Which of the following is a characteristic of the 'Global Value Chains' phenomenon? MCQ with Answer and Explanation

Which of the following is a characteristic of the 'Global Value Chains' phenomenon?
A. All production occurs within a single country
B. Only final goods are traded
C. Production processes are fragmented across countries, with intermediate goods crossing borders multiple times
D. Trade is limited to primary commodities
Answer: Option C
Solution (By JKSSB Mock Tests)
Global value chains describe the international fragmentation of production in which different stages of the production process are located in different countries and intermediate inputs are traded intensively.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a major component of India's external debt?
A. Only equity portfolio investment
B. Commercial borrowings, NRI deposits, multilateral and bilateral loans
C. Only domestic government securities held by residents
D. Only short-term trade credit

Correct Answer: Option B


Explanation:
India's external debt comprises multilateral and bilateral loans, commercial borrowings, NRI deposits, trade credit and other liabilities.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a feature of the 'Beyond GDP' movement?
A. The exclusive focus on GDP growth
B. The search for broader indicators of well-being and sustainability that complement or go beyond GDP
C. The complete abandonment of any quantitative indicators
D. The rejection of all economic statistics

Correct Answer: Option B


Explanation:
The Beyond GDP agenda seeks to develop and use a wider set of indicators—covering health, education, environment, inequality and subjective well-being—to provide a more comprehensive picture of societal progress.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on renting of commercial property is:
A. 12%
B. 18%
C. 28%
D. 5%

Correct Answer: Option B


Explanation:
Renting of commercial property attracts 18% GST.

This question belongs to: Economy GK Economy Set 1