2. In which among the following year the MRTP act become effective
Correct : C. 1970
3. LQP raj refers to
Correct : C. license, quota, permit raj
4. Which act was removed under NEP
Correct : D. MRTP
5. The NEP in 1991 was initiated by the
Correct : D. Finance Minister
6. There are three industries which are reserved for the public sector except
Correct : D. Electricity
7. During the economic crisis, the World bank and IMF provided India a loan of
Correct : A. 7 billion
8. PSU is
Correct : C. Public sector undertaking
9. Selling off the share of public sector companies to the private individuals and institutions is known as
Correct : D. Disinvestment
10. The most urgent problem which prompted the introduction of the New Economic
Policy in 1991 was
Correct : B. All of these
11. Which programme was launched in 2006 with objective of correcting regional
imbalances in provision of healthcare?
Correct : A. Pradhan Mantri Swasthya Suraksha Yojna
12. All the support structures which facilitates development of a country constitute
its (1)
Correct : B. Infrastructure
13. Who gives the final approval to the five-year plans of India?
Correct : A. National Development Council (NDC)
14. Which programme given the slogan of Garibi Hatao?
Correct : D. 5th five-year plan
15. 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?
Correct : C. Both 1 and 2
16. 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?
Correct : B. 2 and 3 only
17. When was the first train streamed off in India?
Correct : B. 1853
18. Which of the following produces maximum crude petroleum in India at present?
Correct : C. Off-shore BOMBAY High
19. Which one of the following is an abiotic and renewable resource?
Correct : C. water
20. Which kind of power accounts for the largest share of power generation of India?
Correct : B. thermal
21. Which one of the following is the oldest oil refinery in India?
Correct : A. Digboi
22. The oil and natural gas commission was set up in?
Correct : D. 1965
23. The conventional source of energy are
Correct : C. Both
24. The word ‘Health’ means
Correct : C. Both
25. What is the FDI allowed for Urban Infrastructure?
Correct : B. 100
26. What is the rank of the construction sector in employment generation?
Correct : A. 2nd
27. Which of the following is not in the infrastructure sector?
Correct : C. Food Production
28. Which of the following is/are comes under Economic Infrastructure?
Correct : D. All the above
29. 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
Correct : C. . both A and B
30. 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
Correct : C. both A and B
31. Which of the following resulted from the Great Depression?
Correct : A. Increased trade barriers and devalued currencies.
32. What is the main role of the IMF?
Correct : A. To ensure a stable exchange rate regime and provide emergency assistance to countries facing crises in balance of payments.
33. What is the main role of the World Bank?
Correct : B. To assist countries in development.
34. What is meant by the 'Washington Consensus'?
Correct : B. The ten-point guideline to liberal economic reform for development around the world.
35. Why do states undertake protectionist measures?
Correct : B. To keep competitive foreign goods from flooding the market.
36. What does structural adjustment involve?
Correct : D. All of the options given are correct
37. What is the mercantilist view of IPE?
Correct : A. The world economy is where states seek to maximize their wealth and independence relative to other states.
38. What is Dependency Theory?
Correct : A. Economic activity in the richer countries often leads to serious economic problems in the poorer countries.
39. The constructivist approach pays attention to what?
Correct : D. How states and other actors construct their preferences, highlighting the role of identities, beliefs, tradition, and values.
40. Under what conditions will states create international institutions?
Correct : D. Depends on the school of thought.
41. Amalgamation and rapid unification between countries can be identified as
Correct : A. Globalisation
42. Globalisation has improved in the living structure of
Correct : B. Workers in developing countries
43. Which Indian industries have been hit by globalisation?
Correct : C. Toy making
44. Which organisations strain on the liberalisation of foreign investment and
foreign trade?
Correct : C. World Trade Organisation
45. Tax on imports can be treated as
Correct : B. Trade Barriers
46. The main reason behind MNCs investments are
Correct : D. To increase the assets and earn profits.
47. Which institute supports investments and foreign trade in India?
Correct : B. World Trade Organisation (WTO)
48. When did the government remove the barriers for investment and investment
in India?
Correct : B. 1991
49. Which of the following is referred to as the predecessor to WTO?
Correct : A. GATT
50. Hyperglobalization is a process of globalization which —
Correct : B. emphasizes the rise of the TNC and decline of the nation state
51. Economic globalization is characterized by —
Correct : D. international trade and investment flows
52. Ethnocentric orientation is a predisposition towards —
Correct : C. the home country
53. Business entities engaged in international business activity are commonly
known as —
Correct : C. TNCs
54. Who founded Facebook in 2004?
Correct : A. Mark Zuckerberg
55. International orientation refers to —
Correct : B. an attitude or strategic predisposition of a TNC towards internationalization
56. ____ is a systematic record of all the economic transaction between one country
and rest of the would:
Correct : D. Balance of payments
57. As per IMF balance of payment manual, import export of goods should be
presented on:
Correct : A. FOB basis
58. OECD stands for:
Correct : D. Organization for economic co-operation & development
59. India has witnessed a surplus for the third successive year in which account of the
balance of payment?
Correct : B. Current account of BOP
60. In India which authority takes the purview of import & export:
Correct : D. Ministry of commerce
61. Devaluation means:
Correct : A. To reduce the value of home currency in other currency
62. _______ is a systematic record of all transactions of a country in a year.
Correct : A. Balance of payment
63. The current account of Balance of Payment includes trade balance and _______.
Correct : C. Invisibles
64. Balance of payment deficit can be removed through:
Correct : A. Devaluation of currency
65. The difference between the value of a nations visible exports and visible
import is.
Correct : A. Balance of trade.
66. Which of the following is NOT a restriction to international trade?
Correct : B. GATT.
67. FDI stands for:
Correct : A. foreign direct investment.
68. The balance of payments of a country records flows of money from:
Correct : B. imports and exports and investments flow and speculative flows.
69. Trade between two countries can be useful if cost ratios of goods are:
Correct : D. Different
70. The term Euro Currency market refers to
Correct : B. The market where the borrowing and lending of currencies take place outside the country of issue
71. Which of the following theories suggests that firms seek to penetrate new
markets over time?
Correct : B. Product cycle theory
72. Dumping refers to:
Correct : B. Sale of goods abroad at low a price, below their cost and price in home market
73. International trade and domestic trade differ because of:
Correct : D. All of the above
74. The margin for a currency future should be maintained with the clearing
house by
Correct : D. Both the buyer and the seller
75. The following statement with respect to currency option is wrong
Correct : D. Call option will be used by exporters
76. Govt. policy about exports and imports is called:
Correct : A. Commercial policy
77. Which of the following is international trade?
Correct : A. Trade between countries
78. Market in which currencies buy and sell and their prices settle on is called the
Correct : C. Eurocurrency market
79. _______________ is an important reason for economic integration.
Correct : A. Geographic proximity
80. Neighboring countries tend to collaborate for all of the following reasons EXCEPT:
Correct : B. neighboring countries tend to be in similar economic situations and therefore are able to better control currency exchange rates
81. Geographic proximity is an important reason for economic integration because
consumer tastes are likely to be:
Correct : C. similar.
82. Which of the following types of regional economic integration focuses only on
eliminating internal tariffs?
Correct : D. free trade area
83. 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
Correct : A. customs union
84. 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.
Correct : B. common market
85. 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.
Correct : C. complete economic integration
86. _______________ 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.
Correct : C. Trade creation
87. 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?
Correct : B. NAFTA (the North American Free Trade Agreement)
88. _______________ 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.
Correct : D. Trade diversion
89. NAFTA calls for all of the following EXCEPT:
Correct : C. the implementation of a common currency
90. NAFTA is a good example of:
Correct : D. trade diversion.
91. 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.
Correct : D. United Nations
92. Where is the headquarters of the EU?
Correct : A. Belgium
93. Where is the headquarters of the SAARC?
Correct : B. Kathmandu
94. Apart from India, Pakistan and Bangladesh who are the other member countries of
SAARC?
Correct : C. Nepal, Bhutan, Maldives, Sri Lanka and Afghanistan
95. Which of the following is not the main purpose for formation of SAARC
Correct : C. To form mutual Defence against foreign aggression
96. SAPTA is a trade agreement by _________________
Correct : C. SAARC Nations
97. What is the full form of ASEAN?
Correct : A. Association of South East Asian Nations