UPSC Essentials : Daily subject-wise quiz : Economy (Week 19)

QUESTION 1

With reference to the National Multidimensional Poverty Index, consider the following statements:

1. India has registered a decline in the number of ‘multidimensionally poor’ individuals in 2019-2021 compared with 2015-16 .

2. The index is released by the Ministry of Home Affairs.

3. It captures overlapping deprivations in health, education and living standards.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

QUESTION 2

With reference to the Mineral Security Partnership (MSP), consider the following statements:

1. India has been inducted into the Mineral Security Partnership.

2. It is a Russia-led collaboration of 14 countries that aims to catalyse public and private investment in critical mineral supply chains globally.

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 3

Consider the following:

1. Unusual cold in March and April.

2. Leaf curl virus.

3. Pest attack

4. Many farmers abandon their crops.

How many of the above are the reasons for the high price of tomatoes?

(a) Only one

(b) Only two

(c) Only three

(d) All four

QUESTION 4

The Phillips curve is the relation between:

(a) Tax rate and employment

(b) Recession and unemployment

(c) Per capita income and inequality

(d) Inflation and unemployment

QUESTION 5

With reference to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MG-NREGS), consider the following statements:

1. The scheme guarantees 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.

2. Uttar Pradesh had the highest share, as 17 per cent of families availed the benefits from the scheme in June 2023.

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

ANSWERS TO THE MCQs

1. (b)

FYI:

— According to a report by the government think tank Niti Aayog, India has registered a decline in the number of “multidimensionally poor” individuals, from 24.85 per cent in 2015-16 to 14.96 per cent in 2019-2021. Hence, statement 1 is correct.

— This is the second edition of Niti Aayog’s report on the Multidimensional Poverty Index (MPI). Hence, statement 2 is not correct.

— It captures overlapping deprivations in health, education and living standards and other broader qualitative aspects of life, like child mortality, housing conditions, and other basic services such as water and sanitation to ascertain multidimensional poverty. Hence, statement 3 is correct.

— The primary data source to arrive at these figures was National Family Health Survey-5 (NFHS-5).

— The proportion of people living in poverty continues to differ significantly between urban and rural regions, with rural areas experiencing the fastest drop, from 32.59 to 19.28 per cent, thanks to advances in states like Bihar, Uttar Pradesh, Madhya Pradesh, Odisha, and Rajasthan.

— Under the three broad indicators of health, education and living standards, Niti Aayog assigns specific dimensions – such as nutrition and child adolescent mortality under health, years of schooling under education, and access to cooking fuel, electricity, bank accounts etc. under the quality of living.

— Within the health category, three sub-indicators — nutrition, child and adolescent mortality, and maternal health — showed only moderate improvement.

— Nutrition deprivation decreased from 37 per cent to 31 per cent, maternal health deprivation improved from 22.5 per cent to 19.17 per cent, and child and adolescent mortality deprivation declined from 2.69 per cent to 2.06 per cent.

Therefore, option (b) is the correct answer.

2. (a)

FYI:

— India has been inducted into the Mineral Security Partnership (MSP). Hence, statement 1 is correct.

— It is a US-led collaboration of 14 countries that aims to catalyse public and private investment in critical mineral supply chains globally. Hence, statement 2 is not correct.

— The US enthusiastically welcomes India as the newest partner in the MSP, to accelerate the development of diverse and sustainable critical energy minerals supply chains globally while agreeing to the principles of the MSP including environmental, social, and governance standards.

— The inclusion of India becomes important in light of the fact that a major component of New Delhi’s growth plan is driven by an ambitious shift in the mobility sector that involves the conversion of a sizable portion of both public and private transportation to electric cars.

— The focus is on supply chains for minerals including cobalt, nickel, lithium, and the 17 “rare earth” minerals. While cobalt, nickel, and lithium are necessary for electric car batteries, rare earth minerals are essential in tiny amounts for producing semiconductors and high-end electronics.

— Rare earth comprises 17 elements and are classified as light RE elements (LREE) and heavy RE elements (HREE). Some REs are available in India such as lanthanum, cerium, neodymium, praseodymium and samarium.

Therefore, option (a) is the correct answer.

3. (c)

FYI:

India grows two major crops of tomato:

— Rabi crop: It is grown mainly in the Junnar taluka of Maharashtra and in parts of Karnataka and Andhra Pradesh, and comes to the market between March and August.

— Kharif crop: After August, the market is supplied by the Kharif crop in Uttar Pradesh, Nashik in Maharashtra, and elsewhere in the country.

The reason for the current high prices can be traced back to:

— Sudden fall in April-May, which led many growers to abandon their crops. Hence, statement 4 is correct.

— The unusual heat of March and April also saw pest attacks that took a toll on production. Hence, statement 1 is not correct.

— A higher incidence of pest attacks during the summer requires more control, and thus the cost of production is nominally higher. Hence, statement 3 is correct.

— The crop was devastated by the leaf curl virus. Hence, statement 2 is correct.

— The absence of winter and excessive heat in March-April saw attacks of the cucumber virus.

Therefore, option (c) is the correct answer.

4. (d)

FYI:

— India’s unemployment rate in August was 8.3 per cent which was higher than the 7 per cent recorded in July. But it was better than the 9.2 per cent of June and 11.8 per cent of May 2021.

— A high and rising unemployment rate is evidently not a potent political tool in India.

— The Phillips curve is between inflation and unemployment, the two economic indicators conjoined, it is inflation that wields political power.

— The high inflation rates can upset financial markets that in turn exert pressure on regulators to keep inflation in control.

Therefore, option (d) is the correct answer.

5. (a)

FYI:

— The Mahatma Gandhi National Rural Employment Guarantee Act guarantees 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. Hence, statement 1 is correct.

— In June of this year compared to June of the previous year, the number of families receiving work under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MG-NREGS) increased by more than 10 per cent to reach 3.04 crore.

— Tamil Nadu had the highest share of 17 per cent or 51.80 lakh families, followed by Andhra Pradesh at 33.14 lakh, Rajasthan at 32.68 lakh, Uttar Pradesh at 32.10 lakh, and Bihar at 22.36 lakh. In as many as 10 states, over a million families availed the scheme in June. Hence, statement 2 is not correct.

— The scheme emerged as a safety net for poor and migrant workers who returned to their villages in the wake of the Covid-19 pandemic.

Therefore, option (a) is the correct answer.

Previous Daily Subject-Wise-Quiz

Daily subject-wise quiz — Polity and Governance (Week 19)

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 19)

Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 18)

Daily subject-wise quiz — Economy (Week 18)

Daily subject-wise quiz – International Relations (Week 18)

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