UPSC Essentials | Daily subject-wise quiz : Economy (Week 29)

1. Core inflation is a measure of inflation calculated by adding the prices of food and fuel.

2. Super core inflation is calculated by adding gold and silver price inflation to core inflation.

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

With reference to the ‘J form’ — associated with digitalisation of agriculture, consider the following statements:

1. It is the sale receipt of a farmer’s agricultural produce in mandis (grain market).

2. These forms are available with the digilocker.

3. It can be used for raising finance from financial institutions.

4. J forms come with a QR code and a unique number.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) Only three

(d) All four

QUESTION 3

With reference to the Gross Domestic Product (GDP), consider the following statements:

1. Nominal GDP is nothing but the total market value of all the goods and services produced in India in a financial year.

2. Real GDP is derived by removing the effect of inflation from the Nominal GDP 

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 4

With reference to the Agriculture Investment Fund (AIF), consider the following statements:

1. It is a central sector scheme launched for a period of 10 years.

2. It provides a short-term debt financing facility for investment in viable projects for post-harvest management Infrastructure.

3. NABARD controls this fund in association with the Ministry of Agriculture and Farmers Welfare.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

QUESTION 5

With reference to the capital expenditure, consider the following statements:

1. The benefit of expenditure extends up to one accounting period.

2. It is incurred on the day-to-day conduct of business.

3. It increases earning capacity of the business.

4. It is a recurring expenditure.

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:

— The core inflation rate has inched to 6.2 per cent from 6.1 per cent in December and super core inflation rate has gone up to 6.3 per cent from 6.2 per cent.

— Core inflation is a measure of inflation calculated by removing the prices of food and fuel because the prices of food and fuel prices fluctuate massively. Hence, statement 1 is not correct.

— Super core inflation is calculated by removing gold and silver price inflation from core inflation. Hence, statement 2 is not correct.

Therefore, option (d) is the correct answer.

2. (d)

FYI:

— ‘J form’ is the sale receipt of a farmer’s agricultural produce in mandis (grain market). These forms were earlier issued manually by arthiyas (commission agents) because in Punjab, a majority of farmers sell their crops through such agents only. Hence, statement 1 is correct.

— The digitised J form helps in keeping a clear record of the crop sold and income received in lieu of that and it will save their time as well, ensuring that they do not need to run to arhtiyas to get copies of their sale.

— If any farmer changes his/her WhatsApp number, then they can see the J forms in their digilocker, which are legally at par with original physical documents under Rule 9A of the Information Technology (Preservation and Retention of Information by Intermediaries providing Digital Locker facilities) Rules, 2016. Hence, statement 2 is correct.

— The ‘J form’ can be used for raising finance from financial institutions, IT waivers, subsidy claims, farmer’s insurance. Hence, statement 3 is correct.

— This is not only a farmer-friendly service, but it will also help their families, the state and the government itself. J forms come with a QR code and a unique number. Hence, statement 4 is correct

Therefore, option (d) is the correct answer.

3. (c)

FYI:

— Nominal GDP is nothing but the total market value of all the goods and services produced in India in a financial year. Hence, statement 1 is correct.

— The Real GDP is “derived” from the nominal GDP by removing the effect of inflation. Hence, statement 2 is correct.

— For analysing the economy, one often uses the “real” GDP but for preparing the budget, the nominal GDP matters.

— Once the government knows the nominal GDP of the current financial year, it uses this number to project the likely nominal GDP in the next financial year.

Therefore, option (c) is the correct answer.

4. (b)

FYI:

— The Agriculture Infrastructure Fund (AIF) is a new pan India Central Sector Scheme launched for a period of 10 years from 2020-21 to 2032-33. Hence, statement 1 is correct.

— The scheme shall provide a medium – long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets through interest subvention and financial support. Hence, statement 2 is not correct.

— The fund is also used to provide loans, at concessional rates, to FPOs and other entrepreneurs through primary agriculture credit societies (PACs).

— NABARD steers this initiative in association with the Ministry of Agriculture and Farmers Welfare. Hence, statement 3 is correct.

Therefore, option (b) is the correct answer.

5. (a)

FYI:

— The Department of Expenditure under the Finance Ministry has approved capital investment proposals of Rs 56,415 crore for 16 states in the current financial year 2023-24.

— With an intent to tap into a higher multiplier effect of capital expenditure by frontloading the spending by states, the amount has been approved for 16 states including Arunachal Pradesh, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Mizoram, Odisha, Rajasthan, Sikkim, Tamil Nadu, Telangana, and West Bengal.

Therefore, option (a) is the correct answer.

(Other Source: ncert.nic.in)

Previous Daily Subject-Wise-Quiz

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