The concept of 'Dutch Disease' refers to: MCQ with Answer and Explanation

The concept of 'Dutch Disease' refers to:
A. The negative impact of a natural resource boom on the manufacturing sector through currency appreciation
B. The positive impact of resource discovery on all sectors
C. A disease affecting agricultural productivity
D. Only the impact of oil prices on inflation
Answer: Option A
Solution (By JKSSB Mock Tests)
Dutch Disease describes the phenomenon whereby a boom in the natural resource sector leads to real exchange rate appreciation, making the manufacturing and other tradable sectors less competitive.

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Practice More Economy Set 1 Questions

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The 'Atal Pension Yojana' was launched in which year?
A. 2017
B. 2013
C. 2016
D. 2015

Correct Answer: Option D


Explanation:
Atal Pension Yojana was launched in 2015.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'National Bamboo Mission' is related to:
A. silk production
B. fisheries development
C. wildlife conservation
D. promoting bamboo cultivation and industry

Correct Answer: Option D


Explanation:
National Bamboo Mission promotes bamboo cultivation, processing and marketing.

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Question #3
The 'Goods and Services Tax' on electric vehicles is:
A. 12%
B. 18%
C. 5%
D. 28%

Correct Answer: Option C


Explanation:
Electric vehicles attract 5% GST to promote clean mobility.

This question belongs to: Economy GK Economy Set 1