Tag: economics

Questions Related to economics

Which of the following is true regarding disinvestment?

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. Assets of PSUs were sold at correct value

  2. Proceeds from disinvestment were used to build social infrastructure

  3. Proceeds from disinvestment were used to offset the shortage of government revenues

  4. There was a substantial loss to the government due to disinvestment

Show answer
Correct Option: C,D
Explanation:
The assets of PSUs have been undervalued and sold to the private sector. This means that there has been a substantial loss to the government. Moreover, the proceeds from disinvestment were used to offset the shortage of government revenues rather than using it for the development of PSUs and building social infrastructure in the country.

Which of the following led to decline in industrial growth?

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. Decreasing demand of domestic products

  2. Domestic manufacturers were facing competition from imports

  3. Inadequate investment in infrastructure

  4. All of the above

Show answer
Correct Option: D
Explanation:
Industrial growth has recorded a slowdown. This is because of decreasing demand of industrial products due to various reasons such as cheaper imports, inadequate investment in infrastructure etc. Cheaper imports have replaced the demand for domestic goods. Domestic manufacturers are facing competition from imports.

At present, India is the _______ largest foreign exchange reserve holder in the world.

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. fifth

  2. sixth

  3. seventh

  4. eighth 

Show answer
Correct Option: D
Explanation:
The opening up of the economy has led to rapid increase in foreign direct investment and foreign exchange reserves. At present, India is the sixth largest foreign exchange reserve holder in the world.

Which of the following led to the Sircilla tragedy?

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. Hike in prices of cloth

  2. Hike in power tariff

  3. Both A and B

  4. Insufficient labour

Show answer
Correct Option: B
Explanation:
As a part of liberalisation, privatisation and globalisation, the government hiked the power tariff. Further, while the power sector reforms have led to hike in tariffs, the power producers have failed in providing quality power to the powerloom industry. Since the wages of the powerloom workers are linked to the production of cloth, power-cut means cut in wages of weavers who were already suffering from hike in tariff. This led to a crisis in the livelihood of the weavers.

Which of the following is true regarding the LPG reforms?

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. Sufficient employment opportunities were generated

  2. Industrial sector recorded growth

  3. Growth rate of agriculture sector decelerated

  4. It had a positive impact on developmental and welfare expenditures.

Show answer
Correct Option: C
Explanation:
Scholars point out that the reform-led growth has not generated sufficient employment opportunities in the country. Reforms have not been able to benefit agriculture, where the growth rate has been decelerating. Industrial growth has also recorded a slowdown. Reforms reduced the scope for raising tax revenues. This has a negative impact on developmental and welfare expenditures.

Hike in power tariff during reform period led to 50 powerloom workers committing suicide in a small town called _____ in ______. 

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. Sircilla, Andhra Pradesh

  2. Sircilla, Uttar Pradesh

  3. Sircilla, Telangana

  4. None of the above

Show answer
Correct Option: A
Explanation:
Hike in power tariff combined with cut in wages of weavers led to a crisis in the livelihood of weavers and fifty powerloom workers committed suicide in a small town called ‘Siricilla’ in Andhra Pradesh.

How did disinvestment cause loss to the government? 

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. Proceeds from disinvestment were used to offset the shortage of government revenues

  2. Proceeds from disinvestment were not used to development of PSUs and building social infrastructure

  3. Assets of PSUs were undervalued and sold to the private sector

  4. All of the above

Show answer
Correct Option: D
Explanation:
The assets of PSUs have been undervalued and sold to the private sector. This means that there has been a substantial loss to the government. Moreover, the proceeds from disinvestment were used to offset the shortage of government revenues rather than using it for the development of PSUs and building social infrastructure in the country.

State whether the following statement is True or False.
Purchasing power of the Indians is increasing.

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

Purchasing power of Indians is increasing. Because of globalization, India is progressing at a rapid pace. Thus, Indians have been able to buy more goods and services due to rise in real income. Purchasing power is the value of currency expressed in terms of goods or services that one unit of money can buy.

State whether the following statements are True or False.
India has emerged as one the leading countries of the world.

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

India has emerged as one of the leading countries in the world since because of the new economic policy which includes liberalization, privatization and globalization, India has been developing at a rapid pace and enhanced the market orientation capability and sustained in the competitive global market.

In India disinvestment process started in ________.

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. 1991-92

  2. 1990-92

  3. 1996-97

  4. 2000-01

Show answer
Correct Option: A
Explanation:

In India disinvestment and privatization process started in 1991-92 since new economic policy was adopted in 1991 by Indian government. Disinvestment refers to the process of transferring and selling of public assets to private ownership.