Reading Comprehension Questions

Multiple choice

What is the meaning of 'Vardhaman'?

Directions:  Read the passage and answer the question that follows.

Mahavira, also known as Vardhamana, was the twenty-fourth and last guru of the Jain religion. He was born into a royal family in what is currently the state of Bihar, India. The town of his birth at the time when he was born was markedly prosperous in terms of agriculture, health, wealth and wisdom. It is for this reason that he was named Vardhman by his parents. When he was 30 years old, he left his home in search of spiritual awakening and spent over 12 years practising intense meditation and severe penance. After this period, he achieved enlightenment. He then travelled all over India for the next 30 years, teaching his philosophy, which is based on the concepts of ahimsa, satya, asteya, brahmacharya and aparigraha. He is said to have attained nirvana at the age of 72. He is considered to be the 24th Tirthankara (guru) of Jainism and is regarded as a reformer, rather than a founder of this religion.
While it is unknown exactly that where Mahavira was born, 3 distinct places in Bihar have been identified as possible birthplaces. These include Kundigram in Vaishali district, Lachhuar in Jamui and Kundalpur in Nalanda. Most historians will agree that Basokund was his birthplace, but traditionally, it is considered to be Kundalagrama, which is an ancient city of Vaishali, whose location continues to remain unidentified. According to Jainism, Mahavira was born in the year 540 BCE, which has prompted many historians to consider him to be a contemporary of Gautama Bhudda. According to Jainism, his birth is ascribed to be on the thirteenth day of the rising moon of Chairtra in the Vira Nivana Samvat calendar, which falls in either March or April according to the Gregorian calendar. Mahavira was born into the royal family of King Siddartha of Kudraam and Queen Trishala, whose brother was King Chetaka of Vaishali. In his childhood, he was called Vardhamana, which means “one who grows”. He was named this because of the increased prosperity that was experienced in the kingdom at the time of his birth. Both of his parents are said to be strict followers of Parsva.

  1. Guru

  2. Prosperity

  3. One who grows

  4. Enlightened one

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 According to the passage, the name means “one who grows”.  

Multiple choice

According to the passage, what is economic liberalisation?

Directions:  Read the passage and answer the question that follows.

Competition has been intensifying among many countries that participate in the global economy. This competition has been growing since the early 1990’s and is due to many factors. Most significant is economic liberalisation that is pursued by many developing countries and socialistic countries as well as the revolution in information and communication technology. Developing countries with growing economies have been greatly aided by the removal of regulatory controls for industries. This is especially the case when it comes to foreign investment. Another significant factor was the formulation of the World Trade Organisation which resulted in the removal of both quantitative and non-quantitative restrictions for foreign trade. With the spread of the information and communication technology (ICT) revolution, a new era for telecommunications has begun. This has lead to the spreading of faster communication between people and their organisations. In many cases, this communication is instant. All these factors have led to the intensifying of global economic competition.
However, the need to sustain this competitiveness has been a constant concern for policy makers, industrialists and law makers in all industrialised countries. Furthermore, one major concern has been about how to enhance and achieve this competitiveness. This is a plight which India currently faces. Competitiveness must not only be achieved, but sustained, and this is in respect to the whole economy and not individual sectors alone. In India, the manufacturing sector has always been strong in this regard. This is because manufactured products, particularly those which are focused on technology, assist and encourage the enhancement of competitiveness.  This not only happens within the manufacturing sectors, but it also influences the agricultural and service sectors.

  1. The revolution in information and communication technology

  2. The removal of regulatory controls for industry

  3. The pursuit of greater economic success by developing countries

  4. Foreign investment in a socialistic country

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

  

Multiple choice

The passage explains that

Directions:  Read the passage and answer the question that follows.

Competition has been intensifying among many countries that participate in the global economy. This competition has been growing since the early 1990’s and is due to many factors. Most significant is economic liberalisation that is pursued by many developing countries and socialistic countries as well as the revolution in information and communication technology. Developing countries with growing economies have been greatly aided by the removal of regulatory controls for industries. This is especially the case when it comes to foreign investment. Another significant factor was the formulation of the World Trade Organisation which resulted in the removal of both quantitative and non-quantitative restrictions for foreign trade. With the spread of the information and communication technology (ICT) revolution, a new era for telecommunications has begun. This has lead to the spreading of faster communication between people and their organisations. In many cases, this communication is instant. All these factors have led to the intensifying of global economic competition.
However, the need to sustain this competitiveness has been a constant concern for policy makers, industrialists and law makers in all industrialised countries. Furthermore, one major concern has been about how to enhance and achieve this competitiveness. This is a plight which India currently faces. Competitiveness must not only be achieved, but sustained, and this is in respect to the whole economy and not individual sectors alone. In India, the manufacturing sector has always been strong in this regard. This is because manufactured products, particularly those which are focused on technology, assist and encourage the enhancement of competitiveness.  This not only happens within the manufacturing sectors, but it also influences the agricultural and service sectors.

  1. India’s manufacturing sector is strong, globally competitive and that it can influence other sectors

  2. the production of new technology assists and encourages the enhancement of competitiveness

  3. India needs to achieve and sustain a level of competitiveness in order to compete with the rest of the world

  4. competitiveness must be achieved and sustained throughout a nation’s economy

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 

Multiple choice

Choose the most appropriate title for the passage.

Directions:  Read the passage and answer the question that follows.

Competition has been intensifying among many countries that participate in the global economy. This competition has been growing since the early 1990’s and is due to many factors. Most significant is economic liberalisation that is pursued by many developing countries and socialistic countries as well as the revolution in information and communication technology. Developing countries with growing economies have been greatly aided by the removal of regulatory controls for industries. This is especially the case when it comes to foreign investment. Another significant factor was the formulation of the World Trade Organisation which resulted in the removal of both quantitative and non-quantitative restrictions for foreign trade. With the spread of the information and communication technology (ICT) revolution, a new era for telecommunications has begun. This has lead to the spreading of faster communication between people and their organisations. In many cases, this communication is instant. All these factors have led to the intensifying of global economic competition.
However, the need to sustain this competitiveness has been a constant concern for policy makers, industrialists and law makers in all industrialised countries. Furthermore, one major concern has been about how to enhance and achieve this competitiveness. This is a plight which India currently faces. Competitiveness must not only be achieved, but sustained, and this is in respect to the whole economy and not individual sectors alone. In India, the manufacturing sector has always been strong in this regard. This is because manufactured products, particularly those which are focused on technology, assist and encourage the enhancement of competitiveness.  This not only happens within the manufacturing sectors, but it also influences the agricultural and service sectors.

  1. Global Competitiveness

  2. Can India Compete?

  3. India and Global Competiveness

  4. India versus the World

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The passage is about global competitiveness and focuses on India.   

Multiple choice

Besides achieving competitiveness, what else does India need?

Directions:  Read the passage and answer the question that follows.

Competition has been intensifying among many countries that participate in the global economy. This competition has been growing since the early 1990’s and is due to many factors. Most significant is economic liberalisation that is pursued by many developing countries and socialistic countries as well as the revolution in information and communication technology. Developing countries with growing economies have been greatly aided by the removal of regulatory controls for industries. This is especially the case when it comes to foreign investment. Another significant factor was the formulation of the World Trade Organisation which resulted in the removal of both quantitative and non-quantitative restrictions for foreign trade. With the spread of the information and communication technology (ICT) revolution, a new era for telecommunications has begun. This has lead to the spreading of faster communication between people and their organisations. In many cases, this communication is instant. All these factors have led to the intensifying of global economic competition.
However, the need to sustain this competitiveness has been a constant concern for policy makers, industrialists and law makers in all industrialised countries. Furthermore, one major concern has been about how to enhance and achieve this competitiveness. This is a plight which India currently faces. Competitiveness must not only be achieved, but sustained, and this is in respect to the whole economy and not individual sectors alone. In India, the manufacturing sector has always been strong in this regard. This is because manufactured products, particularly those which are focused on technology, assist and encourage the enhancement of competitiveness.  This not only happens within the manufacturing sectors, but it also influences the agricultural and service sectors.

  1. India must enhance its level of competitiveness.

  2. India must sustain its level of competitiveness in individual sectors.

  3. India must sustain its level of competitiveness across the whole economy.

  4. India must bolster its manufacturing sector.

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 India must sustain its competitiveness with respect to the whole economy.  

Multiple choice

Which of the following statements is correct?

Directions:  Read the passage and answer the question that follows.

Competition has been intensifying among many countries that participate in the global economy. This competition has been growing since the early 1990’s and is due to many factors. Most significant is economic liberalisation that is pursued by many developing countries and socialistic countries as well as the revolution in information and communication technology. Developing countries with growing economies have been greatly aided by the removal of regulatory controls for industries. This is especially the case when it comes to foreign investment. Another significant factor was the formulation of the World Trade Organisation which resulted in the removal of both quantitative and non-quantitative restrictions for foreign trade. With the spread of the information and communication technology (ICT) revolution, a new era for telecommunications has begun. This has lead to the spreading of faster communication between people and their organisations. In many cases, this communication is instant. All these factors have led to the intensifying of global economic competition.
However, the need to sustain this competitiveness has been a constant concern for policy makers, industrialists and law makers in all industrialised countries. Furthermore, one major concern has been about how to enhance and achieve this competitiveness. This is a plight which India currently faces. Competitiveness must not only be achieved, but sustained, and this is in respect to the whole economy and not individual sectors alone. In India, the manufacturing sector has always been strong in this regard. This is because manufactured products, particularly those which are focused on technology, assist and encourage the enhancement of competitiveness.  This not only happens within the manufacturing sectors, but it also influences the agricultural and service sectors.

  1. The ICT revolution has brought about slower communication between people.

  2. The ICT revolution has created instant communication.

  3. The ICT revolution has encouraged faster communication between people and organisations.

  4. The ICT revolution has lead to the spread of faster communication between people and organisations.

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

It has lead to faster communication between people and organisations.

Multiple choice

The importance of culture does not

  1. lies in its enormous field of influence
  2. lies in its obvious quarantining
  3. lies in the effect it has on the other influential elements of our life

    Directions: Read the following passage and then answer the question that follows:

    PASSAGE – II

     

    Technology and Culture have both influenced each other equally. Technology has been directed as an improvement in our lives, but on the other hand, Culture has been present in every invention, noticeable or not, and advancement in our evolving society. Technology is becoming focused upon more and more everyday, but culture is the determining factor that decides if there is a necessity for an improvement. There are endless views and perspectives that this situation can be viewed from, but without a doubt, Technology and Culture shape one another.

    Culture has been a part of our society, and way of life, forever. It is almost impossible to come up with an idea that isn’t influenced by culture. Picture our lives without cars, television, and computers. This would be an example of everyday life without technology. People could function happily in that type of atmosphere, but technology has changed our lives forever. Technology has changed our pace and perspective on education. Students would have to go to libraries and spend a lot of time researching to find out information for class assignments, but with technology students can find almost anything on there home computers and by accessing the internet. Technology has definitely become the authoritative factor in our lives, but culture has shaped technology. Technology is made and used in such a variety of ways because many people who use the technology of today come from all walks of life and have different necessities, so to compensate for that technology must adapt to all different cultures.

     

  1. 1 and 2 only

  2. 1 and 3 only

  3. 2 and 3 only

  4. All of the above

  5. None of the above

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Option (2) depicts the importance of culture. Quarantine means isolation, restriction or imprisonment. This idea of culture is not stated or implied anywhere in the passage. On the other hand, the passage stresses the importance of culture.

Multiple choice

Which among the following can be inferred from the passage?

Directions: Read the following passage and then answer the question that follows:

PASSAGE – I

Chamravattom village in the Malappuram district of Kerala is the first in the country to be one hundred per cent computer literate, in a manner of speaking. One person in each one of the 850 households in the village has gained the skills to use the computer to browse the Internet, send an e-mail, or simply use the mouse to paint a pretty picture on screen. The claim may be overstated because other members of the household and thus a majority of the village population would still remain strangers to the computer. Yet the achievement is inspiring. What is especially commendable is that it has been engineered in an interesting partnership between the panchayat and local entrepreneurs, where the entrepreneurs establish and run the computer centre and the panchayat pays them for each resident made computer literate.

For Indian policy makers and private institutions trying to bridge the digital divide, Chamravattom represents a landmark. The target has carried appeal because with computers and connectivity, the country can progress quicker on the path to raising literacy, information and skill levels amongst the population. Most of the early attempts to raise computer literacy in rural India have been funded by non-governmental organisations. Their resources, often one-time grants from overseas funding agencies, are limited. It is not surprising that the impact they make on the vast landscape is micro. Laying out the capital cost of a computer may be the simpler task, paying for its maintenance and periodic renewal, given the pace of obsolescence, the harder one.

The challenge is therefore not only to make more computers available, but also to make their use affordable and the programme self-sustaining. Marketers will remind us that affordability is a relative term; if consumers believe they can get value from a product or service, they will somehow find the money to buy it. The entertainment function may well hold the key to the scheme of extending computer literacy, especially if the plan has to unfold without substantial and continued Government funding. It is established that even poor village folk will pay a few rupees each to watch a movie. If community computer centres can win their custom, the revenue from entertainment can amortise the cost of the computer, which during the day doubles up as a cheap or even free information window. The campaign therefore has to be conceived and marketed imaginatively if the vast population of the country is to be persuaded to cross the digital divide.

  1. Every person in the Malappuram district is computer literate, thereby making it “one hundred percent computer literate”.

  2. Computer education cannot do much to raise the overall literacy level of the population.

  3. Computer literacy will increase the overall rate of employment.

  4. Computer education can spread fast if it is locked with entertainment.

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

This can be derived from the last few lines of the passage. Answer: (4)

Multiple choice

The author of the passage would agree with which of the following? I. Non governmental organisations have made a substantial impact in the computer literacy drive. II. The initial capital cost of a computer is much more than the cost of its repair and renewal. III. The achievement of the Malappuram district will be inspiring for the rest of the country.

Directions: Read the following passage and then answer the question that follows:

PASSAGE – I

Chamravattom village in the Malappuram district of Kerala is the first in the country to be one hundred per cent computer literate, in a manner of speaking. One person in each one of the 850 households in the village has gained the skills to use the computer to browse the Internet, send an e-mail, or simply use the mouse to paint a pretty picture on screen. The claim may be overstated because other members of the household and thus a majority of the village population would still remain strangers to the computer. Yet the achievement is inspiring. What is especially commendable is that it has been engineered in an interesting partnership between the panchayat and local entrepreneurs, where the entrepreneurs establish and run the computer centre and the panchayat pays them for each resident made computer literate.

For Indian policy makers and private institutions trying to bridge the digital divide, Chamravattom represents a landmark. The target has carried appeal because with computers and connectivity, the country can progress quicker on the path to raising literacy, information and skill levels amongst the population. Most of the early attempts to raise computer literacy in rural India have been funded by non-governmental organisations. Their resources, often one-time grants from overseas funding agencies, are limited. It is not surprising that the impact they make on the vast landscape is micro. Laying out the capital cost of a computer may be the simpler task, paying for its maintenance and periodic renewal, given the pace of obsolescence, the harder one.

The challenge is therefore not only to make more computers available, but also to make their use affordable and the programme self-sustaining. Marketers will remind us that affordability is a relative term; if consumers believe they can get value from a product or service, they will somehow find the money to buy it. The entertainment function may well hold the key to the scheme of extending computer literacy, especially if the plan has to unfold without substantial and continued Government funding. It is established that even poor village folk will pay a few rupees each to watch a movie. If community computer centres can win their custom, the revenue from entertainment can amortise the cost of the computer, which during the day doubles up as a cheap or even free information window. The campaign therefore has to be conceived and marketed imaginatively if the vast population of the country is to be persuaded to cross the digital divide.

  1. I and II

  2. I, II and III

  3. III only

  4. II only

  5. None of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

'Statement I' is wrong because it is mentioned in the second paragraph that their impact was minimal. Statement II' is wrong. It is mentioned in the second paragraph that, 'laying out the capital cost of a computer may be the simpler task, paying for its maintenance and periodic renewal, the harder one'. 'Statement III' is correct. It is mentioned in the first paragraph.     Answer: (3)

Multiple choice

Which of the following relationships between Culture and Technology cannot be derived from the passage?

  1. Both have a denigrating effect on each other.
  2. Culture has a greater inclination towards the human aspect of culture.
  3. Both have an innate tendency to configure each other.

    Directions: Read the following passage and then answer the question that follows:

    PASSAGE – II

     

    Technology and Culture have both influenced each other equally. Technology has been directed as an improvement in our lives, but on the other hand, Culture has been present in every invention, noticeable or not, and advancement in our evolving society. Technology is becoming focused upon more and more everyday, but culture is the determining factor that decides if there is a necessity for an improvement. There are endless views and perspectives that this situation can be viewed from, but without a doubt, Technology and Culture shape one another.

    Culture has been a part of our society, and way of life, forever. It is almost impossible to come up with an idea that isn’t influenced by culture. Picture our lives without cars, television, and computers. This would be an example of everyday life without technology. People could function happily in that type of atmosphere, but technology has changed our lives forever. Technology has changed our pace and perspective on education. Students would have to go to libraries and spend a lot of time researching to find out information for class assignments, but with technology students can find almost anything on there home computers and by accessing the internet. Technology has definitely become the authoritative factor in our lives, but culture has shaped technology. Technology is made and used in such a variety of ways because many people who use the technology of today come from all walks of life and have different necessities, so to compensate for that technology must adapt to all different cultures.

     

  1. 1 only

  2. 1 and 2 only

  3. 1 and 3 only

  4. 2 and 3 only

  5. All of the above

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Option 2 is the only option that can be derived from the passage (1st line).

Multiple choice

Which of the following groups of statements is definitely TRUE in the context of the passage? Statement (I): The vital role of India's machine tool industry has not been duly recognized by the Government. Statement (II): Small-scale industry's performance can be further improved with the help from the Indian machine tool industry. Statement (III): The author of the passage has not discussed all the factors which are responsible for high cost of Indian machines.

Directions: Read the following passage and then answer the question that follows:

Now another aspect of the complete scenario: imports.
Today the import duty on a complete machine is 30% for all practical purpose, whereas the import duty on raw materials and components ranges from 35.85%. The story does not end here. After paying such high import duties on component, once a machine is made, it suffers excise duty from 5% – 10% (including on the customs duty already paid). At the time of sale, the machine tools suffer further taxation, i.e. central sales tax or State sales taxes which range from 4% – 16%. This much for the tax angle. Another factor, which pushes the cost of manufacture of machine tools, is the very high rate of interest payable to banks ranging up to 22%, as against 4%–7% prevailing in advanced countries.
The production of machine tools in India being not of the same scale as it is in other countries, the price which India's machine tool builders have to pay for components is more or less based on pattern of high pricing applicable to the prices of spares.
The machines tool industry in India has an enviable record of very quick technology absorption, assimilation and development. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.
It is to be noted that India is at least 6500 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India's machine tool industry to enable them to produce quality components at reduced costs.
Then, what is it that the industry request from the Government? It wants a level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interest of the nation. Most important, it requests for the Government's consideration and understanding. It is therefore high time that the government gives the due attention to this industry which has a good potential.

  1. Only (I) and (II) are true

  2. Only (I) and (III)

  3. Only (II) and (III) are true

  4. All the statements are true

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Statement (I) is justified from the last paragraph, “In fact, all of us must have a deep introspection and recognize the fact…” Statement (II) is justified from the lines “Need of help from India's machine tool industry to enable them to produce quality components at reduced costs…” One can find justification for statement (III) in the last line of second paragraph “The above represents only a few of extraneous reasons…” Thus it is clear that option (4) is the correct answer.

Multiple choice

Which of the following statements is TRUE in the context of the passage?

Directions: Read the following passage and then answer the question that follows:

Now another aspect of the complete scenario: imports.
Today the import duty on a complete machine is 30% for all practical purpose, whereas the import duty on raw materials and components ranges from 35.85%. The story does not end here. After paying such high import duties on component, once a machine is made, it suffers excise duty from 5% – 10% (including on the customs duty already paid). At the time of sale, the machine tools suffer further taxation, i.e. central sales tax or State sales taxes which range from 4% – 16%. This much for the tax angle. Another factor, which pushes the cost of manufacture of machine tools, is the very high rate of interest payable to banks ranging up to 22%, as against 4%–7% prevailing in advanced countries.
The production of machine tools in India being not of the same scale as it is in other countries, the price which India's machine tool builders have to pay for components is more or less based on pattern of high pricing applicable to the prices of spares.
The machines tool industry in India has an enviable record of very quick technology absorption, assimilation and development. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.
It is to be noted that India is at least 6500 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India's machine tool industry to enable them to produce quality components at reduced costs.
Then, what is it that the industry request from the Government? It wants a level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interest of the nation. Most important, it requests for the Government's consideration and understanding. It is therefore high time that the government gives the due attention to this industry which has a good potential.

  1. India's machine tool industry has a praiseworthy record of performance.

  2. In critical times, the machine tool builders allowed the industry to perish.

  3. In the case of machines, the excise duty is levied only on the cost price.

  4. The machine tool industry in India runs the risk of steep decline in the absence of incentives from the government.

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Options (2) and (3) are incorrect because they have no reference available in the passage. Option (4) is incorrect because the industry does not seek incentives but level playing field. Option (1) has support in the line 'an enviable record'; henceforth it is the correct answer.

Multiple choice

Which of the following best explains the sentence “It wants a level playing field” as used in the passage? The machine tool industry in India

Directions: Read the following passage and then answer the question that follows:

Now another aspect of the complete scenario: imports.
Today the import duty on a complete machine is 30% for all practical purpose, whereas the import duty on raw materials and components ranges from 35.85%. The story does not end here. After paying such high import duties on component, once a machine is made, it suffers excise duty from 5% – 10% (including on the customs duty already paid). At the time of sale, the machine tools suffer further taxation, i.e. central sales tax or State sales taxes which range from 4% – 16%. This much for the tax angle. Another factor, which pushes the cost of manufacture of machine tools, is the very high rate of interest payable to banks ranging up to 22%, as against 4%–7% prevailing in advanced countries.
The production of machine tools in India being not of the same scale as it is in other countries, the price which India's machine tool builders have to pay for components is more or less based on pattern of high pricing applicable to the prices of spares.
The machines tool industry in India has an enviable record of very quick technology absorption, assimilation and development. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.
It is to be noted that India is at least 6500 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India's machine tool industry to enable them to produce quality components at reduced costs.
Then, what is it that the industry request from the Government? It wants a level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interest of the nation. Most important, it requests for the Government's consideration and understanding. It is therefore high time that the government gives the due attention to this industry which has a good potential.

  1. needs more attention and consideration as compared to the other industries from various fields

  2. needs freedom to import the desired components at a low cost

  3. seeks to have the small-scale industry as its patron

  4. wants the same incentives as are given to some other industries

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Option (2) has found mention in the first paragraph when the author compares the import duties on complete machinery and various tariffs on import of components. Thus by specifying the difference between the two, the author prepares the case to advocate level playing field for machine tool industry. Correct answer is (2).

Multiple choice

Which of the following inferences cannot be drawn from the content of the passage?

  1. To levy heavy custom duty on the machine tool industry is quite necessary for its upliftment.
  2. Banks in other countries are running in loss owing to a low interest rate.
  3. The Government of India was not considerate to the difficulties faced by the machine tool industry.

    Directions: Read the following passage and then answer the question that follows:

    Now another aspect of the complete scenario: imports.
    Today the import duty on a complete machine is 30% for all practical purpose, whereas the import duty on raw materials and components ranges from 35.85%. The story does not end here. After paying such high import duties on component, once a machine is made, it suffers excise duty from 5% – 10% (including on the customs duty already paid). At the time of sale, the machine tools suffer further taxation, i.e. central sales tax or State sales taxes which range from 4% – 16%. This much for the tax angle. Another factor, which pushes the cost of manufacture of machine tools, is the very high rate of interest payable to banks ranging up to 22%, as against 4%–7% prevailing in advanced countries.
    The production of machine tools in India being not of the same scale as it is in other countries, the price which India's machine tool builders have to pay for components is more or less based on pattern of high pricing applicable to the prices of spares.
    The machines tool industry in India has an enviable record of very quick technology absorption, assimilation and development. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.
    It is to be noted that India is at least 6500 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India's machine tool industry to enable them to produce quality components at reduced costs.
    Then, what is it that the industry request from the Government? It wants a level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interest of the nation. Most important, it requests for the Government's consideration and understanding. It is therefore high time that the government gives the due attention to this industry which has a good potential.

  1. 1 only

  2. 2 only

  3. 1 and 2 only

  4. 1 and 3 only

  5. All of the above

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Statement 3 is the only option that can be inferred because the passage brings to light the Govt's apathy towards the machine tool industry and calls upon it to help improve its present state of affairs.

Multiple choice

Which of the following are not the principal focuses of the content of the passage?

  1. Exorbitant sales tax for the Indian machine tool industry.
  2. Indian machine tool industry and its vital role in the country's development.
  3. Strategy for development of technology that is most helpful to the machine tool industry in India.

    Directions: Read the following passage and then answer the question that follows:

    Now another aspect of the complete scenario: imports.
    Today the import duty on a complete machine is 30% for all practical purpose, whereas the import duty on raw materials and components ranges from 35.85%. The story does not end here. After paying such high import duties on component, once a machine is made, it suffers excise duty from 5% – 10% (including on the customs duty already paid). At the time of sale, the machine tools suffer further taxation, i.e. central sales tax or State sales taxes which range from 4% – 16%. This much for the tax angle. Another factor, which pushes the cost of manufacture of machine tools, is the very high rate of interest payable to banks ranging up to 22%, as against 4%–7% prevailing in advanced countries.
    The production of machine tools in India being not of the same scale as it is in other countries, the price which India's machine tool builders have to pay for components is more or less based on pattern of high pricing applicable to the prices of spares.
    The machines tool industry in India has an enviable record of very quick technology absorption, assimilation and development. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.
    It is to be noted that India is at least 6500 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India's machine tool industry to enable them to produce quality components at reduced costs.
    Then, what is it that the industry request from the Government? It wants a level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interest of the nation. Most important, it requests for the Government's consideration and understanding. It is therefore high time that the government gives the due attention to this industry which has a good potential.

  1. 1 and 2 only

  2. 2 and 3 only

  3. 1 and 3 only

  4. All of the above

  5. None of the above

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Options (1) and (3) have support in the passage. But the central theme of this passage is to explain the Indian machine tool industry and its vital role in the country's development.