Multiple Choice Questions and Answers (MCQs) on India’s Trade Policy For Civil Services
Question 1 : The gains from international trade depend on the
- Differences in cost rations in the two trading countries
- Terms of trade
- Size of the country
Select the correct answer using the codes given below:
a) 2 and 3 only
b) 1 and 2 only
c) 1 and 3 only
d) 1, 2, and 3
Answer : d
Question 2 : Which one among the following is the correct descending sequence of India’s import of commodities in terms of value?
a) Precious metals and stones – Electronic goods – Capital goods – Fertilizers
b) Fertilizers – Precious metals and stones – Electronic goods – Capital goods
c) Capital goods – Electronic goods – Precious metals and stones – Fertilizers
d) Electronic goods – Capital goods – Fertilizers – Precious metals and stones
Answer : a
Question 3 : Which of the following is not an objective of export promotion capital goods scheme ?
a) Promote import of capital goods to enhance export
b) Promote exports from India
c) Reduce the customs duty collection from manufacturers
d) Infuse high technology capital equipment in the manufacturing sector
Answer : c
Question 4 : Which one of the following continents accounts for the maximum share in exports from India?
a) Asia
b) Europe
c) Africa
d) North America
Answer : a
Question 5 : Which among the following products is usually not exported from India?
a) Wheat
b) Rice
c) Sugar
d) Pulses
Answer : d
Question 6 : Brent index is associated with
a) Crude oil prices
b)Copper future prices
c)Gold future prices
d)shipping rate index
Answer : a
Question 7 : India has witnessed a number of acute problems immediately prior to the implementation of economic reforms in the early 1990s. Among the following, which one was severe and unmanageable?
a) Industrial backwardness
b) Balance of payments crisis
c) Backwardness of agriculture
d) Shortage of food grains
Answer : b
Question 8 : During 2016-17, which of the following items under manufacturing goods sector had the highest share in India’s exports ?
a) Gems and jewellery
b) Engineering goods
c) Chemical and related products
d) Handicrafts
Answer : a
Question 9 : Consider the following items imported by India:
- Capital goods
- Petroleum
- Pearls and precious stones
- Chemicals
- Iron and steel
The correct sequence of the decreasing order of these items (as per 2016 -17 figures ), in terms of value is
a) 1 2 3 4 5
b) 1 2 4 3 5
c) 2 3 1 4 5
d) 2 1 4 5 3
Answer : c
Question 10 : Which of the following are the major reason for India’s recent sluggish export performance?
- Slowdown in demand from some major importers
- The appreciation of US dollars
- Labour laws in India
- High cost of power in India
Select the correct answer using the codes given below:
a) 1, 3, and 4 only
b) 1, 2, 3, and 4
c) 1 and 2 only
d) 3 and 4 only
Answer : a