Which Act in India primarily governs competition policy?
- A.The Companies Act, 2013
- B.Monopolies and Restrictive Trade Practices Act, 1969.
- C.The Competition Act, 2002
- D.The Consumer Protection Act, 2019
Correct answer
Explanation
The correct answer is C, The Competition Act, 2002. Competition policy in India rests on the Competition Act of 2002, which was passed on the advice of the Raghavan Committee after liberalisation, and it replaced the older monopolies law. The Act forbids agreements that harm competition, such as cartels that fix prices or share markets, forbids the abuse of a dominant position, and requires large mergers and acquisitions to be cleared in advance. It is enforced by the Competition Commission of India, which was set up in 2003 and began hearing cases in 2009, with appeals going to the National Company Law Appellate Tribunal. Option A is wrong because the Companies Act of 2013 governs the formation and running of companies. Option B is wrong because the MRTP Act of 1969 was repealed when this Act came into force. Option D is wrong because the Consumer Protection Act of 2019 protects buyers against unfair trade practices. Exam tip: MRTP 1969 replaced by Competition Act 2002, regulator CCI.
Practice Questions
View allAccording to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
- A.improve
- B.diminish
- C.remain constant
- D.first diminish and then improve
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Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.
Read the full explanation →Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.
Read the full explanation →UBI, as an alternative for subsidies in poverty alleviation, stands for
- A.Union Basic Income
- B.Undefined Basic Income
- C.Unconditional Basic Income
- D.Universal Basic Income
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UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.
Read the full explanation →Who among the following is the Chairman of the Fourteenth Finance Commission?
- A.C. Rangarajan
- B.Vijay Kelkar
- C.Y. V. Reddy
- D.Rakesh Mohan
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The Fourteenth Finance Commission, set up in 2013 for the award period 2015-2020, was chaired by Y. V. Reddy, a former Governor of the Reserve Bank of India.
Read the full explanation →Why was constitutional amendment needed for introducing GST?
- A.States were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
- B.GST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
- C.The Empowered Committee of Finance Ministers had recommended for constitutional amendment.
- D.The GST Council had recommended for constitutional amendment so that its power enhances.
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GST is levied by the Union and the States together on the same supply, and Article 246, which splits taxing powers between them through separate lists, did not allow such a concurrent tax.
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