Deck 18: The Political Economy of India

Question 1

To keep the benefits from the subsidization in India, the Ministry of New and Renewable Energy issued rules that banned the importation of solar panels.

Answer 1

True

Question 2

Part of the difficulty in exposing corruption in India was the law which did not impose penalties on the citizen making the payment.

Answer 2

False

Question 3

Rapid economic growth produced a large and growing middle class in India.

Answer 3

True

Question 4

Excessive regulations that hampered the economy are thought to have prevented the growth of the black economy.

Question 5

Money bills are the responsibility of the House of States.

Question 6

Indian patent law allowed patents on both the products and the methods of production.

Question 7

The food market in India was complex because of ethnic differences and religious traditions across the country.

Question 8

Nehru and the Congress Party embarked on a socialist path and implemented a socialist economic policy for several decades, under which the country emphasized the development of consumer goods at the expense of heavy industry.

Question 9

Some businesses have emerged and prospered because of the inefficiency of the Indian economy.

Question 10

The size and growth of the Indian pharmaceutical market and the new patent protection provided under TRIPS attracted foreign pharmaceutical companies.

Question 11

To counter large scale acquisitions in the pharmaceutical industry, the government decided to have all pharmaceutical acquisitions reviewed by the Competition Commission, the antitrust regulator.

Question 12

India is a union of states with a parliamentary system of government and a federal structure.

Question 13

The low quality of private schools led to higher-income families sending their children to public schools.

Question 14

In China a huge number of people had moved from rural areas to cities and industrial areas, but a similar mass movement has not yet occurred in India.

Question 15

Indira Gandhi's socialist policies were a success and lead to a significant reduction in the country's levels of poverty.

Question 16

In emerging market economies with underdeveloped capital and uncertain government policies, business groups can provide efficiencies similar to those that can be achieved through contracting in developed economies.

Question 17

Unrestricted FDI was allowed in most industries- but was restricted to minority ownership in several industries, including insurance, print media, and air transportation.

Question 18

The principal market opportunities in India stemmed from international demand.

Question 19

In India, the governor of a state corresponds to the position of president of the country.

Question 20

Many emerging markets countries have domestic business groups which are family controlled.

Question 21

Why was the ban on the importation of solar panels criticized?

A) It would lead to domestic companies decreasing their prices.
B) It would give Europe a trade monopoly.
C) It would cut Indian companies off from technological innovations in solar power.
D) It would destroy the solar ecosystem, killing innovation and entrepreneurship.

Question 22

Indira Gandhi's socialist policies resulted in ________.

A) the eradication of poverty
B) greater government efficiency
C) economic stagnation
D) the persecution of stall retailers

Question 23

Which of the following spurred the development of a vigorous pharmaceutical industry in India?

A) the adoption of the TRIPS agreement
B) Indian patent law which did not comply with Western specifications
C) the large-scale acquisition of Indian firms by foreign companies
D) the ban on pharmaceutical advertising

Question 24

Which of the following categories did the World Bank Doing Business 2011 report rank India near the bottom for?

A) Economic Growth Rate
B) Outsourcing
C) Dealing with Construction Permits
D) Microfinancing

Question 25

The sex ratio imbalance in India is no longer a problem.

Question 26

Indian companies were the leaders in the ________ movement.

A) exporting
B) importing
C) outsourcing
D) resourcing

Question 27

The ________ generated demand for products similar to those in developed countries, providing opportunities for foreign companies to step in.

A) government
B) middle class
C) retailers
D) franchises

Question 28

Foreign retailers were banned from ________.

A) making franchise arrangements with local retailers
B) using FDI for direct sales to individuals
C) advertising their merchandise to the public
D) exporting their goods to other countries

Question 29

The process of ________ has resulted in sustained high levels of growth in the economy and helped make India an important world player.

A) central planning
B) liberalization
C) nationalization
D) privatization

Question 30

Portable ultrasound machines have made the illegal process of sex selection possible.

Question 31

The food market in India is complex and requires careful study because of ________ across the country.

A) social inequality b political tension
C) economic disparity
D) religious traditions

Question 32

________ produced a large and growing middle class in India.

A) Rapid economic growth
B) Nationalization
C) Central planning
D) Ethnic synchronization

Question 33

In India, it is legal for a medical professional to reveal the sex of fetuses to their parents.

Question 34

One advantage of the pharmaceutical companies was that doctors tended to prescribe drugs using brand names, and pharmacists were prohibited from substituting another generic equivalent drug. This led to ________.

A) an increase in the competitiveness among generics
B) pharmaceutical companies marketing their drugs directly to the public
C) companies introducing generic drugs with brand names
D) a governmental ban on pharmaceutical advertisements

Question 35

Although the national government has greater powers, the ________ are important components of the government with some independent authority and responsibilities for implementing policies.

A) metropolises
B) municipal centers
C) constituencies
D) states

Question 36

The economy of India is not intertwined with those of the developed countries, which has allowed it to avoid the financial crises and recessions stemming from the United States and Europe.

Question 37

As a result of its ________, India's pharmaceuticals industry had some 5,000 pharmaceutical companies producing 20 percent of the world's generic drugs.

A) patent law
B) foreign relations policy
C) subsidies
D) cutting-edge technology

Question 38

Multi-brand retailers were ________.

A) encouraged to set up outlets across the country
B) prohibited from advertising their merchandise
C) barred from owning and operating their own stores
D) ordered to employ only locals in their firms

Question 39

Indian patent law allowed Indian pharmaceutical companies to produce drugs patented in Europe and the United States, provided they used a different ________.

A) name
B) logo
C) production process
D) business model

Question 40

The explanation for the uneven sex ratio in India is the preference for girls that resulted in sex selection through the abortion of male fetuses.

Question 41

Why was the creation of the Lokpal- a body with powers to investigate and bring cases against government corruption- controversial?

A) Such an organization would be outside the usual democratic checks in India.
B) A body independent of government-supervision would be inefficient.
C) Private organizations have higher levels of corruption than the government.
D) Amateur bodies lack the expertise to identify and handle corruption.

Question 42

Discuss the extent and effect of corruption in India.

Question 43

Which of the following increased costs and limited market competition?

A) government restrictions on businesses
B) stringent antitrust reviews
C) family-controlled companies
D) the ban on exportation

Question 44

India has avoided the financial crises and recessions stemming from the United States and Europe because ________.

A) the economy of India is not intertwined with those of the developed countries
B) underdeveloped and developing countries are immune to inflation
C) the Indian government is not in debt
D) all goods and services have been heavily subsidized by the government

Question 45

India began offering $30 to a woman who had her baby in a hospital rather than at home to ________.

A) increase the income of single mothers
B) encourage the growth of hospitals
C) reduce village dependence on midwives
D) improve maternal and infant care

Question 46

Export industries have focused on supplying ________.

A) developed countries
B) emerging markets countries
C) commonwealth countries
D) the global market

Question 47

What economic restrictions does India have in place?

Question 48

Foreign companies have not used India as a source of low-cost supplies for the developed economies. This is due to ________.

A) poor infrastructure
B) stagnant domestic markets
C) the unavailability of raw material
D) the recession

Question 49

Which of the following attracted foreign pharmaceutical companies to India?

A) the adoption of new patent protection laws
B) the restrictions against acquisitions
C) the takeover of family-controlled companies
D) the absence of domestic entrepreneurship

Question 50

Which of the following explains the preference for boys over girls in India?

A) the loosening bonds of tradition
B) the practice of dowry
C) the rise in economic wealth
D) the low ratio of men against women

Question 51

Write a short note on business groups in India.

Question 52

Since the economic reforms that began in 1991, the growth in Indian economy has been rapid, creating ________.

A) an increment in protectionism
B) fewer opportunities for local joint ventures
C) a decrease in corruption
D) an attractive domestic market for companies

Question 53

An approach taken to counter corruption in India was to turn over the administration of the power system to ________.

A) the government
B) the municipalities
C) NGOs
D) private companies

Question 54

Discuss the development of India's pharmaceutical industry.

Question 55

Write a short note on poverty, microlending, and its alternatives in India.

Question 56

Explain the problem of "Missing Girls" in India.

Question 57

________ raised concerns about the future development of the Indian health care market.

A) Indian patent laws
B) Multiple acquisitions of Indian firms
C) The enactment of protectionist measures
D) Low health-standards

Question 58

Much of the growth in the Indian economy has been driven by ________.

A) domestic entrepreneurs
B) multinational corporations
C) small shopkeepers
D) stall retailers

Question 59

Which of the following would have spurred a reaction from global financial markets, reducing foreign direct investment?

A) a restriction on acquisitions
B) a ban on exports
C) a mandatory review conducted by the antitrust regulator
D) a decrease in protectionism

Question 60

Analyze the market opportunities of India. Use examples to illustrate your analysis.