UPSC NCRET ECONOMY NOTES: TOPIC WISE SOLVED MCQ’s

UPSC Economy: Industries Part 4

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TOPIC: Industries

1. Which one of the following factors is considered as the most prominent one in industrial location in a region:

a) Availability of raw materials                            b) Market

c) Cheap labour                                                 d) None of these

Ans:     A

Explanation:    Availability of raw material: The factories needed to be nearer to the location of raw materials if they are heavy and bulky to transport e. g. Iron and steel and cement industries are located near the source of raw materials. It cuts down the cost of transportation.

Labour: A large cheap labor force is required for labor-intensive manufacturing industries. High tech industries have to located where suitably skilled workers are available.

2. Which one of the following is not correct regarding the importance of manufacturing industries:

a) Export of manufactured goods brings in foreign exchange.

b) Manufacturing industries encourage trade and commerce.

c) They generate jobs in the secondary and tertiary sectors

d) The economic strength of a country is measured in terms of the raw material it possesses.

Ans:     D

Explanation:    The economic strength of a country is not measured in terms of the raw material it possesses. It is measured in GDP. GDP means Gross Domestic Product. It is the total sum of monetary values of final goods and services in affixed time of country economy.

3. Consider the following statements regarding the source of revenue of Panchayat:

1.Grant in aid from government.                         2. Allotted by state finance commission.

3. NABARD                                                         4. RBI

Choose the correct option:

a) 1 and 2             b) 2 and 3             c) 1 and 4               d) None of these

Ans:     A

Explanation:    Panchayat Raj is the three-tier system of administration for the development of rural areas. The main source of the income of the Panchayat is a grant in aid from the government, a percentage of land revenue collection, donation, taxes, duties, income from village common lands. It is also funded from the amount allotted by state finance commission.

4. Which one of the following department is maintaining National superhighways:

a) Central Public Works Department                                              b) National Public Work Department

c) National Highway Authority of India                                           d) State Public Works Department

Ans:     C

Explanation:    National Highway Authority of India is an autonomous agency of government of India responsible for management of a network of over 70,000km of National highway in India. It is a nodal agency of the Ministry of Road transport and high way.

5. Which one of the following types of roads are being constructed and maintained by the National Highway Authority of India?

a) Golden quadrilateral super highway                                              b) National highway

c) State highway                                                                                 d) Border Roads

Ans:     A

Explanation:    National Highway Authority of India is an autonomous agency of government of India, responsible for management of a network of over 70,000 km of National Highways in India. It is a nodal agency of the Ministry of Road transport and highway.

6. What is correct relating to the ‘total product’?

  1. A product manufacture with all state of the art input needed no upgradation or modification.
  2. A product which comes in its totality but cannot be used directly and it requires assemblage.

a) Only 2 is correct                                                   b) Only 1 is correct

c) Both 1 and 2 are correct                                      d) None of these

Ans:     D

Explanation:    The main product support by many peripheral product which may include loan facility, after sale service is known as total product. This is also called ‘core product’.

7. What is correct related to the term ‘transfer payment’?

a) The expenditure by a government for which it received no goods or services, such as taxes collection, non-employment allowance etc.

b) The minimum return in the asset the must earn to prevent its transfer to the next best alternative use.

c) a and b

d) None of these

Ans:     A

Explanation:    Statement (a) is correct about the term ‘transfer payment’. All less making activity done by the government in the social sector come under it – poverty alleviation, healthcare, education, social security.

8. Match the following and select the correct answer using the code given below:

List-I                                                                            List-II

A) Upward pull of price and wages by each other            1. Inflation Spiral

B) Profit calculation after adjusting inflation                      2.  Inflation Accounting

C) Inflation excluding manufactured items                        3. Core Inflation

D) The bonus brought by inflation to borrowers                4. Inflation Premium

Codes:

A         B          C          D

a) 1          2          3          4

b) 2          3          4          1

c) 3          4          1          2

d) 4          1          2          3

Ans:     A

Explanation:

Upward pull of price and wages by each other            – Inflation Spiral

Profit calculation after adjusting inflation                    – Inflation Accounting

Inflation excluding manufactured items                       – Core Inflation

The bonus brought by inflation to borrowers               – Inflation Premium

9. Disguised underemployment refers to a situation when:

a) Workers are under paid despite doing full-time job.

b) There is a coexistence of unemployment and inflation

c) The economic experience underemployment equilibrium

d) None of these

Ans:     D

Explanation:    An economy demonstrates existence of disguised unemployment, where part of the labour force is either left without work or is working in a redundant manner, where worker productivity is essentially zero. Unemployment that does not effect the aggregate output.

10. Which of the following reefer to disinflation?

a) A policy of moderating rising price and also pull the system out of the depth of depression

b) A simultaneous existence of a high rate of inflation and high unemployment in the country) A process of reversing inflation, but without creating unemployment and reducing output.

Ans:     C

Explanation:    Disinflation is the reduction in the general price level of goods and services in a nation gross domestic product over time. It is opposite of relation. Disinflation occurs when an increase in the ‘Consumer price level’ slowdown from previous periods when the price rising.

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