RAPID GROWTH
(Bank P.0.1995)
The recent rapid growth of the industry has, in some cases, been so excessive that too much manufacturing capacity has been developed in some fields of production, which forces companies to sell their surplus products in world markets at prices lower than normal. This will make it almost impossible to develop local industries producing the same items because consumers will prefer to buy the cheaper imported product.
1. Why is it necessary for companies to sell products at cheaper prices?
(a) The cost of production has been considerably low.
(b) The local industries also manufacture the same product.
 (c) There is a heavy demand for these products.
(d)Demand significantly.
(e) None of these
 2. According to the resulting from growth is
 (a) favourable to the manufacturers
(b) disastrous to the exporters
(c) conducive to the growth of local industries
(d) unfavourable to the consumers
(e) None of these
3.’This will make  in this sentence, ‘This’ refers most closely and directly to
(a) development of local industries
(b) the recent rapid growth of the industry
(c) selling products of excessively higher prices
 (d) companies manufacturing surplus products
 (e) companies selling their products at cheaper prices
4. Which of the following is/are most likely to hamper the development of local industries?
A. Availability of imported product at cheaper rates
 B. Consumer’s tendency to refrain from using imported products
C. Excessive production capacity and low production cost
(a) Only A Â Â Â Â Â (b) Only B
 (c) Only C     (d) A and B
 (e) A and C’
5. Imported product’ as used in the last product refers to
 (a) product manufactured locally but of export quality
(b) product sold to such other country which can’t locally manufacture it
 (c) product of a foreign country available at a below normal price
 (d) surplus product manufactured by a foreign country and sold at a normal price
ANSWERS:-
1. (b)
2. (e)
3. (b)
4. (e)
5. (c)
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