macro fundamentals, GDP, investment & growth section 4 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 6

Consider the following statements:

1. Decrease in investments will lead to depletion of capital stock in the economy
2. A decrease in investments will lead to an increase in the incremental capital-output ratio
3. A decrease in investments will lead to a decrease in the production of goods and services

Select the correct answer using the code given below:

a) (i) & (iii) only

b) (ii) only

c) (i) only

d) None of the above

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Question : 7 [UPPCS (Mains) 2007]

The licensing policy for the industries drew strength from

a) Industrial Policy Resolution, 1956

b) Industrial Policy Resolution, 1948

c) Industries Act 1951

d) Congress Party Resolution of establishing Socialistic pattern of society

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Question : 8 [UPPCS (Mains) 2016]

As per Micro, Small and Medium Enterprises Development Act 2006, medium enterprises are defined as those with the investment of

a) Rs. 5 crores to Rs. 10 crores

b) Rs. 25 lakhs to Rs. 5 crores

c) more than Rs. 10 crores

d) less than Rs. 10 crores

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Question : 9

Consider the following statements:

1. Investment in the economy increases with a decrease in the capital-output ratio
2. Economic output increases with a decrease in capital-output ratio

Select the correct answer using the code given below:

a) Both (i) & (ii)

b) (ii) only

c) (i) only

d) Neither (i) nor (ii)

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Question : 10 [UPSC (Pre) 1999]

Consider the following statements regarding Small-Scale industries,

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Small-Scale industries are in most cases not as efficient and competitive as large-scale ones. Yet the Government provides preferential treatment and reservation in a range of products to the small firms because small scale-industries.

1. Provide higher employment on a per-unit capital development basis.
2. Promote a regional dispersion of industries and economic activities.
3. Have performed better in the export of manufactured products than the large scale ones.
4. Provide jobs to low skill workers who otherwise may not find employment avenues elsewhere.

Which of the above statements are correct?

a) 1 and 2

b) 1 and 4

c) 3 and 4

d) 2 and 3

Answer »