Daily Current Affairs UPSC: News Based MCQs Quiz | 31st July 2025

Answer: (D) None of the above

Detailed Explanation

• Import duty is a type of tax levied on the import and specific exports of a nation’s customs authorities. The value of goods will generally decide the amount of import duty that will be imposed. Sometimes, import duty is also referred to as customs duty, import tax, import tariff, or tariff. The demand is driven by the market whereas the import duty is based on a country’s foreign policy. Both of them have no relation to each other in terms of demand and supply.
• The cost of goods produced in the domestic market has no relation to the higher import duties in a foreign nation. The price determination in a domestic market will be based on the demand and supply within the domestic boundaries along with the government policies like taxes, subsidies etc., if any.

Answer: (D) 1,2,3 only

Detailed Explanation

The value of a currency can decrease due to several factors, including:

• Inflation: High inflation diminishes the purchasing power of a currency, making it less attractive to hold and potentially leading to depreciation.
• Political Instability: Turmoil and uncertainty within a country can erode investor confidence and trigger capital flight, causing the domestic currency to weaken.
• Trade Deficit: When a country imports more than it exports (a trade deficit), it creates a higher demand for foreign currencies to pay for those imports, which can put downward pressure on the value of the domestic currency.
• A trade surplus is generally associated with a strong currency due to increased demand for domestic goods, it can also potentially lead to inflationary pressures and higher interest rates, which could indirectly affect the currency’s value depending on other economic conditions.

Answer: (A) 1 only

Detailed Explanation

• High import duty, also known as a tariff, is a tax imposed by an importing country on goods entering its borders. This means that when a country imposes high tariffs on imported goods, it can negatively impact the competitiveness of the exporting country’s businesses within their own local market.
• Reduced Demand in the Importing Country: High import duties make goods from the exporting country more expensive in the importing country’s market, potentially reducing demand and sales volume for the exporting country’s products abroad.
• Impact on Local Competitiveness in Exporting Country: If businesses in the exporting country rely on imported raw materials or intermediate goods that are also subject to tariffs in their own country, their production costs can increase, making their final products less competitive even in their local market compared to potentially cheaper alternatives from other sources or domestic producers who don’t face such import costs.
• The USA accounts for almost $10 billion trade for India in jewelry, gems and apparel sector. This accounts for 30% income of the above-mentioned sectors.

Answer: (B) 2 only

Detailed Explanation

Answer: (A) 1 only

Detailed Explanation

• The Kamchatka Peninsula lies on the Circum-Pacific seismic belt which is also known as the Pacific Ring of Fire.

• A longer fault line can indeed lead to larger magnitude earthquakes, which in turn can cause more devastating impacts.
• While a longer fault line might distribute the energy release over a larger area, potentially leading to a slightly less intense shaking at any single point, it also creates the potential for a larger overall release of energy, resulting in a more powerful earthquake.
• Similarly, the length of a fault line is a key factor in tsunami generation, as longer fault ruptures can displace more water, leading to larger and more destructive waves

Answer: (A) Only one

Detailed Explanation

1. The base year for GDP will be 2022-23.

2. The IIP base year will be shifted to 2022-23.

3. The base year for CPI will also be 2024.

• Two new survey indexes namely National Household Travel Survey and Domestic Tourism Expenditure Survey will now be conducted byMoSPI to understand consumer expenses in the field of Tourism within the territory of India.
• This is derived from the idea of Viksit Bharat 2047 wherein the Tourism sector must at least contribute 30% in the GDP.