Economics Miscellaneous (Part – II)

Total Questions: 50

41. The term 'Domestic Content Requirement' is sometimes seen in the news with reference to: [I.A.S. (Pre) 2017]

(a) Developing solar power production in our country
(b) Granting licences to foreign T.V. channels in our country
(c) Exporting our food products to other countries A
(d) Permitting foreign educational institutions to set up their campuses in our country

Correct Answer: (a) Developing solar power production in our country

Solution:The Domestic Content Requirement (DCR)' category was instituted in the Jawaharlal Nehru National Solar Mission from the beginning of 2010 in an effort to create a healthy and robust indigenous manufacturing base and to elevate India's status as a solar hub. US companies contended that India's Solar Mission gives preference to procurement of solar panels with Indian content and this is one type of non-tariff barrier. In September, 2016 WTO ruled in their favour saying that DCR violates the National treatment Principle of WTO which prohibits discrimination between imported and domestically produced goods with respect to internal taxation or other government regulation.

42. With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct? [I.A.S. (Pre) 2015]

1. It is a Public Limited Government Company.

2. It is a Non-Banking Financial Company.

Select the correct answer using the code given below:

Codes:

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

Correct Answer: (c) Both 1 and 2

Solution:Indian Renewable Energy Development Agency Limited (IREDA) is a 'Navratna' Government of India Enterprise un- der the administrative Control of Ministry of New and Renewable Energy (MNRE), IREDA is a Public Limited Government Company established as a Non-Banking Financial Institution in 1987 engaged in promoting, developing and ex- tending financial assistance for setting up projects related to new and renewable sources of energy and energy efficiency/conservation.

43. Consider the following statements: [I.A.S. (Pre) 2019]

1. As per law, the Compensatory Afforestation Fund Management and Planning Authority exists at both National and State levels.

2. People's participation is mandatory in the compensatory afforesation programmes carried out under the Compensatory Afforesation Fund Act, 2016.

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

Correct Answer: (a) 1 only

Solution:The Compensatory Afforestation Fund Management and Planning Authority (CAMPA) is setup at both National and State levels to ensure expeditious and transparent utilization of amount realized in lieu of forest land diverted for non- forest purpose. Thus, statement 1 is correct.

There is no provision of mandatory people's participation in the compensatory afforestation programmes carried out under the Compensatory Afforestation Fund Act, 2016. Thus, statement 2 is incorrect.

44. In India, extended producer responsibility' was introduced as an important feature in which of the following? [I.A.S. (Pre) 2019]

(a) The Bio-medical Waste (Management and Handling) Rules, 1998
(b) The Recycled Plastic (Manufacturing and Lisage) Rules, 1999
(c) The e-Waste (Management and Handling) Rules, 2011
(d) The Food Safety and Standard Regulation, 2011

Correct Answer: (c) The e-Waste (Management and Handling) Rules, 2011

Solution:The 'extended producer responsibility' (EPR) is a policy approach under which producers are given a significant responsibility financial or physical for the treatment or disposal of post-consumer products. EPR was introduced in India as an important feature in 'The e-Waste (Management and Handling) Rules 2011'. It recognizes producers' liability for recycling and reducing e-waste in the country. The Central Pollution Control Board (CPCB) has been given the EPR authorization under the amended new e-Waste Rules 2016, diverting it from the State Pollution Control Boards.

45. In international policy processes, which of the following is not a specific achievement with which women's empowerment is implicitly equated with: [U.P. Lower Sub. (Mains) 2013]

(a) Political Participation
(b) Legal Reforms
(c) Strategic Choices
(d) Economic Security

Correct Answer: (c) Strategic Choices

Solution:In International policy processes, strategic choices is not a specific achievement which implicitly equated with women's empowerment. Strategic choice is a organizational doctrine of sociology. Strategic choice theory describes the role that leaders or leading groups play in influencing an organization through making choices in a dynamic political process. While political participation, legal reform and economic security are implicitly related to women's empowerment.

46. Assertion (A): Lehman Brothers (an investment banking company of US) filed for chapter 11 bankruptcy protection in September 2008. [M.P.P.C.S. (Pre) 2008]

Reason (R): Sub-prime lending was one of the main causes of the financial crisis.

(a) Both A and Rare true, and R is the correct explanation of A
(b) Both A and Rare true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.

Correct Answer: (a) Both A and Rare true, and R is the correct explanation of A

Solution:The sub-prime crisis that emerged in the U.S. housing mortgage market in 2007 snowballed into a global financial crisis, leading to global economic recession. The financial Indscape has changed significantly after the collapse of Lehman brothers in September, 2008.

Lehman Brothers began as a dry-goods store, branched off into commodities trading and brokerage services, and eventually became an investment bank.
The firm survived many challenges but was brought down by the collapse of the subprime mortgage market.
Lehman first got into mortgage-backed securities in the early 2000s before acquiring five mortgage lenders.
The firm posted multiple, consecutive losses and its share price dropped.
Lehman filed for bankruptcy on Sept. 15, 2008, with $639 billion in assets and $619 billion in debt.

47. Consider the following statements and state which is/are correct? [U.P.P.C.S (Pre) 2010]

1. The sub-prime crisis which hit the U.S economy was caused by sudden increase in oil prices.

2. The crisis led to default in homeloan repayment.

3. It led to failure of some U.S. banks.

4. Sub-prime crisis caused crash in Indian Stock Market, Choose your answer from given codes:

Codes:

(a) 1 only
(b) 2 and 4 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4

Correct Answer: (c) 2, 3 and 4 only

Solution:The sub-prime crisis which hit the U.S. economy was caused by recession in Real estate in domestic market of the country. Hence Statement 1 is incorrect. Other statements 2, 3 and 4 are correct with reference to sub-prime crisis.

Low interest rates and readily available subprime mortgages (loans to borrowers with poor credit) created a housing bubble in the mid-2000s. Many people with weak credit histories were able to buy homes, often at inflated prices.
As interest rates rose, the adjustable-rate mortgages (ARMs) that many subprime borrowers had taken out became unaffordable.
With rising interest rates and falling house prices, borrowers defaulted on their mortgages in large numbers, leading to a surge in foreclosures.
The defaults triggered a domino effect, as mortgage-backed securities (bundles of mortgages) held by financial institutions plummeted in value. This led to a crisis in the financial system, with many major institutions facing bankruptcy.

48. The amount of highest household waste per capita per year is produced in the world by: [U.P.P.C.S. (Spl.) (Pre) 2008]

(a) Australia
(b) Denmark
(c) Ireland
(d) Denmark

Correct Answer: (d) Denmark

Solution:As per latest available data, USA and Canada were two of the highest per capita generators of municipal solid waste in the world in 2018, throwing out 2.58 kg and 2.33 kg per capita per day, respectively.

Solid waste is unwanted or useless solid materials generated from various human activities in residential, industrial, or commercial areas.
As per the US Environment Protection Agency (EPA), "solid waste" consists of the following elements: .
∗ Garbage.
∗ Residue occurs from treatment plants and pollution control facilities.
∗ Discarded substances, generally from industrial, commercial, mining, and agricultural activities.
Solid Waste Management should also be remembered that the definition of solid waste is not restricted to solid substances only.
∗ Solid Waste Management also covers semi-solid, liquid, and gaseous substances generated by human consumption or other economic activity.

49. Approximate percentage of the world water resources available in India is: [R.A.S./R.T.S.(Pre) 2007]

(a) 4
(b) 1.5
(c) 11
(d) 7.9

Correct Answer: (a) 4

Solution:Approximately 4.0 percent of the world water resources is available in India.

World water resources are unevenly distributed, with vast quantities of saltwater (97%) and a smaller percentage of freshwater (3%). Most freshwater is locked away in glaciers and ice caps, making a small portion readily available for human use. These resources, including surface water, groundwater, and frozen water, are crucial for human survival, ecosystems, and various economic activities.
Types of Water Resources:

Surface Water: Includes rivers, lakes, reservoirs, and wetlands.
Groundwater: Water stored underground in aquifers.
Frozen Water: Glaciers, ice caps, and permafrost.
Atmospheric Water: Rain, fog, clouds, and water vapor.
Soil Moisture: Water held in the soil, vital for plant life.

50. In the development of hydroelectric power, the pioneering State in India is: [U.P.P.C.S. (Pre) 1998]

(a) Himachal Pradesh
(b) Karnataka
(c) Tamil Nadu
(d) Uttar Pradesh

Correct Answer: (d) Uttar Pradesh

Solution:As per question period, Uttar Pradesh was the pioneering State in India in the development of hydroelectric power. On 9 November 2000, after seperation of Uttarakhand from Uttar Pradesh all major hydroelectric power projects ceded with Uttarakhand. Hence, now Uttarakhand became the pioneering State in India with reference to hydroelectric power.

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