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Daily-mcqs 03 Jan 2026

Current Affairs MCQs for UPSC & State PSC Exams 03 Jan 2026

Current Affairs MCQs for UPSC & State PSC Exams

Q1:

With reference to the Carbon Border Adjustment Mechanism (CBAM), consider the following statements:

1.   CBAM seeks to impose a carbon price on imports equivalent to the price paid by EU producers under the Emissions Trading System (ETS).

2.   CBAM applies only to finished goods and excludes intermediate products.

3.   The primary objective of CBAM is to prevent carbon leakage.

Which of the statements given above is/are correct?

A: 1 and 2 only

B: 1 and 3 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: B

Explanation:

Statement 1 – Correct: CBAM extends the EU’s carbon pricing (ETS) to imports to ensure parity between domestic and foreign producers.

Statement 2 – Incorrect: CBAM applies to specific sectors and products, including intermediate goods like steel and aluminium.

Statement 3 – Correct: The core rationale is to prevent carbon leakage, where production shifts to countries with weaker climate regulations.

Q2:

With reference to India’s gig and platform economy, consider the following statements:

1.   Gig workers are engaged in work outside a traditional employer–employee relationship.

2.   Platform workers necessarily work for a single digital platform at a time.

3.   Algorithmic management plays a significant role in determining work allocation and incentives.

Which of the statements given above is/are correct?

A: 1 and 2 only

B: 1 and 3 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: B

Explanation:

Statement 1 – Correct: Gig work is defined by the absence of a conventional employer–employee relationship.

Statement 2 – Incorrect: Platform workers may work for multiple platforms simultaneously (e.g., delivery workers using multiple apps).

Statement 3 – Correct: Work allocation, delivery timelines, and incentives are largely governed by opaque algorithms.

Q3:

Consider the following statements regarding the GST Compensation Cess:

1.   It was introduced to compensate States for revenue losses arising from the implementation of GST.

2.   It was designed as a permanent source of revenue for the Union Government.

3.   It was levied mainly on demerit and luxury goods.

Which of the statements given above is/are correct?

A: 1 and 2 only

B: 1 and 3 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: B

Explanation:

Statement 1 – Correct: The cess was introduced in 2017 to honour the Centre’s assurance to States for revenue loss due to GST.

Statement 2 – Incorrect: The cess was temporary and purpose-specific, not permanent.

Statement 3 – Correct: It was levied on tobacco, pan masala, and luxury goods, which are demerit goods.

Q4:

Consider the following statements regarding the Yemen conflict:

1.   The Yemeni civil war began after Iran-backed Houthi rebels overthrew the internationally recognised government in 2014.

2.   Saudi Arabia led a military coalition in 2015 to counter Houthi influence in Yemen.

3.   The conflict has remained a purely internal civil war without regional involvement.

Which of the statements given above is/are correct?

A: 1 and 2 only

B: 1 and 3 only

C: 2 and 3 only

D: 1, 2, and 3

Show

Answer: A

Explanation:

Statement 1 – Correct: The conflict began in 2014 with the Houthi takeover of key areas, including the capital.

Statement 2 – Correct: Saudi Arabia led a coalition in 2015 to restore the recognised Yemeni government.

Statement 3 – Incorrect: The conflict has evolved into a regional proxy war, involving Saudi Arabia, Iran, and Gulf states.

Q5:

Consider the following statements regarding India’s recent economic milestone:

1.   India has surpassed Japan to become the world’s fourth largest economy in nominal GDP terms.

2.   The ranking is based on purchasing power parity (PPP).

3.   India’s nominal GDP stands at approximately USD 4.18 trillion.

Which of the statements given above is/are correct?

A: 1 and 2 only

B: 2 only

C: 1 and 3 only

D: 1, 2, and 3

Show

Answer: C

Explanation:

Statement 1 – Correct: India surpassed Japan to become 4th largest economy in nominal GDP, measured in current US$.

Statement 2 – Incorrect: PPP-based GDP is different; in PPP terms, India is already 3rd in the world.

Statement 3 – Correct: Official data estimates India’s GDP at USD 4.18 trillion.