CBSE Questions for Class 11 Commerce Economics Introduction To Economics Quiz 3 - MCQExams.com

As a result of the New Industrial Policy, 1991 -
  • Prior approval of Central Government is required for establishing new undertakings, and expanding the present undertakings
  • An industry intending to have more than Rs 100 Crore of assets is required to obtain the permission of the Central Government
  • Prior approval of Central Government for establishing new undertakings and expanding existing undertaking is not required
  • Two or more Companies deciding to amalgamate are required to take the prior approval of the Central Government
New Economic Reforms in India were introduced in ___________.
  • 1999
  • 1991
  • 2001
  • 2003
Which one of the following taxes belong exclusively to the State Governments?
  • Income Tax
  • Agricultural Tax
  • Excise Tax
  • Wealth Tax
Which of the following is an objective of VAT?
  • To avoid double taxation effect or cascading effect
  • To promote cost-efficiency, by permitting credit on inputs
  • To ensure equitable distribution of tax impact amongst Dealers
  • All of the above
Which of the following is not true about the pre-reforms period (i.e. before 1991)?
  • Shortage of Foreign Exchange
  • Heavy Government Borrowings
  • Huge Losses of Public Sector Enterprises
  • Surplus Budget in each financial year
In the pre-reforms period (i.e. before 1991), Import of food grains was permitted ______________.
  • In order to meet domestic demand in case of shortage of foodgrains
  • To help Indians consume nutritious food
  • Whenever there was a favourable Balance of Trade
  • All of the above
Which of the following does not relate to the External Sector Reforms in 1991?
  • Devaluation of the Rupee
  • Removal of restrictions on Foreign Exchange transactions
  • Export Support
  • Restrictions on Foreign Direct Investment
In the context of Indian Economy, there may be a need for importing foodgrains in case of:
  • Balancing exports and imports of foodgrains.
  • Severe shortages of foodgrains due to drought, floods, etc.
  • Increase in the consumption of foodgrains
  • None of the above
Which of the following is a positive impact of Economic Reforms on the Indian Economy?
  • Focus on Brand Building in an increasingly competitive market place
  • Shift from labour-intensive to capital-intensive methods of production
  • Stress on quality and R & D
  • All of the above
'Served from India' brand concept has been started for -
  • Agricultural exports
  • Exports of services
  • Export of handlooms and handicrafts
  • Export of gems and jewellery
As a result of Economic Reforms, Re-structuring, Mergers & Acquisitions of Companies, Business Process Re-engineering, processes have been ___________.
  • Simplified
  • Made more procedural
  • Subject to Central Government approval in all situations
  • None of the above
In which of the following situations, the Law of Variable Proportions will not apply?
  • Improvement in technology
  • When all factors are proportionately varied
  • Where the factors must be used in fixed proportions to yield the product
  • All of the above
Lowering of Import / Export Duty Rates, as part of the External Sector Reforms in 1991, relates to -
  • Exchange Rate Stabilisation
  • Rationalisation of Tariff Structure
  • Quantitative Restrictions
  • Foreign Direct Investment
In India, Support to Exporters is available in the form of:
  • Duty and Tax Concessions
  • Export Finance
  • Export Promotion Marketing Assistance
  • All of the above
All of the following institutions promote/assist Export Trade. Identify the institution which does not.
  • The Trade Fair Authority
  • Indian Institute of Management
  • The Indian Institute of Foreign Trade
  • Commodity Boards
Which of the following were abolished as part of the External Sector Reforms in 1991?
  • Cash Compensatory Scheme
  • EXIM Scrip Scheme
  • Both (a) and (b)
  • Neither (a) nor (b)
Equity Offer through 'Differential Pricing Method' primarily refers to ________________________.
  • Government selling part of its Shares in one PSU to other PSUs
  • Government selling Shares of PSUs to Public Sector Financial Institutions and Banks
  • Government's own Financial Institutions buying Government's stake in select PSU's and holding them until any third buyer emerges
  • None of the above
Cross holding method of Disinvestment refers to ____________________.
  • Government selling part of its Shares in one PSU to other PSUs
  • Government selling Shares of PSUs to Public Sector Financial Institutions & Banks
  • Government's own Financial Institutions buying Government's stake in select PSU's and holding them until any third buyer emerges
  • None of the above
Which of the following is an important ingredient of Selling Economies?
  • Advertising Economies
  • Inventory Economies
  • Transportation Economies
  • Storage Economies
The term disinvestment is more popularly used ____________________________.
  • Where a holding company sells shares of a Subsidiaray company
  • Where an investment company off loads its holding
  • Where central / State government sells its holdings of public sector companies
  • None of the above
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