Tag: economics

Quizzes (361) Questions (3598)

Questions Related to economics

Multiple choice economics foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

The 'Drain Theory' about poverty in India is associated with _______.

  1. Dadabhai Naoroji

  2. Mahatma Gandhi

  3. Jawaharlal Nehru

  4. DR Gadgil
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

It was in May $1867$ that Dadabhai Naoroji put forward the idea that Britain was draining India. This is Drain Theory. The drain, he declared, was the basic cause of India's poverty and the fundamental evil of British rule of India.

Multiple choice economics foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

The oldest trade union organisation in India is the ____________.

  1. Indian National Trade Union Congress

  2. All India Trade Union Congress

  3. Hind Mazdoor Sabha

  4. United Trade Union Congress
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

All India Trade Union Congress (AITUC) is the oldest trade union federation in India and one of the five largest. It was founded on 31st october 1920 in Bombay by Lala Lajpat Rai, Joseph Baptista, First president- Lala Lajpat Rai. First General Secretary- Diwan Chaman Lal.

Multiple choice economics foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

The main function of the EXIM Bank is ___________.

  1. to promote exports and curtail imports

  2. to conserve foreign exchange

  3. to prevent unlicensed transaction

  4. to help the Reserve Bank of the India in the regulation of foreign exchange
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

EXIM Bank (Export-Import Bank) of India is the leading export finance institution in the county. The bank was set up in the year 1982 under the Export-Import Bank of India Act, 1981. The Government of India launched the Export-Import Bank of India with an aim to augment exports from India and also to combine the county's foreign trade and investment with the overall economic growth. The bank began its operations as a supplier of export credit, but has over the period evolved into an institution that plays a major role in partnering with Indian industries including small and medium enterprises. It is the apex institution for coordinating the working of institutions in India engaged in financing exports and import of goods and services.

Multiple choice economics foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

Foreign trade is financed by all the following except __________________.

  1. Export Credit and Guarantee Corporation

  2. EXIM Bank

  3. Commercial Banks and Exchange Banks

  4. National Co-operative Development Corporation
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The National Co-operative Development Corporation (NCDC) focuses on the development of cooperatives in the agricultural and allied sectors, not on financing foreign trade.

Multiple choice economics foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

The first country to establish trade relations with India was ______.

  1. Portugal

  2. Holland

  3. France

  4. England
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Portuguese were the first Europeans to start trade with India. After the fall of Ottoman Empire and capture of Constantinople in 1453 it became difficult for Europeans to trade with India via land route.  The first successful voyage to India was by  Vasco da Gama in 1498, when after sailing around the Cape of good hope  he arrived in Calicut  now in Kerala. Having arrived there, he obtained from Saamoothiri Rajah permission to trade in the city. The navigator was received with traditional hospitality, but an interview with the Saamoothiri (Zamorin) failed to produce any definitive results. Vasco da Gama requested permission to leave a factor behind in charge of the merchandise he could not sell; his request was refused, and the king insisted that Gama should pay customs duty like any other trader, which strained their relations.

Multiple choice economics foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

Which of the following were India's primary exports?

  1. Raw silk

  2. Cotton

  3. Sugar

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

Mostly fine cotton and silk were exported from India to markets in Europe, Asia, and Africa; by the second quarter of the 19th century, raw materials, which chiefly consisted of sugar, raw cotton, opium, and indigo, accounted for most of India's exports.

Hence, D is the correct option.

Multiple choice economics foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

Which of the following goods did India import?

  1. Capital goods

  2. Jute

  3. Cement

  4. Sugar
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

From the time of Pre-Independence India has been one of the important trading countries, exporting primary items like cotton, raw silk, sugar, wool, jute, and indigo, etc. and importer of finished consumer goods like woollen clothes, cotton, silk, and capital goods like light machinery manufactured in Britain.

Multiple choice economics foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

What was the reason for scarce resources in Indian domestic market?

  1. Large export surplus

  2. Large import surplus

  3. Large export deficit

  4. Large import deficit
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Scarce resources in Indian domestic market was because the British exported manufactured goods in surplus because selling manufactured goods means making more money as a state. Having more money as a state in return means that it can reinvest and can help its citizens better.

Multiple choice economics foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

Which of the few countries could India conduct trade with?

  1. Ceylon (Sri Lanka)

  2. Persia (Iran)

  3. China

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

Britain held the monopoly of over India's imports and exports. Most of the foreign trade was restricted only to Britain, while the rest half was allowed to trade with other countries like Ceylon (Sri Lanka), China, and Persia (Iran).

Hence, D is the correct option.

Multiple choice economics foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

Why did the export surplus not increase Indian wealth?

  1. The gold and silver earned from exports were used to purchase less expensive finished goods from Britain

  2. The gold and silver earned from exports were used to purchase more expensive finished goods from Britain

  3. The gold and silver earned from exports were used to purchase equally costing finished goods from Britain

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

The reason why the British wanted to export manufactured goods is because selling manufactured goods means making more money as a state. Having more money as a state in return means that it can reinvest and can help its citizens better, or spend the money in any other way it had to, to keep the country going .The Britishers utilized the wealth earned from export not for India's development but to  purchase expensive  and materials from Britain for their own use.