Join Testzone, Smartkeeda’s Test Series Platform for:

Choose the right answer from the given options.
Important for :
1
As per the TRIPS Agreement 1994, a good originating from a region with specific character/ quality/ reputation is covered/ to be protected under the IPR as
» Explain it
D
Geographical Indication (GI) means the name of a region or a locality, a specific place or, in exceptional cases, a country, used to describe a product originating in that region, locality, specific place or country, which possesses a specific quality, reputation or other characteristics attributable to that geographical origin, and the production and/or processing and /or preparation of which take place in the defined geographical area.

Hence, the option D is correct.
 
» Explain it
C
Gold is mainly related to the International market as of all the precious metals, it is the most popular as an investment. Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries, until recent times, Gold price has shown a long term correlation with the price of crude oil.

Hence, the option C is correct.
 
» Explain it
D
In a bilateral monopoly there is both a monopoly (a single seller) and monopsony (a single buyer) in the same market. The one supplier tends to act as a monopoly power, and looks to charge high prices to the one buyer, the lone buyer looks towards paying a price that is as low as possible. Since both parties have conflicting goals, the two sides negotiate based on the relative bargaining power of each, with a final price settling in between the two sides’ points of maximum profit.

Hence, the option D is correct.
 
4
Externality theory is the basic theory of the following branch of Economics:
» Explain it
A
In economics, an externality is a cost or benefit which results from an activity or transaction and which affects an otherwise uninvolved party who did not choose to incur that cost or benefit. Environmental pollution is a classic case of an externality. Externality theory forms the basic theory of environmental economics.

Hence, the option A is correct.
 
5
“Functional Finance” is associated with:
» Explain it
D
Functional finance is an economic theory proposed by Abhha P, Lerner, based on effective demand principle and cartelism. It states that government should finance itself to meet explicit goals, such as taming the business cycle, achieving full employment, ensuring growth, and low inflation.

Hence, the option D is correct.