Daily Quiz – 01st Apr 2024

Statement 1 is correct: The nominal effective exchange rate (NEER) is the unadjusted weighted average rate at which one country's currency is exchanged for a basket of foreign currencies. NEER tells about a country’s international competitiveness in terms of the foreign exchange (forex) market, it is also known as the trade-weighted currency index.

Statement 2 is correct: The NEER may be adjusted to compensate for the inflation rate of the home country relative to the inflation rate of its trading partners. The resulting figure is the real effective exchange rate (REER). Thus, (REER) is the weighted average of a country's currency in relation to an index or basket of other major currencies adjusted for inflation.

• All statements are correct: A public good also referred to as a social good or collective good is a good that is both non-excludable and nonrivalrous i.e users cannot be barred from accessing or using them for failing to pay for them.
• Their use by one person neither prevents access of other people nor does it reduce availability to others. Therefore, the good can be used simultaneously by more than one person.
• Flood control systems, lighthouses, and street lightning are also common social goods. Collective goods that are spread all over the face of the earth may be referred to as global public goods.
• Public goods problems are often closely related to the free rider problem, in which people not paying for the goods may continue to access it.

Thus, the good may be under-produced, overused or degraded.

All statements are correct:

Information about the Quinary sector: The professions of the people working in this industry are generally referred to as "gold collar" professions since the services included in the sector focus on interpretation of existing or the new ideas, evaluation of new technologies, and the creation of services.

Certain characteristics of the sector are:

• It is also one of the parts of the tertiary sector, but it involves highly paid professionals, research scientists, and government officials.
• Those who make important decisions that are especially far-reaching in the world around them often belong to this category.
• The fact that the term is not used to evaluate profit vs. economic basis is an important feature of the Quinary economic sector.

Secondary sector includes all industries that are concerned with the manufacturing of usable products or finished goods. It is often divided further into heavy industry (steel, chemical, automotive) and light industry (food, apparel, cosmetics).

The secondary industry sector (manufacturing industry) processes the raw materials supplied by primary industries and prepares them for consumer products. Later procedures products that have been combined into product lines by specific secondary industries.

Primary sector describes all industries that are engaged in the extraction of natural resources or the production of raw materials. Ex: farming, fishing.

Statement 1 is correct: Sunrise industry is an inherent concept that shows hope of a rapid boom for a developing sector or market in its infancy stage. Typically, the sunrise industries are characterised by high growth rates, numerous start-ups, and a wealth of venture capital funding. Such industries create a lot of "buzz" as investors take an interest in their longterm growth prospects and raise public awareness.

Statement 2 is correct: Existing Indian sectors that can be termed as Sunrise sectors and likely to hold in good stead in future in terms of employment generation and business growth are:

1. IT industry,
2. Hydrogen fuel production,
3. Petrochemical industry,
4. Food processing industry,
5. Space tourism etc
6. Agricultural Drones
7. Custom Manufacturing
8. Active Pharmaceutical Ingredients
9. Blockchain

Statement 1 and 2 are correct: Goods are items and resources that meet people's needs and desires. A good can be a physical item, a service, or a combination of the two. Since goods are diverse, these are categorised into distinct groups with unique characteristics that determine their value. The term Capital Goods is used for Plants, machinery and other assets which are used for conversion of basic goods to finished goods. We note here that Capital Good provides service without losing its essential functional characteristic, form or shape except wear and depreciation.

Further, a Capital Good itself is a finished good because it itself does not need any further processing.

Statement 3 is incorrect: Producer goods, also called intermediate goods, in economics, goods manufactured and used in further manufacturing, processing, or resale. Producer goods either become part of the final product or lose their distinct identity in the manufacturing stream. Thus, all basic goods, intermediate goods and capital goods are Producer goods because they are used to produce other goods.