introduction to indian economy section 3 Practice Questions Answers Test with Solutions & More Shortcuts

Answer: (d)

The present AGMARK standards cover quality guidelines for 205 different agricultural commodities spanning a variety of Pulses, Cereals, Essential Oils, Vegetable Oils, Fruits & Vegetables, and semiprocessed products.

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: (a)

The EXIM Policy for 2002-07 which came into effect on 1st April 2002 was the first policy that had to be formulated keeping in view all the commitments India had made under the WTO.

In 2001, all quantitative restrictions on imports were removed. The medium-term export strategy for 2002-07 had set a target of 1 per cent share of global trade by 2006-07.

According to the then estimates by the Directorate-General of Foreign Trade, to corner 1 per cent of the global trade pie, exports needed to grow at a compounded annual growth rate of 14.25 per cent over the next three years.