ECONOMICS

DEVELOPMENT
1. Which of the following is true of development?
(a) The notion of development is different for people from different sections of
society.
(b) The notion of development can never be conflicting for people from different
sections of society.
(c) The notion of development always go hand in hand for industrialists and tribal
people.
(d) The notion of development is only associated to higher income.
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2. Which of the following report is published by the UNDP to compare the
countries’ education, health and per capita income level standards.
(a) Urban development report
(b) Living index development report
(c) Human development report
(d) Resource development report
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3. Which of the following is the best way to measure the development status of
a country?
(a) Number of cities in a country
(b) Per capita income
(c) Number of IT sector jobs in a country
(d) Inflation
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4. In addition to the level of income which of the following measures are
important for measuring the development status of a nation?
(a) Literacy level and health facilities
(b) Bond prices and stock prices
(c) Inflation level
(d) Interest level
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5. Which of the following is true for a renewable resource?
(a) Renewable resources can never be overused as they are in abundance.
(b) Renewable resources are replenished by the nature over a period of time.
(c) Renewable resources are fixed, and they are bound to get exhausted.
(d) Renewable resources are available only in developed nations.
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6. Which of the following is a drawback of using average income as a measure
of development?
(a) Average income does not indicate the disparity in income level.
(b) Calculation of average income is a tedious process.
(c) Average income is always lower than the actual income of people.
(d) Average income fails to indicate the economic stability of a country.
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7. Arrange the following state in the order of increasing per capita income.
(i) Bihar (ii) Haryana (iii) Kerala (iv) Uttar Pradesh
Options –
(a) i-ii-iii-iv
(b) ii-iii-iv-i
(c) ii-iv-iii-i
(d) iii-iv-i-ii
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8. Which of the following question needs to be answered when thinking
 of nationaldevelopment?
(a) Would a development plan benefit people from suburbs?
(b) Would a development plan include construction of new buildings?
(c) Would a development plan benefit a large or a small number of people?
(d) Would a development plan lead to increased international trade?
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9. Arrange the following countries in the correct increasing sequence of life
expectancy atbirth as per HDR (Human Development Report) 2018.
(i) Myanmar (ii) Sri Lanka (iii) Nepal (iv) India
Options –
(A) i-ii-iii-iv
(B) ii-iv-i-iii
(C) i-iii-ii-iv
(D) ii-iii-i-iv
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10. What does HDI stands for?
(a) Human Development Index
(b) Human Development Indicator
(c) High Development Index
(d) Hampered Development Index
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11. Which of the following best defines sustainable development?
(a) Sustainable development refers to the promotion of international trade so that
the world doesn’t have to face scarcity of resources because of geographical
constraints.
(b) Sustainable development refers to ensuring Pareto efficiency in the countries so
that resources are optimally allocated, and it is not possible to reallocate
resources to make some one better off without making someone else worse off.
(c) Sustainable development refers to meeting human development goals while
maintaining the ability of natural systems to provide and replenish natural
resources upon which the economy is dependent.
(d) Sustainable development refers to ensuring that no individual, firm or country
can become a free rider, i.e., no one can benefit from resources without paying for
them.
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12. Which of the following states has the highest per capita income?
(a) Punjab (b) Bihar (c) Kerala (d) Tamil Nadu

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2. The countries with per capita income of US $955 (2017) or less are termed as
(a) Low income countries
(b) Developing countries
(c) Developed countries
(d) Rich countries
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3. What the countries with per capita income of US $12,056 per annum and
above (in 2017) are called?
(a) Rich countries
(b) Low-income countries
(c) Developing countries
(d) None of the above
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4. Per capita income is:
(a) income per person
 (b) income per family
(c) income per earning person
(d) income per month
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5. Which is the most important attribute to compare countries?
(a) Human Development Index (HDI)
(b) Literacy rate
(c)Export earnings
(d) Income
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6. Proportion of literate population in the 7 years and above age group is
termed as
(a) Education index
(b) Mortality ratio
(c)Literacy rate
(d) Gross enrolment ratio
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7. Which of the following neighbouring countries has better performance in
terms of human development rank than India?
(a) Bhutan
(b) Sri Lanka
(c) Nepal
(d) India
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8. One common development goal among the people is:
(a) family
(b) freedom
(c) income
(d) security
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9. Cause of high infant mortality rate is :
(a) inadequate facilities of health
(b) lack of infrastructural facilities
(c) lack of awareness
(d) both (a) and (b)
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10. Groundwater overuse in India is how much
(a) one-third of country
(b) one-fourth of country
(c) one-fifth of country
(d) two-fifth of country
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11. Human Development Index compares countries based on which of the
following levels of the people?
(a) Educational level
(b) Health status
(c) Per capita Income
(d) All the above
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12. We can obtain per capita income of a country by calculating:
(a) the total income of a person
(b) by dividing the national income by the total population of a country
(c) the total value of all goods and services
(d) The total exports of the country.
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13. Kerala has low Infant Mortality Rate because:
(a) it has good climatic condition
(b) it has adequate infrastructure
(c) it has adequate provision of basic health and educational facilities
(d) it has poor net attendance ratio
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14. Which of the following countries has higher HDI rank than India?
(a) Sri Lanka
(b) Nepal
(c) Bangladesh
(d) Pakistan
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15. According to the World Development Report a country is considered rich
when the per capita income is more than which of the following figures?
(a) Rs 24,000 per annum
(b) Rs 37,000 per annum
(c) Rs 4,53,000 per annum
(d) Rs 5,43,000 per annum
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16. Which is the most important attribute for comparing the
development of countries?
(a) Resources
(b) Population
(c) Average income
(d) None of these
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17. In terms of human development, which of the following countries is
ahead of India?
(a) Bangladesh (b) Sri Lanka (c) Nepal (d) Bhutan
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18. Which one of the following criteria is the basis to
measure the development of a country according to UNDP?
(a) Per capita income
(b) Educational levels of the people
(c) Health status of the people
(d) All the above
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19. Underemployment occurs when people:
(a) do not want to work
(b) are working in a lazy manner
(c) are working less than what they are capable of doing
(d) are not paid for their work
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20. Which one of the following is a developmental goal for industrialists?
(a) To get more days of work
(b) To get better wages
(c) To get more electricity
(d) All the above
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21. Which one among the following is a developmental goal for the landless
rural labourers?
(a) To get electricity and water
(b) To educate their children
 (c) More days of work and better wages
(d) To shift to the cities
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22. The developmental goal for a girl from a rich family is:
(a) to get more days of work
(b) to get as much freedom as her brother gets
(c) to get electricity
(d) to get better wages
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23. Which one of the following is not a feature of developing country?
(a) Agriculture as the major occupation
(b) High technological development
(c) Mass poverty
(d) Mass illiteracy
,,, High technological development
24. Life expectancy at birth means:
(a) average expected length of life of a person at the time of birth
(b) average expected length of life of a person at the time of death
(c) average expected length of a child at the time of birth
(d) None of the above
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25. Which one of the following statements defines ‘Literacy Rate’?
(a) Total literate population divided by total population
(b) Total literate population divided by literate population
(c) Proportion of illiterate population in the 18 and above age group.
(d) It measures the proportion of literate proportion in the 7 years and above age group.
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26. India’s HDI rank in the world is:
(a) 125 (b) 115 (c) 126 (d) 134
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27. Development goals of different sections of our society can be achieved by:
(a) Force
(b) Democratic political process
(c) Violent agitation
(d) Terrorism
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28. For comparing the development of countries, there is considered
to be one of the most important attributes.
a) Income
b) Population
c) Demographics
d) None of the above
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29. Since countries have different , comparing total income will not tell
us what an average person is likely to earn.
a) Economic policies
b) Reserves
c) Resources
d) Populations
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30. In World Development Reports, brought out by the , per capita income
criterion is used in classifying countries.
a) UNICEF b) World Bank c) World Economic Forum. d) United Nations
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 SECTORS OF INDIAN ECONOMY
1. Which of the following is not an activity of unorganised sector?
(a) Teacher taking a class in Kendriya Vidyalaya
(b) A nurse working in a Government hospital
(c) A farmer irrigating his field
(d) A clerk working in the post office
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2. Which of the following statements is true in respect of Public Sector?
(a) Big companies own most of the assets
(b) Government owns the assets
(c) A group of people owns most of the assets
(d) An individual owns most of the assets
,,, Workers in agricultural sector are .
(e) Underemployed (b) Over employed
(c) Unemployed (d) None of these
,,, Which of the following is also known as disguised employment?
(f) Over-employment
(g) Factory employment
(h) Under-employment
(i) Unemployment
,,, Which of the following Acts would not apply to a company like TISCO?
(j) Minimum Wages Act
(k) National Rural Employment Guarantee Act
(l) Factories Act
(m) Payment of Gratuity Act
,,, Disguised Unemployment means a situation where people are
(a) Unemployed
(b) Employed but earning less salary
(c) Employed but productivity is nil
(d) Unemployed for a short period of time
,,, Choose the correct meaning of organised sector.
(n) It covers those enterprises where the terms of employment are not
regular.
(o) It is outside the control of the government.
(p) Jobs are not regular.
(q) It provides low salaries.
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Which of the following basis, the sectors are classified into public andprivate
sector?
(a) Employment conditions
(b) The nature of economic activity
(c) Ownership of enterprises
(d) Number of workers employed in an enterprise
,,,Workers in this sector do not produce goods
(a) Tertiary sector
(b) Secondary sector
(c) Primary sector
(d) None of the above
,,,Production of a commodity through exploitation of natural resources is
anactivity in the _
(e) primary sector
(f) secondary sector
(g) tertiary sector
(h) Information Technology sector
,,,Manufacturing units in unorganised sector are _________
(i) not subject to government regulations
(j) subject to government regulations
(k) subject to central bank’s regulations
(l) none of the above
,,,Which of the following types of activities are covered in the secondary sector?
(a) It generates services rather than goods.
(b) Natural products are changed through manufacturing.
(c) Goods are produced by exploiting natural resources.
(d) It includes agriculture, forestry and dairy.
10. Which sector includes the units producing services?
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) All the above
,,, In which type of unemployment more people are employed than required?
(a) seasonal unemployment
(b) disguised unemployment
(c) educated unemployment
(d) all the above
11. Which sector converts goods into goods?
(a) primary sector
(b) secondary sector
(c) unorganised sector
(d) organised sector
,,, The money value of all final goods and services produced within a
countryduring a particular year is called:
(a) Gross domestic product
(b) Net domestic product
(c) National product
(d) Production of secondary sector
,,, Which of the following economic activity does not come under the primary
sector?
(a) Fishing (b) Farming (c) Mining (d) Banking
,,,Which of the following activities is not the activity of Primary Sector?
(b) Milking (b) Fishing
(c) Making of sugar (d) Farming
,,,What is meant by GDP?
(c) Gross Dairy Product
(d) Gross Domestic Product
(e) Great Development Project
(f) Great Domestic Product
,,,Agriculture, dairy farming are activities belonging to which of the following
sectors?
 (g) Primary
(h) Secondary
(i) Tertiary
(j) Scientific technology
12. Which of the following is not applicable for a worker, who works in the
organised sector?
(a) She gets a regular salary at the end of the month
(b) She is not paid for leave
(c) She gets medical allowance
(d) She got an appointment letter stating the terms and conditions of work when
she joins work.
,,, The motive of public sector enterprises is
(e) Profit making
(f) Entertainment
(g) Social welfare and security
(h) None of the above
,,, Which one of the following economic activities is not in the tertiary sector?
(a) Banking
(b) Bee keeping
(c) Teaching
(d) Working in a call centre
,,, The service sector includes activities such as
(a) agriculture, dairy, fishing and forestry
(b) making sugar, gur and bricks
(c) transport, communication and banking
(d) none of these
,,, Which of the following types of activities are covered in the secondarysector?
(a) It generates services rather than goods.
(b) Natural products are changed through manufacturing.
(c) Goods are produced by exploiting natural resources.
(d) It includes agriculture, forestry and dairy.
13. As per NREGA 2005 (National Rural Employment Guarantee Act 2005)
thenumber of days of employment guaranteed by government is
(a) 100 days
(b) 80 days
(c) 150 days
(d) 120 days
,,, Information and communication technology is associated with _
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) None of the above
,,, In which sector activities are not guided by profit motive?
(a) Organised sector
(b) Public sector
(c) Private sector
(d) Unorganised sector
,,, Manufacturing sector is associated with
(a) primary sector
(b) secondary sector
(c) tertiary sector
(d) private sector
,,, Primary sector is related to _
(a) agriculture
(b) dairy, forestry
(c) fishing, mining
(d) all the above
,,, Who carries economic activities?
(a) Individuals
(b) Firms
(c) Government
(d) All the above
,,, The economy is classified into public and private sectors on the basis of
_
(a) Employment conditions
(b) The nature of economic activity
(c) Ownership of enterprises
(d) Number of workers employed in the enterprise
,,, During the period between 1973 to 2003, the production has increased most in the
(a) primary sector
(b) secondary sector
(c) tertiary sector
(d) all the three sectors
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14. GDP is the value of…. . . . . . . . produced during a particular year:
(a) All goods & services
(b) All final goods & services
(c) All intermediate goods &services
(d) All intermediate & final goods and services
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15. The sectors are classified in to public and private sectors on the basis of
(a) Employment conditions
(b) The nature of economic activity
(c) Ownership of enterprises
(d) Number of workers employed in the enterprises
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16. NREGA 2005 guarantees work for how many days in a year
(a) 100 (b) 120 (c) 150 (d) 90
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17. Which one of the following is a public sector enterprise?
(a) TISCO (b) RIL
(c) Indian Railway (d) WIPRO
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18. Which was the largest producing sector in 1973?
(a) Primary sector
(b) Secondary sector
(c) Tertiary sector
(d) Public sector
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19. Secondary sector deals with .
(a) manufactured goods
(b) semi - finished goods
(c) raw goods
(d) agricultural goods
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20. The sectors are classified into public and private sector on the basis of
(a) employment conditions
(b) the nature of economic activity
(c) ownership of enterprises
(d) members of workers employed in the firm
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21. Which sector is the largest employer?
(a) Private sector
(b) Primary sector
(c) Tertiary sector
(d) public sector
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22. Which sector has shown the highest growth rate in India?
(a) Primary
(b) Secondary
(c) Tertiary
(d) Private
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23. National Rural Employment Guarantee Act was started in .
(a) 2002 (b) 2003 (c) 2004 (d) 2005
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24. Which was the largest producing sector of India in 2003?
(a) Tertiary
(b) Quaternary
(c) Primary
(d) Private
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25. Which was the largest producing sector in 1971–72?
(a) Primary
(b) Secondary
(c) Tertiary
(d) Private
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26. The sum of production in three sectors within the country is called the
(a) Net Domestic Product.
(b) Gross Domestic Product.
(c) Net National Product.
(d) Gross National Product.
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27. Tertiary sector provides different types of
(a) Services.
(b) Natural goods.
(c) Manufactured goods.
(d) Minerals.
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28. Workers get job security in the
(a) organised sector
(b) unorganised sector
(c) primary sector
(d) secondary sector
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29. Choose the most appropriate answer.
The sectors are classified into public and private sector on the basis of
(a) employment conditions
(b) the nature of economic activity
(c) ownership of enterprises
(d) number of workers employed in the enterprise
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30. Production of a commodity, mostly through the natural process, is an activity
in sector.
(a) Primary
(b) Secondary
(c) Tertiary
(d) Information technology
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31. GDP is the total value of produced during a particular year.
(a) all goods and services
(b) all final goods and services
(c) all intermediate goods and services
(d) all intermediate and final goods and services
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32. In terms of GDP the share of tertiary sector in 2003 is
(a) between 20 per cent to 30 per cent
(b) between 30 per cent to 40 per cent
(c) between 50 per cent to 60 per cent
(d) 70 per cent
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GLOBALIZATION AND THE INDIAN ECONOMY
1. MNC stands for
a) Multinational Corporation
b) Multination Corporation
c) Multinational Cities
d) Multinational Council
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2. Investment made by MNCs is called
a) Investment
b) Foreign Trade
c) Foreign Investment
d) Disinvestment
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3. Process of integration of different countries is called .
a) Liberalisation
b) Privatisation
c) Globalisation
d) None of the above
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4. MNCs do not increase .
a) Competition b) Price war
c) Quality d) None of the above
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5. This helps to create an opportunity for the producers to reach beyond the
domestic market .
a) Foreign trade b) Domestic trade
c) Internal trade d) Trade barrier
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6. Foreign Trade .
a) Increases choice of goods
b) Decreases prices of goods
c) Increases competition in the market
d) Decreases earnings
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7. Globalisation was stimulated by
a) Money
b) Transportation
c) Population
d) Computers
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8. Production of services across countries has been facilitated by
a) Money
b) Machine
c) Labour
d) Information and communication technology
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9. Tax on imports is an example of
a) Investment
b) Disinvestment
c) Trade barrier
d) Privatisation
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10. Liberalisation does not include
a) Removing trade barriers
b) Liberal policies
c) Introducing quota system
d) Disinvestment
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11. Small Scale industries face competition from
a) Cheap imports b) Rising prices
c) Exports d) Subsidy
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12. Which one is false?
a) MNCS offer subsidy to the small scale industries
b) MNCs acquire small companies to expand production
c) MNCs enter into joint venture to enter into foreign markets
d) MNCs set up own production center in foreign countries
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13. Globalization is not supported by
a) None of the options
b) Privatization
c) Liberalization
d) Information and communication technology
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14. The most important factor that has stimulated globalisation is..........
a) Population explosion
b) Spread of education
c) Urbanisation
d) Rapid improvement in technology
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15. It creates an opportunity for the producers to reach beyond the
domestic markets. Whatdoes it refer to?
a) Technology b) Investments
c) Trade barriers d) Globalisation
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16. Which one of the following is not an MNC?
a) Reebok Shoes b) Tata Motors
c) SAIL d) Infosys
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17. The most common route for investments by MNCs in countries around the
world is to
a) Set up new factories.
b) Buy existing local companies.
c) Form partnerships with local companies.
d) Both a and b
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18. SEZ stands for
a) Special Economic Zone
b) Special Economic Package
c) Special Ecology Zone
d) None of the options
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19. WTO stands for
a) World Trade Organization
b) World Tennis Organization
 c) World Trade Office
d) World Trade center
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20. Which of the following industries has a large number of well-off buyers in
urban areas?
(a) Electronics (b) Fast food
(c) Automobiles (d) All of these
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21. Identify which one of the following organisations lays stress on
liberalisation of foreigntrade and foreign investment?
(a) International Monetary Fund
(b) International Labour Organisation
(c) World Health Organisation
(d) World Trade Organisation
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22. The investment made by MNCs is called
(a) foreign investment
(b) foreign trade
(c) foreign demand
(d) foreign supply
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23. Identify why do MNCs set up offices and factories in more than one nation?
(a) Because the cost of production is high and the MNCs can earn profit.
(b) Because the cost of production is low and the MNCs undergoes a loss.
(c) Because the cost of production is low and the MNCs can earn greater profit.
(d) Because the MNCs want to make their presence felt globally.
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24. Globalisation, by connecting countries, leads to:
(a) No competition between producers.
(b) Lesser competition between producers.
(c) Greater competition between producers.
(d) None of the above
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25. Removing barriers or restrictions set by the government is called:
(a) Investment
(b) Liberalisation
(c) Favourable trade
(d) Free trade
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26. Which Indian company has been bought by Cargill Foods, an MNC?
(a) Amul (b) Parakh foods
(c) Britannia (d) Dabur
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27. Name the Indian manufacturer with which Ford Motors entered the
Indian automobile business.
(a) Mahindra and Mahindra (b) Suzuki
(c) Maruti (d) Hindustan Motors
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28. Which of the following is an example of globalization?
(a) Indians consuming goods produced abroad.
(b) Indians becoming self-sufficient in terms of production of goods and services.
(c) Indians moving across different states in domestic territory.
(d) Indians producing huge amount of agricultural produce.
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29. The aim of Special Economic Zones (SEZ) developed by the Government of
India is .
(a) To attract foreign companies to invest in India.
(b) To encourage small investors.
(c) To encourage regional development.
(d) None of the above.
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30. The main aim of World Trade Organisation is .
(a) To liberalise domestic trade.
(b) To liberalise international trade.
(c) To restrict trade from foreign countries.
(d) None of the above
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31. Which of the following is a benefit of globalization?
(a) Consumers pay higher amount for goods and services, so producers are better off.
(b) Asymmetric information cannot exist in a globalized market.
(c) Consumers get a wide variety of goods to choose from.
(d) Homogeneous goods are sold in a globalized market.
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32. Globalisation so far has been more in favour of .
(a) developed countries
(b) developing countries
(c) poor countries
(d) none of the above
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33. ‘Increased job opportunities’ in countries is an impact of .
(a) privatization (b) liberalisation
(c) globalisation (d) none of these
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34. Which of the following is an advantage of globalization to
multinational companies?
(a) Multinational companies do not have to procure raw materials from other
countries as globalization leads to self-sufficiency of companies.
(b) Spreading out production across international borders can help in lowering the
cost of production.
(c) When multinational companies expand production across the world, they do not
have to pay taxes as they help in generating employment.
(d) Multinational companies can easily put the burden of increased cost of
production on global consumers and continue to earn high profits.
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35. Identify which one of the following Indian industries has been hit hard by
globalisation?
(a) Information Technology (IT)
(b) Toy making
(c) Jute
(d) Cement
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36. Identify in which year did the government decide to remove barriers on
foreign tradeand investment in India?
(a) 1993 (b) 1992 (c) 1991 (d) 1990
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37. Which of the following can be a benefit to local businesses if they conduct
business with MNCs?
(a) Local businesses do not have to invest in the business as MNCs do all the
 investment.
(b) MNCs provide cheap labour to local businesses.
(c) MNCs can bring advanced techniques of production.
(d) Local businesses earn higher profits as their cost of production becomes nil.
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Study the picture and answer the question that
follows:
39. Which of the following aspects best signifies
above image?
(a) Liberalisation (b) Trade
(c) WTO (d) Internet
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40. Match the following Questions:

Options:
(a) A-i, B-ii, C-iii
(b) A-ii, B-iii, C-i
(c) A-iii, B-i, C-ii
(d) A-iii, B-ii, C-i
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41. A is a company that owns or controls production in
more than one nation/country.
(a) Domestic company
(b) Multinational corporation
(c) International corporation
(d) None of the above
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Study the picture and answer the question that
follows:
42. Which of the following aspects best signifies
above image?
(a) Liberalisation (b) Trade
(c) WTO (d) Internet
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43.Identify which one of the following is a major benefit of joint production
between a localcompany and a Multi- National Company?
(a) MNCs can bring latest technology in the production.
(b) MNCs can control the increase in the price.
(c) MNCs can buy the local company.
(d) MNCs can sell the products under their brand name.
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44. Identify the incorrect feature of a Multi-National Company.
(a) It owns/controls production in more than one nation.
(b) It sets up factories where it is close to the markets.
(c) It organises production in complex ways.
(d) It employs labour only from its own country.
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45. Identify the correct statement: Globalisation has led to improvement in
 livingconditions:
(a) Of all the people.
(b) Of people in the developed countries.
(c) Of workers in the developing countries.
(d) None of the above.
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46. Identify the one which is a ‘barrier’ in foreign trade:
(a) Tax on import (b) Quality control
(c) Sales tax (d) Tax on local trade
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47. Identify the correct option which contributes to globalisation:
(a) internal trade (b) external trade
(c) large scale trade (d) small scale trade
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48. Trade between countries:
(a) Decreases competition between countries.
(b) Determines prices of products in different countries.
(c) Makes a country dependent on the other.
(d) None of the above
,,,
49. What was the far reaching change in the policy made in India in 1991?
(a) Instil trade barriers
(b) Removal of trade barriers
(c) Remove taxation
(d) None of the above
,,,
50. Liberalization does not include
a) Introducing quota system
b) Removing trade barriers
c) Disinvestment
d) Liberal policies
,,,
51. Tax on imports is an example of
a) Trade barrier
b) Investment
c) Disinvestment
d) Privatization
,,,
52. How many countries are currently the members of the World Trade
Organisations?
a) 140 countries
b) 145 countries
c) 159 countries
d) 149 countries
,,,
53. WTO is dominated by countries like..........
a) U.S. and U.K.
b) China and France
c) India and Japan
d) Ireland and Germany
,,,
54.A company that owns or controls production in more than one nation is
called..........
a) Foreign company
b) Multi National Company
c) International company
d) Local company
,,,
55.What was the idea behind developing Special Economic Zones (SEZs) in
India?
a) To attract foreign companies to invest in India
b) To earn foreign exchange
c) To make India financially stable
d) To make India a developed country
,,,
56. Production of services across countries has been facilitated by
a) Information and communication technology
b) Money
c) Machine
d) Labour
,,,
57. Globalization was stimulated by
a) Transportation
b) Money
c) Population
d) Computers
,,,
58. Foreign Trade
a) Decreases earnings
b) Increases choice of goods
c) Decreases prices of goods
d) Increases competition in the market
,,,
59. Globalisation has led to improvement in living conditions
a) of all the people
b) of people in the developed countries
c) of workers in the developing countries
d) None of the above
,,,
60. What is the full form of WTO?
a) World Transactions Organisation
b) Wealth Trade Organisation
c) World Trade Organisation
d) None of the above
,,,
61. What are the investments made by MNCs called?
a) Foreign investments
b) International investments
c) Multi National investments
d) None of these
,,,
62. The past two decades of globalisation has seen rapid movements in
a) Goods, services and people between countries.
b) Goods, services and investments between countries.
c) Goods, investments and people between countries.
d) None of the above
,,,
63.This helps to create an opportunity for the producers to reach beyondthe
 domestic market
a) Foreign trade b) Domestic trade
c) Internal trade d) Trade barrier
,,,
64. MNCs do not increase
a) None of the options b) Competition
c) Price war d) Quality
,,,
65. Process of integration of different countries is called
a) Globalization
b) Liberalization
c) Privatization
d) None of the options
,,,
66. Ranbaxy is a multinational company which is associated with..........
a) automobiles
b) nuts and bolts
c) medicines
d) information technology
,,,
67. The international organisation formed for the liberalisation of
trade is..........
a) World Trade Organisation
b) United Nations Organisation
c) World Trade Centre
d) Multi-national Corporation
,,,
68. What is the term ‘investment’ mean?
a) Money spent on buying clothes
b) Money spent on buying land, building, machines, etc.
c) Money spent on buying a car
d) Money spent on buying furniture
,,,
69.Why did the government decide to remove barriers on foreign trade and
foreign competitors?
a) Because the government wanted to earn the foreign exchange.
b) Because the government felt that the time had come for Indian producers to
compete with producers in the world market.
c) Because the government wanted to maintain good relations with other countries.
d) All of the above.
,,,
70. Investment made by MNCs is called
a) Foreign Investment b) Investment
c) Foreign Trade d) Disinvestment
,,,
71. MNC stands for
a) Multinational Corporation
b) Multination Corporation
c) Multinational Cities
d) Multinational Council
,,,
72. To liberalize international trade was the aim of
a) World Trade Organisation.
b) Reserve Bank of India.
c) Independent India.
d) Multinational corporations.
,,,
73. WTO was the initiative of
a) Less developed countries.
b) Developing countries.
c) Developed countries.
d) Poor countries.
,,,
74. According to 2006 data, member countries of WTO are
a) 130 b) 149 c) 150 d) 206
,,,
75.One special step taken by the central and state government to
attract foreign companies in India is
a) Special Economic Zones.
b) Special easy Zones.
c) Small Economic Zones.
d) Smart Economic Zones.
,,,
76. Companies setting up production units in SEZ’s have to pay taxes after
a) 2 years b) 3 years
c) 4 years d) 5 years
77. The most affected people by WTO rules are
a) Indian farmers.
b) Farmers of USA.
c) Industrialist in India
d) Industrialist in China.
,,,
78. Integration of markets means
a) operating beyond the domestic markets
b) wider choice of goods
c) competitive price
d) All of the above
,,,
79. Name of the MNC dealing in medicines is
a) Ranbaxy.
b) Asian Paints.
c) Tata Motors.
d) Infosys.
,,,
80. The money that is spent to buy an asset is called
a) Transaction.
b) Withdrawals.
c) Deposits.
d) Investment.
,,,
81. The basic function of foreign trade is to
a) Connect markets of two countries only.
b) Create an opportunity for buyers for foreign goods.
c) Connect markets of different countries.
d) Connect developed countries only.
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