India’s Trade Policy Questions and Answers

Multiple Choice Questions and Answers  (MCQs) on India’s Trade Policy For Civil Services

Question 1 : The gains from international trade depend on the

  1. Differences in cost rations in the two trading countries
  2. Terms of trade
  3. 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:

  1. Capital goods
  2. Petroleum
  3. Pearls and precious stones
  4. Chemicals
  5. 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?

  1. Slowdown in demand from some major importers
  2. The appreciation of US dollars
  3. Labour laws in India
  4. 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