Daily Static MCQs for UPSC & State PSC Exams - Economy (16 November 2023)

   


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

Subject : Economy


1. Consider the following pairs regarding the idea of planning in India:

1. Visvesvaraya Plan – Focus on shifting the labour from industrial sector to agriculture sector.
2. Gandhian Plan – Emphasis on cottage and village level industries.
3. Bombay Plan – Emphasised on the development of essential consumer goods industries in India.

How many of the above pairs is/are correct?

(a) Only one
(b) Only two
(c) All three
(d) None

Answer: (B)

Explanation: In 1934, Sir M. Visvesvaraya had published a book titled “Planned Economy in India”, in which he presented a constructive draft of the development of India in next ten years. His core idea was to lay out a plan to shift labour from agriculture to industries and double up National income in ten years.
In the light of the basic principles of Gandhian economics, S. N. Agarwal authored ‘The Gandhian Plan’ in 1944 in which he put emphasis on the expansion of small unit production and agriculture. Its fundamental fea­ture was decentralisation of economic structure with self-contained villages and cottage industries.
The Bombay Plan emphasizes the importance of basic industries, but also calls for the development of consumption goods industries in the early years of the plan.
Hence, pair 1 is not correctly matched.

2. Consider the following statements:

1. A product is said to be dumped when the product has been exported at a price below normal value in Indian markets.
2. Central Board of Indirect Taxes and Customs (CBIC), imposes antidumping duties in India.
3. Antidumping duty is imposed based on the recommendations of Union Finance Ministry’s investigation arm, the Directorate General of Trade Remedies (DGTR).

How many of the above statements is/are correct?

(a) Only one
(b) Only two
(c) All three
(d) None

Answer: (B)

Explanation: Central Board of Indirect Taxes and Customs (CBIC) imposes antidumping duties. These duties are imposed following recommendations of the Commerce Ministry’s investigation arm, the Directorate General of Trade Remedies (DGTR). The DGTR, conclude that these products have been exported at a price below normal value in Indian markets, which has resulted in dumping. Hence, statement 3 is not correct.

3.The Directorate of Enforcement is a multi-disciplinary organization under the Department of Revenue, Ministry of Finance. The statutory functions of the Enforcement Directorate include the enforcement of which of the following act/acts?

1. Prevention of Money Laundering Act, 2002 (PMLA)
2. Foreign Exchange Management Act, 1999 (FEMA)
3. Fugitive Economic Offenders Act, 2018

How many of the above options is/are correct?

(a) Only one
(b) Only two
(c) All three
(d) None

Answer: (C)

Explanation: The Directorate of Enforcement is a multi-disciplinary organization mandated with investigation of offence of money laundering and violations of foreign exchange laws. The statutory functions of the Directorate include enforcement of following Acts: The Prevention of Money Laundering Act, 2002 (PMLA): It is a criminal law enacted to prevent money laundering and to provide for confiscation of property derived from, or involved in, money-laundering and for matters connected therewith or incidental thereto.
The Foreign Exchange Management Act, 1999 (FEMA): ED has been given the responsibility to conduct investigation into suspected contraventions of foreign exchange laws and regulations, to adjudicate and impose penalties on those adjudged to have contravened the law.
The Fugitive Economic Offenders Act, 2018 (FEOA): It is a law whereby Directorate is mandated to attach the properties of the fugitive economic offenders who have escaped from the India warranting arrest and provide for the confiscation of their properties to the Central Government. Sponsoring agency under COFEPOSA: Under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA), this Directorate is empowered to sponsor cases of preventive detention with regard to contraventions of FEMA. Hence, all statements are correct.

4. Which of the following departments administers the working of the Patents Act, 1970, the Designs Act, 2000 and the Trade Marks Act, 1999?

(a) Department of Commerce
(b) Department of Patents and Designs
(c) Department for Promotion of Industry & Internal Trade
(d) Department of Scientific and Industrial research

Answer: (C)

Explanation: The Office of the Controller General of Patents, Designs & Trade Marks (CGPDTM) is under the Department for Promotion of Industry & Internal Trade, Ministry of Commerce. The Controller General supervises the working of the Patents Act, 1970, as amended, the Designs Act, 2000 and the Trade Marks Act, 1999 and also renders advice to the Government on matters relating to these subjects. Hence, option (c) is correct.

5. Consider the following statements regarding Directorate General of GST Intelligence (DGGI):

1. The Directorate General of GST Intelligence (DGGI) is a law enforcement agency under the Ministry of Commerce and Industry responsible for fighting tax evasion in India.
2. Before the introduction of GST in 2017, the DGGI operated as Directorate General of Central Excise Intelligence (DGCEI).

Which of the above statements is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: (B)

Explanation: The Directorate General of GST Intelligence (DGGI) is a law enforcement agency under the Ministry of Finance responsible for fighting tax evasion in India. Before the introduction of GST in July 2017, the DGGI operated as Directorate General of Central Excise Intelligence (DGCEI). Hence, statement 2 is correct.