QUIZ – 2020: Insights Current Affairs Quiz, 06 April 2021

Solution: a)

Inverted duty structure is a situation where import duty on finished goods is low compared to the import duty on raw materials that are used in the production of such finished goods.

For example, suppose the tariff (import tax) on the import of tyres is 10% and the tariff on the imports of natural rubber which is used in the production of tyres is 20%; this is a case of inverted duty structure.

When the import duty on raw materials is high, it will be more difficult to produce the concerned good domestically at a competitive price. Several industries depend on imported raw materials and components. High tax on the raw materials compels them to raise price.

The disadvantage of the inverted duty structure increases with the increased use of imported raw materials. An inverted duty structure discourages domestic value addition.

On the other hand, foreign finished goods will be coming at a reduced price because of low tax advantage. In conclusion, manufactured goods by the domestic industry becomes uncompetitive against imported finished goods.

In such a case, even foreign investors would not be interested in setting up a firm for production in the country.

Statement 3: It will be just the opposite.

Solution: d)

Non-tariff measure (NTMs) are defined as policy measures, other than ordinary customs tariffs, that can potentially have an economic effect on international trade in goods, changing quantities traded, or prices or both.

As a result, NTMs cover a broad range of policies including traditional trade policy instruments, such as quotas or price controls.

However, they also comprise technical regulatory measures that pursue important non-trade objectives that relate to health and environmental protection, such as Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT).

Source

Solution: d)

Using the money bill route to bypass the Rajya Sabha, the government introduced regressive amendments to laws, including the Income Tax Act of 1961, the Companies Act of 2013, and the Representation of the People Act of 1951, to introduce electoral bonds.

Source

Solution: c)

The Ministry of Home Affairs (MHA) can designate individuals as “terrorists” under the amended anti-terror law that was passed by the Parliament in 2019.

The Unlawful Activities Prevention Act (UAPA), enacted in 1967, was first amended in 2004, 2008 and 2013.

The UAPA as amended in August 2019 gave the MHA the power to designate individuals as terrorists.

Initially in 1967, the Act concerned itself with banning “unlawful” associations alone and had no mention of terrorism. “Unlawful activity” was defined as activities including speeches, writings etc that supported secessionist claims or questioned India’s sovereignty.

Source

Solution: c)

Caspian sea lies the easternmost among all of the options. Black Sea lies to the west of Caspian Sea.