Economic MCQs with answers Page - 1

Adam Smith is called the "Father of Economics" because he laid the foundation for modern economic thought with his book An Inquiry into the Nature and Causes of the Wealth of Nations, published in 1776. In this book, he introduced key economic concepts such as:

1. The Invisible Hand – The idea that individuals seeking their own self-interest can benefit society as a whole through market competition.
2. Division of Labor – The concept that specialization in production increases efficiency and productivity.
3. Free Market Economy – He advocated for minimal government intervention in economic activities, promoting capitalism and free trade.

His ideas shaped classical economics and continue to influence modern economic policies.

The concept of Five-Year Plans in India was introduced by Jawaharlal Nehru in 1951 based on the model of the Soviet Union. The First Five-Year Plan (1951-1956) focused on agricultural development, irrigation, and industrial growth. The Planning Commission was responsible for formulating and implementing these plans.