Tag: economics of development and planning

Questions Related to economics of development and planning

As part of Economic Reforms in 1991, Financial Sector Reforms relates to :

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Banking Sector

  2. Capital Market Sector

  3. Insurance Sector

  4. All of the above

Show answer
Correct Option: D
Explanation:

Financial sector reforms relates to reforms in all such sectors where finance was a major and prominent factor which included all the three sector i.e. banking, capital market, and insurance. 

In which of the following situations, the Law of Variable Proportions will not apply?

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Improvement in technology

  2. When all factors are proportionately varied

  3. Where the factors must be used in fixed proportions to yield the product

  4. All of the above

Show answer
Correct Option: D
Explanation:
In the following situations, the Law of Variable Proportions will not apply:
a) Improvement in technology
b) When all factors are proportionately varied c) Where the factors must be used in fixed proportions to yield the product
Law of variable proportions is also known as the law of law of diminishing returns. This law shows the production function with one input factor variable while keeping the other input factors constant.

Which of the following involve a trade-off?

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Taking a nap.

  2. All of these answers involve trade-offs.

  3. Watching a football game on Saturday afternoon.

  4. Going to university.

Show answer
Correct Option: B
Explanation:
Following situations involve a trade-off :a) Taking a nap
b) Watching a football game on Saturday afternoon
c) Going to university
Trade off refers to any sacrifice to get a certain product or experience. As per the economics term, trade off is referred as opportunity cost, that is, next best alternative use.

All of the following developments were noticed during 1991 (when economic reforms were enforced) except one. Identify it.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. National Debt was nearly 60% of the GNP of India

  2. Inflation crossed double digits

  3. Foreign Reserves were maintained at a very high level

  4. None of the above

Show answer
Correct Option: C
Explanation:

All  the following developments ( such as National Debt was nearly 60% of the GNP of India, Inflation crossed double digits) were noticed during 1991, when economic reforms were enforced, except  "Foreign Reserves were maintained at a very high level. During 1991, Indian Government adopted New Economic Policy which emphasized liberalization, privatization and globalization.

New Economic Reforms in India were introduced in ___________.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. 1999

  2. 1991

  3. 2001

  4. 2003

Show answer
Correct Option: B
Explanation:

During 1991, some new economic reforms where introduced in India which were also known as LPG ( Liberalization, Privatization, and Globalization). These reforms where taken to make the economy stable and take it out from the national crisis which it was facing. 

As a result of the New Industrial Policy, 1991 -

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Prior approval of Central Government is required for establishing new undertakings, and expanding the present undertakings

  2. An industry intending to have more than Rs 100 Crore of assets is required to obtain the permission of the Central Government

  3. Prior approval of Central Government for establishing new undertakings and expanding existing undertaking is not required

  4. Two or more Companies deciding to amalgamate are required to take the prior approval of the Central Government

Show answer
Correct Option: C
Explanation:

New industrial policy include the policy of liberalization where it was specified that it is compulsory only for few major named industries to have compulsory licence under the rules and regulations of the government where as other industries were free to establish as well as expand their company without any government intervention. 

In the pre-reforms period (i.e. before 1991), Export Subsidy Schemes were characterised by:

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. High transaction costs

  2. Delays

  3. Corruption

  4. All of the above

Show answer
Correct Option: D
Explanation:

 India adopted socialist form of economy which involved a lot of government intervention into international trade where government used to offer export subsidies backed with transaction costs, delays and corruption so that only a few government selected companies could complete in the international market. 

Which of the following is a positive impact of Economic Reforms on the Indian Economy?

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Focus on Brand Building in an increasingly competitive market place

  2. Shift from labour-intensive to capital-intensive methods of production

  3. Stress on quality and R & D

  4. All of the above

Show answer
Correct Option: D
Explanation:
Positive impact of Economic Reforms on the Indian Economy are :-a)Focus on Brand Building in an increasingly competitive market place
b)Shift from labour intensive to capital-intensive methods of production
c)Stress on quality and R & D

Economic reforms  are taken by the Indian government, which emphasized LPG model- liberalization, privatization and globalization.

'Served from India' brand concept has been started for -

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Agricultural exports

  2. Exports of services

  3. Export of handlooms and handicrafts

  4. Export of gems and jewellery

Show answer
Correct Option: B
Explanation:

'Served from India' was a concept which was started in 2015 as a export promotion techniques for the services that were exported to various countries. 

Which of the following does not relate to the External Sector Reforms in 1991?

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Reduction in the number of items covered by import licenses

  2. Permission for free trade of all items except a negative list of imports and exports

  3. Increasing of import/ export duty rates

  4. Permission for foreign direct investment

Show answer
Correct Option: C
Explanation:

Increasing of import/ export duty rates does not relate to the External Sector Reforms in 1991. As per New economic policy which was adopted in 1991, the import rates and export duty rates were to be decreased so that there would be fair flow of goods between the domestic country and other countries as a result of which there will be rationalization in the tariff structure,