Current Affairs MCQs for UPSC & State PSC Exams (07 December 2022)

Current Affairs MCQs Quiz for UPSC, IAS, UPPSC/UPPCS, MPPSC. BPSC, RPSC & All State PSC Exams

Date: 07 December 2022

Q1. Which of the following statements is correct regarding “Market distortion” sometimes used in the context of economy.

a) It indicates a situation when a new technology or product disrupts the existing market by way of its superior technology.
b) It is a market condition when large investors distort the share market liquidity with a huge number of trades in a short span.
c) A market condition in which production and prices are at different levels than where they would be in a competitive market.
d) A market situation when corporations or entities with monopoly in a market manipulate prices through deceitful data and claims.

Answer: (C)

Explanation:

  • Market distortions occur when production and prices are at different levels than where they would be in a competitive market.
  • It occurs when interventions in supply and demand dynamics lead to a misallocation of resources in the economy.
  • Essentially, it indicates that an economy under-utilizes its own potential.

Hence, option C is the correct answer and the remaining are incorrect.

Q2. Consider the following statements with respect to the Washington Consensus:

1. It refers to a set of economic ideas, supported by prominent economists and international organizations, such as the ADB, the AIIB, the NDB, etc.
2. It minimized the state’s role in the economy and pushed an aggressive free-market agenda of deregulation, privatization, and trade liberalization

Which of the statement/s above is/are correct?

a) 1 Only
b) 2 Only
c) Both 1 and 2
d) None of the above

Answer: (B)

Explanation:

  • The Washington Consensus refers to a set of broadly free market economic ideas, supported by prominent economists and international organizations, such as the IMF, the World Bank, the EU and the US. It was drawn from the advice of John Williamson. Hence, statement 1 is incorrect.
  • It minimized the state’s role in the economy and pushed an aggressive free-market agenda of deregulation, privatization, and trade liberalization. Thus, statement 2 is correct.

Q3. Stagflation is an extreme economic situation with a peculiar combination of which of the following?

a) High growth, high unemployment, rising inflation
b) Slow growth, high unemployment rate, rising inflation
c) High growth, high unemployment, rising deflation
d) Slow growth, high unemployment rate, rising deflation

Answer: (B)

Explanation: Stagflation is an economic condition that's caused by a combination of slow economic growth, high unemployment, and rising prices (inflation). So, option (b) is correct.

Q4. Which of the following refers to the Carbon budget?

a) Total amount of greenhouse gases primarily carbon dioxide released into the atmosphere by a particular human activity.
b) Long-term storage of carbon in plants, soils, geologic formations, and the ocean.
c) Cumulative amount of carbon dioxide (CO2) emissions permitted over a period of time to keep within a certain temperature threshold
d) Credit for greenhouse emissions reduced or removed from the atmosphere by an emission reduction project

Answer: (C)

Explanation:

  • A carbon budget is a cumulative amount of carbon dioxide (CO2) emissions permitted over a period of time to keep within a certain temperature threshold. Thus, option c is correct.
  • A carbon credit (also known as carbon offset) is a credit for greenhouse emissions reduced or removed from the atmosphere by an emission reduction project, which can be used by governments, industry, or private individuals to compensate for the emissions they generate elsewhere.
  • A carbon footprint is the total amount of greenhouse gases—primarily carbon dioxide—released into the atmosphere by a particular human activity.
  • Carbon sequestration is the long-term storage of carbon in plants, soils, geologic formations, and the ocean. It occurs both naturally and as a result of anthropogenic activities.

Q5. Consider the following Statements with regard to Textile Sector of India-

1. India holds a 20% share of the global textile and apparel market.
2. India is the second largest producer of silk.
3. India is the second largest producer of Technical Textiles.

Select the correct Statement(s) using the code given below.

a) 1 and 2 only
b) 2 only
c) 1 and 3 only
d) 3 Only

Answer: (B)

Explanation:

  • India holds a 4% share of the U.S. $840 billion global textile and apparel market, and is in fifth position.
  • China is the world's single biggest producer and chief supplier of silk to the world markets. India is the world's second largest producer.
  • India is the 6th largest producer of Technical Textiles.
  • United States of America is the world's largest producer and consumer of technical textiles having 23% share followed by Western Europe having 22 % share, China having 13% and Japan having 7% share. The share of India in world technical textiles market is about 4-5%.