With reference to India and the Great Depression that began in 1929, which of…
2023
With reference to India and the Great Depression that began in 1929, which of the following statements is correct?
Answer: D. More than one of the above — ConceptAn economy becomes internationally integrated when shocks to demand, prices, and trade in one region are transmitted to producers and consumers…
- A.
The depression adversely affected Indian trade.
- B.
The depression adversely affected Indian peasants, farmers, export and import.
- C.
The impact of depression on India indicates that how integrated the global economy had become by early 20th century.
- D.
More than one of the above
- E.
None of the above
Attempted by 39 students.
Show answer & explanation
Correct answer: D
Concept
An economy becomes internationally integrated when shocks to demand, prices, and trade in one region are transmitted to producers and consumers elsewhere through trade and finance.
During a worldwide depression, falling import demand compresses export earnings; commodity-producing regions can then face price declines, reduced trade, and pressure on cultivators.
Application
Indian trade: the Great Depression reduced international demand and disrupted India’s exports and imports, so the statement about adverse effects on Indian trade is supported.
Peasants and farmers: declining agricultural prices and export demand increased rural pressure, while both export and import volumes contracted; this supports the combined statement.
Global integration: the transmission of a crisis that began in the industrial world to trade and agriculture in India illustrates how closely economies were connected by the early twentieth century.
Contrast
‘More than one of the above’ describes the option set because all three substantive statements are supported.
‘None of the above’ would require all three substantive statements to be unsupported, which the evidence contradicts.
Cross-check
NCERT’s discussion of the Great Depression records the decline in India’s exports and imports, a sharp fall in agricultural prices and rural hardship, and presents the episode as evidence of global economic interdependence.
Therefore, more than one of the above is the correct answer.