General Awareness · Economics

Contemporary Policy Challenges

2,530 Questions

Contemporary policy challenges questions cover economic planning issues, financial inclusion barriers, technology transfer, and inter state trade cooperation. These topics are frequently tested in UPSC civil services and state PSC mains or prelims. Practice these to understand modern governance and administrative hurdles.

Financial inclusion barriersTechnology transfer challengesUrbanization economic impactTrade regulation issues

Contemporary Policy Challenges Questions

Multiple choice

The obstacles for an industry to compete with more established foreign firms are due to:

  1. Lack of know-how and technology

  2. Lack of Capital and initial small level out put

  3. Lack of know-how and initial small level of output

  4. Lack of flexibility.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

New industries in developing countries face two critical disadvantages against established foreign firms: (1) lack of technical know-how and modern technology, and (2) inability to achieve economies of scale due to initially small production levels. Both factors combine to make them uncompetitive. Option C correctly captures both these constraints.

Multiple choice

What is/are the issue(s) discussed in the passage?

So what’s actually new to add to your list of “Big Concerns” for the future? With all due respect to professional prognosticators, which we are not, we’d add three items, based on a recent set of small-session meetings with executives in the United States, Eastern Europe, the Middle East and India.

The first item – and biggest by far –  concerns family businesses, which make up a major portion of many economies. Such companies, of course, have distinct strengths. They can give employees a sense of humanity and belonging creating engagement. And in hard times, their cultures can be forgiving and resilient.

But we sense a growing fault line beneath the foundation of many family businesses. The first reason is linked to the traditional family company focus on the preservation of wealth, rather than the accumulation of it. That “protect the assets” approach may have worked in less complex times, but it could prove devastating in a global environment where risk taking and growth are essential to survival.

And then there is succession, which has never been easy within family firms. But today, increasingly longevity means that many patriarchs are staying in power for years longer, essentially forcing a whole new generation of family members into other pursuits. “Kids” these days do not wait until they are 50 to take charge and have an impact. It’s awkward and stultifying.

  1. Family concerns

  2. Succession planning

  3. Culture of family concerns

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The passage discusses family businesses, the challenges of succession, and the cultural aspects of these businesses, making all options relevant.

Multiple choice

Protection of assets worked in traditional economic conditions.

So what’s actually new to add to your list of “Big Concerns” for the future? With all due respect to professional prognosticators, which we are not, we’d add three items, based on a recent set of small-session meetings with executives in the United States, Eastern Europe, the Middle East and India.

The first item – and biggest by far –  concerns family businesses, which make up a major portion of many economies. Such companies, of course, have distinct strengths. They can give employees a sense of humanity and belonging creating engagement. And in hard times, their cultures can be forgiving and resilient.

But we sense a growing fault line beneath the foundation of many family businesses. The first reason is linked to the traditional family company focus on the preservation of wealth, rather than the accumulation of it. That “protect the assets” approach may have worked in less complex times, but it could prove devastating in a global environment where risk taking and growth are essential to survival.

And then there is succession, which has never been easy within family firms. But today, increasingly longevity means that many patriarchs are staying in power for years longer, essentially forcing a whole new generation of family members into other pursuits. “Kids” these days do not wait until they are 50 to take charge and have an impact. It’s awkward and stultifying.

  1. Yes

  2. No
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The passage mentions that the 'protect the assets' approach may have worked in 'less complex times', confirming it was a traditional strategy.

Multiple choice

What is the major stumbling block in the growth of family concerns?

So what’s actually new to add to your list of “Big Concerns” for the future? With all due respect to professional prognosticators, which we are not, we’d add three items, based on a recent set of small-session meetings with executives in the United States, Eastern Europe, the Middle East and India.

The first item – and biggest by far –  concerns family businesses, which make up a major portion of many economies. Such companies, of course, have distinct strengths. They can give employees a sense of humanity and belonging creating engagement. And in hard times, their cultures can be forgiving and resilient.

But we sense a growing fault line beneath the foundation of many family businesses. The first reason is linked to the traditional family company focus on the preservation of wealth, rather than the accumulation of it. That “protect the assets” approach may have worked in less complex times, but it could prove devastating in a global environment where risk taking and growth are essential to survival.

And then there is succession, which has never been easy within family firms. But today, increasingly longevity means that many patriarchs are staying in power for years longer, essentially forcing a whole new generation of family members into other pursuits. “Kids” these days do not wait until they are 50 to take charge and have an impact. It’s awkward and stultifying.

  1. Lack of succession planning

  2. Lack of risk taking

  3. Lack of leadership

  4. Lack of capital
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The passage explicitly states that the 'protect the assets' approach (lack of risk-taking) could be devastating in a global environment where risk-taking and growth are essential.

Multiple choice economics development of maharashtra - industrial sector the economy of maharashtra economics

Which of the following is/are general problem/s in the industrial sector?

  1. Delays in government procedure.

  2. Lack of opportunities for skill development

  3. Lack of updated technology

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

General problems  in the industrial sector are-

1) Delays in government procedure- Delay in formation and changing regulations have always haunted manufacturers.complying with new standards isn’t an easy task for manufacturers. More often than not, they’re a burden and thanks to globalization, manufacturers are also forced to deal with regulations that are unique to each territory.
2) Lack of opportunities for skill development- As one generation exits the workforce, it makes way for a new generation of workers. This transition is, in itself, quite a challenge. Manufacturers face the challenge of filling up those positions with equally skilled members from the current generation. However, the new generation of employees is simply not skilled enough, making the challenge even harder to over come. As a result, manufacturers have to develop strategies such as working with the education sector to offer the skills training necessary to fill these positions.
3) Lack of updated technology- As technology evolves, the rate of innovation increases. But, this also means companies have to rush and that can lead to all kinds of temptations. The urge to skip a step or avoid certain tests can be hard to resist when the goal is to market the product as soon as possible.So, innovation management becomes a must in these situations. Preferences change by the day and any delay in delivering appropriate solutions can mean the end of everything.

So, manufacturers have to establish a system that allows for the consistent delivery of new ideas and innovation.  Only this can sustain manufacturing success.

Multiple choice business organisation and correspondence commerce and modern civilization history of commerce in india hindrances of commerce historical background of commerce in the sub-continent

Which of the following factors causes the barter system to be inefficient?

  1. The cost associated with information search is too low.

  2. Its cost of transaction is too low.

  3. It requires a double coincidence of wants.

  4. It requires high liquidity.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The barter system requires a double coincidence of wants, meaning both parties must simultaneously want what the other has to offer. This makes transactions difficult and inefficient compared to using a medium of exchange like money.

Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

Which of the following can be treated as disadvantages of HUF form of business?

  1. An inefficient karta can also do harm to the business.

  2. In a HUF business the male members of three successive generations are involved which may leads to conflict between generations.

  3. The continuity of business is always under threat. It may be due to a small rift within the family and if a coparcener asks for a partition the business is closed.

  4. All of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India. Following can be treated as disadvantage of HUF form of business:
a) An inefficient karta can also do harm to the business.b) In a HUF business the male members of three successive generations are involved which may leads to conflict between generations.
c) The continuity of business is always under threat. It may be due to a small rift within the family and if a coparcener asks for a partition the business is closed.
Multiple choice geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

Which of the following is not the disadvantage of MNC?

  1. Strain on foreign exchange reserve of the host country.

  2. More employment opportunities.

  3. Creation of monopolies.

  4. May kill domestic industry.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. As MNC operates in more than two or more countries it encourages employment opportunities in different countries. Hence, it is not the disadvantage of MNC.

Multiple choice organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

Invariably _________ is the disadvantage of  co-operative society type of organization.

  1. business secrecy

  2. low prices

  3. limited liability

  4. open membership
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Co-operative societies have to send their annual reports and accounts to the Registrar of Co-operative Societies. In this way the secrets of business become public.
Multiple choice organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

Which of the following is/ are not disadvantage of co-operatives?

  1. Lack of capital

  2. Mutual help instead of competition

  3. Difficult to maintain business secrecy

  4. Unwanted interference by the departmental personnel
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A Co-operative Society is an artificial voluntary association of people who work together to promote their economic interest and in order to achieve common goals. These society are incorporated with some social motives and they often have separate legal body and common seal. The main objective of such a society is to self help each other by using the resources gathered by the society and do not depend on anyone.

Multiple choice economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

Which of the following challenges social entrepreneurs are facing ? 

  1. Limited access to early stage capital

  2. Development of new product

  3. Maintaining profits

  4. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Limited access to early stage capital is one of the major challenges faced by social entrepreneurs as they do not follow conventional way of doing business.

Multiple choice elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

What is one of the hardships of a sole proprietorship?

  1. Capital is limited to owners savings and bank loans

  2. It has to complete too many registration formalities

  3. As they are government owned there is no profit motive

  4. More tax is charged on them
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A business which is owned and managed by a single person is called as sole proprietorship. As the owner is a single person he/she has limited capital with him/her to invest in the business. Hence, it is one of the hardships of a sole proprietorship. The limited capital might be due to very low internal sources of finance and/or banks or other external sources of finance will also be unavailable.