UPSC Essentials : Daily subject-wise quiz : Economy (Week 20)

QUESTION 1

With reference to the global tax deal, consider the following statements:

1. The member nations have agreed to revise global tax regulations to guarantee that multinational corporations pay taxes at a minimum of 20 per cent.

2. India is not a part of this deal.

Which of the statement(s) given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

QUESTION 2

Consider the following statements about the Promotion of Alternate Nutrients for Agriculture Management Yojana:

1. The scheme will have a separate budget and it will be financed by the Ministry of Rural Development.

2. The grant provided under the scheme cannot be used for asset creation.

3. The grant money can be used for incentivising farmers.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

QUESTION 3

Consider the following factors:

1. Demand and supply

2. Cost of production

3. Minimum 20 per cent margin over cost of production

4. Previous year’s prices

How many of the factors given above are taken into account by the Commission for Agricultural Costs and Prices for fixing Minimum Support Price (MSP)?

(a) Only one

(b) Only two

(c) All three

(d) None

QUESTION 4

The Wadi development model was in the news recently, Consider the following statements about the Wadi development model:

1. The programme is aimed at improving livelihood and giving access to nutrition for large landholders.

2. The model has been led by the National Bank for Rural Development (Nabard).

Which of the statement(s) given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

QUESTION 5

With reference to the Standing Committee on Statistics (SCoS), consider the following statements:

1. It advises on survey methodology including sampling frame, sampling design and survey instruments.

2. It provides guidance to conduct pilot surveys/pre-testing.

3. It provides technical guidance to the Central and State level agencies for the conduct of the surveys.

4. It was earlier known as the Standing Committee on Economic Statistics (SCES).

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) Only three

(d) All four

ANSWERS TO THE MCQs

1. (d)

FYI:

— India and the US committed to further improving bilateral ties, exploring alternate mechanisms for funding renewable energy and actively pursuing the G20 agenda which includes strengthening MDBs and taking coordinated action to deal with climate change.

— There are several issues including climate action, rising indebtedness in low and middle-income countries and digital public infrastructure was figured out during a bilateral meeting between Finance Minister Nirmala Sitharaman and US Treasury Secretary Janet Yellen held on the sidelines of the G20 meeting of Finance Ministers and Central Bank Governors.

— Under the global tax deal, about 140 countries, including India, have agreed to overhaul global tax norms to ensure that multinationals pay taxes wherever they operate and at a minimum of 15 per cent rate. Hence, statement 1 and 2 are not correct.

Therefore, option (d) is the correct answer.

2. (a)

FYI:

— In order to reduce the use of chemical fertilisers by incentivising states, the Union government plans to introduce a new scheme – PM PRANAM, which stands for PM Promotion of Alternate Nutrients for Agriculture Management Yojana.

— The scheme intends to reduce the subsidy burden on chemical fertilisers, which is expected to increase to Rs 2.25 lakh crore in 2022-2023, which is 39% higher than the previous year’s figure of Rs 1.62 lakh crore.

— The scheme will not have a separate budget and will be financed by the “savings of existing fertiliser subsidy” under schemes run by the Department of fertilisers. Hence, statement 1 is not correct.

— The 50 per cent subsidy savings will be passed on as a grant to the state and 70 per cent of the grant provided under the scheme can be used for asset creation related to technological adoption of alternate fertilisers and alternate fertiliser production units at village, block and district levels. Hence, statement 2 is not correct.

— The remaining 30 per cent grant money can be used for incentivising farmers, panchayats, farmer producer organisations and self-help groups that are involved in the reduction of fertiliser use and awareness generation. Hence, statement 3 is correct.

— The kharif season (June-October) is critical for India’s food security, accounting for nearly half the year’s production of foodgrains, one-third of pulses and approximately two-thirds of oilseeds. A sizable amount of fertiliser is required for this season.

Therefore, option (a) is the correct answer.

3. (b)

FYI:

— The Centre announces the MSP (which is not legally guaranteed) for 22 mandated crops (and Fair & Remunerative Price, or FRP, for sugarcane) on the basis of the recommendations of the CACP.

— These include 14 kharif crops (paddy, jowar, bajra, maize, ragi, tur/arhar, moong, urad, groundnut, soyabean, sunflower, sesamum, nigerseed, cotton), six are rabi crops (wheat, barley, gram, masur/lentil, rapeseed and mustard, and safflower) and two are commercial crops (jute and copra).

— The CACP takes into account various factors including:

(i) Demand and supply; Hence, 1 is correct.

(ii) Cost of production; Hence, 2 is correct.

(iii) Market trends;

(iv) A minimum 50% margin over cost of production; and Hence, 3 is not correct.

(v) Implications of MSP on consumers.

— The CACP calculates three types of costs — A2, A2+FL and C2 — for each mandated crop for different states:

— A2, the lowest of these costs is the actual paid-out cost incurred by a farmer.

— A2+FL, the actual paid-out cost plus imputed value of family labour.

— C2, the highest of the three costs, is defined as Comprehensive Cost including Rental Value of Own Land (net of land revenue and interest on value of own fixed capital assets (excluding land)).

Therefore, option (b) is the correct answer.

4. (b)

FYI:

— The ‘Wadi’ development model introduced by the Pune-headquartered BAIF Development Research Foundation (known as BAIF) that promotes fruit trees and forestry in the farming system was discussed at the ongoing Conference of Parties (COP) session in Egypt.

— This programme, is aimed at improving livelihood and giving access to nutrition for small landholders. Hence, statement 1 is not correct.

— BAIF has been working on various initiatives mainly aimed at improving the livelihoods of poor families in rural areas along with conserving natural resources.

— The Wadi project of the National Bank for Rural Development Nabard is an integral part of its natural resource management policy. Hence, statement 2 is correct.

— The ‘Wadi’ model is meant to help tribal and small landholders. It allows the landholder to do horticulture and plant food crops on the land both for commercial sales and self-consumption by the farmer.

Therefore, option (b) is the correct answer.

5. (d)

FYI:

— The Standing Committee on Economic Statistics (SCES) was reviewed, and thereafter renamed as Standing Committee on Statistics (SCoS) to advise on all surveys as and when required by the Ministry of Statistics and Programme Implementation (MoSPI). Hence, statement 4 is correct.

— The Standing Committee shall deliberate and deliver various issues related to all surveys as and when required by MoSPI. Its Terms of Reference shall include:

— To review the extant framework and to address the issues raised from time to time on the subject/results/methodology, etc. related to all surveys as brought before the SCoS by MoSPI.

— To advise on survey methodology including sampling frame, sampling design, survey instruments, etc. and to finalize tabulation plan of surveys. Hence, statement 1 is correct.

— Finalization of survey results.

— To provide guidance for study and exploring the availability of administrative statistics relating to surveys/statistics.

— To provide guidance to conduct pilot surveys/pre-testing, if necessary, before finalizing schedules for data collection. Hence, statement 2 is correct.

— To provide technical guidance to the Central and State (wherever State participation is there) level agencies for the conduct of the surveys. Hence, statement 3 is correct.

— To provide guidance for study/identify data gaps/additional data requirements, if any, in respect of surveys/statistics and suggest appropriate strategies for improvement.

Therefore, option (d) is the correct answer.

(Source: pib.gov.in)

Previous Daily Subject-Wise-Quiz

Daily subject-wise quiz — Polity and Governance (Week 20)

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 20)

Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 20)

Daily subject-wise quiz — Economy (Week 19)

Daily subject-wise quiz – International Relations (Week 19)

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