INDIAN ECONOMY TEST - 6-Indian Economy-Quiz

Civil Services Exams-INDIAN ECONOMY TEST - 6

Q 11.
Consider the following statements:

1. Network products have high ability to induct into the global value chains.

2. Global value chains locks production within a firm and within a country but trading of the finished product across the border.

a.)
1 and 2 correct
b.)
Only 1 is correct
c.)
Only 2 is correct
d.)
Neither 1 nor 2 is correct

Q 12.
The main feature of the economic package of Washington Consensus is that:

a.)
There should be strong regulation of private enterprises
b.)
Free trade and free enterprises
c.)
Increasing the tax rate and reducing welfare expenditure
d.)
Protection of infant industries

Q 13.
Which of the following combination is the correct interface under crony capitalism?

a.)
Business- politics
b.)
Business – bureaucracy
c.)
Politics - bureaucracy
d.)
Business – criminals

Q 14.
Active government intervention and expansion of government expenditure to stimulate the economy during recession period was the prescription of:

a.)
Monetarist school led by Milton Friedman
b.)
JM Keynes
c.)
Classical economists
d.)
Mercantilists

Q 15.
Pareto efficiency as a result of a government policy implies:

a.)
Nobody is worse off and at least one individual gets increased welfare
b.)
All individuals’ welfare goes up equally and simultaneously
c.)
Somebody better off while some other peoples’ welfare reduced
d.)
Welfare gain of gainers is higher than the welfare loss of the losers

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