Question Answers with Explanation International Organization and Economic Theory
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1 Question Answers with Explanation International Organization and Economic Theory 1. Consider the following statements regarding Trickle down Theory: a) It states that hydroelectric generating stations are the most efficient sources of power for developed countries. b) It was suggested by Amartya Sen. c) It states that an increase in per capita income will eventually increase the well being of all segments of society as it trickles down to these groups. Explanation: Proponents of this theory expect that when governments help companies, they will produce more and thereby hire more people and raise salaries. The people in turn, will have more money to spend in the economy. 2. Consider the following statements and select the correct option: 1. Big push theory is proposed by R. Rodon. 2. Asian Development Bank was set up in Money Order System in India was started in General India Insurance Company was set up in Choose correct option: a) 1 and 2 b) 1 and 4 c) All of the above d) Only 2 Explanation: 1. Big Push Theory is proposed by R. Rodon. 2. Asian Development Bank was set up in Its headquarter is situated in Philippines (Manila). 3. Money Order System in India was started in Consider the following statements: 1. Under the WTO agreement, a compulsory licence can be invoked by a national government to allow someone else to make a patented product. 2. TB treatment drug in India by the Hyderabad based Natco pharma at low cost. Codes: a) Only 2 is correct b) Only 1 is correct c) 1 and 2 are correct d) 1 and 2 are not correct. Explanation: Nexavar is a cancer treatment drug. It will be available at 8880 pre pack of 120 tablet. Buyer, a German multinational hold the patent for nexavar, which now sells at 2.84lakhs. 4. Consider the following statements and choose the correct code: 1. India is an activity contributor to all UN organs since inception 2. India is a founder of member of united nation. a) Only 1 b) Only 2 c) 1 and 2 d) 1 and 2 are not correct Explanation: India is a founder member of united nation. India is a strong supporter of the ideals and principles of the united nation. Statement 2 is also correct 1
2 5. In terms of economy, the visit of foreign national to witness the XIX common Wealth Games in India amounted to? a) Export b) Production c) Rise money value d) a, b and c Explanation: The visits of foreign national to witness sports event like that common wealth game. Games mean India are exporting service for them. So in the given option (a) is correct about given statements. 6. Which of the following are not member of Shaghai cooperation organization? 1. Ukraine 2. Uzbekistan 3. Russia 4. Kazakhistan a) Only 1 is correct b) Only 1 and 2 is correct c) 4 and 3 are correct d) 1, 2, 3 and 4 are correct Explanation: The Shanghai cooperation Organization was established in shanghai in It has 6 member china, Russia, Kazakhistan, Tajakistan, Uzbekistan. India is granted observer status in Shanghai cooperation organization. 7. Consider the following statements: 1. India is a member of nuclear suppliers group. 2. The nuclear supplier group has 29 countries as its member. Code: a) Only 2 is correct b) Only 1 is Correct c) Both 1 and 2 are correct d) Both 1 and 2 are not correct. Ans: D Explanation: India is not member of nuclear supplier group. Nuclear suppliers group were established in Nuclear supplier group has 45 countries as its members so 1 and 2 both are not correct. 8. Other than Venezuela, which one among the following from south America is a member of OPEC? a) Boliva b) Equador c) Argentina d) Brazil Explanation: Organisation of the petroleum exporting countries is known as OPEC, It was established in 1960 in Bagdad (Iraq), Iran, Kuwait, Iran, Venezuela, Saudi Arabia are founder member of OPEC. Now Equador is the member of OPEC 9. Consider the following statements and select correct code: 1. The headquarter of the International Organisation for standardization are located in Rome 2. ISO (International Organization for standardization) 9000 related to the quality management. a) Only 2 is correct b) Only 1 is correct c) 1 and 2 is correct d) 1 and 2 are not correct Explanation: The Headquarter of the International Organization for Standardization (ISO) is Geneva not Rome Statement 2 is correct. ISO is a non governmental organization 10. The WTO has a provision under which member countries need to cut the trade tariff to zero in phased manner for which the swiss formula is applied 2
3 Select false statement related to it: 1. This is a liner method of traffic cuts. 2. In the swiss formula, tariff cut are proportionally higher for the countries which have higher energy rates a) Only 1 is correct b) Only 2 is Correct c) Both are incorrect d) Both are correct Explanation: Statement 1 is correct and 2 is not correct. This is a non liner method of tarrif cuts. The formula originated in swizerland round of negotiation of general agreement on trade and traffic 11. Consider the following statements with respect to India s standing on negotiation with world wide trade organization (WTO) 1. India support the inclusion of intellectual property as criteria for protectionist measure. 2. India is against Overall Trade Distorting Domestic Subsidies (OTDDS) of US, EU in agricultures a) All are correct b) None of these are correct c) Only 2 is correct d) Only 1 is correct Explanation: Statement 1 is wrong because India opposes any measures to include IP rights, as a criteria for protectionism Because it will affect India Generic Medicines Trade 12. Consider the following statement is related to WTO: 1. Russia, Vahuatu and Kasovo are the recent member of organization. 2. Agreement under WTO are binding and compulsory for selected members. 3. The organization replaced General Agreement on tariff and trade and officially commenced on Jan 1, a) Only 3 is correct b) Only 1 and 2 are correct c) All 1, 2 and 3 are correct d) None of these are correct Explanation: Kosovo is not a member of WTO in fact of country in making all 60 odd agreements are binding on all WTO members, both founding member and new entrants. 13. Consider the following statements about to IMF: 1. IMF does not require collateral from countries for loans. 2. IMF provides policy advise and financing to members in economic difficulties 3. IMF is mandated to oversee the international monetary and financing policies of its member countries. a) Only 3 is correct b) Only 2 is correct c) 1 and 3 are correct d) 1, 2 and 3 are correct Ans: D Explanation: All of the above statements are correct. Statement 1 is true because IMF does not require collateral from countries for loans, but rather requires the government seeking assistance to be correct. 14. Select the correct statements related to the recent Quota revision by the IMF concerning the emerging economics: 1. India s rank improved by 3 notices from 11th to 8th 3
4 2. China s rank Improved from eight to fifth 3. India s Quota improved to 2.75% from 2.44% in the total Quota. a) Only 1 b) Only 2 c) 1 and 3 d) 1, 2, 3 Explanation: China s rank improved from sixth to third. India s quota improved to 2.75% from 2.44% in the total Quota. India s rank improved by 3 notices from 11th to 8th. 15. Which of the following countries is not a member of ASEAN: a) Bangladesh b) Myanmar c) Vietnam d) None of these Explanation: In the above Option Bangladesh is not a member of ASEAN. Maximum country of ASEAN is southern Asia Myanmar Vietnam In 1967 ASEAN is foundation year 16. Which of the following statements is not correct: a) United Nations Industrial Development Organisation (UNIDO) has benefited from fruitful collaboration with other international agencies and this has manifested itself in joint project evaluations with the food and agriculture organization of the united nation(fao), UNDP etc. b) China is the first biggest producer of manufactured goods. c) On the basis of per capita manufacturing Value added (MVA), Japan ranks first in the world. d) None of these. Explanation: China is the second biggest producer of manufactured goods and japan ranks first in the world. 17. Consider the following statements. 1. Singapore regional training Institute (STI) is one of the institute that provides training in microeconomic as a part of programme of the WTO institute. 2. Poverty reduction and growth facility is the IMF low interest lending facility for low income countries. Which of the statements given above are correct? a) Only 1 b) 1 and 2 c) Only 2 d) None of these Explanation: The poverty reduction and growth facility (PRGF) is the IMFs low interest lending facility for low income countries. PRGF supported programme are underpinned by comprehensive country owned poverty reduction strategies. Singapore Regional Training Institute (STI) is a joint venture of the IMF and the govt. of Singapore; located in Singapore The STI began operation in The scientific management stressed upon: 1. Rationality 2. Specialization 3. Technical Competence 4. Predictability Select the correct above statements a) 1 and 2 b) 2 and 3 c) 1, 2 and 3 d) 1, 2, 3 and 4 Ans: D 4
5 Explanation: Scientific management also partly called tayoperism was a feury of management. The analysed and synthesized work flow. Scientific management is a variation on the theme of the economic efficiency. It is a late 19th and early 20th century instance of the larger recurring theme in human life of increasing efficiency etc. 19. Which of the following is the basis for the Airy s theory of Isotasy? a) Principle of uniform depth b) Law of compensation c) Law of floatation d) None of these Explanation: Airys theory of Isotasy is basis of law of flotation. This law explains That a Floating body displaces its own weight of the fluid in which its floats. Airy where different topographic heights are accommodated by change in its crusful thickness in which the crust has a constant density. 20. Which of the following are treated as artificial currency: a) ADR b) GDR c) SDR d) Both ADR & SDR Explanation: Special Drawing Right (SDRs) are supplementary foreign exchange reserve assets defined and maintained the international Monetary Fund (IMF). Not a currency, SDRs instead represent a claim to currency held by IMF member countries for which they may be exchanged. As they can only be exchanged for Euros, Japanese yen, pounds sterling or US dollars. SDRs may actually represent a potential claim on IMF member countries non gold foreign exchange reserve assets, which are usually held in those currencies. 21. Choose the incorrect statement from the following statements: a) India and Eurasian group have signed a pact for money laundering and to check financial source for terrorism. b) Eurasian Action group is a multilateral institution related to united Nations. c) India Russia and china are among is nine members d) India Joined this in 2010 Explanation: The Eurasian action group determines the policies and practices for combating money laundering and terrorist financing. India and Eurasia group have signed a pact for money laundering and to check financial source for terrorism. It is not related to united Nation. 22. The currency convertibility concept in its original form originated in: a) Bretton Woods Agreement(1945) b) Brussels agreement c) Cancon Agreement d) None of these Explanation: The currency convertibility concept in its original form originated in Bretton Woods Agreements, The ease with which a country s currency can be converted into gold or another currency. Convertibility is extremely important for international commerce. 23. Consider the following statements. 1. India is a member of ASEAN 2. India and Pakistan are the members of G8 from the south Asia 5
6 Which among the following above statements are incorrect? a) 1 and 2 b) Only 1 c) Only 2 d) None of these Explanation: G-8 comprises 8 countries namely America, Germany, Canada. It is an Organization of World developed countries. The association of south East Asian nations is a Geo Political and economic organization of 10 countries located in south East Asia which was formed on 8Aug., 1967 India is a dialogue partner in ASEAN 24. Which of the following institution introduced Green Index a) World Banks Environmentally and Social Sustainable Development Division. b) United nations Environment Programme c) United Nations Development Programme d) Kyoto Protocol. Explanation: In Dec., 2009 The private sector of the world bank launched the first ever ecofriendly stock market index that allowed investors to track the carbon efficiencies of company doing business in emerging economy. In partnership with the giant financial services corporation standard and poor, the international finance corporation established the S & P. 6
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