Environment - MCQ Online Test (4)

25 Questions MCQ Test Environment and Additional Topics for UPSC Prelims | Environment - MCQ Online Test (4)

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Biofuels are fuels extracted from plants and crops and these have various advantages. These include

1. increasing agricultural diversity.

2. reduced use of fertilizers.

3. renewable source of energy.

Select the correct answer using the codes given below.


Answer: b

Explanation:  Biofuels may lead to monoculture where farmers will prefer cultivating such crops which can be used in making biofuels. Fertilizers used in such crops will only increase the fertilizer use. Biofuels are renewable source and this is their advantage compared to non-renewable fossil fuels. Use of Fertilizers: As biofuels are produced from crops and these crops need fertilizers to grow better. The downside of using fertilizers is that they can have harmful effects on surrounding environment and may cause water pollution. Fertilizers contain nitrogen and phosphorus. They can be washed away from soil to nearby lake, river or pond. Monoculture: Monoculture refers to practice of producing same crops year after year, rather than producing various crops through a farmer’s fields over time. While, this might be economically attractive for farmers but growing same crop every year may deprive the soil of nutrients that are put back into the soil through crop rotation. Farmers may be tempted to produce crops which are goof for biofuels.


The Great Indian Bustard is a critically endangered species. Its population has been declining due to

1. habitat loss

2. frequent poaching

3. construction of windmills

Select the correct answer using the codes given below.


Answer: d

Explanation: The GIBs have been vanishing over the years due to shrinking habitat. Thar Desert is the only landscape in the world that provides viable breeding population to GIBs. While changing lifestyle in the desert, and unregulated human activities have endangered the species, thousands of windmills around the park are posing a serious threat to the GIB which has been categorized as “critically endangered”.


The Montreal Protocol on Substances that Deplete the Ozone Layer aims to control the production and use of :

1. Dichloromethane

2. CFCs

3. HFCs

Select the correct answer using the codes given below.


Answer: b

Explanation: Montreal protocol aims to phase out several groups of halogenated hydrocarbons that have been shown to play a role in ozone depletion. All of these ozone depleting substances contain either chlorine or bromine (substances containing only fluorine do not harm the ozone layer). These include CFCs and HCFCs. HFCs replaced CFCs and HCFCs. HFCs pose no harm to the ozone layer because, unlike CFCs and HCFCs, they do not contain chlorine. The Montreal Protocol therefore does not address HFCs. But HFCs cause global warming. Dichloromethane is a new entry among gases that depletes ozone layer, but at present it has not been included under Montreal Protocol.


Endosulphan has been banned under the Stockholm Convention because:


Answer: c

Explanation: Endosulfan is an off-patent organochlorine insecticide and acaricide that is being phased out globally. Endosulfan became a highly controversial agrichemical due to its acute toxicity, potential for bioaccumulation, and role as an endocrine disruptor. 


If the interest rate is decreased in an economy, it will 


In the context of food and nutritional security of India, enhancing the ‘Seed Replacement Rates’ of various crops helps in achieving the food production targets of the future. But what is/are the constraint/constraints in its wider / greater implementation?

  1. There is no National Seeds Policy in place.
  2. There is no participation of private sector seed companies in the supply of quality seeds of vegetables and planting materials of horticultural crops.
  3. There is a demand-supply gap regarding quality seeds in case of low value and high volume crops.

Select the correct answer using the code given below.


In the context of Indian economy; which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?
1.    To enable the Central Bank to control the amount of advances the banks can create
2.    To make the people’s deposits with banks safe and liquid
3.    To prevent the commercial banks from making excessive profits
4.    To force the banks to have sufficient vault cash to meet their day-to-day requirements
Select the correct answer using the code given below


A rise in general level of prices may be caused by

  1. An increase in the money supply
  2. A decrease in the aggregate level of output
  3. An increase in the effective demand

Select the correct answer using the codes given below


Which one of the following is likely to be the most inflationary in its effect?


Which one of the following is the objective of social forestry which is started by Indian Government?


How much percentage of the cost incurred in the Indira Awas Yojana Scheme for rural housing is shared between Centre and States?


Which one of the following regions of India is not connected to the Integrated Power Transmission Grid ‘National Grid’ synchronously?


Which of the following is used for the measurement of distribution of income?


Receipts in budget can be capital or revenue. Which of these is/are capital receipts?

1. Loan recoveries

2. Provident funds deposits

3. Grants

Select the correct answer using the codes given below.


Answer & Explanation

a) 1 and 2 only. Loan recoveries are the money, which the government had lent out in past, their capital comes back to the government when the borrowers repay them as capital receipts. long-term capital accruals to the government through the Provident Fund (PF), Postal Deposits, various small saving schemes (SSSs) and the government bonds sold to the public (as Indira Vikas Patra, Kisan Vikas Patra, Market Stabilization Bond, etc.) are also capital receipts. Grants are revenue receipts.


If a government is unable to pass the budget in Lok Sabha, then:


Answer & Explanation

c) the government has to resign. This is an important point to be noted. Although, UPSC has asked a question on this in 2011, it may still resurface as a part/statement in a question.


 With reference to contribution from taxes, consider the following statements:

1. Contribution from direct taxes is more than that from indirect taxes.

2. Corporation tax is the largest contributor.

Which of the statements given above is/are correct ?


Answer & Explanation

c) Both 1 and 2. Since 2007-08, the contribution of direct tax has been more than indirect tax. Before this, the trend was opposite. Corporation tax is the largest contributor among the taxes.


The Economic Survey is complied by:


Answer & Explanation

d) Department of economic affairs. The Economic Survey is complied by Department of economic affairs, Ministry of Finance. Office of economic advisor publishes WPI, while CSO publishes IIP and CPI.


Gross capital formation will increase if:

1. gross domestic savings increases

2. gross domestic consumption increases

3. GDP increases

Select the correct answer using the codes given below.


 Answer & Explanation

d) None. Gross capital formation, in simple terms is equivalent to investment made. It was earlier called gross domestic investment. The part of GDP that is used is called gross domestic consumption, while the part that is saved is gross domestic savings (GDS). Some part of this GDS will be re-invested back, and that is called gross capital formation. Now, an increase in GDP or GDS will not necessarily lead to an increase in capital formation. Because how much in invested back will depend on many other factors.


Consider the following statements:

1. India’s GDP is more than its GNP.

2. Net Factor Income from Abroad (NFIA) is positive for India.

Which of the statements given above is/are correct?


Answer & Explanation

a) 1 only. GNP = GDP + NFIA. India’s NFIA is negative. Thus India’s GDP is more than its GNP. NFIA = Factor income earned from abroad by residents – Factor income of non-residents in domestic territory.


 Integrated Child Development Services (ICDS) Scheme aims to provide many services to children that includes:

1. School education

2. Nutrition support

3. Immunization

Select the correct answer using the codes given below.


 Answer & Explanation

c) 2 and 3 only. ICDS provides Supplementary nutrition, Immunization, Primary healthcare (Health check-up, referral services.) and preschool education to children under 6 years of age and their mothers.


Gross budgetary support means:


Answer & Explanation

c) assistance provided by the Centre to five year plan. The Government’s support to the Central plan is called the Gross Budgetary Support. In the recent years the GBS has been slightly more than 50% of the total Central Plan. The share of the GBS in Central Plan has been rising since 2008-09.


Consider the following data:

1. Revenue deficit (RD) = 3% of GDP |

2. Grants for capital formation = 1.8% of GDP

3. Primary deficit (PD) = 1.2%

4. Non-plan expenditure = 1.5%

In the above scenario, effective revenue deficit (ERD) will be:


Answer & Explanation

a) 1.2%. ERD = RD – Grants for capital formation. Therefore, here ERD = 3% – 1.8% = 1.2%. The rest two data about primary deficit and non-plan expenditure is not needed to calculate ERD. Effective Revenue was first introduced in the Union Budget 2011-12. While revenue deficit is the difference between revenue receipts and revenue expenditure, this accounting system includes all grants from the Union Government to the state governments as revenue expenditure, even if they are used to create assets. Such revenue expenditures contribute to the growth in the economy and therefore, should not be treated as unproductive in nature.


Which of the following interest rates is still regulated?

1. Savings account interest rate

2. Fixed deposit interest rate

3. Current account interest rate

Select the correct answer using the codes given below.


Answer & Explanation

d) None. All the interest rates in India have been deregulated. The last one was savings interest rate which was deregulated in 2011.


A decrease in Cash Reserve Ratio (CRR) can lead to which among the following ?

1. Increase in cash availability of the banks

2. Increase in repo rate

3. Decrease in SLR

Select the correct answer using the codes given below.


Answer & Explanation

a) 1 only.Under CRR a certain percentage of the total bank deposits has to be kept in the current account with RBI which means banks do not have access to that much amount for any economic activity or commercial activity. Banks can’t lend the money to corporates or individual borrowers, banks can’t use that money for investment purposes.In short, CRR is the amount in cash which banks have to keep with RBI. Any decrease in CRR will therefore increase cash availability with the banks. Repo rate and SLR would not be affected by changes in CRR. They r separate mechanisms, the rate of which is decided by RBI.


The WTO follows the principle of ‘self selection’. This means :


 Answer & Explanation

c) countries themselves decide whether they want to be in developed or developing categories. There are no WTO definitions of “developed” or “developing” countries. Developing countries in the WTO are designated on the basis of self-selection although this is not necessarily automatically accepted in all WTO bodies.

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