Economic Environment

Q.

How would you characterise business environment? Explain, with examples, the difference between general and specific environment.

Q.

Which one is not the main objective of Fiscal Policy in India?

1. To increase liquidity in economy

2. To promote price stability

3. To promote employment opportunities.

4. To minimize the inequalities of income and wealth.

Q.

What Are Some Examples of Macroeconomics?

Q.

Which of the following is an example of a social environment.

1. Composition of family

2. The Constitution of the country

3. Consumer Protection Act

4. Money supply in the economy

Q.

What economic changes were initiated by the government under the Industrial Policy, 1991? What impact have these changes made on the business and industry?

Q.

Which among these can be condition for the success of privatisation?

1. Measurability of performance

2. All of the above

3. Alternative institutional arrangements

4. Barriers to enter the market

Q.

___environment refers to all economic factors which have a bearing on the functioning of a business.

1. Social environment

2. Political environment

3. Economic environment

4. Technological environment

Q.

What is meant by diversification?

Q.

Which of the following problems do Indian businesses encounter due to globalisation?

1. Both (A) and (B)

2. Infrastructural Bottleneck

3. Lack of interest shown by MNC’s

4. None of these

Q.

Liberalisation means:

1. Reduced government controls and restrictions

2. None of them.

3. Policy of planned disinvestments

4. Integration among economies

Q.

The government of India is seriously thinking to allow oil marketing public sector, undertaking to fix their own price for petrol and diesel.___ is the economic reform related to this decision.

Q.

When the government came out with policy changes it laid some positive and negative impact on the business. Discuss some of them.

Q.

A possible obstacle to growth of privatisation is

1. Sale of least profitable enterprises

2. Profit earned by public enterprises

3. Licensing

4. None of these

Q.

Even after opening up of our economy in 1991, foreign companies found it extremely difficult to cut through bureaucracy and red tapism. Identify the element of business environment and explain it with the help of an example.

Q.

"Companies that fail to adopt to their environment are unlikely to survive in the long run". Discuss with an example.

Q.

Explain the following terms:

(a) Liberalisation

(b) Privatization

(c) Globalisation

Q.

Banking sector reforms have led to easier credit terms and better services. Identify, this example is associated with which component of the business environment.

1. Technological environment

2. Economic environment

3. None of these

4. Political environment

Q.

___ consists of the factors and forces concerning with means of production and distribution of wealth.

1. Social environment

2. Economic environment

3. Political environment

4. Legal environment

Q.

Which among these is not a global force impacting the Indian Economy?

1. Integrating the role of Purchasing.

2. Dynamics of capital flow

3. Integrating the role of Technology

4. None of these

Q. The volume of imports and exports is a factor influencing the environment of a business.

1. Political
2. Social
3. Technological
4. Economic

Q.

To tackle problems, RBI has allowed the commercial banks to reduce the interest rates on loans. Identify the business environment.

1. Social environment

2. Legal environment

3. None of the above

4. Economic environment

Q.

The trend seen in the economic systems of the countries is that ___

1. command economies are moving towards mixed economies.

2. mixed economies are moving towards command economies.

3. mixed economies are moving towards market economies.

4. market economies are moving towards command economies.

Q.

Privatisation will encourage concentration of ___

Q.

Government of India is seriously thinking to allow oil marketing public sector undertakings to fix their own price for petrol and diesel. Which economic reform is the reason of the change in the government policy?

1. Globalisation

2. Privatisation

3. Liberalisation

4. Urbanisation

Q.

Briefly explain the term liberalization. How Indian business houses/management responded to this change?

Q.

How many types of economic development are there?

Q.

Liberalisation means ___

1. Reduction of government control and restrictions

2. Policy of planned disinvestment

3. Integration among planned economies

4. None of the above

Q. Banking sector reforms were announced in ________.

1. 1990
2. 1991
3. 1992
4. 1993

Q.

What comprises of interest rate, the rate of inflation, the value of GDP, per capita income, tax rates, disposable income etc.

1. Social environment

2. Legal environment

3. Economic environment

4. None of these

Q. Economic development depends on the development of the____________.

1. Tertiary sector
2. All the above
3. Secondary sector
4. Primary sector