Chapter: Industrial Development in India since independence
101.

The main source of foreign capital in India is

A. Loans from abroad
B. None
C. Foreign direct investment
D. Both A and C
Answer» D. Both A and C
102.

In which among the following year the MRTP act become effective

A. 1980
B. 1960
C. 1970
D. 1990
Answer» C. 1970
103.

LQP raj refers to

A. license, quota, Privatisation raj
B. liberalisation, quota, permit raj
C. license, quota, permit raj
D. license, quarter, Privatisation raj
Answer» C. license, quota, permit raj
104.

Which act was removed under NEP

A. MRMP
B. MDPE
C. MRRP
D. MRTP
Answer» D. MRTP
105.

The NEP in 1991 was initiated by the

A. Prime Minister
B. Foreign Minister
C. Home Minister
D. Finance Minister
Answer» D. Finance Minister
106.

There are three industries which are reserved for the public sector except

A. Railway transport
B. Atomic energy
C. Defence equipment
D. Electricity
Answer» D. Electricity
107.

During the economic crisis, the World bank and IMF provided India a loan of

A. 7 billion
B. 5 billion
C. 8 billion
D. 6 billion
Answer» A. 7 billion
108.

PSU is

A. Producing sector undertaking
B. None
C. Public sector undertaking
D. Private sector undertaking
Answer» C. Public sector undertaking
109.

Selling off the share of public sector companies to the private individuals and institutions is known as

A. Amendments
B. Delicensing
C. Dereservation
D. Disinvestment
Answer» D. Disinvestment
110.

The most urgent problem which prompted the introduction of the New Economic Policy in 1991 was

A. Foreign exchange crisis
B. All of these
C. Poor performance of public sector
D. High tax rate leading to tax evasion
Answer» B. All of these
Chapter: Infrastructure Development in India since 1991
111.

Which programme was launched in 2006 with objective of correcting regional imbalances in provision of healthcare?

A. Pradhan Mantri Swasthya Suraksha Yojna
B. National Rural Health mission
C. Janani Suraksha Yojna
D. Integrated Disease Surveillance
Answer» A. Pradhan Mantri Swasthya Suraksha Yojna
112.

All the support structures which facilitates development of a country constitute its (1)

A. None
B. Infrastructure
C. Manufactures
D. Construction
Answer» B. Infrastructure
113.

Who gives the final approval to the five-year plans of India?

A. National Development Council (NDC)
B. Ministry of Finance
C. Planning Commission (now NITI Aayog)
D. President of India
Answer» A. National Development Council (NDC)
114.

Which programme given the slogan of Garibi Hatao?

A. 7th five-year plan
B. 3rd five-year plan
C. 6th five-year plan
D. 5th five-year plan
Answer» D. 5th five-year plan
115.

Consider the following statements about India’s energy mix: 1. Coal is the source of more than 50% energy needs. 2. Renewable sources of energy contribute more than 15% of energy requirements of India. Which of the statements given above is/are correct?

A. 1`only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer» C. Both 1 and 2
116.

Despite having large reserves of coal, why does India import millions of tonnes of coal? 1. It is the policy of India to save its own coal reserves for the future and import it from other countries for the present use. 2. Most of the power plants in India are coal based, and they are not able to get sufficient supplies of coal from within the country. 3. Steel companies need a large quantity of coking coal, which has to be imported. Which of the statements given above is/are correct?

A. 1`only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2, and 3
Answer» B. 2 and 3 only
117.

When was the first train streamed off in India?

A. 1848
B. 1853
C. 1875
D. 1880
Answer» B. 1853
118.

Which of the following produces maximum crude petroleum in India at present?

A. Assam
B. Gujarat
C. Off-shore BOMBAY High
D. Coastal Tamil Nadu
Answer» C. Off-shore BOMBAY High
119.

Which one of the following is an abiotic and renewable resource?

A. iron ore
B. livestock
C. water
D. forest
Answer» C. water
120.

Which kind of power accounts for the largest share of power generation of India?

A. hydro-electricity
B. thermal
C. nuclear
D. solar
Answer» B. thermal
121.

Which one of the following is the oldest oil refinery in India?

A. Digboi
B. Koyali
C. Haldia
D. Mathura
Answer» A. Digboi
122.

The oil and natural gas commission was set up in?

A. 1956
B. 1959
C. 1961
D. 1965
Answer» D. 1965
123.

The conventional source of energy are

A. Non- Commercial
B. Commercial Source
C. Both
D. None
Answer» C. Both
124.

The word ‘Health’ means

A. Ability to realize one’s potential
B. Absence of disease
C. Both
D. None
Answer» C. Both
125.

What is the FDI allowed for Urban Infrastructure?

A. 49
B. 100
C. 75
D. 51
Answer» B. 100
126.

What is the rank of the construction sector in employment generation?

A. 2nd
B. 1st
C. 4th
D. 5th
Answer» A. 2nd
127.

Which of the following is not in the infrastructure sector?

A. Power generation
B. National highways
C. Food Production
D. Railways
Answer» C. Food Production
128.

Which of the following is/are comes under Economic Infrastructure?

A. Transport
B. Communication
C. Irrigation and Power
D. All the above
Answer» D. All the above
129.

Which of the following is true: A Economic infrastructure means those basic facilities B. services which directly benefit the process of production and distribution of an economy

A. . A only
B. . B only
C. . both A and B
D. . neither A nor B
Answer» C. . both A and B
130.

Which of the following is true: A. Development of sufficient and quality infrastructure helps in economic development by facilitating production and investment in any economy. B. shortage of these facilities in underdeveloped countries is the main cause of less economic development

A. A only
B. B only
C. both A and B
D. neither A nor B
Answer» C. both A and B
Chapter: Global Economic Development and Foreign Capital
131.

Which of the following resulted from the Great Depression?

A. Increased trade barriers and devalued currencies.
B. A stable exchange rate system.
C. Free international capital flows.
D. None of the options given is correct.
Answer» A. Increased trade barriers and devalued currencies.
132.

What is the main role of the IMF?

A. To ensure a stable exchange rate regime and provide emergency assistance to countries facing crises in balance of payments.
B. To be a forum for trade and liberalization.
C. To assist countries in development.
D. To facilitate private investment around the world.
Answer» A. To ensure a stable exchange rate regime and provide emergency assistance to countries facing crises in balance of payments.
133.

What is the main role of the World Bank?

A. To be a forum for trade and liberalization.
B. To assist countries in development.
C. To facilitate private investment around the wor
Answer» B. To assist countries in development.
134.

What is meant by the 'Washington Consensus'?

A. The consensus in Washington about matters of foreign policy.
B. The ten-point guideline to liberal economic reform for development around the world.
C. The ten-point guideline for economic growth in Europe.
D. The ten-point neo-liberal guideline for progress in the US.
Answer» B. The ten-point guideline to liberal economic reform for development around the world.
135.

Why do states undertake protectionist measures?

A. To assist private investment.
B. To keep competitive foreign goods from flooding the market.
C. To keep stable exchange rates.
D. All of the options given are correct.
Answer» B. To keep competitive foreign goods from flooding the market.
136.

What does structural adjustment involve?

A. Measures to reduce inflation.
B. Measures to curb government expenditure.
C. Deregulation.
D. All of the options given are correct
Answer» D. All of the options given are correct
137.

What is the mercantilist view of IPE?

A. The world economy is where states seek to maximize their wealth and independence relative to other states.
B. The world economy is an arena of capitalist competition in which social groups are always in conflict.
C. Free trade and free movement of capital shape the policies of governments and economic actors.
D. None of the options given are correct.
Answer» A. The world economy is where states seek to maximize their wealth and independence relative to other states.
138.

What is Dependency Theory?

A. Economic activity in the richer countries often leads to serious economic problems in the poorer countries.
B. Economic development of poorer countries is positively dependent on economic growth of richer countries.
C. Economic growth is beneficial to all.
D. None of the options given are correct.
Answer» A. Economic activity in the richer countries often leads to serious economic problems in the poorer countries.
139.

The constructivist approach pays attention to what?

A. The rational actor.
B. How rational choice can be applied to constructing social groups.
C. How actors construct their interests within a structure of ideas, culture, and
D. How states and other actors construct their preferences, highlighting the role of identities, beliefs, tradition, and values.
Answer» D. How states and other actors construct their preferences, highlighting the role of identities, beliefs, tradition, and values.
140.

Under what conditions will states create international institutions?

A. For mutual gains.
B. Only where position relative to other states is not affected.
C. They arise as reflections of identities and interest of states and groups which are themselves forged through interactions.
D. Depends on the school of thought.
Answer» D. Depends on the school of thought.
141.

Amalgamation and rapid unification between countries can be identified as

A. Globalisation
B. Liberalisation
C. Socialisation
D. Privatisation
Answer» A. Globalisation
142.

Globalisation has improved in the living structure of

A. All the people
B. Workers in developing countries
C. People in developed countries
D. None of the above.
Answer» B. Workers in developing countries
143.

Which Indian industries have been hit by globalisation?

A. Cement
B. Jute
C. Toy making
D. Information Technology (IT)
Answer» C. Toy making
144.

Which organisations strain on the liberalisation of foreign investment and foreign trade?

A. International Monetary Fund
B. World Health Organisation
C. World Trade Organisation
D. International Labour Organisation
Answer» C. World Trade Organisation
145.

Tax on imports can be treated as

A. Collateral
B. Trade Barriers
C. Foreign Trade
D. Terms of Trade
Answer» B. Trade Barriers
146.

The main reason behind MNCs investments are

A. To benefit foreign countries
B. To provide financial support to the country’s government
C. For the welfare of underprivileged people.
D. To increase the assets and earn profits.
Answer» D. To increase the assets and earn profits.
147.

Which institute supports investments and foreign trade in India?

A. International Monetary Fund (IMF)
B. World Trade Organisation (WTO)
C. World Bank
D. International Labour Organisation (ILO)
Answer» B. World Trade Organisation (WTO)
148.

When did the government remove the barriers for investment and investment in India?

A. 1990
B. 1991
C. 1992
D. 1993
Answer» B. 1991
149.

Which of the following is referred to as the predecessor to WTO?

A. GATT
B. OPEC
C. World Bank
D. IMF
Answer» A. GATT
150.

Hyperglobalization is a process of globalization which —

A. emphasizes the rise of regionalism
B. emphasizes the rise of the TNC and decline of the nation state
C. emphasizes the rise of nation states
D. emphasizes the decline of the TNC
Answer» B. emphasizes the rise of the TNC and decline of the nation state
151.

Economic globalization is characterized by —

A. cross-cultural flows of ideas
B. rise of regionalism
C. international migration
D. international trade and investment flows
Answer» D. international trade and investment flows
152.

Ethnocentric orientation is a predisposition towards —

A. the global economy
B. geographically proximate regions
C. the home country
D. regionalism
Answer» C. the home country
153.

Business entities engaged in international business activity are commonly known as —

A. State-trading corporations
B. EOUs
C. TNCs
D. NGOs
Answer» C. TNCs
154.

Who founded Facebook in 2004?

A. Mark Zuckerberg
B. Sean Fanning
C. Jack Dorsy
D. Steve Jobs
Answer» A. Mark Zuckerberg
155.

International orientation refers to —

A. a gradual process of internationalization
B. an attitude or strategic predisposition of a TNC towards internationalization
C. a firm’s modes of entry into international business
D. the stage theory of internationalization
Answer» B. an attitude or strategic predisposition of a TNC towards internationalization
Chapter: Foreign Trade and Balance of Payment
156.

____ is a systematic record of all the economic transaction between one country and rest of the would:

A. Balance of Trade
B. Balance of Transaction
C. Budget
D. Balance of payments
Answer» D. Balance of payments
157.

As per IMF balance of payment manual, import export of goods should be presented on:

A. FOB basis
B. FOR basis
C. CIF basis
D. All of these
Answer» A. FOB basis
158.

OECD stands for:

A. Organization for export co-operation & development
B. Organization for economic commission & development
C. Organization for export commission & development
D. Organization for economic co-operation & development
Answer» D. Organization for economic co-operation & development
159.

India has witnessed a surplus for the third successive year in which account of the balance of payment?

A. Trade account of BOP
B. Current account of BOP
C. Both (a) and (b)
D. None of these
Answer» B. Current account of BOP
160.

In India which authority takes the purview of import & export:

A. EXIM
B. RBI
C. Ministry of Finance
D. Ministry of commerce
Answer» D. Ministry of commerce
161.

Devaluation means:

A. To reduce the value of home currency in other currency
B. To appreciate the value of home currency
C. To increase the value of home currency in other currency.
D. To constant the value of home currency.
Answer» A. To reduce the value of home currency in other currency
162.

_______ is a systematic record of all transactions of a country in a year.

A. Balance of payment
B. Balance of Trade
C. Current Account of Balance of Payment
D. None.
Answer» A. Balance of payment
163.

The current account of Balance of Payment includes trade balance and _______.

A. Settlement account
B. Capital account
C. Invisibles
D. Errors and omissions.
Answer» C. Invisibles
164.

Balance of payment deficit can be removed through:

A. Devaluation of currency
B. Vigorous export promotion
C. Import substitution
D. All of the above.
Answer» A. Devaluation of currency
165.

The difference between the value of a nations visible exports and visible import is.

A. Balance of trade.
B. Balance of payments.
C. Balance of current Account.
D. Balance of Capital Account.
Answer» A. Balance of trade.
166.

Which of the following is NOT a restriction to international trade?

A. Quotas.
B. GATT.
C. Subsidies.
D. Exchange controls.
Answer» B. GATT.
167.

FDI stands for:

A. foreign direct investment.
B. foreign domestic investment.
C. foreign direct intervention.
D. foreign direct intermediation
Answer» A. foreign direct investment.
168.

The balance of payments of a country records flows of money from:

A. imports and exports and investment flows.
B. imports and exports and investments flow and speculative flows.
C. imports and exports.
D. imports and exports and domestic demand.
Answer» B. imports and exports and investments flow and speculative flows.
169.

Trade between two countries can be useful if cost ratios of goods are:

A. Undetermined
B. Decreasing
C. Equal
D. Different
Answer» D. Different
170.

The term Euro Currency market refers to

A. The international foreign exchange market
B. The market where the borrowing and lending of currencies take place outside the country of issue
C. The countries which have adopted Euro as their currency
D. The market in which Euro is exchanged for other currencies
Answer» B. The market where the borrowing and lending of currencies take place outside the country of issue
171.

Which of the following theories suggests that firms seek to penetrate new markets over time?

A. Imperfect Market Theory
B. Product cycle theory
C. Theory of Comparative Advantage
D. None of the above
Answer» B. Product cycle theory
172.

Dumping refers to:

A. Reducing tariffs
B. Sale of goods abroad at low a price, below their cost and price in home market
C. Buying goods at low prices abroad and selling at higher prices locally
D. Expensive goods selling for low prices
Answer» B. Sale of goods abroad at low a price, below their cost and price in home market
173.

International trade and domestic trade differ because of:

A. Different government policies
B. Immobility of factors
C. Trade restrictions
D. All of the above
Answer» D. All of the above
174.

The margin for a currency future should be maintained with the clearing house by

A. The seller
B. The buyer
C. Either the buyer or the seller as per the agreement between them
D. Both the buyer and the seller
Answer» D. Both the buyer and the seller
175.

The following statement with respect to currency option is wrong

A. Foreign currency- Rupee option is available in India
B. An American option can be executed on any day during its currency
C. Put option gives the buyer the right to sell the foreign currency
D. Call option will be used by exporters
Answer» D. Call option will be used by exporters
176.

Govt. policy about exports and imports is called:

A. Commercial policy
B. Fiscal policy
C. Monetary policy
D. Finance policy
Answer» A. Commercial policy
177.

Which of the following is international trade?

A. Trade between countries
B. Trade between regions
C. Trade between provinces
D. Both (b) and (c)
Answer» A. Trade between countries
178.

Market in which currencies buy and sell and their prices settle on is called the

A. International bond market International capital market
B. Foreign exchange market
C. Eurocurrency market
D. none
Answer» C. Eurocurrency market
Chapter: Regional and International Economic Co-operation-Importance
179.

_______________ is an important reason for economic integration.

A. Geographic proximity
B. Democracy
C. Totalitarianism
D. Common law practice
Answer» A. Geographic proximity
180.

Neighboring countries tend to collaborate for all of the following reasons EXCEPT:

A. the distance that goods need to travel between such countries is short
B. neighboring countries tend to be in similar economic situations and therefore are able to better control currency exchange rates
C. consumers’ tastes are likely to be similar, and distribution channels can be easily established in adjacent countries
D. neighboring countries may have a common history and interests, and may be more willing to coordinate their policies
Answer» B. neighboring countries tend to be in similar economic situations and therefore are able to better control currency exchange rates
181.

Geographic proximity is an important reason for economic integration because consumer tastes are likely to be:

A. different.
B. opposite.
C. similar.
D. strange.
Answer» C. similar.
182.

Which of the following types of regional economic integration focuses only on eliminating internal tariffs?

A. customs union
B. common market
C. complete economic integration
D. free trade area
Answer» D. free trade area
183.

In which of the following types of regional economic integration are internal tariffs eliminated with member countries levying a common external tariff on goods being

A. customs union
B. free trade area
C. common market
D. complete economic integration
Answer» A. customs union
184.

A _______________ focuses on eliminating internal tariffs with member countries levying a common external tariff on goods being imported from nonmembers. Additionally, this type of regional economic integration allows free mobility of production factors such as labor and capital.

A. free trade area
B. common market
C. customs union
D. complete economic integration
Answer» B. common market
185.

In _______________, countries focus on eliminating internal tariffs among member countries, have a common external trading policy among nonmembers, allow free mobility of productions factors within member countries, and adopt common economic policies.

A. free trade area
B. customs union
C. complete economic integration
D. common market
Answer» C. complete economic integration
186.

_______________ occurs when production shifts to more efficient producers for reasons of comparative advantage, allowing consumers access to more goods at a lower price than would have been possible without integration.

A. Trade diversion
B. Divestment
C. Trade creation
D. Retrenchment
Answer» C. Trade creation
187.

Which of the following was developed with the rationale that the U.S.-Canadian trade was the largest bilateral trade in the world and that the United States is Mexico’s and Canada’s largest trading partner?

A. CEFTA (the Central European Free Trade Agreement)
B. NAFTA (the North American Free Trade Agreement)
C. ASEAN (Association of South East Asian Nations)
D. EU (the European Union)
Answer» B. NAFTA (the North American Free Trade Agreement)
188.

_______________ occurs when trade shifts to countries in the group at the expense of trade with countries not in the group, even though the nonmember country might be more efficient in the absence of trade barriers.

A. Trade creation
B. Divestment
C. Retrenchment
D. Trade diversion
Answer» D. Trade diversion
189.

NAFTA calls for all of the following EXCEPT:

A. the harmonization of trade rules
B. the liberalization of restrictions on services
C. the implementation of a common currency
D. the liberalization of restrictions on foreign investment
Answer» C. the implementation of a common currency
190.

NAFTA is a good example of:

A. trade erosion.
B. divestment.
C. retrenchment.
D. trade diversion.
Answer» D. trade diversion.
191.

The _______________ is a political organization comprised of 185 countries, and it is headquartered in New York City. This organization deals with a variety of political issues, such as security and world peace, but it also deals in humanitarian and economic issues.

A. World Trade Organization
B. World Bank
C. European Union
D. United Nations
Answer» D. United Nations
192.

Where is the headquarters of the EU?

A. Belgium
B. Netherlands
C. Luxembourg
D. Greece
Answer» A. Belgium
193.

Where is the headquarters of the SAARC?

A. Manila
B. Kathmandu
C. New Delhi
D. Jakarta
Answer» B. Kathmandu
194.

Apart from India, Pakistan and Bangladesh who are the other member countries of SAARC?

A. Nepal, Bhutan, Thailand and Singapore
B. Nepal, Bhutan, Malaysia and Maldives
C. Nepal, Bhutan, Maldives, Sri Lanka and Afghanistan
D. None of The Above
Answer» C. Nepal, Bhutan, Maldives, Sri Lanka and Afghanistan
195.

Which of the following is not the main purpose for formation of SAARC

A. To Combat Terrorism
B. To Promote the Welfare of the people of South Asia
C. To form mutual Defence against foreign aggression
D. None of The Above
Answer» C. To form mutual Defence against foreign aggression
196.

SAPTA is a trade agreement by _________________

A. ASEAN Nations
B. APEC Nations
C. SAARC Nations
D. EU Nations
Answer» C. SAARC Nations
197.

What is the full form of ASEAN?

A. Association of South East Asian Nations
B. Administration of South East Asian Nations
C. Administration of Southern Eastern Asian Nations
D. Organisation of South East Asian Nations
Answer» A. Association of South East Asian Nations
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