© IE Online Media Services Pvt Ltd
Tags:
Journalism of Courage
UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Each day, we will cover one new subject. Attempt today’s subject quiz on Economy to check your progress. Come back tomorrow to solve the MCQs on International Relations. Don’t miss checking the answers and explanations at the end of the quiz.
With reference to the Wholesale price index, consider the following statements:
1. It is derived on the basis of Gross Value of Output.
2. It comprises all transactions at last point of sale in the International market.
3. The index is released annually.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Consider the following:
1. India’s foreign trade balance
2. Foreign exchange reserves
3. Value of the rupee
How many of the above will have implications of high oil prices?
(a) Only one
(b) Only two
(c) All three
(d) None
With reference to the Principal Purpose Test (PPT), consider the following statements:
1. It is associated with the Double Taxation Avoidance Agreement (DTAA).
2. It provides benefits such as the reduction of withholding tax on interest royalties and dividends.
Which of the statement(s) given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
With reference to the employment in India, consider the following statements:
1. Self-employment was the primary source of employment in 2022.
2. The female labour force participation rate (LFPR) in India is very high.
3. More than half of the workforce is engaged in the formal sector.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Consider the following industrial corridors (IC):
2. Delhi-Kolkata IC
4. Delhi-Nagpur IC
How many of the above are national industrial corridors?
(a) Only one
(b) Only two
(c) Only three
(d) All four
FYI:
— Wholesale inflation in the country increased moderately to 0.53 percent in March, up from 0.20 percent the previous month, due to higher costs for vegetables, potatoes, onions, and crude oil.
— The Wholesale Price Index (WPI)-based inflation rate was negative from April to October before turning positive in November at 0.26 percent. The March 2023 inflation rate was 1.41 percent.
— The wholesale pricing index includes as many transactions as feasible at the first point of bulk sale in the domestic market. Hence, statement 2 is not correct.
— The monthly WPI for All Commodities is provided on the 14th of each month. The provisional index becomes final after eight weeks or two months. Hence, statement 3 is not correct.
— The current series for 2011-12 includes 117 Primary Articles, 16 Fuel and Power items, and 564 Manufactured Products, which encompass all key items traded in the economy.
— The weighing diagram for the WPI series is based on the Gross Value of Output. Hence, statement 1 is correct.
— The output values at current prices, if available with suitable disaggregation, were acquired from the National Accounts Statistics released by the Central Statistical Organisation, Ministry of Statistics and Programme Implementation.
Therefore, option (a) is the correct answer.
(Other Source: data.gov.in)
FYI:
— Any escalation in the Iran-Israel war could have an impact on India by increasing the cost of crude oil imports as geopolitical tensions in West Asia raise risk premiums, as well as fueling fears about potential supply disruptions from the oil-rich region.
— India is the world’s third-largest consumer of crude oil and depends on imports to meet over 85 per cent of its requirement.
— India’s economy is very subject to fluctuations in oil prices. Apart from inflationary pressures, high oil prices have an impact on India’s trade balance, foreign exchange reserves, rupee value, and general economic health.
— India now does not buy Iranian oil because Tehran is under US sanctions.
— India purchases considerable amounts of crude oil from other West Asian producers such as Iraq, Saudi Arabia, and the United Arab Emirates (UAE).
Therefore, option (c) is the correct answer.
FYI:
— India has signed a protocol amending the Double Taxation Avoidance Agreement (DTAA) with Mauritius to plug treaty abuse for tax evasion or avoidance. Hence, statement 1 is correct.
— The modified accord includes what is known as the Principal objective Test (PPT), which effectively states that tax benefits under the treaty will not be applied if it is proven that gaining that duty benefit was the primary objective of any transaction or agreement.
— The updated protocol includes Article 27B in the treaty, which defines the ‘entitlement to benefits’.
— The PPT will refuse treaty benefits, such as reduced withholding tax on interest royalties and dividends, if it is proved that getting the treaty benefit is one of the primary goals of the party involved in the transaction. Hence, statement 2 is not correct.
— The DTAA was a major reason why many foreign portfolio investors (FPIs) and foreign companies chose to invest in India through Mauritius.
— Mauritius remains India’s fourth largest source of foreign direct investment, trailing only the United States, Singapore, and Luxembourg.
Therefore, option (a) is the correct answer.
FYI:
— The ‘employment condition index’ has improved between 2004-05 and 2021-22.
— The index is based on seven labour market outcome indicators:
(i) percentage of workers employed in regular formal work;
(ii) percentage of casual labourers;
(iii) percentage of self-employed workers below the poverty line;
(iv) work participation rate;
(v) average monthly earnings of casual labourers;
(vi) unemployment rate of secondary and above-educated youth;
(vii) youth not in employment and education or training.
— According to the research, roughly 82% of the workforce works in the informal sector, with nearly 90% informally employed. Hence, statement 3 is not correct.
— Self-employment remains the predominant source of employment, accounting for 55.8% in 2022. Casual and regular employment accounted for 22.7% and 21.5%, respectively. Hence, statement 1 is correct.
— Regular employment is often regarded as delivering higher-quality jobs due to the consistency of employment and accompanying social security benefits, whereas casual labour is associated with poorer-quality jobs due to its irregular nature and lower daily wages.
— The female labour force participation rate (LFPR) in India remains among the world’s lowest. Female LFPR declined by 14.4 percentage points (compared to 8.1 percentage points for males) between 2000 and 2019. Hence, statement 2 is not correct.
Therefore, option (a) is the correct answer.
FYI:
— Gujarat is more industrialised than TN, with the factory sector generating 43.4% of the state’s GVA and engaging 24.6% of its workforce (as against the latter’s 22.7% and 17.9% respectively).
— The National Industrial Corridor Development Programme is India’s most ambitious infrastructure initiative, with the goal of developing future industrial cities capable of competing with the world’s greatest manufacturing and investment destinations.
— There are 11 national industrial corridors in India, Delhi-Mumbai IC, Amritsar-Kolkata IC, Chennai-Bengaluru IC, Vizag-Chennai IC, Hyderabad-Nagpur IC, Hyderabad-Warangal IC, Hyderabad-Bengaluru IC, Odisha economic corridor, Bengaluru-Mumbai IC, extension of CBIC to Kochi via Coimbatore, and Delhi-Nagpur IC.
Therefore, option (d) is the correct answer.
(Other Source: http://www.nicdc.in)
Daily subject-wise quiz — Polity and Governance (Week 54)
Daily Subject-wise quiz — History, Culture, and Social Issues (Week 54)
Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 53)
Daily subject-wise quiz — Economy (Week 53)
Daily subject-wise quiz – International Relations (Week 53)
Subscribe to our UPSC newsletter and stay updated with the news cues from the past week.
https://www.youtube.com/watch?v=hk–mo1-zlA?si=gy8fljvYyQcPCxay
