Read the following passage and answer the questions that follow:
In India, there has been an impact on poverty due to the acceleration of growth. However, continuing regulations that have prevented this process from fully working its magic have handicapped the linkage. In particular, the small-scale industries reservation, which required virtually all labour-intensive products to be produced in very small enterprises, has kept India uncompetitive in these products in the world markets. But even after this regulation was considerably weakened in 2000, labour-intensive goods such as apparel, footwear, and light consumer goods failed to show rapid growth on account of continuing labour market inflexibilities. The protection to labour in larger firms is extremely high in India and translates into excessively high labour costs. As an example, the Industrial Disputes Act of 1947 makes it nearly impossible for manufacturing firms with 100 or more employees to lay off workers under any circumstances. Such high protection makes large firms in labour-intensive sectors, in which labour accounts for 80 per cent or more of the costs, uncompetitive in the world markets. Small firms, on the other hand, are unable to export in large volumes. Because of these limitations, growth in India has been driven by the capital and skilled-labour intensive sectors, and despite all these regulations, growth has contributed to some poverty alleviation.
Question 1
According the passage, which of these statements is/are not true?
1. There is a direct relationship between accelerated growth and declining poverty in India.
2. The decline in poverty is due to various regulations.
3. Growth should be prevented to keep a check on poverty.
(A) 1 and 2 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 3
Question 2
Which of the following reasons is/are responsible for India not being able to compete with the world market?
1. The small-scale industries reservation
2. The rule that all labour-intensive products are to be produced only in small enterprises
3. Regulations in the Indian manufacturing sector
4. People who work in large scale industries being illiterate
(A) 1 only
(B) 2 and 3 only
(C) 1, 2 and 3 only
(D) 1, 2 and 4 only
Question 3
Labour-intensive goods failed to show growth because of
1. Regulations getting weakened by the year 2000
2. Continuing labour market inflexibilities
3. The protection to labour in smaller firms
4. Excessively high labour costs in larger firms
(A) 2 only
(B) 2 and 4 only
(C) 2, 3 and 4 only
(D) 1, 2, 3 and 4
Question 4
Consider the statements
1. Regulation makes smaller firms impossible to lay off labourers in in labour-intensive sectors.
2. Regulation means larger firms cannot export in larger volumes.
Which of the above is/are true?
(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) Neither 1 nor 2
Question 5
Which of the following mean the opposite as “handicapped” as described in the passage?
(A) Aided
(B) Crippled
(C) Impeded
(D) Curbed
SOLUTIONS TO DAILY CSAT MISSION # 43
1. (C) 2. (C) 3. (D) 4. (D) 5. (C)
Explanations
1. The following Venn diagram satisfies both the statements given, yet disproves all the other three options (A), (B) and (D):
3. (B) and (C) are definitely wrong. (A) is also wrong because only good institutions help industry in growing.
4. The copyright history books in the library could belong to some other Y publication. X publication could have no history books in the library. So, option (A) is ruled out.
When it says that X publication introduced copyright in 2005, it means all the books published in or after 2005 have copyright, not the books that cover topics from 2006 onwards. So, option (B) is ruled out.
(C) is obviously wrong.
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