Economic Survey MCQ series- Question 22

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Next question

Consider the following forms of Preferential Trade Agreements (PTAs):

I.Partial Scope Agreement (PSA
II.Free Trade Agreement (FTA)
III.Customs Union (CU)

Which of the followings is/are among the forms of Preferential Trade Agreement?

a) Only I
b) I and II
c)I and III
d)All of the above

The correct answer of the previous question is A

The explanation is as follows

Common Market (CM) A common market is a customs union where movement of factors of production is relatively free amongst member countries.

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Economic Survey MCQ Series- Question 21

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Next question:

Which of the following is correct regarding Common Market (CM)?

A market where movement of factors of production is relatively free amongst member countries.

B. A market where movement of factors of production is restricted amongst member countries.

C. A market where member countries coordinate macro-economic and exchange rate policies.

D. The free-trade agreement in which members apply a common external tariff (CET) schedule to imports from non members.

 

The correct answer for the previous question is C

The explanation is as follows:

A free trade agreement is a preferential arrangement in which members reduce tariffs on trade among themselves, while maintaining their own tariff rates for trade with non-member

Economic Survey MCQ Series- Question 2o

Next question:

Which of the following statements is correct regarding Free Trade Agreement (FTA)?

a)An agreement which is only partial in scope, meaning it allows for trade between

countries on a small number of goods.
b)A preferential arrangement in which members reduce tariffs on trade among themselves, while maintaining their own tariff rates for trade with non members.
c)A free-trade agreement in which members apply a common external tariff (CET) schedule to imports from non members.
d)The market where movement of factors of production is relatively free amongst member countries.

The correct answer for yesterday’s question is 2. It is self explanatory

ECONOMIC SURVEY MCQ SERIES- QUESTION 19

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NEXT QUESTION:

What does Economic Survey 2015-16 mean by ‘exit problem’ mentioned as part of Chakravyuha Challenge being faced by the Indian economy?

a) Indian economy has no alternative to liberalization
b) Indian economy allows for ease of entry of firms but exit of inefficient firm is limited
c) Indian economy cannot exit from prerogative of Socialistic ideals
d) Indian economy cannot exit the problem of structural inefficiencies

 

The correct answer for yesterday’s question is 2

The explanation is as follows:

For the purpose of economic calculations such as GDP, GNP, GVA etc. the concept of economic territory is used in place of political or geographical territory. The Economic territory of India includes the following: Political / geographical boundaries of India including territorial waters and air space within which persons, goods, services and capital move freely Territorial enclaves such as embassies, consulates, military bases, scientific bases etc. which are located abroad but excluding similar conclaves of other countries within the political boundaries of India. Ships, aircrafts etc. operated by the Indian residents between two or more countries Fishing vessels, oil and natural gas rigs etc. operated by the resident Indians in the international waters or other areas over which the country enjoys the exclusive rights or jurisdiction such as territorial waters and exclusive economic zone, continental shelf etc.

ECONOMIC SURVEY MCQ SERIES- QUESTION 18

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Next question

For the purpose of calculating GDP, GNP, GVA, etc, the concept of “Economic Territory” is generally used. What does the concept of Economic Territory include?

  1. Political and the geographical boundaries of the nation excluding the territorial waters and airspace
  2. Territorial enclaves such as embassies, consulates, etc which are located abroad
  3. Oil and natural gas rigs operated by the residents of the nation in areas over which the country enjoys the exclusive rights.
  1. i, ii and iii
  2. ii and iii only
  3. i and ii only
  4. i and iii only

 

The correct answer for the previous question is C  i.e. 1 only

The explanation is as follows:

In simple words Gross Capital Formation is Investment. When people save, they tend to invest. The percentage of the investment made each year out of the total GDP is called Gross Capital Formation.
To achieve the Optimum rate of economic growth, the suggested rate of capital formation is above 40%. But in India, the GCF has been around 35% for last few years. The share of the household sector has been significantly larger than the private corporate sector

Economic Survey MCQ Series- Question 17

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Question:

Consider the following statements regarding Gross Capital Formation (GCF) in India.

  1. The rate of GCF has been falling since 2012-13
  2. In India, the rate of GCF has remained above 40% for the past couple of years
  3. The share of household sector in GCF has been significantly lower than the share of the private corporate sector.

Which of the above statements are correct?

  1. 1 and 2 only
  2. 3 only
  3. 1 only
  4. All the given statements are correct

 

The correct answer for yesterday’s question is 2 i.e. Financing, real estate, etc for which the growth (AE 2015-16) is 10.3% i.e. the highest among all.

It is a factual question, the growth figures for the year 2015-16 (advance estimates) for some other sectors are:
Agriculture, forestry and fishing is 1.1%
Industry is 7.3%
Manufacturing is 9.5%
Services is 9.2%

Economic Survey MCQ Series- Question 16

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Question:

According to the Economic Survey 2015-16, the sectoral growth was highest in which of the following sector in 2015-16 (advanced estimates)?

  1. Manufacturing
  2. Financing, real estate, professional services, etc
  3. Trade, hotels, transport and communication
  4. Construction

 

The correct answer for yesterday’s question is 4 i.e. 1,2 and 3 only

The explanation is as follows:

The Survey outlines some challenges which make the growth prospects full of challenges ahead. These are as follows:
In recent times, the correlation between India’s growth and world growth has risen and is reasonably high now. Thus, a weak global growth will impact India’s exports, and this might hinder growth.
Currently, India is facing a “Twin balance sheet problem“. The balance sheets of corporate and banks have been stresses and that might affect prospects of reviving private investment.
The turmoil in global financial markets could impact capital flows, thus posing challenge to growth.