MCQ
upsc-p1-economy-agriculture-economics MCQ - Practice Questions with Answers
Solve 10 upsc-p1-economy-agriculture-economics questions for RAS/RPSC preparation.
Practice questions
Q1Consider the following statements about central pool stocking norms: 1. The norms effective from 22 January 2015 include both operational stock and strategic reserve. 2. The strategic reserve consists of 30 lakh tonnes of wheat and 20 lakh tonnes of rice. Select the correct answer using the code given below.
Both statements are correct. The date-wise minimum stocking norms effective from 22 January 2015 combine operational stock with strategic reserve. Within them, the strategic reserve is 30 lakh tonnes of wheat and 20 lakh tonnes of rice; it is not the whole buffer stock.
Q2Arrange the following stages in the correct policy-to-delivery sequence: A. Approval of the final MSP decision by the Cabinet Committee on Economic Affairs B. Recommendation of MSP by the Commission for Agricultural Costs and Prices C. Procurement of eligible produce by the Food Corporation of India and State agencies D. Allocation of central pool grain for PDS and welfare schemes Select the correct answer using the code given below.
CACP first recommends MSP, after which the Cabinet Committee on Economic Affairs approves the final decision. Procurement then converts the announced price signal into purchases, and the resulting central pool grain is allocated for PDS and welfare schemes. The sequence is B-A-C-D, shown in option B.
Q3With reference to the National Food Security Act, 2013, consider the following statements: 1. It provides coverage of up to 75% of the rural population and up to 50% of the urban population. 2. Every person in a priority household is entitled to 5 kg of foodgrains per month. 3. Every person in an Antyodaya Anna Yojana household is entitled to 35 kg of foodgrains per month. Select the correct answer using the code given below.
Statements 1 and 2 are correct. The priority-household entitlement is per person. Statement 3 confuses the unit of entitlement: an Antyodaya Anna Yojana household receives 35 kg per household per month, not 35 kg per person.
Q4With reference to public stockholding under the WTO Agreement on Agriculture, consider the following statements: 1. Procurement at administered prices may be counted as product-specific domestic support. 2. For developing countries, the de minimis limit for product-specific support is generally 10% of the value of production. 3. The Bali peace clause permanently rewrote all WTO rules governing public stockholding. Select the correct answer using the code given below.
Statements 1 and 2 are correct. Administered-price procurement may enter the calculation of product-specific domestic support, whose de minimis limit for developing countries is generally 10% of the value of production. Statement 3 is incorrect: the 2013 Bali peace clause is an interim, conditional shield from legal challenge, not a permanent rewriting of all rules.
Q5Consider the following statements about agricultural support and resource use: 1. MSP supports the output price, whereas input subsidies lower the cost of cultivation. 2. Cheap or free electricity can encourage excessive groundwater extraction where water-intensive crops have assured procurement. 3. Nutrient-based subsidy applies to urea, while phosphatic and potassic fertilisers are price-controlled. Select the correct answer using the code given below.
Statements 1 and 2 are correct. Output-price support and input-cost support operate through different channels, and cheap power combined with assured procurement can intensify groundwater extraction. Statement 3 reverses the policy design: urea is price-controlled, while phosphatic and potassic fertilisers receive nutrient-based subsidy.
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6Match List I with List II: List I (Term) A. MSP B. Economic cost C. Issue price D. Price deficiency payment List II (Meaning) 1. Price charged for grain issued to beneficiaries or States 2. Announced support price for selected crops 3. Procurement cost plus incidentals plus distribution cost 4. Payment of the gap between support price and realised market price without physical procurement Select the correct answer using the code given below.
7Consider the following statements about the right-to-food framework in India: 1. Article 47 is a Directive Principle concerning nutrition and public health. 2. The National Food Security Act inserted a separately worded Fundamental Right to food into the Constitution. Select the correct answer using the code given below.
8With reference to Minimum Support Price (MSP) policy in India, consider the following statements: 1. The Commission for Agricultural Costs and Prices recommends MSP for 22 mandated crops and Fair and Remunerative Price for sugarcane. 2. The Cabinet Committee on Economic Affairs takes the final decision on MSP. 3. Since 2018-19, the official claim of at least 50% return is calculated over C2 cost. Select the correct answer using the code given below.
9Match List I with List II: List I (Institution or instrument) A. Commission for Agricultural Costs and Prices B. Food Corporation of India C. State governments under NFSA D. One Nation One Ration Card List II (Primary role) 1. Identification of eligible households 2. Recommendation of MSP 3. Procurement, storage and movement of foodgrains for the Union system 4. Portability of entitled grain outside the beneficiary's home location Select the correct answer using the code given below.
10Arrange the following stages in the correct sequence through which procurement and distribution generate food subsidy: A. Grain is issued to beneficiaries at a low price or free of cost B. Eligible foodgrain is procured by the Food Corporation of India or State agencies C. Procurement cost, incidentals and distribution cost form the economic cost D. The unrecovered gap between economic cost and issue price or free distribution is met through food subsidy Select the correct answer using the code given below.