Economic Reforms and Globalization Quiz

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Questions and Answers

What are the two main ways to achieve privatization?

By selling public sector companies to private entities. (correct)

By removing government ownership and management of public sector companies. (correct)

By forming partnerships between the public and private sectors.

By increasing government ownership and management of public sector companies.

What is NOT a stated reason for India being the outsourcing hub?

Government regulations that protect the rights of outsourcing workers. (correct)

Strong infrastructure and communication technology.

Low cost of labor.

Large number of people proficient in the English language.

Which of the following is NOT a direct outcome of the economic reforms, also known as LPG (Liberalization, Privatization, Globalization) policy?

A shift in the focus of economic activity from rural to urban areas.

A reduction in the number of unemployed individuals. (correct)

A decrease in tariffs.

An increase in foreign direct investment.

What is the primary purpose of withdrawing export duties?

To make the country's exports more competitive in the global market. (B) Signup and view all the answers

Which of the following is NOT a stated merit of the LPG policy?

An improved agricultural sector due to increased public investment. (A) Signup and view all the answers

Which of these is NOT a stated factor contributing to globalization?

Increased investment in environmental protection initiatives. (C) Signup and view all the answers

According to the provided content, which of the following is NOT a benefit of outsourcing?

Increased protection of intellectual property rights for the outsourcing companies. (A) Signup and view all the answers

Which of the following is NOT a stated negative consequence of the LPG policy?

An increase in rural poverty due to limited job opportunities. (A) Signup and view all the answers

What is the direct impact of increased expenditure on health on human capital?

It produces a healthier and more productive workforce. (B) Signup and view all the answers

How does human capital formation contribute to higher productivity of physical capital?

It enables the efficient utilization of physical capital by skilled workers. (A) Signup and view all the answers

What is a primary reason why expenditure on migration is considered a source of human capital formation?

It encourages the flow of skilled labor to areas with higher demand. (A) Signup and view all the answers

How does human capital formation contribute to economic and social equality?

It promotes social mobility by providing equal access to education and training. (C) Signup and view all the answers

What is the main purpose of on-the-job training in human capital formation?

To enhance the skills and expertise of workers, leading to higher productivity. (D) Signup and view all the answers

Why is expenditure on information considered a source of human capital formation?

It provides individuals with the necessary information to make informed investment decisions related to human capital. (A) Signup and view all the answers

How does an export-oriented policy lead to an increase in the production of cash crops?

It encourages farmers to focus on cash crops for higher profits. (A), It increases the demand for cash crops due to higher export prices. (D) Signup and view all the answers

How does education play a role in stimulating innovation?

It provides knowledge to understand changes in society and scientific advancements, facilitating inventions and innovation. (D) Signup and view all the answers

Which type of worker is most likely to be part of a trade union and have their rights protected by labor laws?

Formal sector worker (C) Signup and view all the answers

What is a key characteristic of disguised unemployment?

Workers are employed but are not fully utilizing their skills and could be removed without affecting output. (A) Signup and view all the answers

Which of the following is NOT a cause of informalization of the workforce in India?

Increased government spending on social welfare programs (C) Signup and view all the answers

The concept of sustainable development emphasizes meeting the needs of the present generation without compromising the needs of future generations. Which of the following is NOT a strategy consistent with this approach?

Exploiting natural resources at an unsustainable rate (B) Signup and view all the answers

Which of the following is NOT a function of the environment?

Generating artificial intelligence (C) Signup and view all the answers

Which of the following is a direct consequence of land degradation?

Reduced agricultural productivity (D) Signup and view all the answers

What is the primary difference between frictional unemployment and structural unemployment?

Frictional unemployment is temporary, while structural unemployment is long-term. (A) Signup and view all the answers

What is the primary cause of seasonal unemployment?

Changes in demand based on the time of year. (A) Signup and view all the answers

What was the main goal of the Great Leap Forward campaign in China, initiated in 1958?

To rapidly industrialize China and increase its economic output. (B) Signup and view all the answers

Which of the following strategies was NOT specifically mentioned as a contributor to Pakistan's economic growth in the 1950s and 1960s?

Privatization of industries. (D) Signup and view all the answers

Which of the following is a reason cited for the low population growth rate in China?

A strong emphasis on family planning and the One Child Policy. (B) Signup and view all the answers

According to the content, which country has the second largest GDP in the world?

China (B) Signup and view all the answers

Which strategy for sustainable development focuses on using organic matter to improve soil fertility and reduce reliance on chemical fertilizers?

Organic farming (A) Signup and view all the answers

What significant social and economic policy was introduced in China during the 1960s, impacting the country's political and social landscape?

The Great Proletarian Cultural Revolution (A) Signup and view all the answers

Which of the following strategies for sustainable development directly aims to reduce pollution and environmental degradation?

Strict law on the disposal of chemical effluents (C) Signup and view all the answers

Which of the following is NOT a stated reason contributing to the slowing down of the Chinese economy in the initial phase?

A shift in the government's focus to environmental sustainability (C) Signup and view all the answers

What was the main consequence of the discriminatory tariff policy imposed on Indian handicrafts?

Decline of Indian handicrafts both domestically and internationally (D) Signup and view all the answers

What was a significant factor contributing to the low productivity of agriculture in India on the eve of independence?

Lack of technology and irrigation facilities (C) Signup and view all the answers

Which of the following factors contributed to the lopsided growth of industries in India on the eve of independence?

Confinement of industrial development to cotton and jute textiles (A) Signup and view all the answers

What was the impact of the opening of the Suez Canal on India's foreign trade?

Significantly increased British control over India's foreign trade (B) Signup and view all the answers

Which of the following statements accurately describes India's foreign trade on the eve of independence?

India was a net exporter of primary products and importer of finished goods (A) Signup and view all the answers

What significant demographic shift occurred in India in 1921?

A shift from a high birth and death rate to moderate population growth (D) Signup and view all the answers

Which of the following factors contributed to India's low literacy rate on the eve of independence?

Limited access to education for the majority of the population (C) Signup and view all the answers

What was the major reason for the high infant mortality rate in India on the eve of independence?

Lack of access to healthcare facilities and malnutrition (B) Signup and view all the answers

What is the primary purpose of the Education Cess levied by the Government of India?

To allocate funds for elementary education. (D) Signup and view all the answers

Which of the following is NOT a key element of rural development?

Financial literacy programs (D) Signup and view all the answers

What is the primary reason why poor farmers need access to credit?

To bridge the gap between sowing and harvesting. (A) Signup and view all the answers

Which of the following is a traditional source of rural credit in India?

Money-lenders (A) Signup and view all the answers

What is a key benefit of cooperative credit societies for farmers?

Liberating farmers from dependence on moneylenders. (D) Signup and view all the answers

Which of the following is NOT a primary function of NABARD?

Regulating commercial banks operating in rural areas. (C) Signup and view all the answers

What is a significant challenge associated with rural banking in India?

Exclusion of poor and marginal farmers due to collateral requirements. (B) Signup and view all the answers

What is the main challenge associated with agricultural marketing in India?

Ensuring smooth and efficient distribution of agricultural commodities across the country. (C) Signup and view all the answers

Study Notes

Indian Economy on the Eve of Independence

Economists like Dadabhai Naroji, William Digby, V.K.R.V.Rao, and R.C. Desai estimated national income.
V.K.R.V.Rao's estimates were considered the most significant.

Agriculture Sector

Low Productivity: Agriculture was in a backward condition due to low productivity levels.
Lack of Technology & Irrigation: Lack of technology and irrigation facilities significantly hindered productivity.
Unequal Land Ownership: Landowners were separate from the cultivators (tillers); tillers often received very little produce.
Small & Fragmented Holdings: Land was subdivided, making management and supervision difficult.

Backwardness of Indian Agriculture

Land Revenue System (Zamindari System): Farmers were forced to grow cash crops over food.
Commercialization of Agriculture: Farmers were compelled to grow cash crops like indigo, needed by British textile industries, instead of food crops.
Impact of Partition: The partition impacted agriculture.
Low Investment in Agriculture: Agriculture received limited investment.

Industrial Sector

Policy of De-industrialization: British policy led to a decline in Indian handicrafts and constrained modern industry growth.
Decay of Handicrafts:
- Discriminatory Tariff Policy: India's exports faced higher tariffs than imports.
- Heavy Export Duties: Duties imposed on Indian handicrafts.
- Competition with Machine-Made Goods: Decline occurred due to competition from machine-made products in both domestic and international markets.
Bleak Growth of Modern Industry: Modern Indian industry developed slowly.
- Lopsided Growth: Industry experienced uneven progress, primarily in cotton and jute textiles.
- Lack of Capital Goods: Capital goods industries grew slowly.
First Steel Mill (TISCO): First steel mill (TISCO) was established in 1907.

Foreign Trade

Net Exporter of Raw Materials, Importer of Finished Goods: India was a net exporter of raw materials and an importer of finished goods.
Increased Dependence on Britain: Opening of the Suez Canal increased India's reliance on Britain for trade.
Limited Trade with Other Countries: Trade with other countries (e.g., China, Ceylon, Persia) was limited.
Importance for British Finances: India's export surplus funded British expenses.

Demographic Conditions

Census of 1881: First detailed census of India's population.
High Birth and Death Rates: High birth and death rates characterized this time.
Low Infant Mortality Rate: Infant mortality rates were high but not described in detail
Low Literacy: Literacy rates were low.
Life Expectancy: Average life expectancy was low, which can be determined from the provided text.

Occupational Structure

Primary Sector Dominance: A majority of the workforce (70-75%) was engaged in the primary sector (agriculture).
Secondary & Tertiary Sectors: Secondary and tertiary sectors had comparatively less workforce participation.

Infrastructure

Roads: Shortage of all-weather roads hindered transportation during this time.
Railways: Railways were first introduced in India in the 1850s.
Air & Water Transport: Inland trade and sea lanes were not very economical.
Telegraph: Telegraph lines were introduced in the 1850s.

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Description

Test your knowledge on the LPG (Liberalization, Privatization, Globalization) policy and its impacts on the economy. This quiz covers reasons for privatization, benefits of outsourcing, and the role of human capital formation in economic growth. Dive into the nuances of these concepts and assess your understanding of modern economic reforms in India.