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Daily-static-mcqs 13 Jun 2024

Daily Static MCQs for UPSC & State PSC Exams - Economics 13 Jun 2024

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Daily Static MCQs for UPSC & State PSC Exams - Economics

Q1:

What is Core Banking Solution (CBS) related to?

A: Self-Help Group

B: Financial Awareness

C: Expansion of Banking Facilities

D: Expediting Transactions

Answer: C

Explanation:

Core Banking Solution (CBS) is the networking of bank branches, which allows customers to manage their accounts and access various banking facilities from any part of the world. In simple words, there is no need to visit your own branch to do banking transactions. You can do it from any place, any time. Hence, option (c) is correct.


Q2:

If the prices of goods and services double in comparison to the previous year in any country, while production remains constant, what will be the effect on the Gross Domestic Product (GDP) of that country?

A: Will be doubled.

B: Will be stable.

C: Half will remain.

D: Nothing can be said.

Answer: A

Explanation:

If we measure the domestic products of a country in two consecutive years and find that the GDP of the second year is twice the figure of the previous year, then we can conclude that the country's output should double. But it is possible that the prices of goods and services only doubled in both years, while production remained constant. Hence, option (a) is correct.


Q3:

With respect to Indian Standard Institution Mark, consider the following statements:

1. The ISI mark is a mark applied to all goods in the industrial sector; It is effective in India since 1955.

2. Eko Mark is used for labeling eco-friendly products.

3. Agmark is applied to agricultural products, it certifies the production of the crop under organic agriculture.

How many of the statements given above are correct? 

A: Only one

B: Only two

C: All three

D: None

Answer: C

Explanation:

The ISI mark is a standard mark set by the Bureau of Indian Standards on all items of industrial products. It is effective since 1955. Hence, statement 1 is correct.


The Eco mark has been awarded by BIS since 1991 to a range of products that have the least impact on the environment. Hence, statement 2 is correct.


Agmark is applied on agricultural products, which certifies the crop produced under organic agriculture. Hence statement 3 is correct.


Q4:

Consider the following statements:

1. India ranks second after China in terms of coal production in the world.

2. The largest reserves of lignite coal in India are found in Neyveli, Tamil Nadu.

3. Coal accounts for 67% of the country's commercial energy production.

How many of the statements given above are correct? 

A: Only one

B: Only two

C: All three

D: None

Answer: B

Explanation:

Coal is our largest mineral resource and as per the latest status, India ranks third in terms of coal production in the world after China and USA. Hence, statement 1 is incorrect.


Coal is the country's main source of energy and accounts for 67% of the country's commercial energy consumption. Large reserves of Gondwana formation coal are in West Bengal, Jharkhand, Orissa, Chhattisgarh, Uttar Pradesh, and Maharashtra. While the largest reserves of lignite coal are found in and around Neyveli, Tamil Nadu. Hence, statements 2 and statement 3 are correct.


Q5:

With reference to the carbon tax, consider the following statements:

1. This tax is a type of Pigovian tax.

2. This tax was introduced by France and is levied on the carbon content of the fuel.

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

Answer: C

Explanation:

The carbon tax is an indirect tax. It is imposed on those economic activities which directly or indirectly have a negative impact on the life of the people. With this, governments also increase their treasury. Two other taxes are also related to this tax - the emissions tax and the energy tax.


An emissions tax is a tax on the emission of each ton of greenhouse gas, while an energy tax is a tax on energy-related goods. This tax is a type of Pigovian tax. It is named after the British economist Arthur C. Pigou, who was one of the most prominent contributors to externality theory in the early 1900s. Hence, statements 1 and 2 both are correct.