Question 1: With reference to the sectors of the Indian economy, consider the following pairs: (2024) How many of the pairs given above are correctly matched? (a) Only one (b) Only two (c) Only three (d) All four
Solution:
Ans: (b) Only two
The storage of agricultural products belongs to the tertiary sector because it involves services like storage, logistics, and distribution. Therefore, Pair 1 is incorrect.
A dairy farm is part of the primary sector, which includes activities related to agriculture and animal husbandry. Thus, Pair 2 is correct.
Mineral exploration falls under the primary sector as it deals with the extraction of natural resources. Consequently, Pair 3 is incorrect.
The process of weaving cloth is categorized in the secondary sector, which involves manufacturing and industrial activities. Hence, Pair 4 is correct.
Question 2: Consider the following materials: (2024) 1. Agricultural residues 2. Corn grain 3. Wastewater treatment sludge 4. Wood mill waste Which of the above can be used as feedstock for producing Sustainable Aviation Fuel? (a) 1 and 2 only (b) 2 and 4 only (c) 1, 2, 3 and 4 (d) 1, 3 and 4 only
Solution:
Ans: (c) 1, 2, 3 and 4
The materials listed can be used to create Sustainable Aviation Fuel (SAF).
Agricultural residues are leftovers from farming processes.
Corn grain is a key crop that can serve as a source for SAF.
Wastewater treatment sludge is the leftover material from cleaning water.
Wood mill waste includes scraps and byproducts from processing wood.
Question 3: With reference to physical capital in Indian economy, consider the following pairs: (2024) How many of the above pairs are correctly matched? (a) Only one (b) Only two (c) Only three (d) All four
Solution:
Ans: (b) Only two
A farmer's plough is viewed as fixed capital because it is a long-lasting asset that the farmer uses for many planting seasons. Therefore, Pair 1 is not correct.
A computer is also classified as fixed capital since it is a durable item that assists in the production process over several years. Thus, Pair 2 is correct.
The yarn used by a weaver is categorized as working capital because it is consumed during the production of fabrics. Hence, Pair 3 is incorrect.
Petrol is considered working capital because it is used up in the production process and needs to be regularly replenished. Therefore, Pair 4 is correct.
Question 4: Consider the following statements:(2023)
The Government of India provides Minimum Support Price for niger (Guizotia abyssinica) seeds.
Niger is cultivated as a Kharif crop.
Some tribal people in India use niger seed oil for cooking.
How many of the above statements are correct? (a) Only one (b) Only two (c) All three (d) None
Solution:
Ans: (c)
The government provides MSP for Niger Seeds. Hence, statement 1 is correct.
Niger Seed is cultivated as Kharif crop. Hence, statement 2 is correct.
The tribal population uses niger seed oil for cooking, the press cake post oil-extraction as livestock feed, and also consume the seeds as a condiment. Hence, statement 3 is correct.
Question 5: Consider the investments in the following assets: (2023)
Brand recognition
Inventory
Intellectual property
Mailing list of clients
How many of the above are considered intangible investments? (a) Only one (b) Only two (c) Only three (d) All four
Solution:
Ans: (c)
The assets that cannot be touched are known as intangible assets. They are non- physical in nature and can be used for a year or more and the list includes brand value, goodwill, and intellectual property like trademarks, patents, and copyrights etc.
A tangible asset is an asset that has physical substance. Examples include inventory, a building, rolling stock, manufacturing equipment or machinery, and office furniture.
Hence, (c) is the correct answer.
Question 6: Consider the following heavy industries: (2023)
Fertilizer plants
Oil refineries
Steel plants
Green hydrogen is expected to play a significant role in decarbonizing how many of the above industries? (a) Only one (b) Only two (c) All three (d) None
Solution:
Ans: (c) Green Hydrogen:
Hydrogen is a key industrial fuel that has a variety of applications including the production of ammonia (a key fertiliser), steel, refineries and electricity.
However, all of the hydrogen manufactured now is the so-called 'black or brown' hydrogen because they are produced from coal.
But when electric current is passed through water, it splits it into elemental oxygen and
hydrogen through electrolysis. And if the electricity used for this process comes from a renewable source like wind or solar then the hydrogen thus produced is referred to as green hydrogen.
Need for Producing Green Hydrogen:
Green hydrogen in particular is one of the cleanest sources of energy with close to zero emission. It can be used in fuel cells for cars or in energy-guzzling industries like fertilizers and steel manufacturing.
Green Hydrogen can aid the desulfurisation of crude oil, without the output of CO2 into the atmosphere hence it can provide a clean, on-site green hydrogen supply which will decarbonise the refining process and reduce emissions.
Hence option (c) is correct.
Question 7: Consider the following statements:(2022)
Gujarat has the largest solar park in India.
Kerala has a fully solar powered International Airport.
Goa has the largest floating solar photovoltaic project in India.
Which of the statements given above is/are correct? (a) 1 and 2 (b) 2 only (c) 1 and 3 (d) 3 only
Solution:
Ans: (b)
India's Bhadla Solar Park is the largest solar power park in the world. Bhadla Solar Park is located in Bhadla, a dry and sandy region in Rajasthan, and spans 14,000 acres. There are over 10 million solar panels at the park, which contribute to an operational capacity of 2245MW. Hence, statement 1 is not correct.
Kerala's Cochin International Airport Ltd (CIAL) is the first airport in the world that would be running fully on solar power. The airport officially commissioned a 12 MW solar project in 2015. Hence, statement 2 is correct.
India's biggest floating solar power plant by generation capacity (100MW) is being developed by the National Thermal Power Corporation Limited (NTPC) at Ramagundam in Peddapalli district of Telangana. Hence, statement 3 is not correct.
Question 8: With reference to chemical fertilizers in India, consider the following statements: [2020-I] 1. At present, the retail price of chemical fertilizers is market-driven and not administered by the Government. 2. Ammonia, which is an input of urea, is produced from natural gas. 3. Sulphur, which is a raw material for phosphoric acid fertilizer is a by-product of oil refineries. Which of the statements given above is/are correct? (a) 1 only (b) 2 and 3 only (c) 2 only (d) 1, 2 und 3
Solution:
Correct Answer is Option (b)
#2 is right as per NCERT Class12 Chemistry.
2019: Government replied in Rajya Sabha, "As far as market-linking of urea prices is concerned, the MRP of urea is statutorily fixed by the Government. Whereas, MRP of Phosphatic and Potassic (P&K) Fertilizers the manufacturers/marketers are allowed to fix the MRP at reasonable rates as per market dynamics." Therefore first statement is not fully correct. (REF: PIB) So #1 is wrong.
Indian Bureau of mines booklet: The sulphur is obtained as a by-product from oil refineries. Most of the sulphur is converted to sulphuric acid (H2SO4) which is used in the manufacture of phosphatic fertilizer. So #3 should be correct. Hence the answer is "b".
Question 9: With reference to pulse production in India, consider the following sentences: [2020-I] 1. Black gram (Urad) can be cultivated as both Kharif and rabi crop. 2. Green gram (Moong) alone accounts for nearly half of pulse production. 3. In the last three decades, while the production of kharif pulses has increased, the production of rabi pulses has decreased. Which of the statements given above is/are correct? (a) 1 only (b) 2 and 3 only (c) 2 only (d) 1, 2 and 3
Solution:
Correct Answer is Option (a)
India produces a variety of pulses so it is difficult to believe that green gram alone accounts for nearly 50% of production. #2 should be wrong, And by elimination the answer should be "A". But just to be sure let's cross check with the data
Looking at the PIB production data of 2016, 2017 and 2018: Gram (Chanaa) and Tur production seem to be higher than Green gram (Moong), so, #2 is wrong. So, b, c and d were eliminated.
Further in the same data set we can also see that There is no clear cut increase or decrease as described in the statement 3. So #3 is wrong. And, Black gram (urad) Production detail for both Rabi and kharif seasons are given so #1 is right.
Question 10: In India, which of the following can be considered as public investment in agriculture? [2020-I] 1. Fixing Minimum Support Price for agriculture produce of all crops 2. Computerization of Primary Agriculture Credit Societies 3. Social Capital development 4. Free electricity supply of farmers 5. Waiver of agriculture loans by the banking system 6. Setting up of cold storage facilities by the governments Select the correct answer using the code given below: (a) 1, 2 and 5 only (b) 1, 3, 4 and 5 only (c) 2, 3 and 6 only (d) 1, 2, 3, 4, 5 and 6
Solution:
Correct Answer is Option (c)
Investment is a term associated with the capital part of the budget. So "subsidy" - a revenue part is not an example of 'public investment'. Economic Survey 2019-20 page 84 also confirms this.
Free electricity to farmers involves the government paying subsidy to the electricity company. Therefore #4 is wrong. Setting up of cold storage facilities can help in preservation of the perishable agricultural commodities so #6 is valid. So, answer should be "c".
Question 11: Consider the following statements [2020-I] 1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India. 2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise. 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
Solution:
Correct Answer is Option (d)
Successive Economic surveys have highlighted that Government's open ended procurement is limited to wheat and rice.
And even after PM-AASHA reforms, procurement is not done for all the cereals for which MSP is announced (e.g. Jowar, Bajra, Ragi etc). So, #1 is wrong.
Market factors of Supply and demand may create a scenario where market price of cereal/pulses may rise higher than MSP. Market players are not legally bound to keep their prices lower or higher than MSP. So, #2 is wrong.
Question 12: Consider the following statements : [2020-I] 1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks
2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies. Which of the statements given above is/are correct ? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither It nor 2
Solution:
Correct Answer is Option (b)
Compared to DCCB, scheduled commercial banks command larger quantities of deposits, more number of Bank branches, have an obligation to give 18% of their loans to agriculture under the priority sector lending (PSL). Therefore statement#1 is unpalatable (हजम करना मुश्किल है ) and wrong.
Statement#2 is correct. DCCBs give funds downwards to PACS.
Question 13: Which one the following group of a plant domesticated in the new world and introduced into the old world? [2019-I] (a) Tobacco, cocoas, and rubber (b) Tobacco, cotton and rubbers (c) Cotton, coffee and sugarcane (d) Rubber, coffee and wheat
Solution:
Correct Answer is Option (a)
Tobacco, cocoas, and rubber came to India through Europeans in the late medieval or early modern era and so these are the groups of plants that were domesticated in the 'New World' and introduced into the 'Old World.
Question 14: Consider the following statements: [2019-I] 1. According to the Indian Patents Act, a biological process to create a seed can be patented in India. 2. In India, there is no Intellectual Property Appellate Board. 3. Plant Varieties are not eligible to the patented in India. Which of the statements given above is/ are correct? (a) 1 and 3 only (b) 2 and 3 only (c) 3 only (d) 1,2, and 3
Solution:
Correct Answer is Option (c)
National IPR Policy 2016 shifted the Copyright Office and its statutory body Intellectual Property Appellate Board (IPAB) from HRD ministry to commerce ministry.
India Patent Act: Chapter 2: Inventions not patentable: Bullet (j): plants and animals in whole or any part thereof, including seeds, varieties and species. So, #1 is wrong, #3 is right, answer is (c).
Question 15: Consider the following statements: [2019-I] 1. Most of India's external debt is owed by government entities. 2. All of India's external debt is denominated in US dollars. 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
Solution:
Correct Answer is Option (d)
Majority of the external debt is by the private sector's external commercial borrowing (ECB). So #1 is wrong.
Second statement is extreme worded hyperbole so it's wrong. But just to crosscheck: Page 154 of 154 Economic Survey 2016-17: US dollar denominated debt accounted for 55.6 per cent of India's total external debt at end- September 2016, followed by Indian rupee (30.1 per cent), SDR (5.8 per cent), Japanese Yen (4.8 per cent) Pound Sterling (0.7 per cent), Euro (2.4 per cent) and others (0.6 per cent).
Question 16: The economic cost of food grains to the Food Corporation Of India is Minimum Support Price and bonus (if any) paid to the farmers plus [2019-I] (a) Transportation cost only (b) Interest cost only (c) Procurement incidentals and distribution costs (d) Procurement incidentals and charges for godowns
Solution:
Correct Answer is Option (c)
Page 117, Economic Survey 2017-18 Volume 2
Economic Cost of foodgrains consists of three components: Pooled cost of grains, which is the weighted MSP of the stock of foodgrains available with FCI, procurement incidentals, cost of distribution
Thus answer is (c).
Question 17: Which of the following has/have occurred in India after its liberalization of economic policies in 1991? [2017-I] 1. Share of agriculture in GDP increased enormously. 2. Share of India's exports in world trade increased. 3. FDI inflows increased. 4. India's foreign exchange reserves increased enormously. Select the correct answer using the codes given below: (a) 1 and 4 only (b) 2, 3 and 4 only (c) 2 and 3 only (d) 1, 2, 3 and 4
Solution:
Correct Answer is Option (b)
From the statistical appendix given in the economic survey 2015-16 the answer is "B". While it's possible that in some years, FDI and world share in exports would have declined than previous years because of global financial crisis, but by and large compared to Pre-LPG and Post-LPG, there is definitely an increase.
Question 18: Consider the following statements: [2017-I] 1. The Standard Mark of Bureau of Indian Standards (BIS) is mandatory for automotive tyres and tubes. 2. AGMARK is a quality Certification Mark issued by the Food and Agriculture Organisation (FAO). 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
Solution:
Correct Answer is Option (a)
First is correct as per BIS website and AGMARK is issued under Indian Act. Besides, it's an 'extreme statement', FAO would not bother with small things.
Question 19: Which of the following is/are the advantage /advantages of practising drip irrigation? [2016-I] 1. Reduction in weed 2. Reduction in soil salinity 3. Reduction in soil erosion Select the correct answer using the code given below. (a) 1 and 2 only (b) 3 only (c) 1 and 3 only (d) None of the above is an advantage of practising drip irrigation
Solution:
Correct Answer is Option (c)
As per Tamilnadu Agriculture University: Advantages of drip irrigation system: Water saving and higher yield, High quality and increased fruit size, Suitable for all types of soil, Easy method of fertigation and chemigation, saving in labour, reduces weed formation and soil erosion. Whereas Disadvantage of drip irrigation system: High initial investment, Clogging of emitters, Possible damage of system components due to animals, etc. After the exam, experts were divided between A and C since both soil salinity and soil erosion are reduced depending on various books. But in its official Answer key, UPSC has kept "C" as the answer.
Question 20: Why does the Government of India promote the use of Neem-coated Urea' in agriculture? [2016-I] (a) Release of Neem oil in the soil increases nitrogen fixation by the soil microorganisms (b) Neem coating slows down the rate of dissolution of urea in the soil (c) Nitrous oxide, which is a greenhouse gas, is not at all released into atmosphere by crop fields (d) It is a combination of a weedicide and a fertilizer for particular crops
Solution:
Correct Answer is Option (b)
Spraying urea with Neem oil slows the release of nitrogen, by about 10 to 15 per cent, concomitantly reducing consumption of the fertiliser. Many research studies in India have conclusively established that Neem oil acts as an effective nitrification inhibitor if coated onto urea.
Spraying urea with neem oil slows the release of nitrogen, by about 10 to 15 per cent, concomitantly reducing consumption of the fertiliser. Hence B is the closest answer.
Question 21: With reference to 'Pradhan Mantri Fasal Bima Yojana', consider the following statements: [2016-I] 1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year. 2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains. 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
Solution:
Correct Answer is Option (b)
Pradhan Mantri Fasal Bima Yojana will also seek to address a long standing demand of farmers and provide farm level assessment for localised calamities including hailstorms, unseasonal rains, landslides and inundation.
Post-harvest loss is included so #2 is right. But Under the new scheme, farmers will have to pay a uniform premium of two per cent for all kharif crops and 1.5 per cent for all rabi crops. For annual commercial and horticultural crops, farmers will have to pay a premium of 5 per cent. So, #1 is wrong. Therefore, answer (b) only 2.
Question 22: 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? [2014 - I] 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. (a) 1 and 2 (b) 3 only (c) 2 and 3 (d) None
Solution:
Correct Answer is Option (b)
We have a National Seed policy made in 2002. So 1 is not a constraint. The private sector produces high-priced seeds but in lower volume. It supplies nearly the entire hybrid seeds required for vegetables. So 2 is not a constraint. In the case of low value and high volume crops such as wheat and rice, farmers tend to use their own preserved seeds as there is demand and supply gap. So 3 is a constraint.
Question 23: Government of India encourages the cultivation of 'sea buckthorn'. What is the importance of this plant? [2012- I] 1. It helps in controlling soil erosion and in preventing desertification. 2. It is a rich source of biodiesel. 3. It has nutritional value and is well-adapted to live in cold areas of high altitudes. 4. Its timber is of great commercial value. Which of the statements given above is/are correct? (a) 1 only (b) 2, 3 and 4 only (c) 1 and 3 only (d) 1, 2, 3 and 4
Solution:
Correct Answer is Option (c)
Sea buckthorn is a medicinal plant which has health promoting properties. It can play a crucial role in preventing soil erosion and help nitrogen fix option in cold and desert areas.
Question 24: With reference to micro-irrigation, which of the following statements is/are correct ? [2011 - I] 1. Fertilizer/nutrient loss can be reduced. 2. It is the only means of irrigation in dry land farming. 3. In some areas of farming, receding of ground water table can be checked. Select the correct answer using the codes given below: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3
Solution:
Correct Answer is Option (c)
The first statement is correct because with Micro irrigation, Fertigation can be used to check the loss of the nutrients. The second statement is incorrect. The third statement is correct, because Micro irrigation has evolved from the sub-irrigation where irrigation water is supplied to the plant by "raising the water table" up to the root zone.
Question 25: Consider the following statements ; [2010] 1. The Union Government fixes the Statutory Minimum Price of sugarcane for each sugar season 2. Sugar and sugarcane are essential commodities under the Essential Commodities Act. 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
Solution:
Correct Answer is Option (c)
Statutory minimum price of sugarcane for every season is a policy provision while sugar and sugarcane falls within essential commodities act.
Question 26: Consider the following statements: [2009] 1. The Commission for Agricultural Costs and Prices recommends the Minimum Support Prices for 32 crops. 2. The Union Ministry of Consumer Affairs, Food and Public Distribution has launched the National Food Security Mission. 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
Solution:
Correct Answer is Option (d)
The National Development Council (NDC) in its 53rd meeting held on 29th May, 2007 adopted a resolution to launch a Food Security Mission consisting of rice, wheat and pulses and to increase the production of rice by 10 million tons, wheat by 8 million tons and pulses by 2 million tons by the end of the Eleventh Plan (2011-12). The project is under Ministry of Agriculture. The project identifies districts and varieties which would be concentrated on.
Question 27: Consider the following statements: [2004] 1. Regarding the procurement of food-grains, Government of India follows a procurement target rather than an open-ended procurement policy. 2. Government of India announces minimum support prices only for cereals. 3. For distribution under Targeted Public Distribution System (TPDS), wheat and rice are issued by the Government of India at uniform central issue prices to the States/Union Territories. Which of the statements given above is/are correct? (a) 1 and 2 (b) 2 only (c) 1 and 3 (d) 3 only
Solution:
Correct Answer is Option (c)
Regarding the procurement of food-grains, Government of India follows a procurement target rather than an open-ended procurement policy. In case, there is no procurement target. The government allows the procurement agencies like the FCI to buy whatever is offered by the farmers for sale at MSP. Minimum Support Price is announced for around 22 crops. Wheat and Rice are issued by the central Government at Uniform central issue Prices (CIPs) to states and Union Territories for distribution under TPDS. The difference between the economic cost and issue price of food grains is reimbursed to the FCI by the central Government in the form of subsidy.
Question 28: Consider the following statement: [2004] India continues to be dependent on imports to meet the requirement of oilseeds in the country because: 1. farmers prefer to grow food grains with highly remunerative support prices. 2. most of the cultivation of oilseed crops continues to be dependent on rainfall. 3. oils from the seeds of free origin and rice bran have remained unexploited. 4. it far cheaper to import oilseeds than to cultivate the oilseed crops. Which of the statements given above are correct? (a) 1 and 2 (b) 1, 2 and 3 (c) 2 and 3 (d) 1, 2, 3 and 4
Solution:
Correct Answer is Option (b)
The reduction of rainfall and leak of seed preservation technology are the main cause.
Question 29: In terms of value, which one of the following commodities accounted for the largest agricultural exports by India during the three year period from 1997-1998 to 1999-2000 ? [2002] (a) Cereals (b) Marine products (c) Spices (d) Tea
Solution:
Correct Answer is Option (b)
Largest agricultural exports were of marine products followed by tea and spices.
Question 30: The correct sequence in decreasing order of the four sugarcane producing States in India is: [2000] (a) Maharashtra, U .P., Tamil Nadu, Andhra Pradesh (b) U. P., Maharashtra, Tamil Nadu, Andhra Pradesh (c) Maharashtra, U. P., Andhra Pradesh, Tamil Nadu (d) U. P., Maharashtra, Andhra Pradesh, Tamil Nadu
Solution:
Correct Answer is Option (b)
The decreasing order of the sugarcane producing States in India is: Uttar Pradesh- 132427.6842, Maharashtra-69648.0768, Karnataka-35732, Tamil Nadu-33919.17, Andhra Pradesh- 15567 (2012-13 Data).
Question 31: Consider the following statements: [2000] 1. Maharashtra has the highest acreage under Jawar in India 2. Gujarat is the largest producer of groundnut in India. 3. Rajasthan has the largest area of cultivable wastelands in India 4. Andhra Pradesh has the highest per hectare yield of maize in India Which of these statements are correct? (a) 1 and 4 (b) 2 and 3 (c) 1 and 3 (d) 2 and 4
Solution:
Correct Answer is Option (c)
Maharashtra has the highest acreage under Jawar in India. Now, Gujarat is the largest producer of Groundnut in India with a share of more than 50%. Rajasthan has the largest area of cultivable wastelands in India of around 84,929 sq. km. Andhra Pradesh has the highest per hectare yield of maize in India followed by Tamil Nadu due to majority of the area being covered under Single Cross Hybrids (SCH.)
Question 32: The annual agricultural production of a product for the period 1991-92 to 1998-99 is shown in the figure given below. Which one of the following is the product in question?
(a) Pulses (b) Wheat (c) Oilseeds (d) Rice
Solution:
Correct Answer is Option (d)
In the given bar diagram the annual production of "Rice" for the period 1991-92 to 1998-99 is shown.
Question 33: Indian farmers are unhappy over the introduction of "Terminator Seed Technology" because the seeds produced by this technology are expected to: [1999] (a) show poor germination (b) from low-yielding plants despite the high quality (c) give rise to sexually sterile plants (d) give rise to plants incapable of forming viable seeds
Solution:
Correct Answer is Option (c)
The terminator gene is a specific genetic sequence inserted into a seed's DNA. Once activated by a synthetic chemical catalyst of the manufacturer's choosing, the sequence renders the seed and crop it produces sterile. This means that the farmer cannot retain seeds for future crops as is the practice in India. The farmer has to repurchase the seeds at a heavy cost.
Question 34: In India, rural incomes are generally lower than the urban incomes. Which of the following reasons account for this? [1996] 1. A large number of farmers are illiterate and know little about scientific agriculture 2. Prices of primary products are lower than of manufactured products 3. Investment in agriculture has been low when compared to investment in industry Select the correct answer by using the codes given below: (a) 1, 2 and 3 (b) 1 and 3 (c) 1 and 3 (d) 2 and 3
Solution:
Correct Answer is Option (d)
Prevailing illiteracy in rural areas does not lower productivity. The farmer has adequate knowledge of farming techniques. Low prices of primary products compared to the manufactured products and investment in the agriculture sector compared to the industry are major factors which accounts for low incomes in rural economy than in Urban economy.
Question 35: Match List-I with List-II and select the correct answer:
(a) A -5; B- 1; C -2; D- 3
(b) A -3; B- 1; C -4; D -2 (c) A -1; B-5; C - 4; D- 3 (d) A -3; B - 4; C-1; D -2
Solution:
Correct Answer is Option (b)
Iron ore is exported to Japan. Leather goods are exported to Russia. Tea is exported to U.K. Cotton fabric is exported to U.S.A.
Question 36: Regional disparities in India are high and have been rising in recent years because: 1. There is persistent investment over time only in select locates. 2. Some areas are agro-climatically less conducive to development. 3. Some areas continue to face little or no agrarian transformation and the consequent lack of social and economic opportunities. 4. Some areas have faced continuous political instability. Which of the above statements are correct? (a) 1, 2 and 3 (b) 1, 2 and 4 (c) 1, 3 and 4 (d) 2, 3 and 4
Solution:
Correct Answer is Option (a)
The most appropriate answer is (a). Investment, weather conditions and agricultural transformation are the best indicators of agricultural development. Political stability plays a very small role in agricultural development.
Question 37: Agricultural income tax is assigned to the State Government by: [1995] (a) Finance Commission (b) National Development Council (c) Inter-State Council (d) The Constitution of India
Solution:
Correct Answer is Option (d)
Art. 269 says taxes on income other than agricultural income shall be levied and collected by the Government of India and distributed between the Union and States. Entry 46 in the state list of Seventh Schedule. This gives power to the state governments to impose agricultural income tax.
Question 38: In which one of the following crops international trade is low in the context of total produce? [1995] (a) Rice (b) Coffee (c) Rubber (d) Wheat
Solution:
Correct Answer is Option (a)
Rice production is highest in India among cereals but its quality of rice cannot compete with other rice producing countries. Most of rice produced in India is meant for internal consumption. India is a major producer and exporter of Basmati rice.
FAQs on Agriculture in the National Economy - Solved Questions (1995-2024)
1. What is the role of agriculture in the national economy of India?
Ans.Agriculture plays a crucial role in the national economy of India by contributing significantly to the Gross Domestic Product (GDP), providing employment to a large portion of the population, and ensuring food security. It is a primary source of livelihood for about 58% of the rural population and supports various allied sectors like agro-based industries and services.
2. How does agriculture impact employment in India?
Ans.Agriculture is one of the largest employment sectors in India, engaging nearly half of the workforce. It provides direct employment to farmers and agricultural laborers while also creating indirect employment opportunities in related sectors such as transportation, processing, and retailing of agricultural products.
3. What are the major challenges faced by the agricultural sector in India?
Ans.The agricultural sector in India faces several challenges, including climate change, inadequate irrigation facilities, soil degradation, fluctuating market prices, and limited access to credit and technology. Additionally, issues like rural poverty and the lack of modern farming techniques hinder productivity and growth.
4. How do government policies influence agriculture in India?
Ans.Government policies significantly influence agriculture through subsidies, minimum support prices (MSP), agricultural research and development, and rural infrastructure development. These policies aim to enhance productivity, ensure fair prices for farmers, and promote sustainable agricultural practices.
5. What is the significance of sustainable agriculture in the national economy?
Ans.Sustainable agriculture is vital for the national economy as it focuses on maintaining the health of ecosystems, conserving resources, and ensuring long-term agricultural productivity. It helps in reducing environmental impacts, promoting biodiversity, and ensuring food security while supporting the livelihoods of farmers and rural communities.
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How many of the pairs given above are correctly matched?
How many of the above pairs are correctly matched? 
