UPSC Essentials | Daily subject-wise quiz : Economy MCQs on Periodic Labour Force Survey, non-fossil fuel sources and more (Week 119)

QUESTION 1

Consider the following statements:

Statement 1: When prices start to fall, consumers hold back purchases in the hope of buying the same good for cheaper later.

Statement 2: This behaviour increases the prices further, and the gap decreases between supply and demand.

Which one of the following is correct in respect of the above statements?

(a) Both Statement 1 and Statement 2 are correct and Statement 2 is the correct explanation for Statement 1.

(b) Both Statement 1 and Statement 2 are correct and Statement 2 is not the correct explanation for Statement 1.

(c) Statement 1 is correct but Statement 2 is incorrect.

(d) Statement 1 is incorrect but Statement 2 is correct.

Explanation

— With China’s domestic consumer base still recovering from the economic shock of the Covid-19 disruption, the country’s economy suffered a collapse of its thriving real estate market. The collapse of Evergrande, previously the world’s most valuable real estate corporation, highlighted the magnitude and repercussions of the crisis.

— Real estate was a major component of people’s household assets; falling property values harmed consumer confidence, reduced general demand for products and services, and hampered China’s internal development engines.

— The Chinese economy has also been experiencing deflationary pressures, which refers to prices falling year after year. Deflation, the inverse of inflation, frequently causes major issues for an economy. As prices start to fall, consumers hold back purchases in the hope of buying the same good for cheaper later. This behaviour brings down prices further as the gap between supply and demand widens. Hence, statement 1 is correct and statement 2 is not correct.

Therefore, option (c) is the correct answer.

QUESTION 2

The objective of the Periodic Labour Force Survey (PLFS) is to estimate the:

1. Worker Population Ratio

2. Labour Force Participation Rate

3. Unemployment Rate

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 2 only

(c) 2 and 3 only

(d) 1, 2 and 3

Explanation

— Seasonal factors impacted on India’s labour market again in June, with the unemployment rate remaining steady at 5.6%. However, the Labour Force Participation Rate (LFPR) fell to 54.2% in June from 54.8% in May, indicating that fewer people looked for work last month.

— According to the Statistics Ministry’s most recent monthly Periodic Labour Force Survey (PLFS) report, released on Tuesday, while the unemployment rate (UR) for Indians aged 15 and up remained flat month on month in June at 5.6%, there was a marginal decline in UR for females to 5.6% from 5.8% in May, while males remained at 5.6 percent.

— The primary purpose of PLFS is twofold:

(i) To estimate the major employment and unemployment indicators (viz. Worker Population Ratio, Labour Force Participation Rate, Unemployment Rate) for urban regions exclusively in the ‘Current Weekly Status’ (CWS) during a three-month period.

(ii) To estimate employment and unemployment indicators in both ‘Usual Status’ (ps+ss) and CWS in both rural and urban areas on a yearly basis.

Therefore, option (d) is the correct answer.

(Other Source: http://www.pib.gov.in)

QUESTION 3

Consider the following statements:

1. As of June 2025, non-fossil fuel sources account for more than 50 per cent of the country’s installed electricity capacity.

2. In 2024, India ranked first globally in renewable installed capacity.

3. Among non-fossil fuel sources, nuclear energy accounts for the maximum electricity production.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— India has achieved a significant climate milestone five years ahead of schedule: as of June 30, non-fossil fuel sources accounted for 50.1% of the country’s installed power capacity. These sources, which include nuclear, large hydro, and renewables, accounted for just 30% of installed capacity in 2015 and 38% in 2020, before rapidly increasing over the last five years due to solar and wind power. Hence, statement 1 is correct.

— When the Paris Agreement on Climate Change was signed in 2015, India pledged to achieve 40% non-fossil fuel capacity by 2030. This objective was boosted to 50% in 2022.

— As of June, India’s total installed capacity was 485 gigawatts (GW). Renewables, which include solar, wind, small hydro, and biogas, accounted for 185 GW, according to a news statement from the Ministry of New and Renewable Energy (MNRE). Large hydroelectric facilities supplied 49 GW, while nuclear energy added 9 GW, bringing the total non-fossil fuel capacity just over halfway. Thermal power, primarily coal and gas-based, accounted for the remaining 242 GW, or 49.9 percent. In 2015, thermal had a 70% share. Hence, statement 3 is not correct.

— In 2024, India ranked fourth globally in renewable installed capacity, including large hydro, behind only China, the US, and Brazil. Hence, statement 2 is not correct.

Therefore, option (a) is the correct answer.

QUESTION 4

Consider the following pairs:

1. SAGAR-SETU – It is a mobile application which aims to improve the Ease of Doing Business.

2. Harit Sagar – It aims at achieving the Zero Carbon Emission Goal.

3. Sagar Mathan – It is a mission launched by the Ministry of Ports, Shipping and Waterways, Government of India, to increase fish production.

How many of the pairs given above are correctly marked?

(a) Only one pair

(b) Only two pairs

(c) All three pairs

(d) None of the above pairs

Explanation

SAGAR SETU

— The National Logistics Portal has created a smartphone app aimed at improving the ease of doing business. Hence, pair 1 is correct.

— It enables real-time port operations and monitoring, as well as handled services for the port fraternity to access vessel, cargo, container, finance, and regulatory authority data and services, thereby improving the customer experience.

Harit Sagar

— To match the greater objective of achieving the Zero Carbon Emission Goal, the Ministry of Ports, Shipping, and Waterways has launched the ‘Harit Sagar’ Green Port Guidelines. Hence, pair 2 is correct.

— The Harit Sagar Guidelines – 2023 envision ecosystem dynamics in port construction, operation, and maintenance, while adhering to the ‘Working with Nature’ principle and reducing the influence on biotic components of the harbour ecosystem.

Sagar Manthan

— The Union Minister for Ports, Shipping, and Waterways has inaugurated ‘Sagar Manthan’, a digital platform that contains detailed information about the Ministry and all of its organisations. The Real-time Performance Monitoring Dashboard makes it easier to track projects, key performance indicators, the Maritime India Vision 2030, and financial and operational aspects. Hence, pair 3 is not correct.

Therefore, option (b) is the correct answer.

QUESTION 5

Consider the following statements about Zero tillage:

1. It is the practice of growing crops without disturbing the soil strata.

2. It increases soil erosion and decreases the water retention capacity of soil.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Explanation

— Zero tillage, often known as no-till farming, is the process of cultivating crops without disturbing soil strata using typical tillage methods. Hence, statement 1 is correct.

— This strategy retains soil structure while increasing fertility, resulting in several environmental and economic benefits.

— This method entails spreading seeds directly into the soil, generally using specialised equipment that digs furrows without turning the soil.

— This approach dramatically minimises soil erosion while increasing soil’s water retention capacity. Hence, statement 2 is not correct.

Therefore, option (a) is the correct answer.

QUESTION 6

Consider the following statements regarding PM Kisan Samman Nidhi Yojana:

1. It is a centrally sponsored scheme which aims to address the financial needs of farmers for agricultural inputs and household expenses.

2. Under the scheme an income support in three equal installments will be provided only to all small and marginal land holding farmer families.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Explanation

— PM-Kisan is a Central Sector Scheme fully funded by the Government of India. Hence, statement 1 is not correct.

— Under this scheme, an income support of ₹6,000 per year is provided to all landholding farmer families. Hence, statement 2 is not correct.

Therefore, option (d) is the correct answer.

QUESTION 7

Consider the following statements regarding HTBt cotton:

1. It is officially approved for commercial cultivation in India.

2. The HT trait allows the cotton plant to withstand the application of glyphosate, a commonly used herbicide.

3. It is developed by Indian public sector research institutes.

How many of the statements given above are not correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— HTBt cotton is not approved in India; it is developed by private players and illegally circulated. Hence, statements 1 and 3 are not correct.

— Central government regulations stipulate fines as well as jail terms for the cultivation of non-authorised GM crops. India has so far allowed the commercial release of Bt cotton. Bt stands for Bacillus thuringiensis – the name of the bacteria whose gene has been inserted into the cotton seed.

— HTBt is the next generation of GM cotton and allows the plants to resist the spray of the commonly applied herbicide glyphosate for weed control. But the sale, production as well as storage of this variant is illegal in the country. Hence, statement 2 is correct.

Therefore, option (a) is the correct answer.

QUESTION 8

Under the GST (Goods and Services Tax) regime, the 12% slab includes which of the following categories?

1. Packaged food items such as condensed milk, nuts, dates, sausages, fruit juices

2. Household goods such as cotton, jute handbags, furniture, sewing machines, some textile products

3. Medical items such as medical grade oxygen, gauze, bandages, diagnostic kits.

4. Luxury products and services, tobacco products

Select the correct code:

(a) 1, 2 and 3 only

(b) 1, 3 and 4 only

(c) 1, 2 and 4 only

(d) 1, 2, 3 and 4

Explanation

— These items fall under the 12% rate slab; luxury products and services, tobacco products fall under 28 per cent.

Therefore, option (a) is the correct answer.

Previous Daily Subject-Wise-Quiz

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 117)

Daily subject-wise quiz — Polity and Governance (Week 119)

Daily subject-wise quiz —  Science and Technology (Week 119)

Daily subject-wise quiz — Economy (Week 118)

Daily subject-wise quiz — Environment and Geography (Week 118)

Daily subject-wise quiz – International Relations (Week 118)

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