UPSC Essentials : Daily subject-wise quiz : Economy (Week 10)

QUESTION 1

With reference to the oil seeds, consider the following statements:

1. Sunflower has witnessed the highest price rise and fall in the year 2022-23.

2. Ukraine and Russia together accounted for nearly half of the world’s production of  sunflower oilseeds in 2021-22.

Which of the above statement(s) is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

QUESTION 2

With reference to the System of Rice Intensification (SRI), consider the following statements:

1. It was first developed in the Caribbean islands.

2. It promises to save 15 to 20 per cent of groundwater.

3. The method’s drawback is substantial increase in the investments in external inputs.

How many of the above statements are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

QUESTION 3

“Dotted Lands” were recently in the news. It corresponds to:

(a) Land near the border with no clear boundary.

(b) Disputed land between two states.

(c) Land dedicated for military purposes.

(d) Land which does not have clear ownership.

QUESTION 4

With reference to the annual report of RBI 2022-33, consider the following statements:

1. The size of the Reserve Bank’s balance sheet increased by 2.5 per cent.

2. Majority of the assets constituted domestic assets.

3. The expenditure for the year 2022-23 has decreased.

4. The RBI has spent lower on the printing of currency notes as compared to the previous year.

How many of the above statements are correct?

(a) Only one

(b) Only two

(c) Only three

(d) All four

QUESTION 5

Consider the following statements about organic farming:

1. It improves and sustains soil fertility while minimising the use of off-farm resources.

2. It creates a balance between crop production and animal husbandry.

3. Maharashtra has the largest area under organic certification.

How many of the above statements are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

ANSWERS TO MCQs

1. (c)

FYI:

— The finance ministry has exempted imports of crude soya bean and sunflower oil from basic customs duty and agriculture infrastructure and development cess till June 30, subject to certain conditions.

— The duty exemption is applicable only for importers holding TRQ (Tariff Rate Quota) licence for 2022-23 fiscal. Under TRQ, a certain volume of imports is allowed at relatively low tariffs. A higher tariff applies to additional imports. TRQ is allotted to importers by the Directorate General of Foreign Trade (DGFT).

— The UN Food and Agriculture Organization’s global vegetable oils price index (2014-16 base period value = 100) plunged to a low of 77.8 points in May 2020 at the height of the worldwide Covid lockdowns.

— It soared to an all-time high of 251.8 in March 2022 after Russia’s invasion of Ukraine, but by April 2023, it was down to a 29-month-low of 130 points.

— Sunflower oil among the vegetable oils has witnessed the highest price rise and fall in just the last year. Hence, statement 1 is correct.

— Ukraine and Russia together accounted for nearly 58% of the world’s production of sunflower oilseeds in 2021-22. Hence, statement 2 is correct.

Therefore, option (c) is the correct answer.

2. (a)

FYI:

— The Punjab government is promoting the Direct Seeding of Rice (DSR) technique of paddy, which saves water and labour costs against the conventional puddling method.

— The System of Rice Intensification (SRI) was first developed in Madagascar in the 1980s and since then several countries in the world have been practicing it, including India. Hence, statement 1 is not correct.

— It promises to save 15 to 20 per cent of groundwater. Hence, statement 2 is correct.

— It improves rice productivity and it gives equal or more produce than conventional rice cultivation, with less water, less seed and fewer chemicals.

— The net effect is a substantial reduction in the investments in external inputs. This method is beneficial for the soil, environment and farmers. Hence, statement 3 is not correct.

Therefore, option (a) is the correct answer.

3. (d)

FYI:

— The Andhra Pradesh government has started removing “dotted lands” in the state from the prohibited list, restoring full rights of selling or pledging these lands to the farmers who own them.

— Dotted lands are disputed lands for which there are no clear ownership documents. Typically, one or more individuals as well as the government’s Revenue Department lay claim over the land.

— These lands came to be known as “dotted lands’’ because when, during the British era, land ownership surveys and resettlement of land records were taken up, local revenue officials who were tasked with identifying government-owned and privately-owned lands put dots in the ownership column if more than one person claimed ownership, or if ownership could not be clearly established.

— These lands were also noted as disputed lands in the resettlement register or land records register. The dots on the land documents indicated their disputed status.

Therefore, option (d) is the correct answer.

4. (b)

FYI:

— According to the annual report of RBI, the size of the Reserve Bank’s balance sheet increased by 2.5 per cent for the year 2022-23. Hence, statement 1 is correct.

— The balance sheet of the RBI plays a critical role in the functioning of the country’s economy, largely reflecting the activities carried out in pursuance of its currency issue function as well as monetary policy and reserve management objectives.

— The income for the year increased by 47.06 per cent and the expenditure increased by 14.05 per cent. Hence, statement 3 is not correct.

— The RBI transfers the surplus as a dividend to the central government. The increase on the asset side was due to a rise in foreign investments, gold, loans and advances.

— The domestic assets constituted 27.69 per cent while the foreign currency assets and gold (including gold deposits and gold held in India) constituted 72.31 per cent of total assets. Hence, statement 2 is not correct.

— A provision of about Rs 1.31 lakh crore was made and transferred to Contingency Fund (CF). No provision was made towards Asset Development Fund (ADF).

— The central bank spent Rs 4,682.80 crore on the printing of currency notes during 2022-23, marginally lower than Rs 4,984.80 crore in the preceding year. Hence, statement 4 is correct.

Therefore, option (b) is the correct answer.

5. (b)

FYI:

— The Tamil Nadu government has unveiled an organic farming policy aimed at conserving soil health, agroecology and biodiversity.

— The policy will work towards chemical-free organic agriculture in the state, thereby providing safe food for the people.

— India occupies fifth place with a total area of 2.66 million hectares. Madhya Pradesh has the largest area under organic certification followed by Maharashtra, Rajasthan, Gujarat and Karnataka. Hence, statement 3 is not correct.

— Nutritional crops like millet, pulses and vegetables will be encouraged to ensure nutritional security. 

Advantages of Organic Farming

— It improves and sustains soil fertility while minimising the use of off-farm resources. Hence, statement 1 is correct.

— It creates a harmonious balance between crop production and animal husbandry and facilitates the alignment of life with natural ecosystems and cycles. Hence, statement 2 is correct.

— It also supports self-reliance and sustainability in farming.

— The World Health Organisation (WHO is promoting ‘One Health’ which necessitates organic farming to improve soil health.

— Organic farming would encourage mixed farming as the components are interdependent.

Therefore, option (b) is the correct answer.

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