UPSC Economy : International Organization and Economic Theory Part 2

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TOPIC:International Organization and Economic Theory

Q1. Consider the following statements with respect to India’s standing on negotiation with world wide trade organization (WTO)

  1. India support the inclusion of intellectual property as criteria for protectionist measure.
  2. India is against Overall Trade Distorting Domestic Subsidies (OTDDS) of US, EU in agricultures

a) All are correct

b) None of these are correct

c) Only 2 is correct

d) Only 1 is correct

Ans:     C

Explanation:    Statement 1 is wrong because India opposes any measures to include IP rights, as a criteria for protectionism Because it will affect India Generic Medicines Trade

Q2. Consider the following statement is related to WTO:

  1. Russia, Vahuatu and Kasovo are the recent member of organization.
  2. Agreement under WTO are binding and compulsory for selected members.
  3. The organization replaced General Agreement on tariff and trade and officially commenced on Jan 1, 1995.

a) Only 3 is correct

b) Only 1 and 2 are correct

c) All 1, 2 and 3 are correct

d) None of these are correct

Ans:     A

Explanation:    Kosovo is not a member of WTO in fact of country in making all 60 odd agreements are binding on all WTO members, both founding member and new entrants.

Q3. Consider the following statements about to IMF:

  1. IMF does not require collateral from countries for loans.
  2. IMF provides policy advise and financing to members in economic difficulties
  3. IMF is mandated to oversee the international monetary and financing policies of its member countries.

a) Only 3 is correct

b) Only 2 is correct

c) 1 and 3 are correct

d) 1, 2 and 3 are correct

Ans:     D

Explanation:    All of the above statements are correct. Statement 1 is true because IMF does not require collateral from countries for loans, but rather requires the government seeking assistance to be correct.

Q4. Select the correct statements related to the recent Quota revision by the IMF concerning the emerging economics:

  1. India’s rank improved by 3 notices from 11th to 8th
  2. China’s rank Improved from eight to fifth
  3. India’s Quota improved to 2. 75% from 2. 44% in the total Quota.

a) Only 1

b) Only 2

c) 1 and 3

d) 1, 2, 3

Ans:     C

Explanation:    China’s rank improved from sixth to third. India’s quota improved to 2. 75% from 2. 44% in the total Quota. India’s rank improved by 3 notices from 11th to 8th.

Q5. Which of the following countries is not a member of ASEAN:

a) Bangladesh

b) Myanmar

c) Vietnam

d) None of these

Ans:     A


In the above Option Bangladesh is not a member of ASEAN. Maximum country of ASEAN is southern Asia

Myanmar         –           1984

Vietnam           –           1995

In 1967 ASEAN is foundation year

Q6. Which of the following statements is not correct:

a) United Nations Industrial Development Organisation (UNIDO) has benefited from fruitful collaboration with other international agencies and this has manifested itself in joint project evaluations with the food and agriculture organization of the united nation (FAO), UNDP etc.

b) China is the first biggest producer of manufactured goods.

c) On the basis of per capita manufacturing Value added (MVA), Japan ranks first in the world.

d) None of these.

Ans:     B

Explanation:    China is the second biggest producer of manufactured goods and japan ranks first in the world.

Q7. Consider the following statements.

  1. Singapore regional training Institute (STI) is one of the institute that provides training in microeconomic as a part of programme of the WTO institute.
  2. Poverty reduction and growth facility is the IMF low interest lending facility for low income countries.

Which of the statements given above are correct?

a) Only 1

b) 1 and 2

c) Only 2

d) None of these

Ans:     C

Explanation:    The poverty reduction and growth facility (PRGF) is the IMFs low interest lending facility for low income countries. PRGF supported programme are underpinned by comprehensive country owned poverty reduction strategies.

Singapore Regional Training Institute (STI) is a joint venture of the IMF and the govt. of Singapore; located in Singapore the STI began operation in 1998.

Q8. The scientific management stressed upon:

1. Rationality

2. Specialization

3. Technical Competence

4. Predictability

Select the correct above statements

a) 1 and 2

b) 2 and 3

c) 1, 2 and 3

d) 1, 2, 3 and 4

Ans:     D

Explanation:    Scientific management also partly called tayoperism was a feury of management. The analysed and synthesized work flow. Scientific management is a variation on the theme of the economic efficiency. It is a late 19th and early 20th century instance of the larger recurring theme in human life of increasing efficiency etc.

Q9. Which of the following is the basis for the Airy’s theory of Isotasy?

a) Principle of uniform depth

b) Law of compensation

c) Law of flotation

d) None of these

Ans:     C

Explanation:    Airys theory of Isotasy is basis of law of flotation. This law explains That a Floating body displaces its own weight of the fluid in which its floats. Airy where different topographic heights are accommodated by change in its crusful thickness in which the crust has a constant density.

Q10. Which of the following are treated as artificial currency:

a) ADR

b) GDR

c) SDR

d) Both ADR & SDR

Ans:     C

Explanation:    Special Drawing Right (SDRs) are supplementary foreign exchange reserve assets defined and maintained the international Monetary Fund (IMF). Not a currency, SDRs instead represent a claim to currency held by IMF member countries for which they may be exchanged. As they can only be exchanged for Euros, Japanese yen, pounds sterling or US dollars. SDRs may actually represent a potential claim on IMF member countries non gold foreign exchange reserve assets, which are usually held in those currencies.