UPSC Economy : Industries Part 3

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Topic: Industries

1. In which district of Madhya Pradesh (MP) is the industry alternators of Diesel engine proposed in the rail budget 2012-13.

a) Gwalior                   b) Bhopal                   c) Vidisha                    d) Jabalpur

Ans:     C

Explanation:    In Vidisha district of Madhya Pradesh is the industry alternator of Diesel engine proposed in the rail budget 2012-13.

2. Deficit financing means that the government borrows money from the:

a) Central Bank of India                   b) Reserve Bank of India

c) World Bank                                 d) None of these

Ans:     B

Explanation:    The deficit financing means that the government borrow money from the world bank. World bank is situated in Washington (America). Deficit financing is defined as financing the budgetary deficit through public loans and creation of new money.

3. The Government of India has recently added the following currency for allowing Indian companies to raise debts through external commercial borrowings.

a) Chinest Yuan                   b) Yen (Japan)                   c) Batt (Thailand)                 d) Takka (Bangladesh)

Ans:     A

Explanation:    The government of India has recently added the Chinese Yuan currency for allowing Indian companies to raise debts through external commercial borrowings.

4. Which of the following pairs is not correctly matched with given company/project:

Project                                                                          Company

a) Integrated steel plant at Jalpur (Odissa)                   Steel Authority of India

b) Kayamkulom Power Plant (Kerla)                             National Thermal Power Corporation

c) Power Plant at Jamnagar (Gujrat)                             Essar Power

d) Nabi nagar power plant (Bihar)                                 Indian Railways

Ans:     C

Explanation:    Reliance power ltd. has dropped its 20,000 crore pet coke-based power generation project in Jamnagar. So except all are correctly matched with their pairs.

5. Select the correct statement about the shut – down price:

a) That lower price of a firm’s product at which the firm decides to shut down the firm.

b) The cost of a firm pays in the form of interest, salaries and fines etc. once it decides to shut down the firm.

c) The price, like a bid price, which is demanded by a firm from the other firm for shutting down its operations.

d) The prices a limited liability firm needs to pay as compensation to the workers before shutting down the firm.

Ans:     A

Explanation:    Such situations occur when it becomes impossible for the firm to recover even the short-run variable cost. The great depression in 1929 saw hundreds of such instances in Europe and the United State of the America.

6. The economic strength of a country is measured by which of the following developments:

a) The development of the manufacturing industries

b) The development of the literacy ratio

c) The development of the health status.

d) The development of the population growth.

Ans:     A

Explanation:    Manufacturing industries help in modernizing agriculture. It reduces the heavy dependence of people on agriculture income by providing them jobs in tertiary and secondary sectors. Export of manufactured goods expands trade and commerce and brings in much needed foreign exchange. In manufacturing, raw materials are transformed into a wide variety of furnished goods which are of higher values.

7. The Iron and the steel industries of public sector in India market their steel through:

a) Various government agencies b) TISCO

c) Steel Authority of India Limited d) Individually

Ans:     C

Explanation:    SAIL is India largest steel producing companies. It has five integrated steel plants and three special plants and one subsidiary in a different part of country. SAIL has turnover of Rs. 49,250 crore, the company among the seven maharatna of country, central public sector enterprises.

8. Which two extremes location are connected by the South-North Corridor:

a) Amritsar and Tuticorin                   b) Srinagar and Triunanatpuram

c) Srinagar and Tuticorin                   d) Srinagar (J & K) to Kanyakumari

Ans:     D

Explanation:    North-south Corridor connects Srinagar (J & K) to Kanyakumari (Tamil Nadu) and East-West Corridor connects Silchar (Assam) to Porbandar (Gujrat) . North-South Corridor connects North and South part of India. It plays vital role for transportation and economy.

9. Which one of the following industries due to its seasonal nature, is ideally situated to the cooperative sector:

a) Sugar                   b) Jute textile                   c) Automobile              d) Cotton textile

Ans:     A

Explanation:    Sugar industry is ideally situated to the cooperative sector. Cooperative is an autonomous association of persons who voluntarily cooperate for their mutual, social, economic and cultural benefit. Robert Owen was a social reformer and pioneer of the cooperative movement.

10. Which one of the following industries provide single window service and high data communication facilities to software experts:

a) Automobile industry                   b) Information technology

c) Chemical industry                      d) Iron and steel industry

Ans:     B

Explanation:    Software technology parks provide single window service and high data communication facility to software experts.

The significance of IT industry in India:

  1. A major impact of this industry has been an employment generation up to 31 March 2005, the IT industry employed over one million persons.
  2. The number is expected to increase eightfold in the next 3 to 4 years.