QUIZ – 2020: Insights Static Quiz, 24 January 2020 – Economy
INSIGHTS STATIC QUIZ 2019
Quiz-summary
0 of 5 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
Information
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 5 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- Answered
- Review
-
Question 1 of 5
1. Question
Consider the following statements regarding Socialist society.
- In a socialist society the government decides what goods are to be produced in accordance with the needs of society.
- The desires of individual consumers are given much importance.
- The goods produced are distributed among people on the basis of Purchasing Power.
Which of the above statements is/are incorrect?
Correct
Solution: c)
In a capitalist society the goods produced are distributed among people not on the basis of what people need but on the basis of Purchasing Power—the ability to buy goods and services.
In a socialist society the government decides what goods are to be produced in accordance with the needs of society. It is assumed that the government knows what is good for the people of the country and so the desires of individual consumers are not given much importance. The government decides how goods are to be produced and how they should be distributed. In principle, distribution under socialism is supposed to be based on what people need and not on what they can afford to purchase.
Incorrect
Solution: c)
In a capitalist society the goods produced are distributed among people not on the basis of what people need but on the basis of Purchasing Power—the ability to buy goods and services.
In a socialist society the government decides what goods are to be produced in accordance with the needs of society. It is assumed that the government knows what is good for the people of the country and so the desires of individual consumers are not given much importance. The government decides how goods are to be produced and how they should be distributed. In principle, distribution under socialism is supposed to be based on what people need and not on what they can afford to purchase.
-
Question 2 of 5
2. Question
The primary motive of the colonial government behind the policy of systematically deindustrialising India was
- To make India a mere exporter of important raw materials for the modern industries in Britain.
- To turn India into a sprawling market for the finished products.
Select the correct answer code:
Correct
Solution: c)
The primary motive of the colonial government behind this policy of systematically deindustrialising India was two-fold. The intention was, first, to reduce India to the status of a mere exporter of important raw materials for the upcoming modern industries in Britain and, second, to turn India into a sprawling market for the finished
products of those industries so that their continued expansion could be ensured to the maximum advantage of their home country — Britain.
Incorrect
Solution: c)
The primary motive of the colonial government behind this policy of systematically deindustrialising India was two-fold. The intention was, first, to reduce India to the status of a mere exporter of important raw materials for the upcoming modern industries in Britain and, second, to turn India into a sprawling market for the finished
products of those industries so that their continued expansion could be ensured to the maximum advantage of their home country — Britain.
-
Question 3 of 5
3. Question
Total Factor Productivity (TFP) in an economy can improve by
- Technology growth and efficiency
- Increasing taxation on the private sector
- Efficient human capital and physical capital.
Which of the above statements is/are correct?
Correct
Solution: b)
If a nation has the same stock of land, labour and capital, and yet it achieves high rates of GDP growth consistently. If inputs are same, how does output increase over time?
Either the individual productivities of factors would have increased, or the total combined productivity of the economy has increased.
This can happen either by better technology, better infrastructure etc that improve the total factor productivity of the economy. Suppose, now a factory requires 10 hours to produce a good. With better techniques of production, the same can be achieved in 2 hours.
Technology growth and efficiency are regarded as two of the biggest sub-sections of Total Factor Productivity.
Incorrect
Solution: b)
If a nation has the same stock of land, labour and capital, and yet it achieves high rates of GDP growth consistently. If inputs are same, how does output increase over time?
Either the individual productivities of factors would have increased, or the total combined productivity of the economy has increased.
This can happen either by better technology, better infrastructure etc that improve the total factor productivity of the economy. Suppose, now a factory requires 10 hours to produce a good. With better techniques of production, the same can be achieved in 2 hours.
Technology growth and efficiency are regarded as two of the biggest sub-sections of Total Factor Productivity.
-
Question 4 of 5
4. Question
In the annual budget documents of the Government of India, ‘Primary Deficit’ refers to
Correct
Solution: d)
Primary Deficit: We must note that the borrowing requirement of the government includes interest obligations on accumulated debt. To obtain an estimate of borrowing on account of current expenditures exceeding revenues, we need to calculate what has been called the primary deficit. It is simply the fiscal deficit minus the interest payments
Gross primary deficit = Gross fiscal deficit – net interest liabilities
Net interest liabilities consist of interest payments minus interest receipts by the government on net domestic lending.
Incorrect
Solution: d)
Primary Deficit: We must note that the borrowing requirement of the government includes interest obligations on accumulated debt. To obtain an estimate of borrowing on account of current expenditures exceeding revenues, we need to calculate what has been called the primary deficit. It is simply the fiscal deficit minus the interest payments
Gross primary deficit = Gross fiscal deficit – net interest liabilities
Net interest liabilities consist of interest payments minus interest receipts by the government on net domestic lending.
-
Question 5 of 5
5. Question
Consider the following statements regarding International Financial Service Centre (IFSC)
- An IFSC caters to customers outside the jurisdiction of the domestic economy.
- IFSC exclusively deals asset management and global portfolio diversification only.
Which of the above statements is/are correct?
Correct
Solution: a)
An IFSC is thus a jurisdiction that provides world class financial services to non-residents and residents, to the extent permissible under the current regulations, in a currency other than the domestic currency (Indian rupee) of the location where the IFSC is located.
Products and Services at IFSCs:
- Fund Raising for individuals, corporations and governments (sovereign and sub sovereign)
- Asset Management and Global Portfolio Diversification
- Personal Wealth Management (PWM) for high-net worth individuals (HNWIs).
- Global Tax Management and Cross- border Tax Liability Optimisation
Incorrect
Solution: a)
An IFSC is thus a jurisdiction that provides world class financial services to non-residents and residents, to the extent permissible under the current regulations, in a currency other than the domestic currency (Indian rupee) of the location where the IFSC is located.
Products and Services at IFSCs:
- Fund Raising for individuals, corporations and governments (sovereign and sub sovereign)
- Asset Management and Global Portfolio Diversification
- Personal Wealth Management (PWM) for high-net worth individuals (HNWIs).
- Global Tax Management and Cross- border Tax Liability Optimisation