NTA UGC NET/JRF Exam, Dec. 2021/June 2022 Economics

Total Questions: 100

91. Although globalisation is often accused of increasing world poverty, the fact is that poverty would probably be even more widespread without globalisation. What is true is that glabalisation did not benefit all nations.

What globalisation can be blamed for is not spreading the benefits of increased efficiency and openness that come with globalisation more evenly and equitably to all nations.

The stock of Foreign Direct investments around the World states that in 2010, the inward stock of FDI of developing countries was 48 percent that of developed countries, while their stock of outward FDI was about 17 percent that of developed countries.

The New International Economies of Scale (NIES) states that - more and more products manufactured by international corporations have parts and components made in many different nations.

The reason is to minimise production costs. Foreign sourcing" of inputs is often not a matter of choice to earn higher profit, but simply a requirement to remain competitive. The carry Trade is the strategy in which an investor borrows a low yielding currency and lends (invest in) a higher yielding currency.

The risk is that if during the investment period, the higher yielding currency depreciates against the lower yielding currency by a higher percentage than the positive interest differentials, the investor will lose money.

What for globalisation has been blamed?

 

Correct Answer: (d) Globalisation has not spreaded the benefits of increased efficiency and openess equitably to all nations
Solution:

Globalisation has not spreaded the benefits of increased efficiency and openness equitably to all nations.

92. Which of the following is incorrect?

Correct Answer: (c) Both the inward stock of FDI to developing countries and outward stock of FDI from developing countries remained higher in developing countries than developed countries
Solution:

Developing countries remained higher in developing countries than developed countries.

93. Which of the following reflects the most correct sense of the New International Economies of Scale (NIES)

Correct Answer: (c) Cheaper inputs from different countries are required to remain competitive
Solution:

Cheaper inputs from different countries are required to remain competitive.

94. During the investment period, if the higher yielding currencydepreciates against the lower yielding currency by a higher percentage than the positive interest differential then which of the following will occur?

Correct Answer: (a) The investor will lose money
Solution:

The investor will earn profit.

95. Which of the following is true?

Correct Answer: (c) Without globalisation world poverty would probably be even more widespread
Solution:

Without globalisation world poverty would probably be even more wide spread.

96. Since the second five year plan, the Government of India has been emphasizing on development of industry on promoting self reliance India. But at that time the priority was for import substitution and export-promotion. Though same phenomenon is still relevant the priority of Industrialisation has been changed.

Industry helps not only for the self reliance and reducing dependence on Foreign Countries but it creats massive employment for a populated country like India.

The Startups India Programme started in 2014 which hence for promoting new initiatives and infact industries in critical domains having strategic importance. The recognised startups has been increased from 726 in FY 2016-17 to 65861 in FY2021-22.

The Startups spread across 640 districts and created jobs more then 7 lakhs. These startups have been recently developed in new domain and sectors of strategic importance including development of IT services, hardware technology, software enterprises, artificial intelligence, robotics and technology of banking & finance in across 56 sectors.

As on Feb, 2022, the ministry of commerce and industry has allocated Rs, 2,791,29 crore to SIDBI which inturn committed Rs. 6,795 crore to 82 alternative investment funds (AIFs) while

Rs. 8785 crore have been invested by supported AIFs in 574 startups and Rs. 945 crore has been allocated under the scheme for a period of four years starting from 2021-22 to fund the startups for proof of concept, prototype, trails of products, entry of market and commercialization.

However, it is important for sustaining these startups for long term development and for creation of employment. Continued investment in this sectors, export promotion and startups products, innovation in new sectors and creation of domestic demands for this products are important for long term development and attracting new startups.

Which of the following measures is required for sustaining startups?

Correct Answer: (c) Creation of domestic demands for startups
Solution:

Creation of domestic demands for startups.

97. How much amount has been allocated under the scheme of startups to find new startups for proof of concepts, prototype and trials of products, entry of market and commercialization?

Correct Answer: (c) Rs. 945 crore
Solution:

Rs. 945 crore

98. Which of the following is true in case of startups in India:

Correct Answer: (d) The recognized sectors have created jobs more than 7 lakhs
Solution:

The recognised sectors have created jobs more than 7 lakhs.

99. What is the prioritized objective of industrialization in terms of startups initiatives?

Correct Answer: (c) Both self reliance and employment opportunities
Solution:

Both self reliance and employment opportunities.

100. Which of the following sectors have not developed recently in startups

Correct Answer: (d) Space technology
Solution:

Space technology