In the context of international trade, 'Most Favoured Nation' (MFN) treatment means: MCQ with Answer and Explanation

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In the context of international trade, 'Most Favoured Nation' (MFN) treatment means:

A. Preferential treatment to one country only

B. Ban on imports from certain countries

C. Equal trade treatment to all member countries

D. Higher tariffs for all countries

Answer: Option C

Solution (By JKSSB Mock Tests)

MFN principle under WTO requires that any advantage granted to one member country must be extended to all other members, ensuring non-discrimination.

This question belongs to: Economy GK Economy Set 1

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Question #1

The Soil Health Card scheme provides farmers information on:

A. soil nutrient status and recommended fertilizer use

B. market prices

C. weather forecast

D. land ownership records

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Correct Answer: Option A

Explanation:
Soil Health Cards provide information on soil nutrient status and fertilizer recommendations.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a feature of the 'Purchasing Power Parity' theory in its absolute form?

A. Exchange rates are determined only by trade balances

B. The exchange rate between two currencies equals the ratio of the countries’ price levels

C. The exchange rate equals the interest differential

D. Only relative changes in prices matter

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Correct Answer: Option B

Explanation:
Absolute purchasing power parity states that the nominal exchange rate should equal the ratio of the domestic to the foreign price level so that a basket of goods costs the same in both countries.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Composition Scheme' under GST is available for service providers with turnover up to:

A. Rs 20 lakh

B. Rs 75 lakh

C. Rs 50 lakh

D. Rs 1.5 crore

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Correct Answer: Option C

Explanation:
Composition scheme for services is available up to Rs 50 lakh.

This question belongs to: Economy GK Economy Set 1

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