1. The following Indian states having international border with Myanmar, arrange them in descending order based on distance
- Arunachal Pradesh
- A) c, a, b, d
- B) b, a, d, c
- C) d, b, c, a
- D) a, b, c, d
ANSWER : a, b, c, d
India and Myanmar share a 1,643 km unfenced border along Arunachal Pradesh (520 km), Nagaland (215 km), Manipur (398 km) and Mizoram (510 km)
2. Which of the following statement is/are correct
- Protectionism causes trade war between two countries.
- Trade wars may be instigated when one country perceives another country's trading practices to be unfair.
- Trade war occurs when a country resorted to make imported goods less attractive to consumers.
- Trade wars are also a result of a misunderstanding of the wdespread benefits of free trade.
- A) a and b only
- B) b and c only
- C) c and d only
- D) All of the above
ANSWER : All of the above
All statements are correct
3. Which of the following statement is/are incorrect
- During recession, a slowdown in economic activities may last for some quarters therebu completely hampering the growth of the economy.
- During recession, economic indicators such as GDP, corporate profits, employments etc., fall.
- A) a only
- B) b only
- C) Both a and b
- D) Neither a nor b
ANSWER : Neither a nor b
Recession is a slowdown or a massive contraction in economic activities. A significant fall in spending generally leads to a recession.
Such a slowdown in economic activities may last for some quarters thereby completely hampering the growth of an economy. In such a situation, economic indicators such as GDP, corporate profits, employments, etc., fall.
This creates a mess in the entire economy. To tackle the menace, economies generally react by loosening their monetary policies by infusing more money into the system, i.e., by increasing the money supply.
This is done by reducing the interest rates. Increased spending by the government and decreased taxation are also considered good answers for this problem. The recession which hit the globe in 2008 is the most recent example of a recession.