Tag: economics

Questions Related to economics

FDI in which of these sectors is not permitted ________.

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. lottery

  2. chitfund

  3. gambling

  4. all of the above

Show answer
Correct Option: D
Explanation:
FDI stands for Foreign Direct Investment. FDI refers to the investment made by an individual or firm into business interests of different country.
FDI is not permitted in sectors such as, lottery, cheat fund and gambling.

FDI is not permitted _______.

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. atomic energy

  2. rail transport

  3. nidhi companies

  4. all of the above

Show answer
Correct Option: D
Explanation:
FDI stands for Foreign Direct Investment. FDI refers to the investment made by an individual or firm into business interests of different country.
FDI is not permitted in sectors like, atomic energy, rail transport and Nidhi companies.

FDI is not allowed _______.

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. real estate development

  2. betting

  3. casinos

  4. all of the above

Show answer
Correct Option: D
Explanation:
FDI stands for Foreign Direct Investment. FDI refers to the investment made by an individual or firm into business interests of different country.
FDI is not allowed in sectors like, real estate development, betting and casinos.

Disinvestment means selling of _______________________.

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. Public Investment to a Private Entrepreneur

  2. Private Investment to a Public Sector Unit

  3. Either (a) or (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: A
Explanation:

In business, disinvestment means to put on the market off convinced resources such as a developed plant, a division or supplementary, or product line. Disinvestment is from time to time described as the conflicting of capital expenditures. Some individuals use the term divestiture or divest when discussing disinvestment.

For example, electric producer manufacturer strength sell off its customer producer product lines and developed facilities in order to raise money that can be used to expand its industrial producer product line.

The correct option is A.


Encouragement of Foreign Direct Investment & removal of Quantitative Restrictions are both parts of ___________________.

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. Industrial Reforms in India

  2. External Sector Reforms in India

  3. Land Reforms in India

  4. Banking Reforms in India

Show answer
Correct Option: B

Inspite of the Economic Reforms already carried out in India, there is a further need for ___________________.

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. Better industrial deregulation

  2. Improvement in Fiscal Discipline

  3. Increase in growth of Infrastructure

  4. All of the above

Show answer
Correct Option: D

The Economic Reforms in India have failed to -

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. Keep fiscal deficits to the targeted levels

  2. Fully implement industrial deregulation

  3. Fully open the economy to trade

  4. All of the above

Show answer
Correct Option: D

Which one of the following statements about the National Agricultural Insurance Scheme (NAIS) is not correct ?

economics international economics indian economy during reforms liberalization, privatisation and globalisation: an appraisal structural changes in indian economy after liberalization

  1. It was introduced from Rabi 2000-2001 season

  2. It replaced the Comprehensive Crop Insurance scheme (CCIS) which was in operation since 1985

  3. It envisages coverage of all the food crops , oilseeds and annual commercial horticultural crops in respect of which past yield data is available for adequate number of years

  4. Among the commercial horticultural crops, eleven crops are correctly covered under the scheme

Show answer
Correct Option: A
Explanation:

The National Agriculture Insurance Scheme was introduced from Rabi-season 1999-2000.the new scheme is available to all the farmers-Loances and non-Loanee-irres-pective of their size of holdings.It envisages coverage of all the food crops ( cereals , millers, and pulses). Oilseeds and annual horticultural / commercial crops , in respect of which past yield data is available for adequate number of years among the annual commercial / horticulture crops, namely, sugarcane,potato, ginger, onion-turmeric, and chillies are covered.

AD curve is a _________________.

economics consumption and investment functions keynesian law of consumption and propensity to consume ex ante and ex post concept of consumption function, saving function and investment function

  1. Horizontal straight line parallel to the X-axis

  2. upward sloping curve

  3. downward sloping curve

  4. Vertical straight line parallel to the Y-axis

Show answer
Correct Option: B
Explanation:

Aggregate Demand refers to the desired level of expenditure in the economy during an accounting year. It is what people wish to spend on the purchase of goods and services during an accounting year. 

AD curve is upward sloping owing to increasing income in the economy as the income increases, the expenditure by the people also increases which leads to rising AD. Therefore, income and AD has a positive relationship between them. 

Out of the following, which can have a value more than one?

economics consumption and investment functions keynesian law of consumption and propensity to consume ex ante and ex post concept of consumption function, saving function and investment function

  1. MPC

  2. APC

  3. APS

  4. MPS

Show answer
Correct Option: B
Explanation:

APC refers to Average Propensity to Consume which defines the amount of consumption in every 1 rupee of income for all level of income which can be more than one because there are situations in the economy when consumption is more national income, i.e. before the break-even point, APC > 1.