Ten MCQs on current International and national events - 89

PRERNA FOR IAS

(ASSOCIATE OF SAMKALP)

                                        A-Category MCQs -89

Q1. The Strait of Hormuz is strategically important because:

1. Nearly one-fifth of global oil trade passes through it.
2. It connects the Persian Gulf with the Gulf of Oman.
3. Disruptions can affect global energy prices.
4. It is a major global container-shipping route.

Select the correct answer:

(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4

Correct Answer: (b) 1, 2 and 3 only

Explanation: The Strait of Hormuz is one of the world's most important energy chokepoints. Nearly 20% of global oil trade moves through it. It connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. Any disruption can increase oil prices, worsen inflation and affect global supply chains. While container traffic also passes through the region, its strategic significance is primarily linked to energy transportation. UPSC frequently asks questions on maritime chokepoints because they connect geography, economics and geopolitics.

Q2. Which of the following best explains the “multiplier effect” of infrastructure investment?

(a) It only increases government expenditure.
(b) It generates economic activity beyond the initial spending.
(c) It reduces population growth.
(d) It automatically eliminates poverty.

Correct Answer: (b) It generates economic activity beyond the initial spending.