Q1. What was the primary economic goal of British policies in India?
- To foster Indian economic independence
- To make India a self-sustaining colony
- To maximize economic benefits for Britain, especially through trade and resources
- To develop India’s local industries
Correct Option: 3. To maximize economic benefits for Britain, especially through trade and resources.
Explanation: The British aimed to exploit India’s resources and labor to benefit Britain’s industrial revolution and commerce. India’s economy was structured to supply raw materials to British industries, while the profits from this exploitation were sent back to Britain.
Q2. Which economic thinker condemned the exclusive trading practices of companies like the East India Company?
- Karl Marx
- Adam Smith
- John Maynard Keynes
- David Ricardo
Correct Option: 2. Adam Smith.
Explanation: In his Wealth of Nations, Adam Smith criticized the exclusive trading companies like the East India Company, arguing that they were harmful both to the colonies and the countries that ruled them.
Q3. How did the East India Company contribute to the economic hardship in India?
- By providing loans to Indian farmers
- Through high taxation, exploitation of resources, and economic mismanagement
- By investing in Indian industries
- By building modern infrastructure and factories
Correct Option: 2. Through high taxation, exploitation of resources, and economic mismanagement.
Explanation: The East India Company’s policies led to high taxation on Indian peasants and economic mismanagement. This caused poverty, famine, and the collapse of local industries, contributing to widespread hardship.
Q4. What was the main goal of the British economic policies in India during the colonial period?
- To create a free market economy in India
- To make India self-sufficient
- To support local industries and reduce dependency
- To extract wealth and resources for Britain’s benefit
Correct Option: 4. To extract wealth and resources for Britain’s benefit.
Explanation: The primary aim of British economic policies was to extract wealth from India and use it to fuel the industrial revolution in Britain, while India’s economy was kept dependent on British needs and demands.
Q5. Which position was created by the Regulating Act of 1773 to oversee British officials in India?
- Governor-General
- Supreme Court Judge
- Board of Control
- Secretary of State for India
Correct Option: 3. Board of Control.
Explanation: The Board of Control was established under the Regulating Act of 1773 to supervise the activities of the East India Company in India and ensure that its actions aligned with British interests.