UPSC NCRET ECONOMY NOTES: TOPIC WISE SOLVED MCQ’s

UPSC Economy : World Trade Notes Part 2

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TOPIC: World Trade Part 2

Q1. Match the following List – I and List – II

List – I (FDI- Areas)                            List – II (Percentage of FDI)

a) Insurance                                                     74

b) Telecommunication                                      26

c) Print Media                                                  20

d) FM Radio                                                    49

Codes:

A         B          C          D

a) 4         1          2          3

b) 4         1          3          2

c) 1         2          3          4

d) 1         2          4          3

Ans:     A

Explanation:    The correct match:

Insurance sector                       –           49%

Telecommunication     –           74%

Print Media                  –           26%

FM Radio                     –           20%

Q2. Match the following List – I and List – II

List – I                               List – II

a) DOLEX                              1.Japan

b) Dow Jones                        2.Singapore

c) SIMLEX                             3.USA

d) Nikkei                                4. India

Codes: A         B          C          D

a) 1         2          3          4

b) 1         2          4          3

c) 3         4          1          2

d) 4         3          2          1

Ans:     D

Explanation:    The correct Match

DOLEX           –           India

Dow Jones       –           USA

SIMLEX          –           USA

Nikkei              –           Japan

Q3. When an economy gives in grip of recession, which events happen?

  1. People start losing their job.
  2. GDP growth slows down.
  3. Foreign exchange reserve goes up substantially as lot of loans or grants start pouring in.

a) 1 only

b) 2 only

c) 1 and 2

d) 1, 2 and 3

Ans:     C

Explanation:

During the time of recession in any economy people start losing jobs. In such a situation the unemployment rate is substantially increased. So statement (1) is correct. Gross Domestic Product (GDP) growth rate also slow down during recession statement 3 is not correct because foreign exchange reserve doesn’t goes up during recession.

Q4. Consider the following statements:

  1. FII stands Foreign investment in India.
  2. A want becomes a demand only when it is backed by utility of the product.
  3. Utility in economics means the capacity to satisfy human wants.

Select the correct statements from the codes given below:

a) 1 only

d) 2 only

c) 3 only

d) 1, 2 and 3

Ans:     C

Explanation: FII stands for Foreign Institutional Investment. So statement (1) is incorrect. Statement (2) is incorrect because A want becomes a demand only when it is backed by ability to purchase.

Utility means the capacity to satisfy human wants.

Q5. Consider the following statements with regard to ‘free market’:

  1. In such markets goods are free from extraneous influence such as buffer or quotes.
  2. It is a market where pricing is driven by the law of supply and demand.
  3. In free market things are available without restraints of the government.

Select the correct statements from the codes given below:

a) 1 and 2

b) 2 and 3

c) 1, 2 and 3

d) None of these

Ans:     A

Explanation: In such markets goods are free from extraneous influences such as buffer or quotes. Free market is a market where pricing is driven by the laws of supply and demand. In free market things are not available without restrains of the government. So statement (3) is incorrect.

Q6. The member countries of SAARC include:

  1. India 2. Indonesia 3. Thailand      4. Pakistan
  2. a) 1 and 2 b) 2 and 3 c) 1 and 4                    d) 1, 2, 3 and 4

Ans:     C

Explanation: SAARC (South Asian Association for Regional Cooperation) was established in December, 1985. It has 8 member countries-

  1. India
  2. Pakistan
  3. Maldives
  4. Bhutan
  5. Sri Lanka
  6. Nepal
  7. Bangladesh
  8. Afganistan

Q7. Consider the following statements with regards to SAARC:

  1. SAARC was established in December, 1985.
  2. It’s headquarters is in Kathmandu.
  3. There are 10 member countries of SAARC.
  4. New member country of SAARC id Iran.

Select the correct statements from the codes given below:

a) 1 and 2

b) 2 and 3

c) 1, 2 and 3

d) 1, 2, 3 and 4

Ans:     A

Explanation: SAARC (South Asia Association for Regional Cooperation) was established on December, 1985. It’s headquarter is located in Kathmandu (Nepal) . It has 8 member countries. Afganistan is the new member country which was included in 14th SAARC summit (2007) held in New Delhi.

Q8. Consider the following statements with regards to ASEAN:

  1. It was established on August 8, 1967
  2. It has 10 member countries at present.
  3. ASEAN + 3 include ASEAN countries and China, Japan and India.
  4. It’s headquarter is in Jakarta.

Codes:

a) 1 and 2

b) 2 and 3

c) 1, 2 and 4

d) 1, 2, 3 and 4

Ans:     C

Explanation: ASEAN was established on August 8, 1967. It has ten member countries Indonesia, Thailand, Philipines, Malasia, Singapore, Brunai, Cambodia, Laos, Mynamar, Vietnam. It’s headquarter is located in Jakarta (Indonesia) . ASEAN +3 includes – 10 countries of ASEAN + China, Japan and south Korea.

Q9. PIIGS countries include:

  1. Ireland
  2. Poland
  3. Spain
  4. Greece

a) 1 and 2

b) 2 and 3

c) 1, 3 and 4

d) 1, 2, 3 and 4

Ans:     C

Explanation: PIIGS countries are the European countries who suffered sovereign debt crisis during 2010-11.

Following five countries come under PIIGS countries-

  1. Portugal
  2. Ireland
  3. Italy
  4. Greece
  5. Spain

Q10. Consider the following statements:

  1. Land Development Bank is also known as Land Martagage Bank.
  2. Land Development Bank provides short term loans.
  3. Primary cooperative commission provides long term loans.

Select the correct statement from the help of Codes given below:

  1. a) 1 only b) 2 only c) 1 and 2                    d) 1, 2 and 3

Ans:     A

Explanation: Land Development Bank was established in the year 1919 in the form of Mortgage Bank. It provides long term loans. So statement 2 is incorrect. Primary cooperative committees provides short term loans.

 

 

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