1. With reference to the Consumer Protection Act 1986 which of the following statements is/are correct?

(1) The Act provides redress only in cases of products or services for personal use; and not in cases where products are used for commercial purposes.

(2) Under the Act, a three-tier quasi-judicial machinery at the district, state and national levels was set up for redressal of consumer disputes.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: (c) Explanation: Consumer Protection Act, 1986 is an Act of the Parliament of India enacted in 1986 to protect the interests of consumers in India. This Act is applicable on all the products and services, until or unless any product or service is especially debarred out of the scope of this Act by the Central Government. This Act is applicable to all the areas whether private, public or cooperative. However, the Act provides redress only in cases of products or services for personal use; and not in cases where products are used for commercial purposes. This Act provides many rights to consumers. These rights are related to safety, information, choice, representation, redressal, education etc. Consumer courts have been established so that the consumers can enjoy their rights.

This Act presents Three- tier Grievances Redressal Machinery:

➢ At District Level-District Forum ➢ At State Level -State Commission ➢ At National Level – National Commission.

Source: NCERT: Understanding Economic Development: Chapter 5: Consumer Rights Page 78

2. Which of the following correctly explains "OPERATION BARGA"?

(a) It was a police action launched against the princely state of Hyderabad.

(b) It was a land reform programme by CPI led West Bengal government.

(c) It was the first all India anti-Naxalite operation by the Central government.

(d) It is a recently launched mission to increase jute protection.

Answer: (b) Explanation: After promising land reforms and getting elected to power in West Bengal in 1977, the Communist Party of India (Marxist) kept its word and initiated gradual land reforms, such as Operation Barga. The result was a more equitable distribution of land among the landless farmers, and enumeration of landless farmers. This has ensured an almost lifelong loyalty from the farmers and the communists retained the power till 2011 assembly election.

Source: XI NCERT: Indian Economic Development: Chapter 2: Indian Economy 1950- 1990 Page 22-23.

3. ‘Karve Committee’ played an important role in post independent planning of Indian

economy. With which of the following subjects was it related?

(a) Poverty estimates

(b) Village and small scale industries

(c) Framing the plan of Green Revolution

(d) Community Development Programme

Answer: (b) Explanation: In 1955, the Village and Small-Scale Industries Committee, also called the Karve Committee, noted the possibility of using small-scale industries for promoting rural development. In 1950, a small-scale industrial unit was one which invested a maximum of rupees five lakh; at present the maximum investment allowed is Rs 1 crore. It is believed that small-scale industries are more ‘labour intensive’ i.e., they use more labour than the large-scale industries and, therefore, generate more employment. But these industries cannot compete with the big industrial firms; it is obvious that development of small-scale industry requires them to be shielded from the large firms. For this purpose, the production of a number of products was reserved for the small-scale industry. They were also given concessions such as lower excise duty and bank loans at lower interest rate.

Source: XI NCERT: Indian Economic Development: Chapter 2: Indian Economy 1950- 1990 Page 29.

4. The policy of ‘import substitution’ was based on the notion that

(1) Industries of the developing countries are not in a position to compete with goods imported from the developed world.

(2) It was assumed that if domestic industries are protected they will learn to compete in due course of time.

(3) Our planners feared the possibility of foreign exchange being spent on imports.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: (d) Explanation: The industrial policy that we adopted was closely related to the trade policy. In the first seven plans, trade was characterized by what is commonly called an inward looking trade strategy. Technically, this strategy is called import substitution. This policy aimed at replacing or substituting imports with domestic production. For example, instead of importing vehicles made in a foreign country, industries would be encouraged to produce them in India itself. In this policy the government protected the domestic industries from foreign competition. Protection from imports took two forms: tariffs and quotas. Tariffs are a tax on imported goods; they make imported goods more expensive and discourage their use. Quotas specify the quantity of goods which can be imported. The effect of tariffs and quotas is that they restrict imports and, therefore, protect the domestic firms from foreign competition. The policy of protection is based on the notion that industries of developing countries are not in a position to compete against the goods produced by more developed economies. It is assumed that if the domestic industries are protected they will learn to compete in the course of time. Our planners also feared the possibility of foreign exchange being spent on import of luxury goods if no restrictions were placed on imports.

Source: XI NCERT: Indian Economic Development: Chapter 2: Indian Economy 1950- 1990 Page 30.

5. The poor who regularly move in and out of poverty are called

(a) Chronic poor

(b) Churning poor

(c) Occasionally poor

(d) None of the above

Answer: (b) Explanation: People who are always poor and those who are usually poor but who may sometimes have a little more money (example: casual workers) are grouped together as the chronic poor. Another group are the churning poor who regularly move in and out of poverty (example: small farmers and seasonal workers) and the occasionally poor who are rich most of the time but may sometimes have a patch of bad luck. They are called the transient poor. And then there are those who are never poor and they are the non- poor.

Source: XI NCERT: Indian Economic Development: Chapter 4: Poverty Page 64.