed to a more permanent system which was hereditary.
8. B. Under Zamindari system land revenue were fixed for perpetuity. Zamindars were reponsible for payment of land revenue to the state.
9. D.
10. D. Ryots=peasant cultivators/hired labor. Later Mahalwari system (Mahal= house, district) was introduced in UP, Punjab in which along with village communities, landlords were jointly responsible for revenue.
11. B.
12. E.
13. A
14. B.
15. C.
16. D.
17. A.
18. All of the these ;).