Economics Mock Test- 2 - Class 10 MCQ

Consumer courts are special courts for consumers who buy or avail services. Consumer courts works under/as per Consumer Protection Act 1986 (CPA 1986). Any customer who falls under definition of consumer under CPA 1986 can lodge his/her complaint in forums.

The basic objective of the Right to Information Act is to empower the citizens, promote transparency and accountability in the working of the Public Authorities, contain corruption, and make our democracy work for the people in real sense.

C is the correct option. Globalization is the word used to describe the growing interdependence of the world's economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information.

To answer the question, let's break it down into different points:
1. Definition of a company operating in more than one country:
- A company that operates in more than one country is known as a multinational company.
2. Options provided:
- A: Partnership
- B: Corporation
- C: Foreign company
- D: Multinational
3. Analysis of the options:
- Option A: Partnership refers to a business owned and operated by two or more individuals, but it does not necessarily operate in multiple countries.
- Option B: Corporation is a legal entity that is separate from its owners, and it can operate in multiple countries. However, not all corporations operate internationally.
- Option C: Foreign company generally refers to a company that operates in a country other than its home country, but it may not necessarily operate in multiple countries.
- Option D: Multinational is the correct answer as it specifically describes a company that operates in more than one country.
4. Conclusion:
- Based on the analysis, the correct answer is option D: Multinational.

Ecological footprint is the minimum area of land required to sustain the life of an individual or a population completely.

Technical development relates to anything in regions to the inventions or innovations.

Explanation:

• Grains as money: In the agricultural stage, grains were used as a form of currency or money. They were exchanged for goods and services, similar to how money is used in modern economies.



• Grains as commodity: Grains were also considered a valuable commodity during this time. They were traded and sold for profit, making them an important economic resource.



• Grains as ingredient: Grains were used as ingredients in various food products. They were essential for making bread, porridge, and other staple foods that sustained the population.



• None of these: This option is incorrect as grains served multiple purposes in the agricultural stage, including as a form of money, a commodity, and an ingredient.

Therefore, the correct answer is A: grains were used as money in the agricultural stage.

Globalisation Impact on Indian Toy Making Industry

• Increased Competition: Globalisation has led to an influx of cheap imported toys from countries with lower production costs, making it difficult for Indian toy manufacturers to compete.


• Changing Consumer Preferences: With exposure to a variety of international toys, Indian consumers are now demanding newer and trendier products, putting pressure on local manufacturers to keep up.


• Lack of Technology and Innovation: Indian toy making industry often lags behind in terms of technology and innovation compared to global counterparts, making it harder to keep up with changing market demands.


• Trade Barriers: Globalisation has also brought about trade barriers and regulations that make it harder for Indian toy makers to export their products to international markets.


• Impact on Employment: As the industry struggles to compete globally, there is a risk of job losses and economic instability in the toy making sector in India.

MNC stands for Multinational Corporation. It refers to a company which is operating in two or more countries and managed from one country where it is headquartered. It is also called as multinational enterprise (MNE), stateless corporation or transnational corporation. An MNC may have its offices and factories in different countries, but its head office or headquarter is usually located in the country of origin.

The public sector includes all the public services and enterprises. Public services include public goods and services like roads, water supply, transport, health, military etc. Public enterprises are state-owned that are under public ownership. Private sector includes enterprises that are owned by private people with the aim to gain profit. These are not owned and run by state or government. 

 As of 1 July 2019, low-income economies are defined as those with a GNI per capita, calculated using the World Bank Atlas method, of $1,025 or less in 2018; lower middle-income economies are those with a GNI per capita between $1,026 and $3,995; upper middle-income economies are those between $3,996 and $12,375; high-income economies are those with a GNI per capita of $12,376 or more.
India continues to be a lower-middle-income country.

The correct option is D.
Fair globalisation would create opportunities for all and also ensure that benefits of globalisation are shared better. (i) Government policies must protect the interests not only of the rich and powerful but of all the people in the country.

Globalisation results in greater competition among producers
- Globalisation leads to an increase in international trade and the flow of goods and services across borders.
- This greater interconnectedness and integration of economies result in producers from different countries competing with each other in the global marketplace.
- Here are some reasons why globalisation leads to greater competition among producers:
- Access to larger markets: Globalisation allows producers to access larger markets beyond their domestic boundaries. This means they have to compete with more players for market share.
- Lower trade barriers: Globalisation often involves the reduction of trade barriers such as tariffs and quotas. This allows producers from different countries to compete on a more level playing field, increasing competition.
- Technological advancements: Globalisation is often accompanied by advancements in technology and communication. This enables producers to reach customers in different parts of the world more easily, leading to increased competition.
- Price comparison: With globalisation, consumers have access to more information and can easily compare prices and quality from different producers. This puts pressure on producers to offer competitive prices and higher quality.
- In conclusion, globalisation results in greater competition among producers as they have to compete with a larger pool of players, face reduced trade barriers, leverage technological advancements, and meet the demands of informed consumers.

The Gini coefficient is significant in assessing a country's economic landscape as it provides a measure of income inequality. A higher Gini coefficient indicates a more unequal distribution of income among the population. Policymakers use this indicator to understand and address economic disparities within a nation.

Per capita income is considered an important indicator for comparing the economic well-being of different countries because it indicates the average income per person in a nation. This allows for a more accurate assessment of the standard of living and economic conditions, facilitating international comparisons.

The RBI oversees the functioning of commercial banks. The reason statement substantiates the assertion but it is not the explanation for the assertion.

The terms of credit vary substantially from one credit arrangement to another. They may vary depending on the nature of the lender and the borrower.

Whether credit would be useful or not depends on the risks in the situation and whether there is some support, in case of loss.

Explanation:

• Government ownership: In the public sector, the government owns most of the assets and provides services to the citizens.


• Control over resources: The public sector has control over important resources such as healthcare, education, transportation, and utilities.


• Social welfare: The public sector is responsible for the welfare of the citizens and aims to provide essential services to all, regardless of their ability to pay.


• Regulation and oversight: The government regulates the public sector to ensure fair practices and prevent exploitation of resources.


• Investment in infrastructure: The public sector invests in infrastructure development to improve the overall quality of life for the citizens.

The correct option is D.
RURAL CREDIT - NON INSTITUTIONAL AND - INSTITUTIONAL SOURCES The credit requirements of Indian farmers are met by many agencies. They constitute money lenders, trades, commission agents, land lords, relatives, commercial banks, cooperatives etc.

Setting up of Regional Rural Banks

• Year: Regional Rural Banks were set up in 1975.


• Objective: The main objective of setting up Regional Rural Banks was to provide credit and banking facilities to rural areas to help in the development of agriculture, trade, commerce, industry, and other productive activities in the rural areas.


• Structure: Regional Rural Banks were set up under the provisions of an Ordinance promulgated on 26th September 1975 and the Regional Rural Banks Act, 1976 with the sponsorship of commercial banks and the Government of India.


• Ownership: Regional Rural Banks are jointly owned by the Government of India, the concerned State Government, and the sponsor bank with the issued capital shared in the proportion of 50%, 15%, and 35% respectively.


• Functions: Regional Rural Banks provide credit and other facilities to small and marginal farmers, agricultural laborers, artisans, and small entrepreneurs in rural areas. They also offer deposit schemes, remittance services, and other banking services to the rural population.


• Expansion: Over the years, Regional Rural Banks have played a vital role in rural development by providing financial services to the unbanked and underbanked population in remote and rural areas of the country.

An economic activity involving the production and sale of goods and services undertaken with a motive of earning profit by satisfying human needs in society is called business.

Welfare economics is the study of how the structure of markets and the allocation of economic goods and resources determine the overall well-being of society.

Investment refers to the act of spending money with the expectation of generating future income or returns. In the context of the given options, investment can be made in various forms, such as factory building, machines, and equipment. Let's break down each option to understand how they contribute to investment:
1. Factory Building: Investing in factory buildings involves constructing or acquiring physical structures where production activities take place. This includes purchasing land, materials, and labor to establish a manufacturing facility.
2. Machines: Investment in machines refers to purchasing or leasing equipment that aids in the production process. Machines can range from simple tools to complex industrial machinery, depending on the nature of the business.
3. Equipment: Equipment investment involves acquiring necessary tools, devices, or instruments to support the production or operation of a business. This can include items such as computers, vehicles, furniture, or specialized machinery.
4. All the above: The answer option "D: all the above" indicates that investment encompasses spending on factory building, machines, and equipment. This means that investment is not limited to any single form but includes all these options.
In summary, investment involves spending on factory building, machines, and equipment. These investments are made with the expectation of generating future income or returns.

Contributions to Globalisation:

• External trade: External trade, also known as international trade, plays a significant role in globalisation. It involves the exchange of goods and services between countries, promoting economic integration and interdependence on a global scale.


• Internal trade: While internal trade refers to trade within a country, it also contributes to globalisation indirectly. As countries engage in internal trade, they develop capabilities, infrastructure, and expertise that can eventually facilitate international trade.


• Large scale trade: Large scale trade, involving substantial quantities of goods and services, contributes to globalisation by creating broader market opportunities and increasing economic cooperation between nations.


• Small scale trade: Although small scale trade may not have the same magnitude as large scale trade, it still contributes to globalisation by fostering connections between individuals, communities, and businesses across borders. It promotes cultural exchange and the spread of ideas.

Overall, external trade is the most direct and influential contributor to globalisation. However, internal trade, both large and small scale, also play important roles in supporting and enhancing globalisation.

Globalization has posed major challenges to a large number of small producers and workers. Battery, condenser, plastic, toys, pneumatic, dairy and vegetable oil industries were hit hard because of competition. Several units were shut down that led to many workers being unemployed.

Globalisation is the process of rapid integration or interconnection between countries. It integrates the country with other economies of the world through trade, capital flow and technology.

Economic liberalization refers to those government policies which promote economic growth by opening up trade to international markets, extending the use of markets and lessening the restrictions and regulations placed on business. Economic liberalization does not always come without its drawbacks. Domestic companies may face difficulties in competing with foreign companies once the international trade barriers are removed. There is also the risk of brain drain and the environmental degradation that can follow in the wake of deregulation. Many developing third world countries, however, view economic liberalization as an approach for which there is no alternative.

(i) MNCs buy at cheap rates from small producers: MNCs buy Garments, Footwear, Sports items at cheap rates from small producers because it reduces their cost of production and using their brand value they sell them at high prices and earn profits.

(ii) Quotas and taxes on imports are used to regulate trade: Quotas and taxes on imports are used to regulate trade items received through import. These are called Trade barriers. These are imposed to protect the domestic industries from the competition by foreign goods. In the absence of trade barriers the imports would flood the domestic market.

(iii) Indian companies who have invested abroad: Tata motors, Ranbaxy and Infosys are the Indian companies which have invested in foreign countries.

(iv) IT has helped in spreading of production of services: With the development of satellite communication and e-mail, the Information technology led to the establishment of call centres for the easy dissemination of information.

(v) Several MNCs have invested in setting up factories in India for production: Because of the presence of huge population and improving living standards, the number of automobiles in India are increasing. Also, because of the increase in Foreign direct investment, several companies have established automobile industries in India.

(i) Tata Motors: Tata Motors Limited is an Indian multinational automotive manufacturing company, headquartered in Mumbai, Maharashtra which is part of Tata Group.

(ii) Asian Paints: Asian Paints Ltd is an Indian multinational paint company, headquartered in Mumbai. The company is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home decor, bath fittings and providing of related services.

(iii) Infosys: Infosys Limited is an Indian multinational information technology company that provides business consulting, information technology and outsourcing services. The company was founded in Pune and is headquartered in Bangalore.

(iv) Sundaram Fasteners: “Now, Sundram Fasteners is not just a fastener company any more, but a broad-based engineering company capable of undertaking the manufacture of various components and assembly systems for automotive and other engineering applications in India and abroad.