Economics Mock Test- 1 - Class 10 MCQ

Thailand has launched ‘Look West Policy. Both of these policies are complementary to each other.

Income of a country means the total value of goods and services produced in a year by the residents of a country under consideration. National income is measured by NNP at factor cost.

Explanation:

• Rapid improvement in technology has stimulated the globalisation process: This statement is true because advancements in technology such as the internet, communication tools, and transportation have made it easier for businesses to operate on a global scale, leading to increased interconnectedness between countries.



• Everyone has benefited from globalisation: This statement is incorrect because while globalisation has brought economic growth and opportunities for many people, it has also led to income inequality, exploitation of labor in some cases, and cultural homogenization. Not everyone has benefited equally from globalisation.


• Conclusion: Therefore, while the rapid improvement in technology has indeed stimulated the globalisation process, it is not accurate to say that everyone has benefited from it. This is why the correct answer is option C, where A is correct but R is wrong.

Benefits of BPOs on Growth

• Local Companies: BPOs have benefited the growth of local companies by providing them with access to specialized services and expertise that they may not have in-house. This allows local companies to focus on their core competencies and expand their operations more efficiently.


• National Companies: BPOs have also benefited the growth of national companies by enabling them to scale their operations quickly and cost-effectively. By outsourcing non-core functions to BPOs, national companies can streamline their processes and improve their overall efficiency.


• MNCs: Multinational companies (MNCs) have greatly benefited from BPO services by leveraging the global talent pool and accessing specialized skills in different regions. BPOs help MNCs to reduce costs, improve flexibility, and focus on their core business objectives, leading to overall growth and expansion.


• None of these: It is not accurate to say that BPOs have not benefited any companies. In fact, BPOs have played a significant role in the growth of various organizations, regardless of their size or location. The outsourcing industry continues to evolve and provide valuable opportunities for companies to enhance their operations and achieve their business goals.

Why do banks use the major portion of deposits to extend loans?

• Profit Generation: Banks primarily use deposits to extend loans because it is one of the main sources of income for them. By lending out the deposited money, banks earn interest on the loans which helps them generate profits.



• Interest Income: When banks extend loans, they charge interest on the borrowed amount. This interest income adds to the bank's revenue stream and helps them cover operating expenses.



• Risk Management: By extending loans, banks can diversify their assets and reduce the risk associated with having all their funds tied up in one type of investment. This allows banks to spread out their risk and protect themselves against potential losses.



• Support Economic Growth: Banks play a crucial role in supporting economic growth by providing loans to individuals, businesses, and governments. By extending loans, banks help stimulate spending, investment, and overall economic activity.



• Liquidity Management: While banks do keep a portion of deposits as reserves to meet withdrawal demands, they also need to ensure that their funds are put to productive use. By extending loans, banks can effectively manage their liquidity and optimize their balance sheets.

Banks keep only a small proportion of their deposits as cash with themselves. This is kept as a provision to pay the depositors who might come to withdraw money from the bank on any given day.

The Reserve Bank of India supervises the functions of banks in the following ways: It ensures that the banks give loans not just to profit-making businesses and traders but also to small cultivators, small scale industries, to small borrowers etc.

The correct answer is A agriculture is the most ignored sector.
 

The industrial sector has performed poorly in the reform period because of decreasing demand of industrial products due to various reasons' such as cheaper imports, inadequate investment, infrastructure etc. Cheaper imports have replaced the demand for domestic goods in India.

At present, in terms of agricultural production, India holds the second position all over the world following China. Agriculture is a part of the primary sector of the economy as it provides a basic occupation to people.

Court to approach for a claim of Rs. 40 lakhs:
To address a claim of Rs. 40 lakhs, a consumer can approach the following court:
State Consumer Court
Explanation:
- The State Consumer Court, also known as the State Consumer Disputes Redressal Commission, is the appropriate court for consumers to approach for claims exceeding Rs. 20 lakhs but not exceeding Rs. 1 crore.
- The State Consumer Court is established at the state level, with each state having its own commission.
- It is a quasi-judicial body that provides a forum for consumers to seek redressal for their grievances against defective goods, deficient services, unfair trade practices, and more.
- The State Consumer Court has jurisdiction over cases within the state and has the power to hear and decide consumer disputes.
- It is a higher authority than the District Consumer Court, which handles claims up to Rs. 20 lakhs.
- The State Consumer Court has the authority to pass appropriate orders, including compensation, refund, and replacement, in favor of the consumer.
- Consumers can file their complaints directly with the State Consumer Court or through an advocate.
- It is important to note that the jurisdiction and monetary limit may vary from state to state, so it is advisable to consult the respective state's consumer protection laws and regulations for specific details.
Therefore, the correct option is B: State Consumer Court.

Economic activities are those activities which are undertaken by a man to earn income, money and wealth for his life.

These activities include investment, production, distribution and consumption of goods and services at all levels within the society.

The country where these economic activities are undertaken is called an economy. g. Worker works in the factory and get wages.

To determine the sector with the lowest share in employment in 2000, we need to analyze the primary, secondary, and tertiary sectors individually.
Primary Sector:
- The primary sector includes activities related to natural resources, such as agriculture, fishing, mining, and forestry.
- In 2000, the primary sector employed a significant number of people but had a higher share in employment compared to the other two sectors.
Secondary Sector:
- The secondary sector consists of activities related to manufacturing, construction, and industrial production.
- In 2000, the secondary sector saw a decline in employment due to automation and outsourcing, resulting in a lower share of employment compared to the primary sector.
Tertiary Sector:
- The tertiary sector includes activities related to services, such as healthcare, education, finance, tourism, and hospitality.
- In 2000, the tertiary sector experienced significant growth and expansion, leading to a higher share in employment compared to the primary and secondary sectors.
Based on the above analysis, we can conclude that the secondary sector had the lowest share in employment in 2000 among the given options. Therefore, the correct answer is B: secondary sector.

The past two decades of globalisation has seen rapid movements in goods, services and investments between countries.

Globalisation and Rapid Movements

• Goods and Services: Globalisation allows for the rapid movement of goods and services between countries. This is facilitated by free trade agreements and reduced barriers to trade.


• Investments: Globalisation also leads to the rapid movement of investments across borders. Companies can easily invest in foreign markets and diversify their portfolios.


• People: Globalisation has also increased the movement of people between countries. This includes migration for work, education, and cultural exchange.


• All the Above (Option D): Globalisation impacts all aspects of the economy, leading to the rapid movement of goods, services, investments, and people between countries.

By considering all these factors, it is evident that globalisation plays a significant role in facilitating the rapid movements of various elements between countries.

Provision of more government schools can ensure the development of the society and economy.

Explanation:
A: Ecological productivity decreases from the equator towards the poles.
- Ecological productivity refers to the ability of an ecosystem to produce biomass or organic matter.
- It is generally observed that ecological productivity decreases as we move from the equator towards the poles.
- This is because the availability of sunlight, temperature, and growing season length decreases with increasing latitude.
- The lower temperatures and reduced sunlight in polar regions limit plant growth and ultimately reduce ecological productivity.
R: Insolation rapidly decreases from the equator towards the poles.
- Insolation refers to the incoming solar radiation or sunlight received by the Earth's surface.
- Insolation is highest at the equator and decreases as we move towards the poles.
- This is primarily due to the curvature of the Earth's surface and the angle at which sunlight reaches different latitudes.
- At the equator, sunlight strikes the Earth's surface more directly, providing higher solar energy.
- As we move towards the poles, the sunlight has to pass through a larger portion of the Earth's atmosphere, resulting in scattering and absorption, leading to a decrease in insolation.
Conclusion:
- Both statement A and R are true.
- Statement R provides the correct explanation for statement A.
- Therefore, the correct answer is option A: Both A and R are true, and R is the correct explanation of A.

Some factors are:
Lack of awareness of consumer rights among buyers.
Improper and inadequate monitoring of rules and regulations.
Individual prchase quantity is quite small.
Consumers are scattered over large areas.
Lack of awareness among consumers.
Greed of businessperson.

Explanation:

• GDP includes the value of final goods and services produced within a country: GDP (Gross Domestic Product) measures the total value of all final goods and services produced within a country's borders in a specific time period. It includes both goods produced within the country as well as services provided. This is to capture the overall economic activity happening within the country.


• GDP is measured for one year: GDP is typically measured on an annual basis. It represents the economic output of a country over a specific period, usually a year. This allows for comparisons to be made over time and between different economies.


• Both a & b are true: Therefore, the statement that GDP includes the value of final goods and services produced within a country and is measured for one year is true. This makes option C the correct choice.

Organized Sector is a sector where the employment terms are fixed and regular, and the employees get assured work. Unorganized sector is one where the employment terms are not fixed and regular, as well as the enterprises, are not registered with the government.

Explanation:

• MNCs set up production jointly with local companies: This statement is correct as MNCs often form partnerships or joint ventures with local companies to establish production facilities in new markets.


• MNCs can provide money for additional investments: MNCs usually have access to capital and can provide funding for additional investments in infrastructure, technology, and expansion.


• MNCs do not bring with them the latest technology for production: This statement is incorrect. MNCs often bring advanced technology, processes, and expertise to the countries where they operate, helping to improve local production capabilities.


• MNCs set up factories for production: MNCs typically establish factories or production facilities in various locations to manufacture products for local and global markets.

Therefore, the correct statement is that MNCs do not bring with them the latest technology for production.

Liberalisation

• Definition: Liberalisation refers to the removal of barriers or restrictions set by the government on foreign trade and foreign investment.


• Purpose: The main goal of liberalisation is to promote economic growth by allowing easier access to international markets and capital.


• Benefits: By liberalising trade and investment policies, countries can attract more foreign investment, increase competition, and foster innovation.


• Examples: Some common liberalisation measures include reducing tariffs, eliminating quotas, and deregulating industries.


• Impact: Liberalisation can lead to increased efficiency, higher productivity, and overall economic development.

Market integration occurs when prices among different locations or related goods follow similar patterns over a long period of time. Groups of good often move proportionally to each other and when this relation is very clear among different markets it is said that the markets are integrated.

Explanation:

• Tertiary Sector: The tertiary sector, also known as the service sector, has gained prominence in the last 100 years.


• Growth: With advancements in technology and globalization, the demand for services such as healthcare, education, finance, entertainment, and tourism has increased significantly.


• Economic Development: The tertiary sector plays a crucial role in economic development as it provides employment opportunities and contributes to GDP growth.


• Specialization: Many countries have shifted their focus from primary and secondary sectors to the tertiary sector due to its potential for higher value-added services.


• Globalization: The rise of multinational corporations and the interconnectedness of economies have further fueled the growth of the tertiary sector.

Globalization creates opportunities for many countries to experience economic growth. Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as a percentage change in the Gross Domestic Product (GDP) or Gross National Product (GNP).

Globalisation is the process by which business organisations develop international influence and work hand in hand to operate on international scale. This resulted in interchanging of products, ideas, views and aspects of culture between different countries. This has resulted in the improvement of standard of living of well fortuned consumers.

The Infant Mortality Rate (IMR) measures the number of children who die before the age of one year, expressed as a proportion of 1000 live children born in a particular year. It is a critical indicator of the health conditions and healthcare accessibility in a region.

The average income of a country is calculated by dividing the national income by the population. This value, also known as per capita income, represents the average income per person in the country. It serves as a crucial indicator for comparing the economic well-being of different nations.

Collateral as a Repayment Guarantee

• Definition: Collateral is an asset that a borrower offers to a lender as a form of security for a loan or credit.



• Repayment Guarantee: When a borrower provides collateral to a lender, it serves as a guarantee that the borrower will repay the loan.



• Types of Collateral: Common types of collateral include real estate, vehicles, stocks, and other valuable assets that can be used to secure a loan.



• Protection for Lenders: Lenders require collateral to reduce the risk of lending money to borrowers. In case the borrower defaults on the loan, the lender can seize the collateral to recover the outstanding amount.



• Advantages for Borrowers: Offering collateral can help borrowers secure a loan with better terms, such as lower interest rates or higher borrowing limits, as it reassures lenders of the borrower's commitment to repay the debt.

The Reserve Bank of India supervises the functioning of formal sources of loans. In contrast, there is no organization which supervises the credit activities of lenders in the informal sector. Loans taken by poor people from informal lenders sometimes, lead them to debt-trap because of high interest rate.
Hence, the correct answer is 'None'.