BBA 3RD YEAR, SEM 5

BUSINESS ENVIRONMENT

QUESTION BANK

1. De ne the following terms:


i. Balance of Payments

ii. Public debt

iii. Trickle-down economics

iv. Foreign investment (including types)

v. Trade liberalisation

vi. Poverty line

vii. Parallel economy

viii. Industrial sickness

ix. Mixed economy

x. Exploitation of labour

2. Di erentiate between:

i. Monetary and Fiscal policy

ii. Devaluation and Depreciation

iii. Socialism and Communism

iv. Public good and private good

v. Formal and informal sectors

vi. Savings and investment

vii. Micro and macro factors of business environment

viii. Capital budget and revenue budget

ix. 5 Year Plans and NITI Aayog

x. In ation and Stag ation

3. Name and brie y explain the components of business environment?

4. How accurate is GDP as a measure of national growth?

5. “Recent trends in Indian price levels are related to global price level uctuations.” Agree or
disagree? Why?

6. Which are the stronger sections of the Indian industrial sector? Explain in detail.

7. Compare the trends in Indian GDP, pre- and post-pandemic breakout.

8. Compare the trends in India’s international trade levels, pre- and post-pandemic breakout.

9. What is industrial licensing? What are the objectives of industrial licensing in India?

10. In light of India's pre-1991 protectionist policies, brie y explain Bhagwati’s Immiserizing
Growth theory. How did India’s foreign trade policy change due to the 1991 NEP?

11. Write a short note on the vicious cycle of unemployment and poverty. Explain the common
types of unemployment in LDCs like India.

12. “According to the Commitment to Reducing Inequality (CRI) Index 2022, India has ranked 123
out of 161 countries.” Justify the statement by describing economic inequality in India in the
following contexts:

i. Income inequality

ii. Social inequality

iii. Gender pay gap

iv. Regional imbalances

13. When was India’s rst EXIM Policy introduced, and why? What are the salient features of
EXIM, later renamed the Foreign Trade Policy (FTP)?

14. Explain the Nehru-Mahalanobis model in the context of India’s 2nd Five Year Plan. What were
its criticisms?

15. India’s 4th Five Year Plan was marked with quite a few notable milestones. Discuss.

16. The 8th Five Year Plan reoriented and rede ned the focus of Indian economic growth to focus
on human development and betterment of living standards. What were the steps taken and
how successful was the Plan in its execution?

17. Explain some of the major areas of failure of the Five Year Plans. What are the major
di erences between Planning and the NITI Aayog which replaced it?

18. Illustrate with the help of a diagram how the Phillips Curve explains the short-run relationship
between in ation and unemployment. What happens in the long-run?
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