1. Comphrensive Passage :

Directions: Read the following passage carefully and answer the questions that follow.

The government’s recent doubling of duties on imports of beauty aids, watches, toys, furniture, footwear, and, surprisingly, kites and candles shows India’s lack of competitiveness even in these entry-level labour-intensive industries. Also, a similar recent doubling of import duties on electronics, including related inputs and parts, is an admission by the government of the country’s lack of competence in the highly labour-intensive, low-skilled and repetitive tasks of processing or assembling duty-exempt imported inputs to produce and export finished mobile phones and TVs. And, in textiles and apparel exports, India is now being outperformed not only by China but also by Bangladesh and Vietnam.

To anyone who is aware of the panoply of India’s restrictive labour regulations (about 200 labour laws, with over a fourth being central acts), it does not come as a surprise that India is unable to grasp its natural comparative advantage in labour-intensive products. The Industrial Disputes Act (IDA) requires firms with 100 or more workers to seek government permission to retrench or lay off any worker. This permission is rarely granted. The Industrial Employment (Standing Orders) Act, 1946 requires employers in firms with 100 or more workers (50 or more in certain states) to seek permission even for reassigning a worker from one task to another. And the Trade Unions Act allows any seven employees to form a union, thereby using up a large proportion of the firm’s managerial resources in dealing with several unions within itself. Through this regulation, unions have the right to strike and represent workers in legal disputes with employers. Last but not the least, The Contract Labour (Regulation And Abolition) Act, 1970 restricts, and even prohibits, the use of contract workers for certain tasks. Thus, these labour regulations effectively prevent firms from using labour-intensive methods of production. Also, since these laws hold above certain threshold employment levels, firms often have an incentive to remain small and “informal”.

2.
As per passage, what can be inferred from India not being able to grasp its natural comparative advantage in labour-intensive products?

Indian producers find it cost-effective to use intensive capital-intensive production techniques. Indian producers find it cost-effective to use labour intensive production techniques. Indian producers may find it cost-effective to use some capital-intensive production techniques. None of these

Hint Answer

3.
As per passage, government has doubled import duty on which of following?

I. Kites
II. Electronics
III. Edible items

Only II Only I and II Only II and III Only I and III

Hint Answer

4.
Which of following is/are true about Indias labour laws mentioned in passage?

I. They are applicable below a certain threshold level.
II. Most of m are central acts.
III. They create conditions that prevent firms from using labour intensive methods of production.

Only II
Only III
Only I and II Only I and III

Hint Answer

5.
As per author, what could be some reasons for imposition of import duties on some products?
I. Lack of competitiveness
II. Lack of infrastructure
III. Restrictive government regulations

Only I
Only III Only I and II Only II and III

Hint Answer

6.
Which of following is/are true with respect to Trade Unions Act mentioned in passage?

I. As per this law, Unions have right represent workers in legal disputes with employers.
II. There is restriction on use of contract workers for certain tasks.
III. A minimum of 5 workers are needed to form a Trade Union.

Only I Only III Only I and II Only II and III

Hint Answer

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Chapter:

1. Comphrensive Passage :

2. As per passage, what can be inferred from India not being able to grasp its natural comparative advantage in labour-intensive products?

None of these

3. As per passage, government has doubled import duty on which of following?I. KitesII. ElectronicsIII. Edible items

Only I and II

4. Which of following is/are true about Indias labour laws mentioned in passage?I. They are applicable below a certain threshold level.II. Most of m are central acts.III. They create conditions that prevent firms from using labour intensive methods of production.

Only I and III

5. As per author, what could be some reasons for imposition of import duties on some products?I. Lack of competitivenessII. Lack of infrastructureIII. Restrictive government regulations

Only I

Only I

All Chapters

Comphrensive Passage 1

Comphrensive Passage 2

Comphrensive Passage 3

Comphrensive Passage 4

Comphrensive Passage 5

Comphrensive Passage 6

Comphrensive Passage 7

Comphrensive Passage 8

Comphrensive Passage 9

Comphrensive Passage 10

Comphrensive Passage 11

Comphrensive Passage 12

Comphrensive Passage 13

Comphrensive Passage 14

Comphrensive Passage 15

Comphrensive Passage 16

Comphrensive Passage 17

Comphrensive Passage 18

Comphrensive Passage 19

Comphrensive Passage 20

Comphrensive Passage 21

Comphrensive Passage 22

Comphrensive Passage 23

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Comphrensive Passage 25

Comphrensive Passage 26

Comphrensive Passage 27

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Comphrensive Passage 29

Comphrensive Passage 30

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Comphrensive Passage 49

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Comphrensive Passage 64

Comphrensive Passage 65

Comphrensive Passage 66

Comphrensive Passage 67

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2.
As per passage, what can be inferred from India not being able to grasp its natural comparative advantage in labour-intensive products?

3.
As per passage, government has doubled import duty on which of following?

I. Kites
II. Electronics
III. Edible items

4.
Which of following is/are true about Indias labour laws mentioned in passage?

I. They are applicable below a certain threshold level.
II. Most of m are central acts.
III. They create conditions that prevent firms from using labour intensive methods of production.

5.
As per author, what could be some reasons for imposition of import duties on some products?
I. Lack of competitiveness
II. Lack of infrastructure
III. Restrictive government regulations