Tag: economic system and economic policies

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Questions Related to economic system and economic policies

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Which one is called Bretton-Woods Twin?

  1. IBRD and IDA

  2. IMF and IFC

  3. IMF and IBRD

  4. IDA and IFC
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The IMF and the IBRD (the primary institution of the World Bank Group) were both established at the 1944 Bretton Woods Conference. They are collectively referred to as the Bretton Woods Twins.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Which of the following is not the agency of World Bank?

  1. MIGA

  2. NABARD

  3. ADB

  4. IDA
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

NABARD (National Bank for Agriculture and Rural Development) is an Indian apex development bank, not an agency of the World Bank. MIGA, IDA, and ADB (though ADB is a regional bank, it is often grouped in international finance discussions) are distinct from the World Bank's internal structure, but NABARD is clearly domestic.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

If an industry is characterized by economies of scale then _________.

  1. barriers to entry are not very large

  2. long-run unit costs of production decreases as the quantity the firm produces increases

  3. capital requirement are small due to the efficiency of the large scale operation

  4. the costs of entry into the market are likely to be substantial
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In microeconomics, economics of scale are the cost advantages that an enterprise obtains due to expansion. There are factors that cause a producer's average cost per unit to fall as the scale of output is increased. "Economics of scale" is a long run concept and refers to reductions in unit cost as the size of a facility and the usage levels of other inputs increase.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

It is prudent to determine the size of the output when the industry is operating in the stage of______.

  1. increasing returns

  2. constant returns

  3. diminishing returns

  4. negative returns
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In production theory, the stage of diminishing returns is where the marginal product begins to decline. This is the rational stage for a producer to determine the optimal output level to maximize efficiency.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Freeing the economy from all unnecessary controls and regulations is referred to as ________.

  1. freedom

  2. privatisation

  3. liberalisation

  4. globalisation
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Liberalisation refers to the removal of government controls, such as licenses and quotas, to allow the market to function more freely. Privatisation involves transferring ownership, while globalisation involves integrating with the world economy.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Whom did India approach for managing the crisis?

  1. IBRD

  2. United Nations

  3. IMF

  4. A and C
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
In 1991, India met with an economic crisis relating to its external debt. India approached the International Bank for Reconstruction and Development (IBRD), popularly known as World Bank and the International Monetary Fund (IMF), and received $7 billion as loan to manage the crisis.
Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

IBRD is also known as __________.

  1. International Monetary Fund (IMF)

  2. United Nations

  3. World bank

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In 1991, India met with an economic crisis relating to its external debt. India approached the International Bank for Reconstruction and Development (IBRD), popularly known as World Bank and the International Monetary Fund (IMF), and received $7 billion as loan to manage the crisis.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Which of the following were short-term measures in the NEP?

  1. Structural reform measures

  2. Stabilisation measures

  3. Both A and B

  4. None
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
India agreed to the conditionalities of World Bank and IMF and announced the New Economic Policy (NEP). The NEP consisted of wide ranging economic reforms. This set of policies can broadly be classified into two groups: the  stabilisation measures and the structural reform measures. Stabilisation measures are short term measures, on the other hand, structural reform policies are long-term measures.
Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

Which policy was announced when India agreed to the conditionalities imposed by IMF and IBRD?

  1. Fiscal policy

  2. New Economic Policy

  3. Exim Policy

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In 1991, facing a balance of payments crisis, India sought assistance from the IMF and World Bank. The conditionalities imposed led to the adoption of the New Economic Policy, which introduced liberalisation, privatisation, and globalisation.

Multiple choice history economic system and economic policies american dominance, neo-imperialism and new economic policy insights on lpg changing economic policies

The NEP was classified into two groups. Which are the two groups?

  1. Stabilization measures and Structural reform measures

  2. Corrective measures and recovery measures

  3. Industrial development measures and remedial measures

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
The NEP consisted of wide ranging economic reforms. NEP stands for New Economic Policy. This set of policies can broadly be classified into two groups: the stabilization measures and the structural reform measures.