introduction to indian economy section 3 MCQ Questions & Answers Detailed Explanation

Answer: (e)

Navaratna was the title given originally to nine Public Sector Enterprises (PSEs), identified by the Government of India in 1997 as having comparative advantages, which allowed them greater autonomy to compete in the global market. The number of PSEs having Navaratna status has been raised to 16.

In 2009, the government established the Maharatna status, which raises a company's investment ceiling from Rs. 1,000 crore to Rs. 5,000 crore.

SAIL, NTPC are now Maharatna; while Bharat Heavy Electricals Limited and Shipping Corporation of India Limited are navaratna companies.

Answer: (d)

Gross National Product (GNP) is the market value of all products and services produced in one year by labour and property supplied by the residents of a country.

Unlike Gross Domestic Product (GDP), which defines production based on the geographical location of production, GNP allocates production based on ownership.

Therefore if the firm sells new shares directly to individuals it has no effect on the Gross National product as there is no direct relation between the two.

Answer: (b)

The Millenium Development Goals focus on developing countries. There is one exception: MDG number 8 on developing a global partnership for development, which includes commitments for developed countries to help developing countries.

An important difference is that the sustainable Development Goals are meant to apply to all countries, including developed countries.

Another difference is that the sustainable Development Goals are explicitly meant to include the three dimensions of sustainable development economic, social and environmental.

Answer: (b)

Primary sector-Agriculture, fishing, mining and quarrying

Secondary sector- Manufacturing and construction, Gas and water supply

Tertiary sector- trade, transport etc, finance & real estate, community and personnel services

Answer: (d)

The Export-Import Policy announced on March 31, 1992, said that all goods, except those coming under the negative list, could be freely imported and exported.

The negative list consisted of goods, the import or export of which was prohibited; restricted through licensing or otherwise; or canalized. Canalized items can be imported by Canalizing Agency only and not by an individual importer.

An individual importer requires an Import licence issued under the Export and Import Policy for importing canalized items.

Answer: (c)