Q.641. The term ‘Dumping’ refers to
(a) The sale of a sub-standard commodity
(b) Sale in a foreign market of a commodity at a price below marginal cost
(c) Sale in a foreign market of a commodity just at marginal cost with too much of profit
(d) Smuggling of goods without paying any customs duty
Ans: (B)
Notes: Dumping is an international price discrimination in which an exporter firm sells a portion of its output in a foreign market at a very low price and the remaining output at a high price in the home market. This is done to turn out foreign competitors from the domestic market. If the foreign market is perfectly competitive, the firm may lower the price in comparison with other competitors so that the demand for it may increase. In such a situation, the firm may sell the commodity even below marginal cost of production, incurring loss in the foreign market (International Economics by M. Maria John Kennedy, p.122).
Q.642. “Globalisation of Indian Economy” denotes :
(a) Increase of external borrowings
(b) having minimum intervention in economic relations with other countries
(c) starting of new business units abroad
(d) relaxing the programmes of import substitution
Ans: (B)
Notes: Globalization means integrating the economy of a country with the economies of other countries or world economy under conditions of free flow of trade, capital and movement of persons across borders. In the Indian content, this implies opening up the economy to foreign direct investment by providing facilities to foreign companies to invest in different fields of economic activity in India; removing constraints and obstacles to the entry of MNCs in India allowing Indian companies to enter into foreign collaborations in India and also encouraging them to set up joint ventures abroad; carrying out massive import liberalization programmes by switching over from quantitative restrictions to tariffs in the first place and then bringing down the level of import duties considerably; and instead of a plethora of export incentives opting for exchange rate adjustments for promoting exports.
Part–VII : Indian Economics
Q.643. On the administered price of which of the following articles no subsidy is given ?
(a) DAP
(b) ATF
(c) LPG
(d) Kerosene oil
Ans: (B)
Notes: In India, no subsidy is given to Aviation Turbine Fuel (ATF). Indian Oil Aviation Service is a leading aviation fuel solution provider in India and the mostpreferred supplier of jet fuel to major international and domestic airlines. Jet fuel is a colorless, combustible, straight-run petroleum distillate liquid. The highly punitive fiscal regime in India is the primary problem for the aviation sector. The cost of Aviation Turbine Fuel in India is almost 60% higher than international benchmarks. Combined with a high base price, fuel now represents 45-55% of a carrier’s operating costs.
Q.644. Which among the following has the least possibility of globalisation ?
(a) selection of labour force
(b) location of capital works
(c) to manage resources for investment
(d) increase in infrastructure
Ans: (B)
Notes: Globalization can affect the labor market by increasing capacity of developing countries to create new opportunities for work and production following the alleviation of price distortions with respect to both labor and capital. Globalization on business management is interconnection of international markets and managing businesses in a global industry. This includes management of resources for foreign investments whereby a company expands its business and invests in foreign countries. Globalization means inter-linkage among the countries of the globe. This can only happen when infrastructure is in proper shape. A well-developed infrastructure is an indispensable condition for faster globalization.
Q.645. Agricultural Technology is hard to spread because :
(a) it has to be adopted to local conditions.
Q.
(b) rural people are not receptive
(c) farmers are afraid to experiment on land for fear of failure.
Q.
(d) all of the above.
Ans: (D)
Notes: There are many benefits of using technology in agriculture system, but there are also negative aspects. Technology transfer is most difficult in agriculture because of the differences in natural conditions, such as weather, geographical features, plant ecology, and irrigation, which overlap social and institutional restrictions. When an agricultural technology is stable as a result of the limitations imposed by the existing national conditions and social system, the limits of production are empirically foreseeable.
Q.646. Structural unemployment arises due to :
(a) deflationary conditions
(b) heavy industry bias
(c) shortage of raw materials
(d) inadequate productive capacity
Ans: (D)
Notes: Structural unemployment is a form of unemployment resulting from a mismatch between demand in the labour market and the skills and locations of the workers seeking employment. Structural unemployment is a result of the dynamics of the labor market, such as agricultural workers being displaced by mechanized agriculture, unskilled laborers displaced by both mechanization and automation, or industries with declining employment. Many of these displaced workers are “left behind” due to costs of training and moving (e.g., the cost of selling one’s house in a depressed local economy), inefficiencies in the labor markets, such as discrimination or monopoly power, or because they are unsuited for work in growing sectors such as health care or high technology.
Q.647. What is “book-building” ?
(a) Preparing the income and expenditure ledgers of a company (book-keeping)
(b) Manipulating the profit and loss statements of a company
(c) A process of inviting subscriptions to a public offer of securities, essentially through a tendering process
(d) Publishers’ activity
Ans: (C)
Notes: Book building refers to the process of generating, capturing, and recording investor demand for shares during an IPO (or other securities during their issuance process) in order to support efficient price discovery. Usually, the issuer appoints a major investment bank to act as a major securities underwriter or bookrunner. The “book” is the offmarket col lation of investor demand by the bookrunner and is confidential to the bookrunner, issuer, and underwriter. Book-building is a process of price discovery used in public offers. The issuer sets a base price and a band within which the investor is allowed to bid for shares.
Q.648. Which natioalised bank of India has a shining star as its emblem?
(a) Syndicate Bank
(b) Indian Bank
(c) Bank of India
(d) Bank of Baroda
Ans: (C)
Notes: The new logo of the Bank of Baroda is a unique representation of a universal symbol. It comprises dual ‘B’ letterforms that hold the rays of the rising sun. It is known as the ‘Baroda Sun’ which is the single most powerful source of light and energy – its far reaching rays dispel darkness to illuminate everything they touch. With this logo, Bank of Baroda seeks to be the source that will help all its stakeholders realise their goals. To customers, the bank seeks to be a one-stop, reliable partner who will help them address different financial needs. To employees, the bank offers rewarding careers and to our investors and business partners, maximum return on their investment.
Q.649. Which one of the following taxes is collected and utilized by the State Governments ?
(a) Personal income tax
(b) Corporation tax
(c) Land revenue
(d) Custom duties
Ans: (C)
Notes: The Constitution allocates the taxation of agricultural income to states. Lan revenue is a major source of revenue for states in India. For purpose of revenue management, a State is divided into various districts, each in the charge of a Deputy Commissioner, also known as Collector indicating his responsibility for the realization of all Government revenues.
Q.650. Which amidst the following is not a credit rating agency ?
(a) CRISIL
(b) CARE
(c) ICRA
(d) IFCI
Ans: (D)
Notes: A credit rating agency (CRA) is a company that assigns credit ratings for issuers of certain types of debt obligations as well as the debt instruments themselves. In some cases, the servicers of the underlying debt are also given ratings. CRISIL is the most influential and largest credit rating agency among all the credit rating agencies in India. ICRA Limited (ICRA) is one of India’s premier financial information services company. It offers credit rating information and professional financial consulting services across India, as well as in the Asia-Pacific region through its subsidiaries. CARE Ratings commenced operations in April 1993 and over nearly two decades, it has established itself as the second-largest credit rating agency in India. The government established The Industrial Finance Corporation of India (IFCI) on July 1, 1948, as the first Development Financial Institution in the country to cater to the long-term finance needs of the industrial sector.