Economy (Part-4) (CDS-Solved Paper)

Total Questions: 16

11. Corporation tax in India is levied on income of a company. Which one of the following does not include Corporation tax? [Morning Shift-2014 (I)]

Correct Answer: (d) Sale proceed of assets
Solution:

Corporation tax in India relates to taxation of companies. The income from following are liable for taxation
(i) Profit from business (ii) Capital gains (iii) Income from property (iv) Income from interest on securities Sales proceed of assets does not include in corporation tax.

12. In India, contribution of food inflation to overall inflation is around (1/3)rd to (2/5)th. Within food inflation, contribution of food articles is higher because price rise in food articles is [Morning Shift-2014 (I)]

Correct Answer: (a) higher and their weight is also higher compared to food products
Solution:

The contribution of food article on inflation is higher because the price rise in food article is higher and their weight is also higher compared to food products.

13. In India, mergers and acquisition of firms are regulated by [Morning Shift-2014 (I)]

Correct Answer: (b) Competition Commission of India
Solution:

Competition commission of India (CCI) is responsible for enforcing the competition Act, 2002. Act regulates the acquisition, acquiring of control and merger and acquisition.

National Manufacturing
Competitiveness Council (NMCC) was established 2004 as a part of its Common Minimum Programme (CMP). Its mandate was to provide a continuing forum for policy dialogue to energize and sustain the growth of manufacturing industry.

The Securities and Exchange Board of India is the regulator for the securities market in India owned by the Government of India. It was established in 1988.

The Department for Promotion of Industry and Internal Trade (DPIIT) is a central government department under the Ministry of Commerce and Industry. It was founded in 1995.

14. Which of the following statements about India’s unorganised sector are true? [Morning Shift-2014 (I)]

1. Labour is more in number than that in the organised sector.
2. Job security and work regulation are better in unorganised sector.
3. They are usually not organised into trade unions.
4. Workers are usually employed for a limited number of days.
Select the correct answer using the codes given below

Correct Answer: (b) 1, 3 and 4
Solution:

Unorganised Workers (UW) in India have increased many folds post independence. Around 52% of UW’s are engaged in agriculture and allied sector and they constitute more than 90% of the labour work force. Characteristics of unorganised sector are:
● Excessive seasonality of employment
● Poor working conditions
● No fixed jobs
● Work in very poor working environment
● No security of employment
● Employed for a limited period

15. Classification of an enterprise into public or private sector is based on [Morning Shift-2014 (I)]

Correct Answer: (b) ownership of assets of the enterprise
Solution:

An enterprise is public or private is decided on the basis of the ownership of assets. If major portion of enterprise is owned by government, then it is classed in public sector and if owned privately, then it comes under private sector.

16. Share of food in total consumption expenditure has been coming down as Per Capita Income grew over time in last sixty years becuase [Morning Shift-2014 (I)]

Correct Answer: (c) growth in food expenditure has been lower than growth in per capita income
Solution:

Share of food in total consumption is coming down because the growth in food expenditure has been lower than growth in per capita income. This shift is evident after the rapid economic growth of India and diversification of food basket.
Hence, option (c) is correct.