Q90. In which year did India establish the Planning Commission?
[SSC CGL Tier I 2025]
(A) 1947
(B) 1949
(C) 1950
(D) 1952
Answer: (C) 1950
Explanation: The Planning Commission was created by a Government of India resolution on 15 March 1950, with the Prime Minister as chairperson. It coordinated national development plans until NITI Aayog replaced it in January 2015.
Q89. Which prime minister’s administration introduced the Rolling Plan approach in 1978?
[SSC CGL Tier I 2025]
(A) Jawaharlal Nehru
(B) Indira Gandhi
(C) Morarji Desai
(D) Rajiv Gandhi
Answer: (C) Morarji Desai
Explanation: The Janata government led by Morarji Desai discontinued the Fifth Plan early and adopted a rolling-plan arrangement. With the return of the Congress government in 1980, a new Sixth Plan replaced that approach.
Q88. What central principle underlay the Industrial Policy Resolution of 1956?
[SSC CGL Tier I 2025]
(A) Comprehensive privatisation
(B) Import dependence
(C) Public control over the commanding heights
(D) Only small consumer-goods factories
Answer: (C) Public control over the commanding heights
Explanation: The 1956 resolution placed key and strategic industries under strong public-sector leadership. Its schedules differentiated exclusive state activity, progressively state-led development and remaining private-sector fields, reflecting India’s planned mixed-economy approach.
Q87. What was the chief short-run purpose of India’s 1991 stabilisation measures?
[SSC CGL Tier I 2025]
(A) Expand farm acreage
(B) Increase social spending immediately
(C) Control inflation and repair the balance of payments
(D) Privatise every government enterprise
Answer: (C) Control inflation and repair the balance of payments
Explanation: Stabilisation was designed to address urgent macroeconomic imbalances, especially high inflation and inadequate foreign exchange. Structural reforms worked on the longer-term organisation and competitiveness of the economy; the two components were related but distinct.
Q86. Assertion: Liberalisation sought to remove entry restrictions on firms.
Reason: Industrial licensing had limited competition and enterprise.
Which statement is correct?
[SSC CGL Tier I 2025]
(A) Both are true and the reason explains the assertion
(B) Both are true but unrelated
(C) Assertion true and reason false
(D) Assertion false and reason true
Answer: (A) Both are true and the reason explains the assertion
Explanation: Under licensing controls, private enterprises frequently required official permissions to establish or expand capacity. Relaxing those requirements could encourage new firms, greater rivalry and investment, which is why the stated reason directly explains the liberalisation objective.
Q85. What was a central objective of India’s Industrial Policy Resolution of 1956?
[SSC CGL Tier I 2025]
(A) Profit maximisation alone
(B) Growth accompanied by equity
(C) A pure laissez-faire system
(D) Complete opening to international markets
Answer: (B) Growth accompanied by equity
Explanation: The policy combined industrial expansion with the goal of reducing economic disparities. A large public-sector role was intended to build basic industries and support more balanced development, rather than rely solely on private profit incentives.
Q84. How does the WTO primarily contribute to the process of economic globalisation?
[SSC CGL Tier I 2025]
(A) By providing military assistance
(B) By regulating migration
(C) By facilitating rules-based trade among nations
(D) By operating national central banks
Answer: (C) By facilitating rules-based trade among nations
Explanation: The World Trade Organization provides a multilateral framework for trade agreements, negotiations and dispute settlement. It aims to make cross-border exchange more predictable through agreed rules, although members retain negotiated obligations and exceptions.
Q83. How could licensing rules during India’s planned-economy era help established industrial groups?
[SSC CGL Tier I 2025]
(A) By guaranteeing foreign investment
(B) By eliminating market concentration
(C) By allowing firms to accumulate licences and deter entrants
(D) By creating universal farm jobs
Answer: (C) By allowing firms to accumulate licences and deter entrants
Explanation: Control over scarce industrial licences could favour incumbents possessing administrative resources and connections. Holding approvals or capacity allocations may have constrained rival entry, even though the licensing system formally aimed to guide industrial development.
Q82. What does disinvestment in public-sector enterprises ordinarily involve?
[SSC CGL Tier I 2025]
(A) Closing every public enterprise
(B) Borrowing exclusively through bonds
(C) Selling some government shareholding
(D) Merging all private firms into the state
Answer: (C) Selling some government shareholding
Explanation: Disinvestment changes the government’s equity ownership in a company through sales of shares. It need not mean complete privatisation: the state may still retain controlling ownership after disposing of a minority stake.
Q81. Which item is ordinarily left out when GDP is calculated to avoid double counting?
[SSC CGL Tier I 2025]
(A) Final household consumption
(B) Government purchases of services
(C) Intermediate goods already incorporated into final products
(D) Net exports
Answer: (C) Intermediate goods already incorporated into final products
Explanation: National accounting values final production or the value added at each production stage. Adding the entire value of intermediate inputs to the final product would count some output twice and overstate gross domestic product.
