Chapter Exam

Chapter 9 ECONOMICS : Industry and Service Sectors — Online MCQ Test

Q: Which of the following is considered the backbone of the industrial sector in India due to its high employment potential?

Answer: B. MSMEs — MSMEs (Micro, Small and Medium Enterprises) are essential for industrial growth and are the second largest employers after agriculture.

Q: Which act serves as the primary legislation governing MSMEs in India?

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.

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 for Andhra State Board CLASS 12 INTER II YEAR ECONOMICS. This chapter covers: This chapter covers industrial policies growth of MSMEs service sector expansion infrastructure needs privatization and foreign direct investment trends.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 9 ECONOMICS : Industry and Service Sectors — Important Questions & Answers (FAQ)

Frequently asked questions from Andhra State Board CLASS 12 INTER II YEAR ECONOMICS — Chapter 9 ECONOMICS : Industry and Service Sectors, with answers and explanations. These are sample questions; the exam has its own separate question set.

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.

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.

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.

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.

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.