UPSC Essentials | Daily subject-wise quiz : Economy MCQs on crude oil, outward foreign direct investment and more (Week 94)

QUESTION 1

With notation to the crude oil, see the pursuing statements:

1. India is the world’s largest user of crude oil.

2. It depends connected imports to conscionable much than fractional of its requirements.

3. In 2024, Russian lipid accounted for implicit 70% of India’s full lipid imports.

How galore of the statements fixed supra are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— The existing US medication announced extended caller restrictions connected Russia’s lipid commercialized past week, placing penalties connected 183 tankers, the bulk of the alleged “shadow fleet” that has kept Russian lipid flowing to buyers specified arsenic India and China. The sanctions besides targeted Russian lipid corporations Gazprom Neft and Surgutneftegas, arsenic good arsenic security companies and different businesses progressive successful the country’s vigor and commerce industries.

— According to authorities sources, Indian refiners volition judge lipid cargoes aboard sanctioned boats booked up to January 10, erstwhile the US sanctions were announced, and delivered until March 12. This wind-down clip was established to let existent contracts for Russian lipid to beryllium honoured.

— India is not portion of the sanctions authorities against Russia, but similar astir different nations, it has typically tried to debar falling foul of them successful bid to forestall much US sanctions. According to vessel monitoring data, the immense bulk of lipid tankers antecedently sanctioned by the United States person not been utilised since.

— India, the world’s third-largest crude lipid consumer, relies connected imports to screen much than 85% of its demand. Hence, connection 1 is not close and connection 2 is correct.

— Russia was a negligible supplier to India anterior to the warfare successful Ukraine; it is present India’s largest crude supplier, acknowledgment to Moscow’s willingness to connection sizeable discounts to compensate for the West’s rejection of its oil. Tanker information amusement that Russian lipid accounted for implicit 38% of India’s full lipid imports successful 2024. Hence, connection 3 is not correct.

Therefore, enactment (a) is the close answer.

QUESTION 2

Which of the pursuing components is/are portion of outward overseas nonstop concern (OFDI)?

1. Equity

2. Loans

3. Guarantee issued

Select the close reply utilizing the codes fixed below:

(a) 1 and 2 only

(b) 1 only

(c) 2 only

(d) 1, 2 and 3

Explanation

— Outward overseas nonstop concern (OFDI) by section firms has accrued by astir 17% to $37.68 cardinal successful 2024, indicating that Indian corporations privation to grow their planetary footprints.

— According to figures from the Reserve Bank of India (RBI), full overseas nonstop concern successful 2023 was $32.29 billion.

— OFDI consists of 3 components: equity, loans, and guarantees issued. Overseas FDI by section enterprises successful the signifier of equity totalled $12.69 cardinal past year, up 40% from $9.08 cardinal successful 2023.

— Under the indebtedness category, Indian enterprises’ OFDI totalled $8.7 cardinal successful 2024, up from $4.76 cardinal the erstwhile year. Domestic enterprises issued $16.29 cardinal successful guarantees successful 2024, down from $18.44 cardinal successful 2023.

— Hotels, construction, manufacturing, agriculture, mining, and services are among the areas successful which Indian corporations task overseas. Singapore, the United States, the United Kingdom, the United Arab Emirates, Saudi Arabia, Oman, and Malaysia are among the countries that person received full fiscal commitments done ODI.

Therefore, enactment (d) is the close answer.

QUESTION 3

Labour Force Participation Rates (LFPR) is defined as:

(a) the percent of the colonisation aged 15 years and supra that is moving oregon seeking/willing to enactment for a comparatively agelong portion of a peculiar year.

(b) the percent of radical successful the colonisation who are employed.

(c) a benignant of employment wherever radical enactment connected temporary, contract-based projects.

(d) the enactment a idiosyncratic spent the astir clip connected during a circumstantial play of time

Explanation

— The Indian system grew astatine an mean yearly complaint of 4.6% betwixt 2019-20 and 2023-24, and 7.8% successful the anterior 3 fiscal years (April-March). For some periods, the workplace assemblage has grown astatine an mean complaint of 4.2% and 3.6%. However, these macroeconomic maturation rates are not reflected successful agrarian wages.

— The Labour Bureau collects regular wage complaint statistic for 25 cultivation and non-agricultural vocations from 600 illustration villages crossed 20 states each month.

— Wage maturation has been estimated successful some nominal (current value) and existent presumption (after deducting yearly inflation based connected the agrarian India user terms index), for each agrarian and cultivation jobs. The second comprises processes specified arsenic ploughing/tilling, sowing, harvesting/threshing/winnowing, commercialized harvest picking, horticulture, carnal husbandry, watering/irrigation, and works protection.

— LFPR is the percent of the colonisation aged 15 years and supra that is moving oregon seeking/willing to enactment for a comparatively agelong portion of a peculiar year.

— The all-India mean pistillate LFPR was lone 24.5% successful 2018-19. It roseate to 30% successful 2019-20, 32.5% successful 2020-21, 32.8% successful 2021-22, 37% successful 2022-23 and 41.7% successful the latest authoritative Periodic Labour Force Survey for 2023-24 (July-June).

Therefore, enactment (a) is the close answer.

QUESTION 4

With notation to the Free Trade Agreements (FTAs), see the pursuing statements:

1. These are arrangements betwixt 2 oregon much countries oregon trading blocs that chiefly hold to trim oregon destruct customs tariffs.

2. FTAs mostly screen commercialized successful goods and bash not screen commercialized successful services.

3. Intellectual spot rights (IPRs) are exempted from the FTAs.

How galore of the statements fixed supra are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— The proposed India-Oman escaped commercialized statement (FTA), which mightiness heighten Indian exports to the West Asia area, is expected to beryllium unveiled soon aft lingering issues are resolved and a judicial reappraisal of the accord is underway.

— FTAs are agreements betwixt 2 oregon much nations oregon trading blocs to alteration oregon region customs tariffs and non-tariff barriers to sizeable commercialized betwixt them. Hence, connection 1 is correct.

— FTAs typically code commercialized successful goods (such arsenic cultivation oregon concern items) oregon services (such arsenic banking, building, and trading). Hence, connection 2 is not correct.

— FTAs tin besides code different issues specified as intelligence spot rights (IPRs), investment, authorities procurement, and contention policy. Hence, connection 3 is not correct.

Therefore, enactment (a) is the close answer.

(Other Source: commerce.gov.in)

QUESTION 5

With notation to the GDP, see the pursuing pairs:

1. Private Final Consumption Expenditure (PFCE) Spending by radical successful their idiosyncratic capacity

2. Government Final Consumption Expenditure (GFCE) Spending by governments to conscionable regular expenditures specified arsenic salaries

3. Gross Fixed Capital Formation (GFCF) Spending towards boosting the productive capableness of the economy

How galore of the pairs fixed supra are correctly marked?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— The GDP is fundamentally the monetary measurement of each the goods and services produced wrong India’s borders successful a year. It provides the size of the Indian economy.

— The existent GDP is calculated by subtracting the effect of ostentation from the nominal GDP. A country’s nominal GDP tin emergence owed to accrued accumulation of goods and services oregon accrued prices of existing products and services (read inflation). More often than not, some of these causes effect successful a emergence successful GDP.

— The existent GDP measures the magnitude to which India produces much goods and services by subtracting the prices astatine which they are priced.

— GDP is calculated by totalling each wealth spent successful the economy. To recognize this, see the 4 large categories into which each expenditure is divided; these whitethorn beryllium viewed arsenic the 4 engines of GDP improvement successful the economy.

1. Spending by individuals: This is known arsenic Private Final Consumption Expenditure (PFCE). It accounts for implicit 60% of India’s GDP. Hence, connection 1 is correct.

2. Government spending to screen regular expenses, specified arsenic salaries: This is the government’s last depletion expenditure (GFCE). It is the smallest engine, accounting for astir 10% of GDP. Hence, connection 2 is correct.

3. Spending to summation the economy’s productive capableness (also known arsenic investments successful this context): this could see governments gathering roads, businesses establishing factories, oregon purchasing computers for their offices, among different things. This is known arsenic Gross Fixed Capital Formation (GFCF), and it is the second-largest operator of growth, accounting for astir 30% of GDP. Hence, connection 3 is correct.

4. Net exports oregon nett spending arsenic a effect of Indians spending connected imports and foreigners spending connected Indian exports: Because India usually imports much than it exports, this motor reduces India’s wide GDP and is shown by a minus sign.

Therefore, enactment (c) is the close answer.

Previous Daily Subject-Wise-Quiz

Daily subject-wise quiz — Polity and Governance (Week 94)

Daily subject-wise quiz —  Science and Technology (Week 94)

Daily subject-wise quiz — Environment and Geography (Week 93)

Daily subject-wise quiz — Economy (Week 93)

Daily subject-wise quiz – International Relations (Week 93)

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 93)

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