industries manufacturing & service sectors section 8 MCQ Questions & Answers Detailed Explanation

Answer: (d)

The budget (2020-21) is woven around three prominent themes:

1. Aspirational India
2. Economic Development
3. Caring society

This budget is dedicated to providing “Ease of Living” to all citizens.

The “Ease of Living” is a bouquet and holding this bouquet are two hands- one, corruption-free, policy-driven good governance and two, the clean and sound financial sector. And the details under the three broad themes are the flowers in the bouquet.

Answer: (c)

In the short run insurance premium are fixed costs because they are independent of the level of production.

Answer: (b)

The services sector’s significance in the Indian economy has continued to increase, with the sector now accounting for around 55 per cent of GVA, two-thirds of total FDI inflows into India and about 38 per cent of total exports.

Ref: Economic Survey 2019-20, Vol – II, Page 273.

Answer: (c)

Force Majeure is a French phrase that means a ‘superior force’. It is an unforeseeable circumstance that prevents someone from fulfilling a contract. It is a contractual provision agreed upon between parties.

The occurrence of a force majeure event protects a party from liability for its failure to perform a contractual obligation. Typically, force majeure events include an Act of God or natural disasters, war or war-like situations, epidemics, pandemics, etc.

The intention of a force majeure clause is to save the performing party from the consequences of something over which it has no control.

Force Majeure is an exception to what would otherwise amount to a breach of contract. This term is generally used in commercial contracts.

Answer: (d)

The licensing policy for the industries drew strength from the industrial Act, 1951.

Industries Development and Regulation Act (IDRA), 1951 was enacted in pursuance of the Industrial Policy Resolution, 1948.

The Act was formulated for the purpose of development and regulation of industries in India by the Central Government.

Answer: (b)

A Miniratna company is one that has made profits continuously for the last three years or earned a net profit of Rs. 30 crores or more in one of the three years.

Miniratna company can invest up to Rs. 500 crores or equal to their net worth, whichever is lower without govt approval.