Practice Test

Q1) In National Mineral Policy (1993) which mineral was allowed for having investment from private sector ? Show Answer

Q2) Committee on decontrolling the price of petrol and diesel was headed by Show Answer

Q3) Which of the major port of India celebrated its Golden Jubilee on January 2012? Show Answer

Q4) At the end December 2011, the teledensity in the country stood at Show Answer

Q5) 'Public sector' means- Show Answer

Q6) The oil Refinery established at Panipat belongs to - Show Answer

Q7) The Union Cabinet has given approval in pension sector for Show Answer

Q8) The new president of ASSOCHAM for the year 2012-13 is- Show Answer

Q9) What is a "Limited company"? Show Answer

Q10) From the balance sheet of a company, it is possible to Show Answer

Q11) In India the public sector is the most dominant in Show Answer

Q12) Tourism industry in india is quite small compared to many other countries in terms of India's potential and size. Which one of the following statement is correct in this regard? Show Answer

Q13) Which of the following cannot be described as an achievement of the public sector in India? Show Answer

Q14) What is/are the recent policy initiative(s) of Government of india to Promote the growth of manufacturing sectors?
1)Setting up of National Investment and Manufacturing Zones.
2) Providing the benefit of 'Single window clearance '
3) Establishing the Technology Acquisition and Development Fund .
Select the correct answer using the codes given below Show Answer

Q15) Pradhanmantri Bharat Jodo Pariyojna is related to - Show Answer

Q16) Which of the following is not a"Maharatna" status having company ? Show Answer

Q17) The only two areas reserved for the public sector in NIP 1991 after recent amendments are: Show Answer

Q18) Dr.Rangarajan Committee recommended that the percentage of equity to be disinvested in industries reserved for public sector should be: Show Answer

Q19) Government of India's Disinvestment Policy was recast in 2000 to provide for 'strategic sale' of PSU shares. The new policy involves: Show Answer

Q20) 'Level playing field' argument of industries requires Show Answer

Q21) In india, in the overall Index of Industrial Production, the Indices of Eight Core Industries have a combined weight of 37.90%.Which of the following are among those Eight Core Industries ?
1) Cement
2) Fertilizers
3) Natural gas
4) Refinery products
5) Textiles
Select the correct answer using the codes given below: Show Answer

Q22) A company is said to be 'sick' when the accumulated loss at the end of any financial year to erosion of ____ percent of its net worth. Show Answer

Q23) Which of the following is not an internal factor for industrial sickness? Show Answer

Q24) Nine Ultra Mega Power Projects are being set up in various parts of the country. These will use as fuel Show Answer

Q25) The need for effective corporate governance and independent regulatory authority was highlighted by the scam involving which of the following multinational corporations? Show Answer

Q26) The Eastern Dedicated Freight Corridor being built by indian Railway will connect Show Answer

Q27) British colonial authorities did not oppose the setting up of cotton mills in India by local capitalist during the 19th century because Show Answer

Q28) It is argued that continuation of reservation for small Scale industries after import liberalisation is anachronistic because Show Answer

Q29) Which one of the following sectors has attracted the maximum FDI during the last four years?
Show Answer

Q30) The Committee on Competition Policy and Law (Raghavan Committee) has recommended the replacement of which of following institution? Show Answer

Q31) Which of the following is not an objective of the Rajiv Gandhi Garmeen Vidyutikaran Yogana for Rural Electricity Infrastructure and Household Electrification ? Show Answer

Q32) Private sector cannot be expected to invest in public goods because : Show Answer

Q33) Central Public Sector Enterprise with good record of performance have been conferred grater autonomy under the Navartna Scheme. how many CPSEs have been conferred Navaratna status so far? Show Answer

Q34) Which of the following can be termed an infrastructutral bottleneck in the development of India's economy ? Show Answer

Q35) At present there are 12 major ports in the country. The latest to be notified as a major port is: Show Answer

Q36) The purpose of the India Brand Equity fund is Show Answer

Q37) Which one of the following brings out the publication called "Energy Statistic" from time to time? Show Answer

Q38) HINDALCO, a aluminium factory at Renukut owes its site basically to Show Answer

Q39) With reference to India, which one of the following statements is NOT correct ? Show Answer

Q40) Which one of the following statements is not correct ? Show Answer

Q41) Which one of the following is not a feature of Limited Liability partnership firm? Show Answer

Q42) When did the Industrial Policy support creation of mixed economy in India? Show Answer

Q43) Explain 'joint sector' in India? Show Answer

Q44) Joint sector helps in Show Answer

Q45) Minimum number of individuals in a private limited company has to be Show Answer

Q46) Core industries include Show Answer

Q47) Multinational is Show Answer

Q48) Indian Railway is Show Answer

Q49) Which sector has maximum weightage in the index of industrial production assigned? Show Answer

Q50) The 1956 Industrial Policy did nit have as its objectives Show Answer

Q51) Eastern section of the dedicated freight corridors is between Show Answer

Q52) Which is the most labour intensive amongst the following? Show Answer

Q53) Which if the following is not in the infrastructure sector ? Show Answer

Q54) The five forces that affect the level of competition in an industry are : Show Answer

Q55) Which of the following statements best describe Corporate Social Responsibility? Show Answer

Q56) Which of the following arguments was not put forward by Friedman in his criticism of the idea of CSR? Show Answer

Q57) Which of the following from part of the business case for CSR? Show Answer

Q58) The moral case for CSR, i.e that it is the right thing to do, is justified by which of the following arguments? Show Answer

Q59) Which one of the following is the objective of Corporate social Responsibility (CSR) issued by the government ? Show Answer

Q60) Consider the following statements.
The objectives of the National Renewal Funds set up in February 1992 were
1) to give training and counselling for workers affected by retrenchment or VRS.
2) redeployment of workers.
Which of these statements is/are correct? Show Answer

Q61) Consider the following statements.
1) National Thermal power Corporation has diversified into hydro-power sector
2) Power Grid Corporation of India has diversified in telecom sector.
Which of these statements is/are correct? Show Answer

Q62) Consider the following statements.
Small-scale industries are in most cases, not as efficient and competitive as the large-scale one. Yet the government provides preferential treatment and reservation s in a range of products to the small firms because small-scale industries.
1) provide higher employment on a per unit capital development basis.
2) promote a regional dispersion of industries and economic activities.
3) have performed better in export on manufactured products than the large scale ones.
4) provide jobs to low-skill workers, who otherwise may not employment revenue elsewhere .
Which of the above statements are correct ?
Show Answer

Q63) Under the Sick Industrial companies (Special Provisions) Act, an industrial unit is considered sick if,
1) its net worth is entirely eroded.
2) it has eroded 50 per cent of its peak net worth during any one of the five consequent years.
3) its accumulated losses exceed its net worth and it has suffered cash losses for the current and preceding years.
4) it has eroded its net worth in the current and preceding three financial years.
Show Answer

Q64) Which of the following is public sector organisation ?
1) FCI food corporation of India.
2) FCI Fertilizer Corporation of India.
3) Cotton Corporation of India.
4) Jute Corporation of India. Show Answer

Q65) Consider the following statement in respect of the aims of Bharat Nirama programme
1) To provide road connectivity to all villages with a population of 1000/500 in plain and hilly areas.
2) To ensure enrollment of all girls between the age of 6 and 11 in schools.
3) To provide drinking water to all uncovered habitations.
Which of these statements is/are correct? Show Answer

Q66) Why is the Government of India disinvesting its equity in the Central Public Sector Enterprise (CPSEs)
1) The government intends to use the revenue earned from the disinvestment mainly to pay back the external debts.
2) The Government no longer intends to retains the management control of the CPSEs.
Which the correct statements given above is/are correct?

Show Answer

Q67) With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements?
1) The assets in the National Investment Fund are manged by the Union Ministry of Finance.
2) The National Investment Funds to be maintained within the Consolidated Fund of India.
3) Certain Asset Management companies are appointed as the fund managers.
4) A certain proportion of annual income is used for financing select sector.
Which of the statements given above is/are correct ? Show Answer

Q68) Consider the following statements
Industrial development in india, to extent, is constrained by.
1) lack of adequate entrepreneurship and leadership in business.
2) lack of saving to invest.
3) lack of technology, skill and infrastructure.
4) limited purchasing power among the largest masses.
Which of the above statements are correct ? Show Answer

Q69) Consider the following factors regarding an industry
1) Capital investment
2) Business turnover
3) Labour force
4) Power consumption
Which of these determine the nature and size of the industry?

Show Answer

Q70) Consider the following states:
1) Gujarat
2) Karnataka
3) Maharashtra
4) Tamil Nadu
The descending order of these states with reference to their level of per Capita Net State Domestic Product is Show Answer

Q71) With reference to the Public Sector undertaking in India, consider the following statements:
1) Minerals and Metals Trading Corporation of India Limited is the largest non-oil importer of the country.
2) Project and Equipment Corporation of India Limited is under the Ministry of Industry.
3) One of the objectives of Export Credit Guarantee Corporation of India Limited is to enforce quality control and compulsory shipments inspection of various exportable commodities.
Which of theses statements is/are correct? Show Answer

Q72) Which of the following places are known for paper manufacturing industry?
1) Yamuna Nagar
2) Guwahati
3) Shahabad
4) Ballarpur
Choose the correct answer using the codes given below: Show Answer

Q73) The Government givers emphasis to development of Small Scale Industry (SSI). What is the role of SSI in India?
1) 40% of GDP comes from SSI.
2) SSI absorbs surplus labour and helps in more equitable distribution of income
3) 35% of total export come from SSI. Show Answer

Q74) SEZs were established with the objectives of_____
1) attracting foreign investment directly.
2) protect domestic market from competition from multinational.
3) Providing more capital to agricultural and allied activities. Show Answer

Q75) Many times we read that a corporate entity is in the process of raising its capital base. Why is a company required to raise money to strengthen its capital base ?
1) To finance its expansion plans
2) To finance its diversification plans,
3) To repay its loan and borrowings. Show Answer

Q76) Assertion : There was an increase in industrial production during 1999 to 2000.

Reason: The period witnessed a stable exchange rate and improved business sentiments. Show Answer

Q77) Assertion : Information technology is fast becoming a very important field of activity in India.
Reason : Software is one of the major export of the country and India has a very strong base in hardware. Show Answer

Q78) Consider the following criteria necessary to be included in the
necessary to be included in the Maharashtra of Indian industries
1) An average annual turnover of more than Rs. 20,000 crores the last 3 years.
2) An average annual net profit after tax of more than Rs. 2,500
crore during the last 3 years.
3) An average annual net worth of more than Rs. 10,000 crores during the last 3 years
4) Having the Navratna status.
Which of the criteria necessary to be included in the Maharashtra Status
given above are correct? Show Answer

Q79) Consider the following statements about the Navratna Status Industries
1) Navratna was originally assigned to nine public sector enterprises in 1997.
2) The number of PSEs having Navratna status is now more that 15 industries
Which of the statements given above is/are correct? Show Answer

Q80)
Which of the following Industrial Policies has abolished (With a few
exception) the Industrial Licensing ? Show Answer

Q81) At which one of the following budget session did the Navratna Status
of the India industries evolve? Show Answer

Q82) The unique features of National level commodity exchanges includes
1) They provide online platforms or screen based trading.
2) Investors has option of taking delivery in physical
3) Global Depository receipts is a unique feature of commodity
exchange
Which of the statements given above is/are correct? Show Answer

Q83) Consider the following announcements of government of India in recent times
1) Carbon tax imposed on the coal produced and imported
2) Jawaharlal Nehru National Solar Mission
3) Ultra Mega Power Projects
Which of the announcements given above is/are aimed to bring sustainable development in India? Show Answer

Q84) Consider the following components of the PURA model of economic development
1) Facilities road connectivity in villages.
2) Enhancement of electricity in rural areas.
3) Establishment of cyber cafe in villages
4) Constitution of hospital in rural areas.
Which of the components given above is/are the major connectivity formulated by the PURA model?
Show Answer

Q85) The 'Bombay Plan' drafted by GD Birla and JRD Tata emphasised Show Answer

Q86) Consider the following statements
1) Jawahar Rozgar Yojana was launched in the Seventh Five Year Plan.
2) Small scale and food processing industries were given new impetus in Seventh Five Year Plan
Which of the statements given above is/are correct ?
Show Answer

Q87) Consider the following statements
1) The Minimum Support Price (MSP) Policy of India covers only wheat. paddy and coarse cereals
2) The Minimum Support Price (MSP) for Grade-A Paddy is always higher than the common paddy.
Which of the statements given above is/are correct? Show Answer

Q88) Which one of the following sub-group of the industry and infrastructure attracted the highest percentage Foreign Direct Investment (FDI) in the last decade in the India Economy ? Show Answer

Q89) Consider the following statements
1) In the public sector of India, there are basic and heavy industries.
2) All industries of public sector are profit oriented.
3) Jobs are secured in the public sector industries
Which of the statements given above is/are correct? Show Answer

Q90) Consider the following Public Sector Enterprises (PSEs)
1) Steel Authority of India Limited
2) Indian Oil Corporation Limited
3) Oil and Natural Gas Corporation Limited
4) Hindustan Aeronautics Limited
Which of the PSEs given above are Maharatna Industries in India? Show Answer

Q91) Consider the following statements according to Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 of Indian Economy
1) The Micro-Enterprises are those whose capital asset is above Rs.10 lakh but less than Rs. 5 crore.
2) The small-Enterprises are those industries whose capital asset is from Rs. 10 lakh to 5 crore.
3) The capital assets including machinery more than Rs.5 crore is known as Medium-Enterprises.
Which of the statements given above is/are correct? Show Answer

Q92) Which of the following are recommendation made by the recently released report of the Committee on Regulation of Sugar Sector headed by C Rangarajan?
1) Abolishing the minimum support price mechanism for sugarcane
2) Revenue of sugar mills to be shared with farmers in 70:30 ratio.
3) Removal of quantitative restrictions on trade in sugar.
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Q93) Consider the following statements with regards to Jawaharlal Nehru national Urban Renewal Mission (JNNURM)
1) JNNURM is the single largest initiative to address the issues of urban infrastructure.
2) All States and UTs are covered under the Basic Services to the Urban Poor (BSUP) and Integrated Housing and Slum Development Programme (IHSDP)
Which of the statements given above is/are correct? Show Answer

Q94) Consider the following items
1) Gems and jewellery
2) Chemicals and related products
3) Engineering goods
4) Textiles
Which of the items given above are the top four items in India's manufactured exports ? Show Answer

Q95) Consider the following statements about 'Mega Food Park'
1) To provide good infrastructure facilities for food processing industries
2) To increased processing perished items and reduce wastage
3) To provide emerging and eco-friendly food processing technology to enterpreneurs
Which of the statements given above are correct ? Show Answer

Q96) NAFED is concerned with
1) promotion of inter-state and export trade of farm produce.
2) import of foodgrains for buffer-stocking and public distribution.
3) marketing of eggs and poultry at national level.
4) movement of consumer goods from surplus areas to scarcity areas.
Select the correct answer using the codes given below
Show Answer

Q97) In the parlance of economy/commerce, what is 'Gilt-edged market? Show Answer

Q98) Which of the following Indian companies feature in Fortune Five hundred list for 2012?
Show Answer

Q99) Who among the following has been recently inducted into the prestigious National Academy of Engineering, United States for his contribution to industrial development in India and world? Show Answer

Q100) Recently World Economics Forum's Global Competitiveness Report 2013 was released. Consider the following statement in this respect
1. India has slipped to 60th position in terms of its competitiveness globally, while Switzerland has retained its top rank.
2. " Corruption " ranks top in the "most problematic factor for doing business" in India.
3. This is India's lowest ever rank and also 21 places below its peer emerging market China.
4. The Global Competitiveness Index is calculated on the basis of 12 pillars. The First pillar is "Innovation" and the last pillar is "Institution"
Which of the above statements are incorrect. Show Answer

Q101) Consider the following statements ?
1. Kingfisher recently has tied up financing for 12 Boeing 787 Dreamliners.
2. Reliance Industries Ltd (RIL) has become the first private sector company in the country to achieve quarterly turnover or sales of more than Rs.1 lakh crore in a quarter.
Which of the above statement/ statements is/are true? Show Answer

Q102) Consider the following statements
1. It has been decided that India's economic engagement in infrastructure, nuclear energy, Information technology and higher education with Belgium is to be strengthened further during President Pranab Mukherjee's recent official visit'
2. 'However Belgium is one of the countries to have rallied against India's permanent seat in the United Nations Security Council.'
Which of the above statement/statements is/are NOT true? Show Answer

Q103) With reference to ‘fly ash’ produced by the power plants using the coal as fuel, which of the following statements is/are correct?
1. Fly ash can be used in the production of bricks for building construction
2. Fly ash can be used as a replacement for some of the Portland cement contents of concrete
3. Fly ash is made up of silicon dioxide and calcium oxide only, and does not contain any toxic elements.
Select the correct answer using the code given below Show Answer

Q104) Which of the following pairs is/are correctly matched ? Spacecraft Purpose
1. Cassini –Huygens Orbiting the: Venus and transmitting data to the Earth
2. Messenger: Mapping and investigating the Mercury
3. Voyager 1 and 2: Exploring the outer solar system
Select the correct answer using the code given below: Show Answer

Q105) Which one of the following is the best description of ‘INS Astradharini’, that was in the news recently? Show Answer

Q106) What is 'Greased Lightning-10 (GL-10)', recently in the news? Show Answer

Q107) With reference to 'Initiative for Nutritional Security through Intensive Millets Promotion', which of the following statements is/are correct?
1. This initiative aims to demonstrate the improved production and post-harvest technologies, and to demonstrate value addition techniques, in an integrated manner, with cluster approach.
2. Poor, small, marginal and tribal farmers have larger stake in this scheme.
3. An important objective of the scheme is to encourage farmers of commercial crops to shift to millet cultivation by offering them free kits of critical inputs of nutrients and microirrigation equipment.
Select the correct answer using the code given below. Show Answer

Q108) Consider these statements:
1. Small-scale industries are in most cases, not as efficient and competitive as the large-scale ones. Yet the Government provides preferential treatment and reservations in a range of products to the small firms because small-scale industries
2. provide higher employment on a per unit capital deployment basis.
3. promote a regional dispersion of industries and economic activities.
4. perform better than the large scale ones.
5. provide jobs to low-skill workers, who otherwise may not find employment avenues elsewhere.
The correct statement(s) is/are made with: Show Answer

Q109) The moderation in industrial growth particularly in the manufacturing sector, is mostly attributed to:
1. sluggish growth of investment
2. squeezed margins of the corporate sector.
3. deceleration in the rate of growth of credit flows
4. fragile global economic recovery
The correct statement(s) is/are made with: Show Answer

Q110) For medium sized formal sector manufacturing firms which of the following is significant barrier to growth? Show Answer

Q111) Consider the following fact about apparel sector -
1. Formal apparel sector firms in India are about 15 times more productive than there informal sector counterparts.
2. India’s apparel sector is dominated by informal firms
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Q112) Assertion-Power sector in the last two years 2014-15 witnessed the highest ever increase in generation capacity of 26.5 GW compared to the average annual addition of around 19 GW over the past five years.
Reason-Capacity enhancements have brought down the peak electricity defecit to its lowest ever level of 2.4%. Central
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Q113) Assertion-The use of diesel generators in on the rise to protect against uneven power supply with total capacity around 72 GW and growing at the rate of 5 GW per year.
Reason-High tariffs and erratic supply have led to a slow but steady decline in the growth of industrial electricity purchases from utilities and a gradual transition towards captive generation.
Select the answer from the codes given below: Show Answer

Q114) Consider the following statements -
1. Inefficient firms often require government support in the form of explicit subsidies or implicit subsidies
2. They have misallocation of scarce resources and factors of production in unproductive uses including overhang of stressed assets on corporate and bank balance sheets.
3. Government support to “sick” firms can give the impression that government favors large corporates, which politically limits its ability to undertake measures that will benefit the economy but might be seen as further benefitting businesses.
Which of the above- mentioned is correct? Show Answer

Q115) In India Power Sector is facing daunting challenges remain. Which include
1. Complexity of tariff schedules prevents economic actors from responding sufficiently to price signals.
2. Average tariffs in some cases are set below the average cost of supplying electricity.
3. High industrial tariffs and variable quality of electricity adversely affects “Make in India”
4. Price and non-price barriers come in the way of single-nationwide electricity prices through open access.
5. Determination of progressive tariff schedules for domestic consumers.
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Q116) Assertion-The ongoing manufacturing recovery is aided by robust growth in petroleum refining, automobiles, wearing apparels, chemicals, electrical machinery and wood products including furniture.
Reason-The segments of the industry sector- electricity, gas, water supply and related utilities, mining and quarrying and construction activities are witnessing a deceleration in growth.
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Q117) Consider the following statements-
1. The Open Access (OA) policy introduced under the Electricity Act 2003, which allows consumers with electricity load above 1 MW to procure electricity directly from electricity markets was the first step towards discovering a single market price for power around the country.
2. Power Exchanges were set up in 2008 to operationalize the OA policy and create a national electricity market where price discovery occurs through competitive bidding.
3. Increases in cross subsidy and additional surcharges for purchasing electricity from power exchanges, have acted as significant barriers, though they are key to balancing DISCOMS.
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Q118) Consider the following statements with regards to steel production in India
1. Due to near-stagnant demand for steel globally, and in particular in China, major global steel producers are pushing steel products into the Indian market, leading to a surge in steel imports.
2. The Indian steel industry with lower borrowing and raw material costs and higher productivity is at a comparative advantage.
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Q119) Which of the following statements is true Show Answer

Q120) Consider the following industrial sectors-
1. Cottage and household industries
2. Tiny sector
3. heavy industries
4. Small-scale industries
Into which above mentioned categories industrial sectors were classified by industrial policy resolution 1977- Show Answer

Q121) Consider the following statements about important difference between a public company and a private company -
1. A public company is intended as a vehicle not only for a business but also for public investment in that business, whereas a private company is the private concern of the persons engaged in the business incorporated in it.
2. A private limited company is one that is owned privately by a group of private individuals whereas a limited company is a public limited company that is owned by the general public.
3. The limited company can also invite the public to subscribe to its shares, whereas it is not possible with a private limited company.
Which of the above statements is/ are not true ? Show Answer

Q122) Identify the term/concept from the description given below-
1. It is money provided by investors to startup firms and small businesses with perceived long-term growth potential.
2. It is a very important source of funding for startups that do not have access to capital markets.
3. It typically entails high risk for the investor, but it has the potential for above-average returns.
The above- mentioned statements are about Show Answer