Questions and answers for exam Preparation

MCQs

Total Questions : 112 | Page 7 of 12 pages

Question 61. ‘Super Rice’ was developed by

G.S. Khush
M.S. Swaminathan
P.K. Gupta
N.E. Borlaug

Discuss Question

Answer: Option A. -> G.S. Khush
Answer: (a)

Question 62. Consider the following statements:

Real GDP has steadily increased in the last decade

GDP at current market prices has steadily increased in the last decade

Select the correct answer using the code given below:

Both (i) & (ii)
(ii) only
(i) only
Neither (i) nor (ii)

Discuss Question

Answer: Option A. -> Both (i) & (ii)
Answer: (a)
Real GDP (i.e. GDP at constant market prices) and Nominal GDP (i.e. GDP at current market prices) both have steadily increased in the last decade (in fact in the last 30 years) but the growth rate of Real GDP and Nominal GDP has fluctuated and has not increased steadily in the last decade.
Refer the Trends

Question 63. Consider the following statements:

Decrease in investments will lead to depletion of capital stock in the economy

A decrease in investments will lead to an increase in the incremental capital-output ratio

A decrease in investments will lead to a decrease in the production of goods and services

Select the correct answer using the code given below:

(i) & (iii) only
(ii) only
(i) only
None of the above

Discuss Question

Answer: Option D. -> None of the above
Answer: (d)
If investments are decreasing that means there is less production of capital goods in the economy but that does not mean that the existing capital stock will decrease. The existing capital stock will keep on increasing even if investments are decreasing. So, (i) statement is false.
And since existing capital stock will keep on increasing, therefore production of goods and services i.e. GDP will keep on increasing. So, (iii) statement is false.
If investments are decreasing, that means the production of capital goods is decreasing. Then you can’t say anything about the productivity of capital i.e. ICOR.
So, (ii) stamen is also false.

Question 64. The licensing policy for the industries drew strength from

Industrial Policy Resolution, 1956
Industrial Policy Resolution, 1948
Industries Act 1951
Congress Party Resolution of establishing Socialistic pattern of society

Discuss Question

Answer: Option C. -> Industries Act 1951
Answer: (c)

Question 65. Consider the following statements regarding Small-Scale industries,
Small-Scale industries are in most cases not as efficient and competitive as large-scale ones. Yet the Government provides preferential treatment and reservation in a range of products to the small firms because small scale-industries.

Provide higher employment on a per-unit capital development basis.

Promote a regional dispersion of industries and economic activities.

Have performed better in the export of manufactured products than the large scale ones.

Provide jobs to low skill workers who otherwise may not find employment avenues elsewhere.

Which of the above statements are correct?

1 and 2
1 and 4
3 and 4
2 and 3

Discuss Question

Answer: Option B. -> 1 and 4
Answer: (b)

Question 66. Consider the following statements:

Investment in the economy increases with a decrease in the capital-output ratio

Economic output increases with a decrease in capital-output ratio

Select the correct answer using the code given below:

Both (i) & (ii)
(ii) only
(i) only
Neither (i) nor (ii)

Discuss Question

Answer: Option B. -> (ii) only
Answer: (b)
Capital/Output ratio represents (inverse of) productivity of capital. If the capital/output ratio is decreasing, that means capital is becoming more productive. But you cannot say that investment will increase.
But if capital is becoming more productive, then the economic output will increase.

Question 67. As per Micro, Small and Medium Enterprises Development Act 2006, medium enterprises are defined as those with the investment of