UPSC NCRET ECONOMY NOTES: TOPIC WISE SOLVED MCQ’s

UPSC Economy: Industries Part 5

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TOPIC: Industries

1. Mangla, Bhagyam and Aishwarya are in the news due to which one of the following reasons:

a) These are the main oil reserves in the Barmer Block (Rajasthan)

b) These are the Indian expeditions for Arctic.

c) These are the Himalayan Glaciers, which are getting reduced in sizes because of climate change.

d) None of these

Ans:     A

Explanation:    Mangla, Bhagyam and Aishwarya are the main oil reserves in the Barmer Block (rajasthan). These reserves were discovered by Cairns Energy, a UK- based company.

2. Which of the following companies has started rural marketing network known as ‘e-chaupal’s?

a) Hindustan Liver             b) Dabur             c) ITC              d) None of these

Ans:     C

Explanation:    In the above option c is correct about standard rural marketing network called ‘e-chaupal’s because ITC that started a rural marketing network is known as ‘e-chaupal’ so in the given option c is correct malched with the given statement.

3. Mentioned the following statements regarding an industry?

  1. Power consumption              2. Labour force
  2. 3.Capital investment             4. Business turnover

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

c) Only 1 and 4 are correct                d) 1, 2 and 3 are correct

Ans:     D

Explanation:    The main factors which decide/determine the size and nature of the industry are:Power consumption, Labour force, Capital investment etc. So code d is correct answer.

4. Consider the following statements about depreciation of currency:

  1. Depreciation occur only, when because of a change in exchange rates, a unit of one currency buy faver units of another currency.
  2. The depreciation of a currency refers to increase the value of that country currency.

Code:

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

c) Both 1 and 2 are not correct                               d) 1 and 2 are correct

Ans:     A

Explanation:    The statement 2 is not correct because depreciation of currency refer to decrease in the value of currency of any country but statement 1 is correct because depreciation is advantageous in export.

5. The sensitive index of Bombay Stock Exchange keep on changing positively and negatively both. Which of the following is/are main reason, which contributes for this sudden change in the same?

  1. Recession in EU 2. Continuous funds flow
  2. Higher GDP growth 4. Higher volume of forex services

a) Only 1, 2 are correct                                         b) Only 4 is correct

c) 2, 3 and 4 is correct                                          d) 1, 2, 3 and 4 is correct

Ans:     D

Explanation:    The economy and stock market are very closely tied together. All of the above are cause a variation in the index, since all of them are affect the economy of the India.

6. Consider about open market operation (OMO).

  1. OMO influence the volume of money credit in the economy.
  2. In India OMO is an activity, by the RBI to buy or sell the government bond on the open market.

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

c) Both 1 and 2 are correct                               d) Both 1 and 2 are incorrect.

Ans:     C

Explanation:    OMO is an activity by the Reserve Bank of India to buy or sell government bonds in the open market. OMO influence the volume of money credit in the economy. So option (1) and (2) or (c) is correct.

7. Consider the following factor regarding an industry:

  1. Power consumption                               2. Labour force
  2. 3.Capital investment                               4. Business turnover

Which of these determine the size and nature of industry?

a) 1, 3, 4                               b) 1, 2, 4                               c) 1, 2, 3                               d) 4 and 2

Ans:     C

Explanation:    The factors which determine the nature and the size of industry are (i) Power consumption, Labour force, and Capital investment. These three are determined nature and size of the industry.

8. Consider the following statements regarding the center for economic and social studies, Hyderabad:

  1. The Centre for Economic and Social Studies (CESS) is an Indian autonomous research institute, established in 1980 to facilitate research activity in economics and social sciences.
  2. The M. Phil programme was started in 1986 and the Ph. D programme was started in 1991.

Select the correct statement.

a) Only 1                               b) Only 2                               c) 1 and 2                    d) None of these

Ans:     C

Explanation:    This institute takes up research in the fields of Rural Development and Poverty, Agriculture and Food Security, Irrigation and Water Management, Public Finance, Demography, Health and Environment.

9. Consider the following statements about the ’Maharatnas’:

  1. They can take investment decisions upto Rs. 5,000 crore by themselves.
  2. Such classification is done on the basis of the financial size of the PSUs.

Select the correct above statements.

a) Only 1                               b) Only 2                               c) 1 and 2                    d) None of these

Ans:     C

Explanation:    Maharatnas are allowed investment of up to Rs. 5,000 crore in one project without any prior permission from the government. Presently, there are seven Maharatnas namely SAIL, ONGC, NTPC, IOC, CIL, BHEL, and GAIL.

10. Maintain the following statements about Federation of Indian Chamber of Commerce and Industry (FICCI):

  1. FICCI draws its membership strictly from the corporate sector, both private and public, including SMEs and MNCs.
  2. Established in 1927, on the advice of Mahatma Gandhi by JRD Tata and Ramkumar Kankarwa. It is the largest, oldest and the apex business organization in India.

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

c) Both incorrect                                  d) Both correct

Ans:     D

Explanation:    Both statements are true. FICCI established in 1927 on the advice of Mahatma Gandhi by JRD Tata and Ramkumar Kankarwa. It is the oldest, largest and apex business organization in India. Statement (d) is also correct.

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