UPSC Static Quiz – Economy : 5 December 2024

UPSC Static Quiz – Economy : 5 December 2024 We will post 5 questions daily on static topics mentioned in the UPSC civil services preliminary examination syllabus. Each week will focus on a specific topic from the syllabus, such as History of India and Indian National Movement, Indian and World Geography, and more.We are excited to bring you our daily UPSC Static Quiz, designed to help you prepare for the UPSC Civil Services Preliminary Examination. Each day, we will post 5 questions on static topics mentioned in the UPSC syllabus. This week, we are focusing on Indian and World Geography.

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• Question 1 of 5 1. Question In India, which of the following agencies are involved in food grain management? Civil supply departments of states Central Warehouse Corporation Food Corporation of India (FCI) Railways Warehouse Development Regulatory Authority How many of the above options are correct? a) Only two b) Only three c) Only four d) All five Correct Solution: d) In India, food grain management involves the coordinated efforts of various agencies to ensure effective procurement, storage, transportation, and distribution of grains: Civil Supply Departments of States: These departments oversee the distribution of grains through the Public Distribution System (PDS), ensuring that food reaches beneficiaries at subsidized rates. Central Warehouse Corporation (CWC): The CWC provides scientific storage facilities for food grains and other commodities, ensuring their quality and safety. Food Corporation of India (FCI): The FCI is the primary agency responsible for procurement, storage, and distribution of food grains across the country. It manages the buffer stocks and ensures food security. Railways: The Indian Railways plays a critical role in transporting food grains from procurement centers to storage facilities and distribution points across states. Warehouse Development Regulatory Authority (WDRA): The WDRA ensures standardization and regulation of warehouses, facilitating scientific storage and minimizing post-harvest losses. Incorrect Solution: d) In India, food grain management involves the coordinated efforts of various agencies to ensure effective procurement, storage, transportation, and distribution of grains: Civil Supply Departments of States: These departments oversee the distribution of grains through the Public Distribution System (PDS), ensuring that food reaches beneficiaries at subsidized rates. Central Warehouse Corporation (CWC): The CWC provides scientific storage facilities for food grains and other commodities, ensuring their quality and safety. Food Corporation of India (FCI): The FCI is the primary agency responsible for procurement, storage, and distribution of food grains across the country. It manages the buffer stocks and ensures food security. Railways: The Indian Railways plays a critical role in transporting food grains from procurement centers to storage facilities and distribution points across states. Warehouse Development Regulatory Authority (WDRA): The WDRA ensures standardization and regulation of warehouses, facilitating scientific storage and minimizing post-harvest losses.

#### 1. Question

In India, which of the following agencies are involved in food grain management?

• Civil supply departments of states

• Central Warehouse Corporation

• Food Corporation of India (FCI)

• Warehouse Development Regulatory Authority

How many of the above options are correct?

• a) Only two

• b) Only three

• c) Only four

• d) All five

Solution: d)

In India, food grain management involves the coordinated efforts of various agencies to ensure effective procurement, storage, transportation, and distribution of grains:

• Civil Supply Departments of States: These departments oversee the distribution of grains through the Public Distribution System (PDS), ensuring that food reaches beneficiaries at subsidized rates.

• Central Warehouse Corporation (CWC): The CWC provides scientific storage facilities for food grains and other commodities, ensuring their quality and safety.

• Food Corporation of India (FCI): The FCI is the primary agency responsible for procurement, storage, and distribution of food grains across the country. It manages the buffer stocks and ensures food security.

• Railways: The Indian Railways plays a critical role in transporting food grains from procurement centers to storage facilities and distribution points across states.

• Warehouse Development Regulatory Authority (WDRA): The WDRA ensures standardization and regulation of warehouses, facilitating scientific storage and minimizing post-harvest losses.

Solution: d)

In India, food grain management involves the coordinated efforts of various agencies to ensure effective procurement, storage, transportation, and distribution of grains:

• Central Warehouse Corporation (CWC): The CWC provides scientific storage facilities for food grains and other commodities, ensuring their quality and safety.

• Railways: The Indian Railways plays a critical role in transporting food grains from procurement centers to storage facilities and distribution points across states.

• Warehouse Development Regulatory Authority (WDRA): The WDRA ensures standardization and regulation of warehouses, facilitating scientific storage and minimizing post-harvest losses.

• Question 2 of 5 2. Question Which of the following schemes are implemented by the Ministry of Agriculture and Farmers Welfare? Agriculture Infrastructure Fund (AIF). Mission for Integrated Development of Horticulture (MIDH). Pradhan Mantri Kisan Sampada Yojana (PMKSY). National Food Security Act. How many of the above options are correct? a) Only one b) Only two c) Only three d) All four Correct Solution: b) Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), Mission for Integrated Development of Horticulture (MIDH), and Sub Mission on Agricultural Mechanisation (SMAM) under the Ministry of Agriculture and Farmers Welfare. Schemes of the Ministry of Food Processing Industries: Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME), and Pradhan Mantri Kisan Sampada Yojana (PMKSY). Schemes of the Ministry of Consumer Affairs, Food and Public Distribution: allocation of food grains under the National Food Security Act, and Procurement operations at Minimum Support Price. Incorrect Solution: b) Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), Mission for Integrated Development of Horticulture (MIDH), and Sub Mission on Agricultural Mechanisation (SMAM) under the Ministry of Agriculture and Farmers Welfare. Schemes of the Ministry of Food Processing Industries: Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME), and Pradhan Mantri Kisan Sampada Yojana (PMKSY). Schemes of the Ministry of Consumer Affairs, Food and Public Distribution: allocation of food grains under the National Food Security Act, and Procurement operations at Minimum Support Price.

#### 2. Question

Which of the following schemes are implemented by the Ministry of Agriculture and Farmers Welfare?

• Agriculture Infrastructure Fund (AIF).

• Mission for Integrated Development of Horticulture (MIDH).

• Pradhan Mantri Kisan Sampada Yojana (PMKSY).

• National Food Security Act.

How many of the above options are correct?

• a) Only one

• b) Only two

• c) Only three

• d) All four

Solution: b)

Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), Mission for Integrated Development of Horticulture (MIDH), and Sub Mission on Agricultural Mechanisation (SMAM) under the Ministry of Agriculture and Farmers Welfare.

Schemes of the Ministry of Food Processing Industries: Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME), and Pradhan Mantri Kisan Sampada Yojana (PMKSY).

Schemes of the Ministry of Consumer Affairs, Food and Public Distribution: allocation of food grains under the National Food Security Act, and Procurement operations at Minimum Support Price.

Solution: b)

Schemes of the Ministry of Food Processing Industries: Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME), and Pradhan Mantri Kisan Sampada Yojana (PMKSY).

Schemes of the Ministry of Consumer Affairs, Food and Public Distribution: allocation of food grains under the National Food Security Act, and Procurement operations at Minimum Support Price.

• Question 3 of 5 3. Question Consider the following statements. Central Issue Price (CIP) is the price at which government makes certain food grains available to the states. The states fix retail price to be charged at the Fair Price Shops. Food Corporation of India (FCI) decides the issue prices of food grains. How many of the above statements is/are incorrect? a) Only one b) Only two c) All three d) None Correct Solution: a) Statement 3 is incorrect. Statement 1 is Correct. The Central Issue Price (CIP) is the price at which the central government provides food grains to state governments for distribution under schemes like the Public Distribution System (PDS). Statement 2 is Correct. After receiving food grains at the Central Issue Price, state governments determine the retail price to be charged at Fair Price Shops (FPS), though it typically remains close to or equal to the CIP. Statement 3 is Incorrect. The Food Corporation of India (FCI) is responsible for procuring, storing, and distributing food grains but does not decide issue prices. The Commission for Agricultural Costs and Prices (CACP) recommends these prices to the Cabinet Committee on Economic Affairs (CCEA), which has the authority to finalize them. Incorrect Solution: a) Statement 3 is incorrect. Statement 1 is Correct. The Central Issue Price (CIP) is the price at which the central government provides food grains to state governments for distribution under schemes like the Public Distribution System (PDS). Statement 2 is Correct. After receiving food grains at the Central Issue Price, state governments determine the retail price to be charged at Fair Price Shops (FPS), though it typically remains close to or equal to the CIP. Statement 3 is Incorrect. The Food Corporation of India (FCI) is responsible for procuring, storing, and distributing food grains but does not decide issue prices. The Commission for Agricultural Costs and Prices (CACP) recommends these prices to the Cabinet Committee on Economic Affairs (CCEA), which has the authority to finalize them.

#### 3. Question

Consider the following statements.

• Central Issue Price (CIP) is the price at which government makes certain food grains available to the states.

• The states fix retail price to be charged at the Fair Price Shops.

• Food Corporation of India (FCI) decides the issue prices of food grains.

How many of the above statements is/are incorrect?

• a) Only one

• b) Only two

• c) All three

Solution: a)

Statement 3 is incorrect.

Statement 1 is Correct. The Central Issue Price (CIP) is the price at which the central government provides food grains to state governments for distribution under schemes like the Public Distribution System (PDS).

Statement 2 is Correct. After receiving food grains at the Central Issue Price, state governments determine the retail price to be charged at Fair Price Shops (FPS), though it typically remains close to or equal to the CIP.

Statement 3 is Incorrect. The Food Corporation of India (FCI) is responsible for procuring, storing, and distributing food grains but does not decide issue prices. The Commission for Agricultural Costs and Prices (CACP) recommends these prices to the Cabinet Committee on Economic Affairs (CCEA), which has the authority to finalize them.

Solution: a)

Statement 3 is incorrect.

• Question 4 of 5 4. Question Consider the following statements regarding Terms of trade (ToT) for Indian agriculture. Terms of trade (ToT) for Indian agriculture is the movement in prices of farm commodities relative to that of non-farm goods and services. ToT can be calculated using implicit price deflators, which is the ratio of GVA at current prices to the GVA at constant prices. Terms of trade (ToT) for Indian agriculture has significantly reduced in the last decade. How many of the above statements is/are correct? a) Only one b) Only two c) All three d) None Correct Solution: b) Statement 3 is incorrect. Terms of trade (ToT) for Indian agriculture — movement in prices of farm commodities relative to that of non-farm goods and services — have recorded significant improvement in the last decade and a half, going by data derived from national income statistics. ToT can be calculated using so-called implicit price deflators. The deflator is the ratio of GVA at current prices to the GVA at constant prices, thereby also a measure of inflation relative to the base year. The implicit price deflator can be worked out for the economy’s individual sectors — agriculture and allied activities, industry and services — as well. The deflator for agriculture GVA divided by that for non-agriculture GVA, then, gives the ToT for the farm sector in a given year. Incorrect Solution: b) Statement 3 is incorrect. Terms of trade (ToT) for Indian agriculture — movement in prices of farm commodities relative to that of non-farm goods and services — have recorded significant improvement in the last decade and a half, going by data derived from national income statistics. ToT can be calculated using so-called implicit price deflators. The deflator is the ratio of GVA at current prices to the GVA at constant prices, thereby also a measure of inflation relative to the base year. The implicit price deflator can be worked out for the economy’s individual sectors — agriculture and allied activities, industry and services — as well. The deflator for agriculture GVA divided by that for non-agriculture GVA, then, gives the ToT for the farm sector in a given year.

#### 4. Question

Consider the following statements regarding Terms of trade (ToT) for Indian agriculture.

• Terms of trade (ToT) for Indian agriculture is the movement in prices of farm commodities relative to that of non-farm goods and services.

• ToT can be calculated using implicit price deflators, which is the ratio of GVA at current prices to the GVA at constant prices.

• Terms of trade (ToT) for Indian agriculture has significantly reduced in the last decade.

How many of the above statements is/are correct?

• a) Only one

• b) Only two

• c) All three

Solution: b)

Statement 3 is incorrect.

Terms of trade (ToT) for Indian agriculture — movement in prices of farm commodities relative to that of non-farm goods and services — have recorded significant improvement in the last decade and a half, going by data derived from national income statistics.

ToT can be calculated using so-called implicit price deflators.

The deflator is the ratio of GVA at current prices to the GVA at constant prices, thereby also a measure of inflation relative to the base year. The implicit price deflator can be worked out for the economy’s individual sectors — agriculture and allied activities, industry and services — as well. The deflator for agriculture GVA divided by that for non-agriculture GVA, then, gives the ToT for the farm sector in a given year.

Solution: b)

Statement 3 is incorrect.

ToT can be calculated using so-called implicit price deflators.

• Question 5 of 5 5. Question Consider the following statements regarding Food Corporation of India (FCI). It is a statutory body under the Ministry of Agriculture & Farmers Welfare. It maintains a satisfactory level of operational and buffer stocks of food grains to ensure National Food Security. It regulates market price to provide food grains to consumers at a reliable price. All food grain procurement operations in India are undertaken by the Food Corporation of India (FCI). How many of the above options are correct? a) Only one b) Only two c) Only three d) All four Correct Solution: b) Statement 2 and 3 are correct. The Food Corporation of India is an organization created and run by the Government of India. It is a statutory body under the Ministry of Consumer Affairs, Food and Public Distribution, Government of India. Objectives: Effective price support operations for safeguarding the interests of the poor farmers Distribution of food grains throughout the country for Public Distribution System (PDS) Maintaining a satisfactory level of operational and buffer stocks of food grains to ensure National Food Security Regulate market price to provide food grains to consumers at a reliable price. It has primary duty to undertake purchase, store, and move/transport, distribute and sell food grains and other foodstuffs. The procurement system decentralization was started in 1997 where states play a very important role in the supply chain. Not all procurements are done by FCI. State cooperative agencies and other state-level distribution agencies also play a crucial role. Incorrect Solution: b) Statement 2 and 3 are correct. The Food Corporation of India is an organization created and run by the Government of India. It is a statutory body under the Ministry of Consumer Affairs, Food and Public Distribution, Government of India. Objectives: Effective price support operations for safeguarding the interests of the poor farmers Distribution of food grains throughout the country for Public Distribution System (PDS) Maintaining a satisfactory level of operational and buffer stocks of food grains to ensure National Food Security Regulate market price to provide food grains to consumers at a reliable price. It has primary duty to undertake purchase, store, and move/transport, distribute and sell food grains and other foodstuffs. The procurement system decentralization was started in 1997 where states play a very important role in the supply chain. Not all procurements are done by FCI. State cooperative agencies and other state-level distribution agencies also play a crucial role.

#### 5. Question

Consider the following statements regarding Food Corporation of India (FCI).

• It is a statutory body under the Ministry of Agriculture & Farmers Welfare.

• It maintains a satisfactory level of operational and buffer stocks of food grains to ensure National Food Security.

• It regulates market price to provide food grains to consumers at a reliable price.

• All food grain procurement operations in India are undertaken by the Food Corporation of India (FCI).

How many of the above options are correct?

• a) Only one

• b) Only two

• c) Only three

• d) All four

Solution: b)

Statement 2 and 3 are correct.

The Food Corporation of India is an organization created and run by the Government of India. It is a statutory body under the Ministry of Consumer Affairs, Food and Public Distribution, Government of India.

Objectives:

• Effective price support operations for safeguarding the interests of the poor farmers

• Distribution of food grains throughout the country for Public Distribution System (PDS)

• Maintaining a satisfactory level of operational and buffer stocks of food grains to ensure National Food Security

• Regulate market price to provide food grains to consumers at a reliable price.

• It has primary duty to undertake purchase, store, and move/transport, distribute and sell food grains and other foodstuffs.

The procurement system decentralization was started in 1997 where states play a very important role in the supply chain. Not all procurements are done by FCI. State cooperative agencies and other state-level distribution agencies also play a crucial role.

Solution: b)

Statement 2 and 3 are correct.

Objectives:

• Effective price support operations for safeguarding the interests of the poor farmers

• Distribution of food grains throughout the country for Public Distribution System (PDS)

• Maintaining a satisfactory level of operational and buffer stocks of food grains to ensure National Food Security

• Regulate market price to provide food grains to consumers at a reliable price.

• It has primary duty to undertake purchase, store, and move/transport, distribute and sell food grains and other foodstuffs.

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