The term 'Crowding In' refers to: MCQ with Answer and Explanation

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The term 'Crowding In' refers to:

A. Decrease in exports due to appreciation

B. Increase in imports due to higher income

C. Decrease in private investment due to government spending

D. Increase in private investment stimulated by government spending

Answer: Option D

Solution (By JKSSB Mock Tests)

Crowding in occurs when government spending (especially on infrastructure) raises the productivity of private capital and stimulates additional private investment.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'UPI' transaction limit per transaction set by NPCI is generally:

A. Rs 10,00,000

B. Rs 1,00,000

C. Rs 5,00,000

D. Rs 10,000

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Correct Answer: Option B

Explanation:
The general UPI transaction limit is Rs 1 lakh per transaction, though it varies by bank/category.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'free trade area' is an arrangement where member countries:

A. adopt a common external tariff

B. eliminate tariffs among themselves but retain independent external tariffs

C. share a common currency

D. harmonize taxes

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Correct Answer: Option B

Explanation:
In a free trade area, members remove tariffs among themselves but maintain independent external tariffs.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'C2 cost' in agriculture includes A2 plus family labour plus:

A. only seed cost

B. only pesticide cost

C. interest on land and fixed capital

D. only fertilizer cost

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Correct Answer: Option C

Explanation:
C2 cost includes A2 plus family labour plus interest on land and fixed capital.

This question belongs to: Economy GK Economy Set 1

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