Q1. What is Government’s trade policy ?
(a) Export promotion
(b) Import substitution
(c) Both of the above
(d) None of the above
(UPSC Prelims 1979)
Answer: (c) Both of the above
Explanation: India’s trade policy aims at promoting exports to earn foreign exchange and substituting imports with domestic production to reduce dependency. This dual approach strengthens the balance of payments and supports economic self-reliance.
Q2. The countries of the world are economically interdependent. This fact is proved
(a) By turmoil in Iran
(b) By hike in oil prices by OPEC and rise in taxi fares all over
(c) Because India has political relations with almost all countries of the world
(d) Because multinationals have set up a number of projects in India
(UPSC Prelims 1979)
Answer: (b) By hike in oil prices by OPEC and rise in taxi fares all over
Explanation: The global rise in oil prices due to OPEC decisions affects transportation costs worldwide, including taxi fares, proving economic interdependence. Changes in one region’s resource pricing can trigger global economic ripple effects.
Q3. You are asked to import ostrich, platypus and koala bear. Which country would you select to go where you get all these three ?
(a) Japan
(b) Australia
(c) New Zealand
(d) Canada
(UPSC Prelims 1979)
Answer: (b) Australia
Explanation: Australia is home to all three animals—ostrich-like emus, platypus, and koalas. These species are native to Australia, with the platypus and koala being endemic marsupials and monotremes, found nowhere else naturally.
Q4. What is the trade policy of India ?
(a) Exports promotion and Import substitution
(b) Export oriented
(c) Import oriented
(d) None of the above
(UPSC Prelims 1981)
Answer: (a) Exports promotion and Import substitution
Explanation: India’s trade policy emphasizes export promotion to earn foreign exchange and import substitution to reduce dependency on foreign goods. This dual approach supports self-reliance and strengthens the domestic industrial base.