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State of industries in india - class-XII

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The term industrialization involves ___________.

  1. superior techniques of production

  2. modern techniques

  3. both (a) and (b)
  4. none of the above


Correct Option: C

Which among the following is NOT a cause of sickness of industrial units in India?

  1. Obsolescent technology

  2. Labour problems

  3. Faulty location

  4. Lack of capital account convertibility


Correct Option: D

The highest user of commercial energy is _______________.

  1. agriculture

  2. transport

  3. household

  4. industry


Correct Option: D

Obtaining of Industrial License is compulsory for all of the below sector except.

  1. Clothes

  2. Hazardous chemicals

  3. Electronic aerospace

  4. Cigarette's of tobacco


Correct Option: A

Inflation caused by increased ____________.

  1. Cost-push

  2. Structural inflation

  3. Stagnation

  4. Demand pull inflation


Correct Option: A
Explanation:

Cost push inflation is inflation caused by an increase in prices of inputs like labour, raw material, etc. The increased price of the factors of production leads to a decreased supply of these goods .Demand-pull inflation is the  most  common cause of rising prices. It occurs when consumer demand for goods and services increases so much that it outstrips supply. Producers can't make enough to meet demand. They may not have time to build the manufacturing needed to boost supply.

Select the correct one/ones about the APEDA from the given list of statements, using the code given below:
1. Set up under an Act of Parliament, the body is entrusted to promote export of agricultural items.
2. The Government has proposed to set a similar body for the agro-processed items, too.

  1. Only 1

  2. Only 2

  3. 1 and 2

  4. Neither 1 nor 2


Correct Option: A
Explanation:

Agriculture and Processed Food Products Exports Development Authority (APEDA), set up in 1986, promotes the exports of 'processed' foods also and there is no need to set up another body for the same.

Industry refers to an economic activity:  
(i) concerned with production of goods
(ii) extraction of minerals
(iii) Provision of services

  1. Only (i) is correct

  2. Only (i) and (ii) are correct

  3. Only (i) and (iii) are correct

  4. All are correct


Correct Option: D

What is the role of industrialization?

  1. It is a sign of higher standard and social change

  2. It is a sign of rising productivity

  3. It is useful for foreign trade

  4. It is a favourable balance of payment


Correct Option: B
Explanation:

Industrialisation is the process of manufacturing consumer goods and capital goods and of building infrastructure in order to provide goods and services to both individuals and businesses. As such Industrialisation plays a major role in the economic development of underdeveloped countries with vast manpower and varied resources.

Industries require a lot of cheap _____.

  1. Raw material

  2. Labour

  3. Capital

  4. Demand


Correct Option: B
Explanation:

Industries require a lot of cheap labour.

The industries requiring large quantities of _____ are located near the places having abundant availability of that raw material.

  1. Raw materials

  2. Finished goods

  3. Average raw materials

  4. None of these


Correct Option: A
Explanation:

The industries requiring large quantities of heavy raw materials are located near the places having abundant availability of that raw materials. This is the basic step taken by any industries to reduce transportation cost of raw material.

The industrial sector uses about _____ of the total commercial energy available all over the world.

  1. 30%

  2. 45%

  3. 60%

  4. 70%


Correct Option: D

Industries tend to locate in areas that have _____.

  1. Scare population

  2. High population

  3. Very less population

  4. None of these


Correct Option: B
Explanation:

Industries tend to locate in areas that have high population. The main reason is to get cheap labour in huge quantity.

Diamond industry is located at _____ because of skilled workers' availability.

  1. Mumbai

  2. Delhi

  3. Surat

  4. Ahmedabad


Correct Option: C

_____ is essential to procure raw materials from the sources to the industry and transfer the finished products to the market.

  1. Capital

  2. Labour

  3. Power

  4. Transport


Correct Option: D
Explanation:

Transport is essential to procure raw materials from the sources to the industry and transfer the finished products to the market. Even we can say transport is the back bone of any industry without transport we cannot produce our product in market for sale.

What is essential to set up any industry?

  1. Capital/Money

  2. Finished product

  3. Labour

  4. Transport


Correct Option: A
Explanation:

Capital/Money is essential to set up any industry. If we have good plan or idea for business but we do not have capital/money, we are not able to setup industry or implement our idea.

With the help of trade which type of services are developed?

  1. Business complex

  2. Banks

  3. Credit societies

  4. All of above


Correct Option: D
Explanation:

As trade increased, with the help of it, newer business buildings grew up. With the shortage of area and also because of easier communication, they started growing complexes. A cooperative society that lends money collected from its members at low rates of interest also grew up to help for the time being. Banks also grew as did international trade to keep the growth and development of the country in check.

What is trade?

  1. The action of buying and selling goods and services.

  2. The development of industries

  3. Moving from one place to another

  4. None of these


Correct Option: A
Explanation:

Trade is buying and selling of goods and services between two individual or more than that. It is basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties.

Which of the following is/are the type of migration?

  1. Short-term

  2. Long-term

  3. Permanent

  4. All of above


Correct Option: D
Explanation:

The various types of migration are mainly international which means outside the nation, and national which means within a nation. There are others types of migration too such as, forced, long term, short term, voluntary, permanent etc.

Which of the following is/are the reason of urbanisation?

  1. Industrialisation

  2. Trade

  3. Mechanisation and technology

  4. All of above


Correct Option: D
Explanation:

Urbanisation means an increase in the proportion of people living in urban areas compared to rural areas. People started moving in the urban areas as there grew more factories during Industrialisation and hence employment in those factories grew. With industrialisation, trade improved among countries too.

Which of the following condition is/are required for 'urban'?

  1. More than 75% of the male working population should be engaged in non-agricultural occupations.

  2. The population of the settlement should be more than 5000.

  3. The population density of the settlement should be more than 400 persons per sq.km.

  4. All of above


Correct Option: D
Explanation:

To call a place as "Urban", some conditions are required which we do  not see in rural place or in township.

The population of that place must be more than a minimum of 5000 with the population density more than at least 400 persons per square km. This makes the urban city dense enough for people to settle down. Also, more than 75% percent of male working population must be engaged in occupations which are of non-agricultural type as we find more of industries and factories in urban areas.

Which of the following is/are the transport facilities?

  1. Road

  2. Railways

  3. Airlines

  4. All of above


Correct Option: D
Explanation:
  • Roads, railways, airways are all modes of transportation. Vehicles like motorbikes, cars, buses etc ply on roads. The vehicles may be publicly owned or private. Railways are owned by the Central Government and form a vast network. Airways has privrate players and a public sector player Air India.

Shifting from one place to other for job/education etc purpose is known as?

  1. Migration

  2. Transportation

  3. Urbanisation

  4. Industrialisation


Correct Option: A
Explanation:

Migration is essentially the movement of human capital in search for better opportunities, living conditions,etc. Urbanization is the movement of people from rural to urban areas. 

Exchange of cultural and social customs and traditions are called ______________.

  1. Modernisation

  2. Social Harmony

  3. Industrialisation

  4. none of these


Correct Option: B
Explanation:

Social harmony means that the people who live around and near each other get along and cooperate to make everything better for everyone exchanging each other's social and cultural customs and traditions.

Which of the following is/are the problem occur due to urbanisation?

  1. Slums

  2. Traffic jams

  3. Pollution

  4. All of above


Correct Option: D
Explanation:

There are some disadvantages that started growing due to urbanisation. The more the number of people in the area, the newer the ideas and technologies gets adopted. These eventually made urban population use cars more which ultimately leads to traffic jams. Also, with increase in industries and factories, the pollution too increased. With an increase in the base salary, the number of poor people also increased increasing the slum area in urban places.

Which of the following is/are the advantage of urban settlements?

  1. New ideas

  2. Updated technologies

  3. Technological facilities

  4. All of above


Correct Option: D
Explanation:

Urbanisation means migrating from rural to urban areas. This also means, the new population will adopt newer ideas, updated technologies, newer facilities etc. Adopting these new things are an added advantage over and above the occupation of the newly migrated ones.

Which of the following disturb the social harmony of the city?

  1. Slums

  2. Traffic jams

  3. Pollution

  4. Crime


Correct Option: D
Explanation:

Social harmony means that the people who live around and near each other get along and cooperate to make everything better for everyone exchanging each other's social and cultural customs and traditions. So, the harmony gets disturbed or disrupted when any one of the parties follow themselves into a crime.

Which of the following is/are the advantages of urbanisation?

  1. Social harmony

  2. Modernisation

  3. Better job opportunities. 

  4. All of above


Correct Option: C
Explanation:

There will be lesser social harmony as there would be a mixture of many different kind of people. Modernization would be slowed down as there will be many more people to cater to to provide basic needs. 

Which among the following is not a correct combination?

  1. Industrial Policy - $1948$

  2. Industrial Policy Statement - $1977$

  3. Industrial Policy Statement - $1980$

  4. Industrial Policy Statement - $1991$


Correct Option: D

Statement - I : The industrial policy of the Government of India is aimed at increasing the tempo of industrial development.
Statement - II : After the New Industrial Policy - $1991$, the Balance of Trade for India has always been positive.

  1. Statement I is correct, but II is incorrect

  2. Statement II is correct, but I is incorrect

  3. Both Statement I and II are correct

  4. Both Statement I and II are incorrect


Correct Option: A

In which of the following countries the Industrial Revolution took place first?

  1. France

  2. Germany

  3. England

  4. U.S.A.


Correct Option: A

Which one among the following is not the salient feature of industrial policy since 1991?

  1. Enormous expansion of the private sector.

  2. Redefining the role of public sector.

  3. Limited exposure of Indian industry to foreign competition.

  4. Pruning of the list of items reserved for SSI units.


Correct Option: C

An unit in which investment in Plant and Machinery is up to Rs. 5 lakhs is known as____.

  1. small scale unit

  2. ancillary unit

  3. tiny unit

  4. large scale unit


Correct Option: C

Which of the following has resulted in failure to achieve targets of industrial production?

  1. Technical complications

  2. Power, finance and labour problems

  3. Poor planning

  4. All of the above


Correct Option: D

Which one of the following Service Organisations is the subsidiary of the National Civil Aviation India Limited (Air India)?

  1. Alliance Air

  2. Air India Charters Limited

  3. Inter Globe Aviation Limited

  4. Both (A) & (B)


Correct Option: D

Multilateral Trade Agreements are trade agreements between _______.

  1. more than one country

  2. multinational companies

  3. micro and small scale units

  4. most preferred nations


Correct Option: A

A sick industrial unit is one___________.

  1. which borrow money from bank for its fixed assets.

  2. which is unable to make profits more than 10 per cent of its capital employed.

  3. which is unable to perform its normal functions and activities of production of goods and services at a responsible profit on a sustained basis.

  4. where most of the employees are sick.


Correct Option: C

HMT stands for _____________.

  1. Hindustan mechanical tools

  2. Hindustan machine tools

  3. Hindustan mechanical technology

  4. Hindustan mechanical turbo


Correct Option: B

What are the problems of rural industrialization in India?

  1. lack of Capital

  2. lack of Basic infrastructure

  3. traditional technique of production

  4. all of the above


Correct Option: D

As a result of the New Industrial Policy, 1991

  1. The Public Sector has been stripped off all its power

  2. The Public Sector has been given the commanding heights of economy

  3. The Public Sector's portfolio will be reviewed with greater realism. The focus will be on strategic high tech and essential infrastructure industries

  4. The Public Sector's management has been passed over to the Private Sector


Correct Option: C

Which of the following is the best estimate of the percentage of population dependent on agriculture at the time of independence and in 2004-05 respectively?

  1. 72% and 54%

  2. 54% and 72%

  3. 54% and 54%

  4. 72% and 72%


Correct Option: A

Under the New Industrial Policy 1991, the system of phased manufacturing programme approved on case to case basis -

  1. Approved on case to case basis will not be applicable to new projects

  2. Will be applicable to new projects

  3. Will be applicable to new projects costing more than Rs 10 Crores

  4. None of the above


Correct Option: A

Under the New Industrial Policy 1991, the Mandatory Convertibility Clause -

  1. Is applicable for all term loans

  2. Is applicable for term loans of more than 10 years

  3. Is applicable for term loans of less than 10 years

  4. Is no longer applicable


Correct Option: D

Which of the following statement is correct?

  1. Excise duty is levied on sales Volume.

  2. Custom duties have been drastically cut down since 1991

  3. VAT has been adopted by Two-Three states in India

  4. Agriculture contributes the maximum to the direct tax revenues in India.


Correct Option: B

One major proposal of new industrial policy (1991) was ..

  1. Impose restriction on technical know-how for one year

  2. All types of industries have been made licensed

  3. NRI's will not be allowed for capital investment in India

  4. Facility of direct foreign investment up to 51% High priority industries


Correct Option: D

The industrial sector depends on the agricultural sector because _________.

  1. the agriculture sector provides food and other products for the consumption purposes of industrial sector.

  2. the agriculture sector provides raw materials for the development of a agro-based industries of the economy.

  3. the agricultural sector provides market for the industrial products.

  4. all of the above


Correct Option: D
Explanation:

The industrial sector depends on the agricultural sector because agriculture sector provides food and other products for the consumption purposes of industrial sector as well as provides raw materials for the development of agro-based industries of the economy and provides market for industrial products.

Which of the following does not relate to the New Industrial Policy, 1991?

  1. Abolition of Industrial Licensing

  2. Encouragement for Foreign Direct Investment

  3. Reservation of all industries for Public Sector

  4. Procedural Simplifications


Correct Option: C

Which of the following statements is correct with regards to the industrial sector in India?

  1. A large number of industries face under utilization of production capacity.

  2. The incremental capital-output ratio has been falling over the planning period.

  3. In terms of regions, industrial development is quite balanced.

  4. None of the above


Correct Option: A
Explanation:

The correct statement is that a large number of industries face under utilization of production capacity. Others are incorrect because the incremental capital-output ratio has been increasing over the planning period and region-wise industrial development is quite imbalanced.

Abolition of Licensing and Encouragement of Private Sector Participation are both parts of -

  1. Industrial Reforms in India

  2. External Sector Reforms in India

  3. Land Reforms in India

  4. Banking Reforms in India


Correct Option: A

Abolition of Intermediaries and Tenancy Reforms are both parts of -

  1. Industrial Reforms in India

  2. External Sector Reforms in India

  3. Land Reforms in India

  4. Banking Reforms in India


Correct Option: C

Under the New Industrial Policy 1991, several aspects were abolished. Which of the following were not abolished under that Policy?

  1. Licenses Registration

  2. DGTD Registration

  3. Foreign Direct Investment

  4. All of the above


Correct Option: C

As a result of the New Industrial Policy, $1991$:

  1. The public sector has been stripped off all its power.

  2. The public sector has been given the commanding heights of the economy.

  3. The public sector's portfolio will be reviewed with greater realism. The focus will be on strategic high tech and essential infrastructure industries.

  4. The public sector's management has been passed over to the private sector.


Correct Option: C

Industries can be classified based on ___________.

  1. Size

  2. End-Use of Output

  3. Both (a) and (b)

  4. Neither (a) nor (b)


Correct Option: C

All of the following can cause sickness to an industrial unit except ____________.

  1. demand recession

  2. uneconomic size

  3. high productivity of labour and capital

  4. financial mismanagement


Correct Option: C
Explanation:
The causes of industrial sickness are demand recession, uneconomic size, financial mismanagement, labour unrest, working capital shortage, cost escalations, shortage of raw materials, out-dated machinery and equipment and so on. While 'high productivity of labour and capital' will eradicate industrial sickness.

A strategy focusing on development of heavy industry is sometimes preferred for a developing economy because it can ____________.

  1. generate employment opportunity on a large scale

  2. provide a strong base for rapid industrialization

  3. contain inflationary pressures

  4. meet the deficits in Balance of Payments in the short run


Correct Option: B
Explanation:

A strategy for development of heavy industry is sometimes preferred for a developing economy because it can provide a strong base for rapid industrialization.

Based on Size, Industries can be classified into _____________.

  1. large, medium and small industries

  2. basic, capital, intermediate and consumer goods industries

  3. public sector and private sector industries

  4. registered and unregistered industries


Correct Option: A

______ was set up for rehabilitation of sick units.

  1. CSO

  2. BIFR

  3. ICICI

  4. NSSO


Correct Option: B

Which of these is not a cause of industrial sickness?

  1. Fraudulent activities

  2. Faulty management

  3. Over strength of employees

  4. Strikes and lockouts


Correct Option: D

______ is the process by which centre of gravity of the economy shifts from agriculture to industry.

  1. Privatization

  2. Industrialization

  3. Divestment

  4. Urbanization


Correct Option: B

Which of these is an objective of industrial policy?

  1. Sustainable growth

  2. Gainful employment

  3. Optimum utilization of resources

  4. All of the above


Correct Option: D

The industrial production has grown at an annual average rate of ______ during the Planning period.

  1. $10$%

  2. $8$%

  3. $3.5$%

  4. $6.2$%


Correct Option: D

Bureau of Industrial and Financial Reconstruction (BIFR) started its work on _________.

  1. 15 July, 1988

  2. 15 May, 1987

  3. 15 June, 1987

  4. None of these


Correct Option: B
Explanation:

Board for Industrial and Financial Reconstruction (BIFR) became operational on 15th  May, 1987 is an agency set up by the Government of India, in order to tackle the problem of industrial sickness through financial inclusion. 

The development and concentration of industries in a region is called___________.

  1. Urbanisation

  2. Industrialisation

  3. Trade

  4. Technology


Correct Option: B
Explanation:

Industrialisation is the period of social and economic change that transformed human being from an agrarian society into an industrial society, involving the extensive re-organisation of an economy for the purpose of manufacturing. It means development of industries in a country or a region in a large scale.

The value added by the industrial sector in the GDP $(2013-14)$ was ________.

  1. $26$%

  2. $12$%

  3. $19$%

  4. $32$%


Correct Option: A
Explanation:

The value added by the industrial sector in the GDP was about 26% in 201314.

Which of the following statements is correct?

  1. The industrial pattern on the eve of Independence was quite balanced.

  2. During the planning period, the structure of Indian industry has shifted in favour of basic and capital goods and intermediate sector.

  3. Most of the big industrial units in India are sick.

  4. None of the above.


Correct Option: B
Explanation:

This statement is correct that during the planning period, the structure of Indian industry has shifted in favour of basic and capital goods and intermediate sector. Others are wrong because the industrial pattern on the eve of Independence was imbalanced and very few big industrial units in India are sick.

As compared to the targeted growth rate of $10$% p.a in industrial production, The actual growth rate was ___ % p.a during the eleventh plan period.

  1. $9.4$

  2. $7.4$

  3. $6.5$

  4. $17.5$


Correct Option: B
Explanation:

The eleventh five-year plan had targeted 10% p.a. growth in industrial production, however, 7.4% p.a. of growth in industrial production was achieved during the eleventh plan period.

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