Economic Environment of Business

Mid-term Test
Marks 40
Time 90 minutes
All questions carry equal marks.
Q1. Tick the correct answer
(a) The Indian Economy is considered as
(i)
Less developed Economy
(ii)
More developed Economy
(iii)
Under developed Economy
(b) A very high proportion of population is found in Agriculture in
(i)
Developing Economy
(ii)
Under developed Economy
(iii)
Primary producing Economy
(c) The purchasing power parity of USA is more than India to the tune of
(i)
18 times
(ii)
74 times
(iii)
14 times
(d) In terms of the system of economy India follows
(i)
Mixed Economy
(ii)
Regulated Economy
(iii)
Protected Economy
(e) The low ranking countries in HDI are categorized as
(i)
Agro based Economy
(ii)
Industrialized Economy
(iii)
Developing Economy
(f) The two sector developmental model adopted by India is a
(i)
Strategy of Planning
(ii)
Objective of Planning
(iii)
Guidelines for Planning
(g) Increase in Per Capita Income contributes to
(i)
Economic growth
(ii)
Economic development
(iii)
Economic welfare
(h) Workers Welfare was a Component of IPR
(i)
1948
(ii)
1956
(iii)
1977

(i) The concept of economic federalism leads to

(i)
Centralized Production
(ii)
Decentralized Production
(iii)
Cpital intensive techniques of production
(j) Foreign Investment to the tune of 74% was considered in IPR 1991 for
(i)
Software Industries
(ii)
Export Promotion Industries
(iii)
Foreign Trading Companies
II
(a) The globalization of Indian Economy is considered as a Compulsion than
choice.
True / False
(b) Investment, Industry, Information technology and Individual consumers are the
Central point of global economy.
True / False
(c) The Industrial Policy Resolutions in India are a part of the regulated frame
work.
True / False
(d) The IPR influences the Fiscal Policy in an economy.
True / False
(e) The policy of broad banding gave freedom of operation to Industries.
True / False
(f) Decentralization paves the way for privatization.
True / False
(g) Financial Restructuring is a part of operational measures in privatization.
True / False
(h) The policy of disinvestments in PSEs is a part of economic reform.
True / False
(i) Company Image and Brand equity is a part of Companys internal environment.
True / False
(j) Marketing intermediaries play a vital role in companys external environment.
True / False

Q2. Distinguish the following with examples:

Economic Reform and Economic Liberalization
Protective Economy and Protected Economy
Privatisation and globalization
Planning objectives and strategy in India.
Inducing Private ownership and management in PSEs.
Q3. Briefly analyse the following in the Indian Context:
(a) The liberal treands in the Industrial Policy Resolutions after 1980.
(b) Acceptance of the development of Basic, Heavy and Intermediate Goods
Industries as a policy in Indian Industrialisation.
Q4. The internal as well as external business environment play a vital role in the
performance of an industry Do you agree with the statement? Justify your answer
with example.