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

Answer: (b)

The Minimum Wages Act, 1948 was enacted to safeguard the interests of workers, mostly in the unorganized sector by providing for the fixation of minimum wages in certain specified employments. It binds the employers to pay their workers the minimum wages fixed under the Act from time to time.

Answer: (c)

The risk weight for a Government guaranteed advance should be the same as for other advances. To ensure that banks do not suddenly face difficulties in meeting the capital adequacy requirement, the new prescription on risk weight for Government guaranteed advances should be made prospective from the time the new prescription is put in place.

Answer: (c)

A Pigovian tax is a tax applied to a market activity that is generating negative externalities (costs for somebody else) like cigarette consumption, burning of fossil fuel.

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: (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: (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.