Sunday, 11 November 2018
X_Eco_Ch-4_Globalization and the Indian Economy_Practice Questions_Set-2
Class X Economics
Chapter – 4
Globalization and the Indian
Economy
Practice Set - 2
Multiple Choice Questions
1. The past two decades of
globalization 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 these
2. 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)
3. Globalization has led to higher
standards of living of:
(a)
well-off consumers
(b)
poor consumers
(c) big
producers
(d)
small producers
4. A company that owns or controls
production in more than one nation is called:
(a)
multinational corporation
(b)
joint stock company
(c)
global company
(d)
none of these
5. Where do MNCs choose to set up
production?
(a)
Cheap goods
(b)
Cheap labour resources
(c)
Economic sustainability
(d)
None of these
(a)
Amul (b) Britannia
(c)
Parakh Foods (d) Dabur
(a)
Mahindra and Mahindra
(b) Tata
Motors
(c)
Maruti Suzuki
(d)
Hindustan Motors
(a)
Indian toys are selling more
(b)
Indian consumers are buying less
(c)
Indian consumers are getting more choice at cheaper rates
(d)
Chinese consumers are falling short of choice
9.
Trade between countries:
(a)
determines prices of products in different countries
(b)
decreases competition between countries
(c)
makes a country dependent on the other
(d)
none of these
(a)
lesser competition among producers
(b)
greater competition among producers
(c) no
competition between producers
(d)
none of these
(a)
effective utilization of resources
(b)
increase in income and wealth
(c)
willingness to cooperate
(d)
rapid improvement in technology
(a)
Chinese toy-makers will benefit
(b)
Indian toy-makers will prosper
(c)
Chinese toys will remain cheap
(d)
Indian consumers will buy more Chinese toys
(a)
Foreign investment
(b)
Delay or damage of goods
(c) Tax
on imports
(d)
None of these
(a) liberalization (b) investment
(c)
favourable trade (d)
free trade
(a)
establishing rules for domestic trade
(b)
restricting trade practices
(c)
liberalising international trade
(d)
none of these
(a)
Footwear (b)
Automobiles
(c)
Jewellery (d)
Clothing and accessories
(a)
employment (b)
emerging multinationals
(c)
providing services (d) all
of the above
(a) to
raise the standard of education
(b) to
promote unemployment in the public sector
(c) to
build special economic zones
(d)
both (a) and (c)
(a) big
producers (b) small
producers
(c)
rural poor (d)
none of these
20. Indian
Government’s recent scheme of ‘Make in India’ is an example of attracting:
(a)
Foreign Institutional Investment (b)
Disinvestment
(c)
Foreign Direct Investment (d)
Privatization
(a)
good health (b)
good education
(c)
permanent job (d)
none of these
(a)
fair opportunities for all
(b)
fair benefits for all
(c)
more support to small producers
(d) all
of the above
(a)
increasing competition
(b)
increasing employment
(c)
implementing the labour laws
(d)
imposing trade barriers
X_Eco_Ch-4_Globalization and the Indian Economy_Practice Questions_Set-1
Class - X
Economics
Chapter - 4
Globalization in the Indian Economy
Practice Set-1
Q.1. What do you understand by globalization? Explain in your own words.
Answer. Globalization means integrating the economy of a country with the economies
of other countries under conditions of free flow of trade, capital and movement of
persons across borders. It includes:
(i) Free export and import of goods and services.
(ii) Unrestricted export and import of techniques of production.
(iii) Free flow of capital and finance from one country to the other.
(iv) Freedom of migration of people from one country to another.
Q.2. What was the reason for putting barriers to foreign trade and foreign
investment by the Indian government? Why did it wish to remove these barriers?
Answer. The Indian government had put barriers to foreign trade and foreign
investment to protect domestic producers from foreign competition, especially when
industries had just begun to come up in the 1950s and 1960s. At this time, competition
from imports would have been a death blow to growing industries. Hence, India allowed
imports of only essential goods.
In New Economic Policy in 1991, the government wished to remove these
barriers because it felt that domestic producers were ready to compete with foreign
industries. It felt that foreign competition would in fact improve the quality of goods
produced by Indian industries. This decision was also supported by powerful
international organizations.
Q.3. How would flexibility in labor laws help companies?
Answer. Flexibility in labor laws will help companies in being competitive and
progressive. By easing up on labor laws, company heads can negotiate wages and
terminate employment, depending on market conditions. This will lead to an increase in
the company's competitiveness.
Q.4. What are the various ways in which MNCs set up, or control, production in
other countries?
Answer. Multinational Corporations (MNCs) set up their factories or production units
close to markets where they can get desired type of skilled or unskilled labour at low
costs along with other factors of production. After ensuring these conditions MNCs set
up production units in the following ways :
→ Jointly with some local companies of the host country.
→ Buy the local companies and then expand its production with the help of modern
technology.
→ They place orders for small producers and sell these products under their own brand
name to the customers worldwide.
→ They even set up new companies in the host country.
Q.5. Why do developed countries want developing countries to liberalize their
trade and investment? What do you think should the developing countries demand
in return?
Answer. Developed countries want developing countries to liberalize their trade and
investment because then the MNCs belonging to the developed countries can set up
factories in less-expensive developing nations, and thereby increase profits, with lower
manufacturing costs and the same sale price.
In my opinion, the developing countries should demand, in return, for some
manner of protection of domestic producers against competition from imports. Also,
charges should be levied on MNCs looking to set base in developing nations.
Q.6. "The impact of globalization has not been uniform." Explain this statement.
Answer. "The impact of globalization has not been uniform". It has only benefitted
skilled and professional person in urban not the unskilled persons. The industrial and
service sector has much gained in globalization than in agriculture. It benefitted MNCs
on domestic producers and the industrial working class. Small producers of goods
such as batteries, capacitors, plastics, toys, tyres, dairy products and vegetable oil
have been hit hard by competition from cheaper imports.
Q.7. How has liberalization of trade and investment policies helped the
globalization process?
Answer. Liberalization of trade and investment policies has helped the globalization
process by making foreign trade and investment easier. Earlier, several developing
countries had placed barriers and restrictions on imports and investments from abroad
to protect domestic production. However, to improve the quality of domestic goods,
these countries have removed the barriers. Thus, liberalization has led to a further
spread of globalization because now businesses are allowed to make their own
decisions on imports and exports. This has led to a deeper integration of national
economies into one conglomerate whole.
Q.8. How does foreign trade lead to integration of markets across countries?
Explain with an example.
Answer. Foreign trade provides opportunities for both producers and buyers to reach
beyond the markets of their own countries. Goods travel from one country to another.
Competition among producers of various countries as well as buyers prevails. Thus
foreign trade leads to integration of markets across countries.
For example, during Diwali season, buyers in India have the option of choosing
between Indian and Chinese decorative lights and bulbs. So this provides an
opportunity to expand business.
Q.9. Globalization will continue in the future. Can you imagine what the world
would be like twenty years from now? Give reasons for your answer.
Answer. After twenty years, world would undergo a positive change which will possess
the following features— healthy competition, improved productive efficiency, increased
volume of output, income and employment, better living standards, greater availability
of information and modern technology.
Reason for the views given above : These are the favorable factors for globalization :
→ Availability of human resources both quantitywise and qualitywise.
→ Broad resource and industrial base of major countries.
→ Growing entrepreneurship
→ Growing domestic market.
Q.10. Supposing you find two people arguing: One is saying globalization has hurt
our country's development. The other is telling, globalization is helping India
develop. How would you respond to these organizations?
Answer. Benefits of globalization of India :
→ Increase in the volume of trade in goods and services
→ Increase in inflow of private foreign capital and export orientation of the economy.
→ Increase in the volume of output, income and employment.
Negative Impact / Fears of Globalization.
→ It may not help in achieving sustainable growth.
→ It may lead to widening of income inequalities among various countries.
→ It may lead to aggravation of income inequalities within countries.
Whatever may be the fears of globalization, I feel that it has now become a
process which is catching the fancy of more and more nations. Hence we must become
ready to accept globalization with grace and also maximize economic gains from the
world market.
IX_Eco_Ch-3_Poverty as a Challenge_Practice Questions_Set-2
Class IX
Economics
Chapter - 3
Poverty as a Challenge
Economics
Chapter - 3
Poverty as a Challenge
Questions Set -2
Ques.1.
Define poverty?
Ans
: Poverty is defined as inability to satisfy minimum human needs like food,
clothing, shelter, pure drinking water, education, health, sanitation and
electricity.
Ques.2.
Who is a poor?
Ans
: Any person who is deprived of minimum necessities of life such as food,
clothes, shelter, pure drinking water, sanitation, education, health care,
electricity and above all, employment is a poor.
Ques.3.
State the different categories of poor?
Ans
: (i) Absolutely poor
(ii)
Very poor
(iii)
Poor
Ques.4.
State the different categories of non-poor?
Ans
: (i) Not so poor
(ii)
Middle class
(iii)
Upper middle class
(iv)
The rich
(v)
The very rich
Ques.5.
State two important types of poverty?
Ans
: (i) Absolute poverty
(ii)
Relative poverty
(Define
each with example as was written in Class Notes.)
Ques.6.
Enumerate five characteristics of rural poor?
Ans
: (i) Landless
(ii)
Agricultural worker
(iii)
Kutcha House made of mud and straw
(iv)
Poor health
(v)
No sanitation and electricity
(vi)
No access to safe drinking water
Ques.7.
State five features of urban poor?
Ans
: (i) Hutment dwellers
(ii)
Illiteracy
(iii)
Irregular employment or even unemployment
(iv)
Poor health
(v)
No sanitation and electricity
(vi)
No access to safe drinking water
Ques.8.
State the consumption limit for rural and urban poor?
Ans
: For rural poor – 2400 calories.
For
urban poor – 2100 calories.
Ques.9.
State the type of poverty that is measured on the basis of standard of living?
Ans
: Relative poverty is measured on the basis of standard of living.
Ques.10.
What is poverty line?
Ans
: Poverty Line :- The line which divides poor and non-poor on the basis
of per capita income and expenditure is called poverty line. A person is
considered poor if his or her income or consumption level falls below a given
“minimum level” necessary to fulfill basic needs as specified by the poverty
line.
Ques.11.
Is unemployment responsible for poverty?
Ans
: Yes, unemployment is the main cause of poverty. That is why government aims
at employment generation in the economy, especially among poors in order to
eradicate poverty.
Ques.12.
Why does inflation hit poor hard?
Ans
: Due to inflation, price of a commodity increases and this lowers the
purchasing power of the poor people. Now poors can afford even less quantity of
that commodity of basic necessity at a higher price with the same low level of
income.
Ques.13.
Which social group is the most vulnerable to poverty?
Ans
: Scheduled Tribes (STs).
Ques.14.
In which state, the percentage of poor below poverty line is the highest?
Ans
: Orissa with 47.2% people living below poverty line (BPL).
Ques.15.
In which state the percentage of poor below poverty line is the least?
Ans
: Jammu and Kashmir with 3.5% people living below poverty line.
Ques.16.
State the country that has the highest percentage of population below poverty
line that is Dollar 1 per day?
Ans
: Nigeria with 70.8%.
Ques.17.
State five states having the highest percentage of people below poverty line
according to economic survey 2001-02.
Ans
: (i) Orissa
(ii)
Bihar
(iii)
Madhya Pradesh
(iv)
Assam
(v)
Tripura
Ques.18.
State five states having the lowest percentage of people below poverty line
according to economic survey 2001-02.
Ans
: (i) Jammu and Kashmir
(ii)
Punjab
(iii)
Himachal Pradesh
(iv)
Delhi
(v)
Haryana
Ques.19.
State five countries having the highest percentage of people below poverty line
according to World Development Report, 2001?
Ans
: (i) Nigeria
(ii)
Bangladesh
(iii)
India
(iv)
Pakistan
(v)
China
Ques.20.
Who are the poorest of the poor that is vulnerable groups?
Ans
: (i) Scheduled Tribes (STs)
(ii)
Urban casual labourers
(iii)
Agricultural rural labourer
(iv)
Scheduled Castes (SCs)
(v)
victims of natural calamities
Ques.21.
Give examples of self employment in rural area?
Ans
: Non-farm activities such as tailoring, shop keeping, profession of gold
smith, carpenter and computer services are examples of self employment in rural
areas.
Ques.22.
Give examples of self employment in urban area?
Ans
: Shop keeping, working as middle man, fashion designing, repairing work, and
other activities for which payment is not received from employer to earn a
livelihood is earned.
Ques.23.
Is there any relationship between poverty and unemployment?
Ans : Yes, poverty and unemployment are inter-related. One who is unemployed is at more risk to become a poor soon. Unemployment is the basic reason behind poverty which is why every plan and programme of government aiming at employment generation ultimately works effectively to combat poverty.
Ans : Yes, poverty and unemployment are inter-related. One who is unemployed is at more risk to become a poor soon. Unemployment is the basic reason behind poverty which is why every plan and programme of government aiming at employment generation ultimately works effectively to combat poverty.
Ques.24.
How will you differentiate between poor and non-poor on the basis of poverty
line?
Ans : Those placed below poverty line are poor and those placed above the poverty line are non-poor.
Ans : Those placed below poverty line are poor and those placed above the poverty line are non-poor.
Ques.25.
Name the groups vulnerable to poverty in order of their percentage of
vulnerability. Also mention Average Indian Poverty ratio?
Or,
Identify the social and economic groups, which are the most vulnerable to poverty in India?
Ans :
Or,
Identify the social and economic groups, which are the most vulnerable to poverty in India?
Ans :
(i)
Scheduled Tribes = 51%
(ii)
Urban Casual Labourers = 50%
(iii)
Rural Agricultural Labourers = 47%
(iv)
Scheduled Castes = 43%.
Average
Indian Poverty Ratio = 26%.
Social
groups which include widows, orphans, old people, physically handicapped are
also vulnerable to poverty.
Ques.26.
State the Minimum Need Programme [MND]?
Answer
: The programme to provide the articles of basic necessities at cheapest
possible rates and certain social services free of cost to the masses.
Ques.27.
Mention the programme introduced by the Government to alleviate poverty?
Ans : (i) National Rural Employment Guarantee Act (NREGA), 2005.
Ans : (i) National Rural Employment Guarantee Act (NREGA), 2005.
(ii)
National Food for Work Programme (NFWP), 2004.
(iii)
Prime Minister Rozgar Yojana (PMRY),1993.
(iv)
Rural Employment Generation Programme (REGP),1995.
(v)
Swarnajayanti Gram Swarojagar Yojana (SGSY), 1999.
(vi)
Pradhan Mantri Gramodyog Yojana (PMGY), 2000.
(vii)
Antyodaya Anna Yojana (AAY).
Ques.28.
Show global poverty scenario through a Table?
Or
Describe
global poverty trends?
Ans
: According to World Bank, Global Poverty has declined to 21% in 2001 from 28%
in 1990. In China and south-east Asian countries, poverty has declined
substantially due to massive investment in human resources.
In
India, Pakistan, Nepal, Bhutan, Bangladesh and Sri Lanka, the decline of
poverty is slow.
Ques.29.
Which country has the largest single concentration of the poor in the world?
Ans.
India. Nearly 50% of the world's poor live in India.
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