Economy — Prelims MCQs

In the context of which of the following do you sometimes find the terms ‘amber box, blue box and green box’ in the news?

Why does the Government of India promote the use of “Neem-coated Urea” in agriculture?

Why does the Government of India promote the use of ‘Neem-coated Urea’ in agriculture?

Consider the following statements:

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 at a level to which the market price will never rise.

Which of the statements given above is/are correct?

The Fair and Remunerative Price (FRP) of sugarcane is approved by the:

In India, markets in agricultural products are regulated under the:

Consider the following:

1. Areca nut
2. Barley
3. Coffee
4. Finger millet
5. Groundnut
6. Sesamum
7. Turmeric

The Cabinet Committee on Economic Affairs has announced the Minimum Support Price for which of the above?

With reference to pulse production in India, consider the following statements:

1. Black gram can be cultivated as both kharif and rabi crop.
2. Green gram alone accounts for nearly half of pulse production.
3. In the last three decades, while production of kharif pulses has increased, production of rabi pulses has decreased.

Which of the statements given above is/are correct?

Which of the following factors/policies were affecting the price of rice in India in the recent past?

1. Minimum Support Price
2. Government's trading
3. Government's stockpiling
4. Consumer subsidies

Select the correct answer using the code given below:

Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?

1. Working capital for maintenance of farm assets
2. Purchase of combine harvesters, tractors and mini trucks
3. Consumption requirements of farm households
4. Post-harvest expenses
5. Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below:

The Accelerated Irrigation Benefits Programme was launched during 1996-97 to provide:

1. Loan assistance to poor farmers.
2. Development of water-use efficiency.

Which of the statements given above is/are correct?

With reference to the supply of a good by its producers, which one of the following statements is correct?

With reference to the theory of production, consider the following statements:

1. Total product is the total quantity of output that a producer obtains from a given quantity of inputs over a given period of time.
2. Average product is obtained by dividing the total product by the number of units of the variable input that are employed.
3. Marginal product is the addition made to total product when one more unit of the variable input is employed, the other inputs remaining unchanged.
4. As more and more units of a variable input are applied to a fixed input, the marginal product of the variable input eventually begins to fall.

How many of the statements given above are correct?

With reference to infrastructure in an economy, consider the following statements:

1. Infrastructure is commonly divided into economic infrastructure, which directly supports production and distribution, and social infrastructure, which supports the development of people.
2. Energy, transport, communication and banking are usually treated as parts of economic infrastructure.
3. Schools, hospitals and sanitation facilities are usually treated as parts of social infrastructure.
4. Social infrastructure only improves the quality of life and has no bearing on the productivity of workers, since it lies outside the process of production.

How many of the statements given above are correct?

Consider the following pairs of terms used in the study of a firm and what each of them means:

1. Total revenue — the amount a firm receives from selling its output, obtained by multiplying the price by the quantity sold.
2. Average revenue — the revenue a firm earns per unit of output sold, obtained by dividing total revenue by the quantity sold.
3. Marginal revenue — the total revenue that a firm earns at the level of output where its profit is the highest.
4. Profit — the difference between the total revenue a firm earns and the total cost it incurs.

Which of the pairs given above are correctly matched?

With reference to a consumer who spends her income on two goods, consider the following statements:

1. The budget set is the collection of all bundles of the two goods that the consumer can buy with her income at the prevailing prices.
2. The budget line consists of those bundles which cost the consumer exactly the whole of her income.
3. If the consumer's income rises while the prices of both goods remain unchanged, the budget line becomes steeper.
4. The slope of the budget line depends only on the consumer's income and not on the prices of the two goods.

How many of the statements given above are correct?