Chapter 9 ECONOMICS : Industry and Service Sectors — Online MCQ Test
ECONOMICS · CLASS 12 INTER II YEAR · Andhra State Board
Practice Chapter 9 ECONOMICS : Industry and Service Sectors with a free chapter-wise online MCQ test.
This chapter covers: This chapter covers industrial policies growth of MSMEs service sector expansion infrastructure needs privatization and foreign direct investment trends..
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Chapter 9 ECONOMICS : Industry and Service Sectors — Important Questions & Answers
Which of the following is considered the backbone of the industrial sector in India due to its high employment potential?
- A. Large-scale industries
- B. MSMEs
- C. Public Sector Undertakings
- D. Multinational Corporations
Answer: B. MSMEs
MSMEs (Micro, Small and Medium Enterprises) are essential for industrial growth and are the second largest employers after agriculture.
MSMEs (Micro, Small and Medium Enterprises) are essential for industrial growth and are the second largest employers after agriculture.
Which act serves as the primary legislation governing MSMEs in India?
- A. Companies Act, 2013
- B. MSMED Act, 2006
- C. Industrial Policy Resolution, 1956
- D. Factories Act, 1948
Answer: B. MSMED Act, 2006
The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2006 to provide a legal framework for the promotion and development of MSMEs.
The Micro, Small and Medium Enterprises Development (MSMED) Act was enacted in 2006 to provide a legal framework for the promotion and development of MSMEs.
How did the 1991 Industrial Policy change the role of the public sector?
- A. It increased the number of industries reserved for the public sector
- B. It reduced the number of reserved industries to only three
- C. It made all industries public-owned
- D. It ignored the public sector completely
Answer: B. It reduced the number of reserved industries to only three
The New Industrial Policy of 1991 drastically reduced the public sector's reserved list to promote private participation and efficiency.
The New Industrial Policy of 1991 drastically reduced the public sector's reserved list to promote private participation and efficiency.
Analyze the impact of FDI on the Indian Industrial sector. Which is NOT a primary benefit?
- A. Access to advanced technology
- B. Increased foreign exchange reserves
- C. Higher competitive pressure on domestic firms
- D. Guarantee of profit for domestic small-scale industries
Answer: D. Guarantee of profit for domestic small-scale industries
FDI does not guarantee profits; instead, it exposes local firms to higher competition, which can be challenging for domestic small-scale industries.
FDI does not guarantee profits; instead, it exposes local firms to higher competition, which can be challenging for domestic small-scale industries.
Which of the following accurately describes the relationship between Infrastructure and Industrial growth?
- A. Infrastructure is an outcome of industrial growth, not a prerequisite
- B. Industrial growth is independent of infrastructure development
- C. Infrastructure acts as an 'enabler' that determines the pace and efficiency of industrial output
- D. Lack of infrastructure encourages better innovation in industries
Answer: C. Infrastructure acts as an 'enabler' that determines the pace and efficiency of industrial output
Infrastructure provides the foundational support necessary for industries to function; poor infrastructure acts as a bottleneck for industrial progress.
Infrastructure provides the foundational support necessary for industries to function; poor infrastructure acts as a bottleneck for industrial progress.