Tag: industrialisation and urbanisation

Questions Related to industrialisation and urbanisation

Which of the following does not relate to the New Industrial Policy, 1991?

  1. Abolition of Industrial Licensing

  2. Encouragement for Foreign Direct Investment

  3. Reservation of all industries for Public Sector

  4. Procedural Simplifications


Correct Option: C

Which of the following statements is correct with regards to the industrial sector in India?

  1. A large number of industries face under utilization of production capacity.

  2. The incremental capital-output ratio has been falling over the planning period.

  3. In terms of regions, industrial development is quite balanced.

  4. None of the above


Correct Option: A
Explanation:

The correct statement is that a large number of industries face under utilization of production capacity. Others are incorrect because the incremental capital-output ratio has been increasing over the planning period and region-wise industrial development is quite imbalanced.

Abolition of Licensing and Encouragement of Private Sector Participation are both parts of -

  1. Industrial Reforms in India

  2. External Sector Reforms in India

  3. Land Reforms in India

  4. Banking Reforms in India


Correct Option: A

Abolition of Intermediaries and Tenancy Reforms are both parts of -

  1. Industrial Reforms in India

  2. External Sector Reforms in India

  3. Land Reforms in India

  4. Banking Reforms in India


Correct Option: C

Under the New Industrial Policy 1991, several aspects were abolished. Which of the following were not abolished under that Policy?

  1. Licenses Registration

  2. DGTD Registration

  3. Foreign Direct Investment

  4. All of the above


Correct Option: C

As a result of the New Industrial Policy, $1991$:

  1. The public sector has been stripped off all its power.

  2. The public sector has been given the commanding heights of the economy.

  3. The public sector's portfolio will be reviewed with greater realism. The focus will be on strategic high tech and essential infrastructure industries.

  4. The public sector's management has been passed over to the private sector.


Correct Option: C

Industries can be classified based on ___________.

  1. Size

  2. End-Use of Output

  3. Both (a) and (b)

  4. Neither (a) nor (b)


Correct Option: C

All of the following can cause sickness to an industrial unit except ____________.

  1. demand recession

  2. uneconomic size

  3. high productivity of labour and capital

  4. financial mismanagement


Correct Option: C
Explanation:
The causes of industrial sickness are demand recession, uneconomic size, financial mismanagement, labour unrest, working capital shortage, cost escalations, shortage of raw materials, out-dated machinery and equipment and so on. While 'high productivity of labour and capital' will eradicate industrial sickness.

A strategy focusing on development of heavy industry is sometimes preferred for a developing economy because it can ____________.

  1. generate employment opportunity on a large scale

  2. provide a strong base for rapid industrialization

  3. contain inflationary pressures

  4. meet the deficits in Balance of Payments in the short run


Correct Option: B
Explanation:

A strategy for development of heavy industry is sometimes preferred for a developing economy because it can provide a strong base for rapid industrialization.

Based on Size, Industries can be classified into _____________.

  1. large, medium and small industries

  2. basic, capital, intermediate and consumer goods industries

  3. public sector and private sector industries

  4. registered and unregistered industries


Correct Option: A