Tag: concept of international trade

Questions Related to concept of international trade

Which of the following is necessary to opt for economic planning in India?

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. To break the vicious circle of poverty

  2. To build the social and economic infrastructure

  3. To increase capital formation

  4. All of these

Show answer
Correct Option: D
Explanation:
At the time of independence, the Indian economy was in its worst stage. The GDP, National, and Per Capita income were very low and the unemployment was very high. The Industrial growth was insignificant also the Agricultural Sector was not doing well. The resources were very limited. So India opted for planning because it helps in spelling out how the resources of a nation should be used efficiently and economically, so that rate of economic growth can be accelerated.

Which of the following plan was put off by three years due to severe drought and aggression from China and Pakistan?

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. Third five year plan

  2. Fourth five year plan

  3. Fifth five year plan

  4. Sixth five year plan

Show answer
Correct Option: B
Explanation:

In 1965, when fourth plan was to be launched, Indo-Pakistan conflict led to war. The Pakistan favouring countries like US and others withdrew foreign aid to India. Again in 1966, due to drought, there was food shortage. The Indian government had to take help from USA and they were helped leading to financial crisis more severe. Amidst of these conditions, fourth five year plan was launched in 1969.

The period of the fifth five year plan was reduced by __________.

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. 1 year

  2. 2 years

  3. 3 years

  4. 1.5 years

Show answer
Correct Option: A
Explanation:

The Janata Party government rejected the fifth five-year plan and introduced a new Sixth five-year plan(1978-1983). This plan was again rejected by the Indian National Congress government when it came to power in 1980 and a new sixth plan was made. The earlier one was subsequently referred to as a rolling plan. Rolling plan concept was coined by Gunnar Myrdal.

In the first five year plan (1951-56) the national income rose to ________.

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. 20%

  2. 18%

  3. 24%

  4. 16%

Show answer
Correct Option: B
Explanation:
Although the target for national income growth was only an 11% increase, the actual increase was 18% from Rs. 8850 crore the national income increased to Rs. 10,480 crore by the end of the first plan. Per capita income went up by 11%.
The target growth rate was 2.1% annual gross domestic product (GDP) growth; the achieved growth rate was 3.6% the net domestic product went up by 15%. The monsoon was good and there were relatively high crop yields, boosting exchange reserves and the per capita income, which increased by 8%. 

Which of the following was the focus for the second five year plan?

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. Agriculture

  2. Industrialization

  3. Removing poverty

  4. Self reliant

Show answer
Correct Option: B
Explanation:

It was particularly for the development of the public sector and rapid industrialization. The plan was followed by Mahalanobis model, a economic development model developed by the Indian statistician Prasanta Chandra Mahalanobis in 1953. The plan attempted the allocation of investment between productive sectors in order to maximize long-run economic growth. Its objective was Rapid industrialization, particularly basic and heavy industries such as iron and steel, heavy chemicals, fertilizers, heavy engineering and machine building industry.

The central focus of 8th five year plan was ___________.

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. To generate more employment oppurtunities

  2. To increase more communication facilities

  3. To increase the value of foreign trade

  4. None of these

Show answer
Correct Option: A
Explanation:

After the worsening situation of balance of payment and inflation during 1990-91, the eighth five year plan was launched in 1992. The main focus was generation of adequate employment to achieve full employment level as it was realised that the problem of poverty could not be tackled through growth alone.

What was the duration of the first Five-Year Plan of India?

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. 1949-1954

  2. 1950-1955

  3. 1951-1956

  4. 1960-1965

Show answer
Correct Option: C
Explanation:

The duration of the first Five Year Plan was 1951 to 1956. It was based on the Harrod-Domar Model.

The Planning Commission was set up in accordance with the _________ mentioned in the Directive Principles of the Indian Constitution.

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. Article 38

  2. Article 39

  3. Article 42

  4. Article 51A

Show answer
Correct Option: B
Explanation:

  • The Planning Commission is an institution in the Government of India, which formulates India's Five-Year Plans, among other functions.
  • It was established in accordance with article 39 of the constitution which is a part of directive principles of state policy.
  • After India gained independence, a formal model of planning was adopted, and accordingly, the Planning Commission, reporting directly to the Prime Minister of India was established on 23rd March 1950, with Prime Minister Jawaharlal Nehru as the chairman. The Planning Commission does not derive its creation from either the Constitution or statute but is an arm of the Central Government.

The 10th five year plan period was __________.

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. 2002-2007

  2. 2001-2006

  3. 2000-2005

  4. None of these

Show answer
Correct Option: A
Explanation:

The tenth five year plan period was from 2002-2007. The main objectives of the Tenth Five-Year Plan were:

  • Attain 8% GDP growth per year
  • Reduction of poverty rate by 5% by 2007
  • Providing gainful and high-quality employment at least to the addition to the labor force
  • Reduction in gender gaps in literacy and wage rates by at least 50% by 2007
  • 20-point program was introduced
  • Target growth: 8.1% – growth achieved: 7.7
  • The tenth plan was expected to follow a regional approach rather than sectoral approach to bring down regional inequalities.

Which of these is not a free market economy?

business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

  1. Russia

  2. China

  3. USA

  4. India

Show answer
Correct Option: B
Explanation:

  • The free market is a summary description of all voluntary exchanges that take place in a given economic environment. Free markets are characterized by a spontaneous and decentralized order of arrangements through which individuals make economic decisions. Based on its political and legal rules, a country’s free market economy may range between very large or entirely black market.
  • China is one of the countries which is not considered in free market economy.