The term 'Most Favoured Nation' treatment under WTO implies: MCQ with Answer and Explanation

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The term 'Most Favoured Nation' treatment under WTO implies:

A. Preferential treatment to one country at the expense of others

B. Complete free trade without any rules

C. Non-discriminatory treatment among all member countries

D. Higher tariffs for all members

Answer: Option C

Solution (By JKSSB Mock Tests)

The MFN principle requires that any trade advantage granted to one WTO member 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

Which of the following best describes the concept of 'Income Effect' in consumer theory?

A. Change in quantity demanded due to a change in real income resulting from a price change

B. Change in quantity demanded due to a change in relative prices holding real income constant

C. Change in demand due to a change in tastes

D. Change in supply due to a change in input prices

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Correct Answer: Option A

Explanation:
The income effect refers to the change in quantity demanded of a good that results solely from the change in real income caused by a change in the price of the good.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' rate on milk is:

A. 18%

B. 5%

C. 12%

D. 0%

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Correct Answer: Option D

Explanation:
Fresh milk is exempt from GST.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a feature of a flexible exchange rate system?

A. No role for speculation

B. Complete absence of central bank intervention in all cases

C. Exchange rate is determined by market forces of demand and supply of foreign exchange

D. Exchange rate is fixed by government decree

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Correct Answer: Option C

Explanation:
Under a pure flexible (floating) exchange rate system, the value of the currency is determined by the interaction of demand and supply in the foreign exchange market.

This question belongs to: Economy GK Economy Set 1

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