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.

Accepted Answer

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

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.

Accepted Answer

False

Question 3

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

Accepted Answer

Rapid economic growth in India has indeed produced a large and growing middle class. According to the World Bank, India's middle class was estimated to be about 600 million people in 2019, making it the world's largest middle class population. This growth has been fueled by various factors, such as increasing education levels, urbanization, and the expansion of sectors such as IT and services.

Question 4

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

Accepted Answer

Excessive regulations can actually drive economic activity into the black market or underground economy. Therefore, they are more likely to contribute to rather than prevent the growth of the black economy.

Question 5

Money bills are the responsibility of the House of States.

Accepted Answer

Money bills are the responsibility of the House of People, also known as the Lok Sabha. The House of States, also known as the Rajya Sabha, can only make recommendations on money bills and has limited powers in this regard.

Question 6

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

Accepted Answer

The answer of Indian patent law allowed patents on both...

Question 7

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

Accepted Answer

India is a diverse country with various ethnic groups and religious traditions. This diversity is reflected in the food culture of the country, which varies greatly across regions. Therefore, the food market in India is complex due to the influence of these factors.

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.

Accepted Answer

Nehru and the Congress Party implemented a socialist economic policy that emphasized the development of heavy industry and state intervention in the economy, rather than focusing on the development of consumer goods.

Question 9

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

Accepted Answer

Some businesses in India have found success by identifying and meeting needs that are not being adequately addressed by the larger, more traditional players due to the inefficiencies and challenges of the Indian economy. For example, the rise of ecommerce in India can be attributed in part to the inefficiency of traditional brick and mortar retail.

Question 10

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

Accepted Answer

The statement is true.

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.

Accepted Answer

The statement accurately describes the government's action to counter large scale acquisitions in the pharmaceutical industry.

Question 12

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

Accepted Answer

India is a union of states with a parliamentary system of government and a federal structure. This means that the powers of the government are divided between the central (federal) government and the state governments, and there is a separation of powers between the executive, legislative and judicial branches of government. The Prime Minister is the head of government and the President is the nominal head of state. The Parliament consists of the Rajya Sabha (Council of States) and the Lok Sabha (House of the People). Each state has its own legislative assembly and government, headed by a Chief Minister.

Question 13

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

Accepted Answer

The statement suggests the opposite of what is typically observed. Higher-income families usually send their children to private schools because they can afford the tuition fees and believe they provide a better education than public schools. If the quality of private schools were low, it would make no sense for them to send 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.

Accepted Answer

This statement is true. While there has been some urbanization in India, the rate of rural-urban migration in India is much lower compared to China.

Question 15

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

Accepted Answer

Indira Gandhi's socialist policies, while aimed at reducing poverty and inequality, had mixed outcomes and did not lead to a significant reduction in poverty levels during her tenure. Economic growth was slow, and the policies often led to increased bureaucracy and inefficiency.

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.

Accepted Answer

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. This is because business groups can provide access to resources, coordinate activities, and share risks among affiliated firms, leading to greater efficiency and competitiveness.

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.

Accepted Answer

Foreign Direct Investment (FDI) policies have often allowed unrestricted FDI in many sectors but have imposed restrictions, including limits to minority ownership, in sensitive areas such as insurance, print media, and air transportation to protect domestic interests and maintain control over critical industries.

Question 18

The principal market opportunities in India stemmed from international demand.

Accepted Answer

The principal market opportunities in India stem from both international demand and its large, diverse domestic market, which includes a growing middle class and increasing consumer spending.

Question 19

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

Accepted Answer

The answer of In India, the governor of a state...

Question 20

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

Accepted Answer

Many emerging markets countries have domestic business groups which are family controlled, such as the Chaebols in South Korea and the Tata Group in India.

Quiz 18: The Political Economy of India