User talk:Gaurav4291/ECO Survey2016

Chap -2 : The Chakravyuha Challenge: Ease to enter, barriers to exit
“over the course of six decades, the Indian economy has moved from ‘socialism with limited entry to “marketism” without exit’ Problem : India has made strides in opening market for entry of new talent, firms but had made little efforts for their exit. [issue of NPA’s with banks] Impeded exits have substantial economic, fiscal and political costs: Solution:
 * Fiscal Costs: Inefficient firms often require government support in the form of explicit subsidies (for example bailouts) or implicit subsidies (tariffs, loans from state banks).
 * Economic Costs: allocation of scarce resources and un-productive use of these resources
 * Political costs: Government support to “sick” firms can give the impression that government favors large corporates, which politically limits its ability to undertake measures that will benefit the economy but might be seen as further benefitting businesses.
 * First : increasing competition among private players rather than converting private firms into public
 * Second : Policy action – insolvency and bankruptcy code
 * Third : use of technology to remove intermediaries
 * Fourth : transparency and highlighting social costs and benefits of various schemes
 * Fifth – showing that exit is not the end is a new start for a better tomorrow

Chap-3: JAM
JAM – Jan Dhan, Aadhaar, and Mobile Economic Survey divides JAM into three components-
 * DBT transfer in LPG (PAHAL) has reduced leakages by 24%
 * JAM Components:
 * 1) Identification or First-Mile:  Identification of beneficiaries by government
 * 2) Transfer or Middle-Mile: Transfer of fund to benefic* ries by government
 * 3) Access or Last-Mile: Access of fund by beneficiaries


 * Indentification : issues of duplicate records, ghost beneficiaries, can be solved with aadhaar
 * Transfer : with jan dhan(accounts for everyone) – govt. can directly reach citizens
 * Access : issues of low bank penetration – Payments bank

Where JAM can be applied?
 * Where leakages are high and where central govt. control is high
 * Introduction of JAM – will lead to large savings and will reduce govt. interference in administrative matters

Few states lack in JAM preparedness, thus for short term BAPU model can be used in these regions.
 * BAPU – Biometrically authenticated physical uptake
 * In this a beneficiary can authenticate himself as a beneficiary through fingerprint scanning at a POS and take the subsidized good (kerosene, etc.)
 * In DBT, direct cash transfer is given to beneficiary, so that he/she can buy goods. In BAPU, biometric identification is done to identify and good is given at subsidized rate. Thus useful in areas with low bank penetration

CHAP-4: Agriculture – more from less

 * Agriculture growth in India is declining – two consecutive droughts
 * Agriculture needs transformation to secure livelihood for farmers and ensure food security for population
 * Solution : efficient farming, better irrigation practices,
 * Irrigation : more crop per drop, micro-irrigation
 * Water recycling methods
 * Mechanization of farm
 * Research in drought resistant seeds, GM crops
 * DBT in fertilizers, nutrient based subsidy scheme
 * Soil testing, proper maintenance of soil health
 * Credit to farmers, fasal bima yojana

CHAP-5: Mother and Child

 * Investments in health of mother and child will give greater returns
 * Healthy mother will give birth to healthy child and a healthy child will develop a healthy mind and will lead a productive life
 * Cash entitlement during pregnancy to provide nutrition – it should be paired with awareness of increasing nutrition during pregnancy
 * Open defecation – source of early childhood diseases – swach bharat
 * Breast feeding – Janani suraksha yojana, ICDS, etc

Chap-6: Bounty for well-off

 * Better off are taking major proportion of subsidies – on account of only 6 commodities – Gold, Kerosene, LPG, ATF, Railway fares, Electricity and small savings scheme

Warmest year

 * 2015 – already increased by 1 deg C over pre industrial era

Emissions

 * India’s – per capita emissions is way low than USA, EU and China
 * Major emission is from energy sector and then from manufacturing then transport

India’s INDC

 * Wind energy 60 GW and Solar -100 GW by 2022

Paris agreement

 * Hold temperature rise below 2 deg C and drive efforts to hold it below 1.5 deg C
 * Features:
 * 1. Common but differentiated responsibilities (CBDR)
 * 2. Member nations has to submit NDC’s every 5 years to UNFCCC
 * 3. Mandates developed nation to support developing nations – in the area of technology and finance

Green Climate fund

 * Is a fund under UNFCCC to support developing nations in adaptation and mitigation efforts in fighting global warming
 * HQ – South Korea

Global environment facility

 * Provides fund to fight climate change
 * HQ – Washington
 * a global fund

Powering one India set 1
1. Consider the following statements regarding the Ujwal DISCOM Assurance Yojana (UDAY): I. The motive of UDAY is to improve the health and performance of the distribution companies. II. The motive of UDAY is to improve the health and performance of the Public Sector Banks of the country. III. One of the salient features of the scheme is to increase supply of domestic coal to substitute for imported coal. Which of the following statement(s) is/are correct? a. Only I b. I and II c. I and III d. All of the above Answer: c

Explanation: The motive of UDAY is to improve the health and performance of the power distribution companies. The salient features of the schemes are: • States shall take over 75 per cent of discom debt outstanding as of September 2015. • Reduction of Aggregate Technical & Commercial (AT&C) losses to 15 per cent by 2018-19. • Reduction in difference between average cost of supply and average revenue realized (ARR) by  2018-19. • Increased supply of domestic coal to substitute for imported coal. • States shall take over future losses of discoms in a phased manner. • Banks/FIs not to advance short term debt to discoms for financing losses.

2. Consider the following statements regarding the salient features of the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY): I. Electrification of all villages. II. Metering of unmetered connections for reducing losses. III. Separation of feeders to ensure sufficient electricity to agriculture and continuous supply to other categories. Which of the following statement(s) is/are correct? a. Only I b. I and II c. II and III d. All of the above Answer: d

Explanation: Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) was launched by Prime Minister Narendra Modi in Patna, Bihar. The aim of this flagship scheme is to provide 24×7 uninterrupted electricity supply to each rural household across the country by 2022. DDUGJY has replaced Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), which was launched by previous UPA government led by then PM Manmohan Singh.

3. Consider the following statements regarding the salient features of the Integrated Power Development Scheme (IPDS): I. Strengthening of sub-transmission and distribution network in urban areas. II. Metering of distribution transformers/feeders/consumers in rural areas. III. IT enablement of distribution sector and strengthening of distribution network. Which of the following statement(s) is/are correct? a. Only I b. I and II c. I and III d. All of the above Answer: c

Explanation: Integrated Power Development Scheme (IPDS) was launched by Prime Minister Narendra Modi. Integrated Power Development Scheme has replaced the UPA’s Restructured Accelerated Power Development Programme. The major focus of the scheme is to improve the transmission and distribution network in urban areas of the country. It also promises help in reduction of AT&C losses, establishment of IT enabled energy accounting or auditing system, improvement in billed energy based on metered consumption and improvement in collection efficiency.

4. Which of the following statements is incorrect regarding the National Tariff Policy, 2016? a. The Central Government of India has amended the National Tariff Policy for Electricity on 20 January, 2016. b. The amended National Tariff Policy (NTP) 2016 focused on renewable energy and sourcing of power through competitive bidding. c. The amendments also aimed at achieving the objectives of UDAY scheme. d. The amendments also aimed at achieving the objectives of Digital India scheme. Answer: d

Explanation: The Central Government of India has amended the National Tariff Policy for Electricity on 20 January, 2016. The amended National Tariff Policy (NTP) 2016 focussed on renewable energy and sourcing of power through competitive bidding. The amendments also aimed at achieving the objectives of UDAY scheme. Power tariff policy, governed under the Electricity Act, guides in setting power rates, signing of power purchase agreements, sale and purchase of coal and power (both conventional and renewable energy).

5. Which of the following statements is correct regarding the Domestic Efficient Lighting Program (DELP)? a. The programme aims in strengthening of sub-transmission and distribution network in urban areas. b. The programme has been launched to replace the regular bulbs and CFL lights with LED lights. c. The aim of the programme is to increase supply of domestic coal to substitute for imported coal. d. The programme has been launched to metering of unmetered connections for reducing losses. Answer: b

Explanation: Domestic Efficient Lighting Program (DELP) has been launched in several states like in Maharashtra, Rajasthan,  Himachal   Pradesh, Uttar Pradesh, Delhi to replace the regular bulbs and CFL lights with LED lights. The programme is being implemented by Discoms   in association with Energy Efficiency Services Limited (EESL). LED lights will be provided at lower than market price under this scheme.

6. Consider the following statements regarding the key role of discoms in the power sector in India: I. Discoms are acting as an interface between retail consumers and rest of the value chain. II. Discoms act as intermediaries between generators and retail consumers, purchasing electricity from  wholesale markets and marketing  it to retail consumers. III. Discoms recover returns on their equity investments (ROI) by charging a mark-up over their cost of supply. Which of the following statement(s) is/are correct?

a. Only I b. I and II c. I and III d. All of the above Answer: d

Explanation: Discoms have a key role in the power sector, acting as an interface between retail consumers and rest of the value chain. These companies act as intermediaries between generators and retail consumers, purchasing electricity from  wholesale markets and  marketing it to retail consumers. As with any other market intermediary, they recover returns on their equity investments (ROI) by charging a mark-up over their cost of supply. Given that these discoms are central to connecting both sides of the electricity market, their debt overhang has traditionally been a bottleneck for the sector.

7. Under which of the following policy/act the Open Access (OA) Policy was introduced? a. Electricity Act 2003 b. Electricity Act 2006 c. National Tariff Policy, 2006 d. National Tariff Policy, 2016 Answer: a

Explanation: The Open Access (OA) policy introduced under Electricity Act 2003, allows consumers with electricity load above 1 MW to procure electricity directly from electricity markets.

8. Consider the following statements regarding the Open Access (OA) Policy in India: I. At its core, OA provides an aggregation of the country-wide supply and demand on the same platform. II. In 2008, power exchanges were set up to operationalise OA and create a national electricity market where price discovery occurs through competitive bidding. III. OA allows consumers with electricity load above 1 MW to procure electricity directly from electricity markets. Which of the following statement(s) is/are correct? a. Only I b. I and II c. I and III d. All of the above Answer: d

Explanation: The Open Access (OA) policy introduced under Electricity Act 2003, allows consumers with electricity load above 1 MW to procure electricity directly from electricity markets. At its core, OA provides an aggregation of the country-wide supply and demand on the same platform. In 2008, power exchanges were set up to operationalize OA and create a national electricity market where price discovery occurs through competitive bidding. OA policy allows consumers with electricity load above 1 MW to procure electricity directly from electricity markets.

Powering one India set 2
Q.1. UDAY scheme a) 24 X 7 electricity to rural BPL house hold b) improve health and performance of distribution companies c) Electricity to rural BPL farmers d) Electrification of all villages Answer: b

Explanation: Ujwal DISCOM Assurance Yojana (UDAY)─to improve the health and performance of the distribution companies. Central and State governments have come together to address problems related to the health of distribution companies, and the debt overhang problem via the  Ujwal DISCOM Assurance Yojana (UDAY).

Q.2. Which of the following is/are true about UDAY scheme? 1. Financial losses of DISCOMS not to be addressed by banks through short term debt 2. Substitution of imported coal by domestic coal 3. Reduction of Aggregate Technical & Commercial (AT&C) losses Select the correct answer from the following codes a.   Only 1 b.   Only 1 and 2 c.   Only 2 and 3 d.   1,2 and 3 Answer: d

Explanation: Ujwal DISCOM Assurance Yojana (UDAY) 1. States shall take over 75 per cent of discom debt outstanding as of September 2015. 2. Reduction of Aggregate Technical & Commercial (AT&C) losses to 15 per cent by 2018-19. 3. Reduction in difference between average cost of supply and average revenue realized (ARR) by 2018-19. 4. Increased supply of domestic coal to substitute for imported coal. 5. States shall take over future losses of discoms in a phased manner. 6. Banks/FIs not to advance short term debt to discoms for financing losses.

Q.3. Consider the following statements 1. IPDS strengthen distribution network in urban areas while DDUGJY does the same in rural areas. 2. Domestic Efficient Lighting Program (DELP) focuses to substitute LED bulbs in place of incandescent bulbs.

Select the correct answer from the following codes a. Only 1 b. Only 2 c. Both 1 and 2 d. Neither 1 nor 2 Answer: c

Explanation : Integrated Power Development Scheme (IPDS) - Strengthening of sub-transmission and distribution network in urban areas. Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) - Electrification of all villages. Domestic Efficient Lighting Program (DELP) - LED bulbs to replace household and street light incandescent bulbs.

Q.4. Which of the following is/are challenges hampering power sector? 1. Complexity of tariff schedules 2. Below average tariff costs of electricity supply 3. High industrial tariffs

Select the correct answer from the following codes a.   Only 1 b.   Only 1 and 2 c.   Only 2 and 3 d.   1,2 and 3 Answer: d

Explanation: challenges hampering power sector are 1. Complexity of tariff schedules prevents economic factors from responding sufficiently to price signals. 2. Average tariffs in some cases are set below the average cost of supplying electricity. 3. High industrial tariffs and variable quality of electricity adversely affects ‘Make in India’. 4. Price and non-price barriers come in the way of single-nationwide electricity prices through open access. 5. Determination of progressive tariff schedules for domestic consumers.

Q.5. With reference to power policies in India, Which of the following is/are not true? a. electricity tariffs are unusually low for Indian industry b. Wide variation in industrial tariff within India c. Nearly 50% of firms use diesel generators rather than depending on power supply. d. Trend of generating electricity from captive power plants is increasing Answer: a

Explanation: Electricity tariffs are unusually high for Indian industry, especially when quality is taken into account. Electricity generation from captive power plants and electricity procured from the utilities could be exacerbated in the coming years, as the decline in oil prices and the cost of renewable energy alternatives may prompt a further shift to captive power. To protect against uneven power supply, about 47 percent of firms report using a diesel generator.10 The total capacity of the diesel generators11 (DG) in the country may be as high as 72 GW and growing at the rate of 5 GW per year.

Q.6. Which of the following is/are true about Open Access (OA) policy? 1. Introduced under Electricity Act 2003 2. It aims to constitute single market price for power around the country. 3. It provides stimulus to industrial production under Make in India initiatve. Select the correct answer from the following codes a.   Only 1 b.   Only 1 and 2 c.   Only 2 and 3 d.   1,2 and 3 Answer: d

Explanation: The Open Access (OA) policy introduced under Electricity Act 2003, allows consumers with electricity load above 1 MW to procure electricity directly from electricity markets. At its core, OA provides an aggregation of the country-wide supply and demand on the same platform. Therefore, this constitutes a first step towards discovering a single market price for power around the country. While the financial ability of discoms to purchase electricity has diminished. The time is thus ripe to allow industry, which has a high demand for power, to absorb the excess generation capacity through OA, providing a stimulus to industrial production under ‘Make in India’.

Structural changes in India’s labour market
1. Consider the following statements regarding the increasing use of contract labour supplied by specialised staffing companies in India: I. It allows large firms to grow. II. It leads to raise aggregate productivity. III. It leads to diminish aggregate productivity. Which of the following statement(s) is/are correct? a. Only I b. I and II c. II and III d. All of the above Answer: b

Explanation: To exploit its demographic dividend, India must create millions of “good”— safe, productive, well-paying—jobs. These tend to be in the formal sector. There are various constraints on formalisation of labour sector and the various development programmes which are having several challenges to face in India. The large firms get benefit from the contract labour supply. The increasing use of contract labour supplied by specialised staffing companies, which allows large firms to grow, raising aggregate productivity.

2. Consider the following statements regarding the employment growth between 1989 and 2010 in India: I. Informal firms account for most employment growth and nearly all the increase in the number of establishments since 1989. II. Of the 10.5 million new manufacturing jobs  created  between 1989 and 2010, only 3.7 million—about 35 percent—were in the formal  sector. III. After 2000, the informal sector establishment counts flatten and employment actually falls, while formal sector employment picks up. Which of the following statement(s) is/are correct? a. Only I b. I and II c. II and III d. All of the above Answer: d

Explanation: Two things you will notice regarding the growth of employment between 1989 and 2010. First, informal firms account for most employment growth and nearly all the increase in the number of establishments since 1989. Of the 10.5 million new manufacturing jobs created between 1989 and 2010, only 3.7 million—about 35 percent—were in the formal sector. This pattern is even  starker when looking at growth in establishment counts: total establishments increased  by 4.2 million from 1989-2010, but the formal sector accounted for only 1.2 per cent of this growth. Second, trends seem somewhat different after 2000: informal sector establishment counts flatten and employment actually  falls, while formal sector employment picked up.

3. Which of the following statements is incorrect regarding the employment sector in India? a. The informal sector must be credited with creating jobs and keeping unemployment low. b. By most measures informal sector jobs are much worse than formal sector ones—wages are, on average, more than 20 times higher in the formal sector, though informal  sector  wages  have grown somewhat faster between 1989-2010. c. By most measures formal sector jobs are much worse than informal sector ones—wages are, on average, more than 20 times higher in the  informal sector, though informal  sector wages have grown somewhat faster between 1989-2010. d. Formal sector jobs also score better on some non-pecuniary grounds. Answer: c

Explanation: The informal sector should thus be credited with creating jobs and keeping unemployment low. Yet, by most measures informal sector jobs are much worse than formal sector ones—wages are, on average, more than 20 times higher in the formal sector, though informal sector wages have grown somewhat faster between 1989-2010. Formal sector jobs also score better on some non-pecuniary grounds. For example, they allow workers to build employment history - which is important for gaining access to cheaper formal credit.

4. In order to stay small enough to be exempt from some labour laws, the firms adopts some strategies. Which of the following such strategies are correct? a. One popular strategy is to hire contract workers, which has two key benefits like the firm essentially subcontracts the work of following regulations and “managing” inspectors  to the contract labour firm. b. The other benefit is because contract workers are the employees of the contractor and are not considered workmen in the firm, the firm stays small enough to be exempt from some labour law. c. Both a and b d. Neither a nor b Answer: c Explanation: The slow pace of labour reform has encouraged firms to resort to other strategies to negotiate “regulatory cholesterol”. One popular strategy is to hire contract workers, which has two key benefits: first, the firm essentially subcontracts the work of following regulations and “managing” inspectors to the contract labour firm. Second, because contract workers are the employees of the contractor and are not considered workmen in the firm, the firm stays small enough to be exempt from some labour law. 5. Which of the following is correct? a. PRODY is a measure of the “quality” of a particular product. b. EXPY is an analogous measure for the “quality” of a country’s export mix. c. EXPY is calculated as the average of PRODY for all products a country exports, and is a good predictor of subsequent economic growth. d. All of the above Answer: d Explanation: PRODY and EXPY are indexes that measure the quality of export mix or baskets. PRODY is a measure of the “quality” or “sophistication” of a particular product. EXPY is an analogous measure for the “quality” or “sophistication” of a country’s export mix or baskets. EXPY is calculated as the average of PRODY for all products a country exports, and is a good predictor of subsequent economic  growth. 6. Consider the following statements regarding the Indian apparel industry: I. It is labour-intensive, with 30 per cent of costs from wages and only 2-3 per cent of costs are due to capital-intensive inputs like power. II. India is ceding market share in the global apparel industry to countries like Bangladesh and Vietnam. III. Formal sector apparel firms are about 15 times more productive than their informal sector counterparts. Which of the following statement(s) is/are correct? a. Only I b. I and II c. II and III d. All of the above Answer: d Explanation: It is labour-intensive, with 30 per cent of costs from wages and only 2-3 per cent of costs are due to capital-intensive inputs like power. And yet India is ceding market share in the global apparel industry to countries like Bangladesh and Vietnam. Formal sector apparel firms are about 15 times more productive than their informal sector counterparts. 7. Consider the following statements regarding the significance of the apparel industry: I. The apparel industry typically employs many female workers: for instance about 70 percent of the employees of India's largest apparel exporter are women. II. The apparel manufacturers locating majorly in urban areas can help address the low rates of female labour force participation that prevent India from achieving its full economic potential. III. Most explanations of low labour force participation in India focus on supply-side factors like cultural norms that frown on women working outside the home. Which of the following statement(s) is/are correct? a. Only I b. I and II c. I and III d. All of the above Answer: c Explanation: The apparel industry typically employs many female workers: for instance about 70 percent of the employees of India's largest apparel exporter are women. The apparel manufacturers locating majorly in urban areas can help address the low rates of female labour force participation that prevent India from achieving its full economic potential. Most explanations of low labour force participation in India focus on supply-side factors like cultural norms that frown on women working outside the home. Less attention has been given to demand-side explanations, which essentially emphasise that a key determinant of female labour force participation (LFP) is the availability 8. Consider the following statements regarding EPF: I. The EPF, which was created by The Employees ‘Provident Funds & Miscellaneous Provisions Act, 1952, is a fund to which most workers must involuntarily contribute at least 12 per cent of their basic salary. II. The money goes into an account managed by the Employees Provident Fund Organisation (EPFO) and is meant to provide a lump sum benefit to workers upon retirement. III. Employers must also contribute 12 per cent of their employees’ basic although about 70 per cent of the employers’ contribution goes into the Pension Scheme (EPS) while about 30 per cent goes into the EPF. Which of the following statement(s) is/are correct? a. Only I b. I and II c. I and III d. All of the above Answer: d

Explanation: The EPF, which was created by The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, is a fund to which most workers must involuntarily contribute at least 12 per cent of their basic salary. The money goes into an account managed by the  Employees Provident  Fund  Organisation (EPFO) and is meant to provide a lump sum  benefit to workers upon retirement. Employers must also contribute 12 per cent of their employees’ basic although about 70 per cent of the employers’ contribution goes into the Pension Scheme (EPS) while about 30 per cent goes into the EPF.

9. Consider the following statements regarding the competitive labour market:

i. A tax on labour will increase the effective wage paid by the company. ii. A tax on labour will reduce the effective wage received by the employee. iii. If labour demand is relatively less elastic than labour supply, the tax incidence will fall more heavily on the employer. Which of the following statement(s) is/are correct? a. Only I b. I and II c. I and III d. All of the above Answer: b

Explanation: A tax on labour will increase the effective wage paid by the company. A tax on labour will reduce the effective wage received by the employee. If labour demand is relatively more elastic than labour supply, the tax incidence will fall more heavily on the employee not on the employer.

Reforming the Fertiliser sector
1. In order to prevent diversion to industrial use of which of the following product, neem-coating has been done by the government of India? a.Medicines b.Stone c.Urea d.Agriculture Produce Answer: c Explanation: Since 2014, important reforms have been implemented in the fertiliser sector. These include the neem-coating of urea, which has likely reduced the diversion of fertiliser meant for Indian farmers; and gas pooling, which should increase efficiency of domestic urea production. Both steps should help small farmers by improving their access to low cost fertiliser. They will also provide good building blocks for further fertiliser sector reform.

2. Which of the following statements is correct regarding the Urea sector? I.The urea sector is highly regulated creates a black market that burdens small farmers disproportionately. II.The urea sector is incentivises production inefficiency. III.The urea sector is depleting soil quality and damaging human health. Which of the following statement(s) is/are correct? a.Only I b.I and II c.I and III d.All of the above Answer: d Explanation: The urea sector is highly regulated which: creates a black market that burdens small farmers disproportionately; incentivises production inefficiency; and leads to over-use, depleting soil quality and damaging human health. Incentivising Production inefficiency means the highly efficient Fertiliser Manufacturing units are paid fewer subsidies because their  production cost per unit is less than the inefficient units. For Example. In the present setup Government pays subsidy to the fertiliser producer directly. Let the market Price is Rs. 500 Per Kg. Unit 1 (efficient unit) Produces 1 Kg of Fertiliser in 800 Rs. Government will provide Rs. 200 as Subsidy. Unit 2 (inefficient unit) Produces 1 Kg of Fertiliser in 1000 Rs. Government will provide Rs. 500 as Subsidy.

3. Consider the following statements regarding the leakages in subsidised urea: I.The 24 per cent of total subsidy is spent on inefficient urea producers II.The remaining, 41 per cent is diverted to non-agricultural uses and abroad III.Of the remaining, 24 per cent is consumed by larger—presumably richer— farmers. Which of the following statement(s) is/are correct? a.Only I b.I and II c.I and III d.All of the above Answer: d

Explanation: In fact, subsidised urea suffers from 3 types of leakage: (i) 24 per cent is spent on inefficient urea producers (ii) of the remaining, 41 per cent is diverted to non-agricultural uses and abroad; (iii) of the remaining, 24 per cent is consumed by larger—presumably richer— farmers. These leakages imply that only 35 per cent—about Rs. 17500 crore of the total urea subsidy of Rs. 50300 crore—reaches the intended beneficiaries, small and marginal farmers.

4. Which of the following basic types of fertilisers not in use in India? a.Urea b.Dendrovorm c.Diammonium Phosphate (DAP) d.Muriate of Potash (MOP) Answer: b Explanation: There are 3 basic types of fertiliser used—urea, Di-ammonium Phosphate (DAP), and Muriate of Potash (MOP) but in many ways, urea dominates the sector.

5. Which of the following fertilisers considered as the most physically controlled fertiliser? a.Diammonium Phosphate (DAP) b.Muriate of Potash (MOP) c.Urea d.Dendrovorm Answer: c Explanation: Of all the fertilisers, it is the most produced (86 per cent), the most consumed (74 per cent share), and the most imported (52 per cent). It also faces the most government intervention. Urea is the most physically controlled fertiliser, with 50 per cent under the Fertiliser Ministry’s movement control order compared with 20 per cent for DAP and MOP.

6. Which of the following statements is correct regarding the Comprehensive Cost of Cultivation Survey? a.The Comprehensive Cost of Cultivation (CoC) Survey is a mechanism for data generation on cost structure of forested land and required cost of making that land cultivable. b.The Comprehensive Cost of Cultivation (CoC) Survey is a mechanism for data generation on cost structure of crops and various inputs which are used for cultivation of different crops in India. c.The Comprehensive Cost of Cultivation CoC) Survey is a mechanism for data generation on cost structure of lands and various inputs which are used for cultivation of different crops in India.  d.The Comprehensive Cost of Cultivation (CoC) Survey is a mechanism for data generation on cost structure of Kharif crops and various  inputs required for cultivation of Kharif crops in India. Answer: b

Explanation: The Comprehensive Cost of Cultivation (CoC) Survey is a mechanism for data generation on cost structure of crops and various inputs which are used for cultivation of different crops in India. The survey has been designed by the Central Statistics Office (CSO) and the data collection is performed annually by the Department of Agriculture and Cooperation.

7. Urea is used as one of the ingredients in: a.Explosives b.Chemical industry c.Automobile system d. All of the above Answer: d Explanation: Urea is used as one of the ingredients in chemical industry, explosives, automobile systems, laboratories, medical uses, flavour enhancing additive in cigarettes and others.

8. Among which of the following firms have permission to import urea in India? a.State Trading Corporation of India (STC) b.Metals and Minerals Trading Corporation of India (MMTC) c.India Potash Limited (IPL) d.All of the above Answer: d

Explanation: Only three firms are allowed to import urea into India, and the canalisers are also instructed when to import, what quantities to import, and in which districts to sell their goods. Every season the Fertiliser Department estimates how much imports are required by forecasting domestic supply and demand.

9. The Situational Assessment Survey of Agricultural Households aimed at I. at capturing the condition of agricultural households in the rural areas of the country in the context of policies and programmes of Government of India. II. to collect information on various aspects relating to farming and other socio-economic characteristics of agricultural households. Which of the following statement(s) is/are correct? a.Only I b.Only II c.I and II d.Neither I nor II Answer: c

Explanation: The Situational Assessment Survey of Agricultural Households aimed at capturing the condition of agricultural households in the rural areas of the country in the context of policies and programmes of Government of India. It was designed to collect information on various aspects relating to farming and other socio-economic characteristics of agricultural households. Information on consumer expenditure, information on income and productive assets, their indebtedness, farming practices and preferences, resource availability, awareness of technological developments, access to modern technology in the field of agriculture and information on crop loss & crop insurance was also collected.

10. Fertiliser accounts for large fiscal subsidies. It is second highest among all. Which type of subsidy accounts the highest percentage of GDP? a. Oil Subsidy b. Energy Subsidy c. Food Subsidy d. None of the Above Answer. c Explanation: Food Subsidy has the highest share of the GDP. Fertiliser accounts for large fiscal subsidies (about 0.73 lakh crore or 0.5 percent of GDP), the second-highest after food. Food Subsidy Bill stands at Rs 105,509.41 crore (US$ 15.35 billion) during 2015-16 (up to January, 2016). It accounts for around 0.75 percent of GDP.

Preferential trade agreements
Q1. In which of the following year WTO was established? A.January 1, 1994 B.January 1, 1995 C.January 1, 1996 D.January 1, 1997 Answer: B Explanation: The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business. Q2. Consider the following forms of Preferential Trade Agreements (PTAs): I.Partial Scope Agreement (PSA II.Free Trade Agreement (FTA) III.Customs Union (CU) Which of the followings is/are among the forms of Preferential Trade Agreement? A.Only I B.I and II C.I and III D.All of the above Answer: D

Explanation: Preferential Trade Agreements (PTAs) have been proliferating, especially since the establishment of the World Trade Organisation (WTO) in 1994. As of 1st December 2015, the WTO had received notifications of no less than 619 PTAs (disaggregated by goods, services, or accessions), of which 413 were already in force.

Q3. Which of the following statements is correct regarding Partial Scope Agreement (PSA)? A.An agreement which is only partial in scope, meaning it allows for trade between countries on a small number of goods. B.A preferential arrangement in which members reduce tariffs on trade among themselves, while maintaining their own tariff rates for trade with non members. C.A free-trade agreement in which members apply a common external tariff (CET) schedule to imports from non members. D.The market where movement of factors of production is relatively free amongst member countries. Answer: A

Explanation: Preferential Trade Agreements (PTAs) have five distinguish forms with each subsequent arrangement being a deeper form of integration, requiring more coordination and a greater loss of autonomy. Q4. What is Economic Union? A.A common market where movement of factors of production is relatively free amongst member countries. B.A common market where movement of factors of production is restricted amongst member countries. C.A common market where member countries coordinate macro-economic and exchange rate policies. D.A common market where member countries coordinate macro-economic policies never cooperate exchange rate policies. Answer: C Explanation: An economic union is a common market where member countries coordinate macro-economic and exchange rate policies. Q5. Which of the following statements is correct regarding Free Trade Agreement (FTA)? A.An agreement which is only partial in scope, meaning it allows for trade between countries on a small number of goods. B.A preferential arrangement in which members reduce tariffs on trade among themselves, while maintaining their own tariff rates for trade with non members. C.A free-trade agreement in which members apply a common external tariff (CET) schedule to imports from non members. D.The market where movement of factors of production is relatively free amongst member countries. Answer: B

Explanation: A free trade agreement is a preferential arrangement in which members reduce tariffs on trade among themselves, while maintaining their own tariff rates for trade with non members.

Q6. Which of the following is correct regarding Custom Union? A.A market where movement of factors of production is relatively free amongst member countries. B.A market where movement of factors of production is restricted amongst member countries. C.A market where member countries coordinate macro-economic and exchange rate policies. D.The free-trade agreement in which members apply a common external tariff (CET) schedule to imports from non members. Answer: D

Explanation: A customs union (CU) is a free-trade agreement in which members applies a common external tariff (CET) schedule to imports from non members where an economic union is a common market where member countries coordinate macro-economic and exchange rate policies.

Q7. India has signed bilateral Free Trade Agreements (FTAs) with several Asian economies but which one of following Asian country India never signed a bilateral Free Trade Agreements (FTAs) with? A.Sri Lanka B.China C.Afghanistan D. Thailand Answer: B Explanation: Within Asia, India has signed bilateral FTAs with Sri Lanka (1998), Afghanistan (2003), Thailand (2004), Singapore (2005),  Bhutan (2006), Nepal (2009), Korea (2009), Malaysia (2011) and Japan (2011). India and China have Free Trade Agreements under consideration. Q8. Within Asia India have two regional trade Agreement, one among them is with: A.South Asian Free Trade Agreement B.Nepal C.Chile D.MERCOSUR Answer: A Explanation: Within Asia, India has signed bilateral FTAs with Sri Lanka (1998), Afghanistan (2003), Thailand (2004), Singapore (2005), Bhutan (2006), Nepal (2009), Korea (2009), Malaysia (2011) and Japan (2011). There have also been two regional trade agreements, the South Asian Free Trade Agreement (SAFTA, 2004) and the India-Association of Southeast Asian Nations Agreement (ASEAN, 2010). Q9. Outside Asia India’s Free Trade Agreements have been agreed with which of the following country? A.USA B.Russia C.Chile D.Australia Answer: C

Explanation: There have also been two regional trade agreements, the South Asian Free Trade Agreement (SAFTA, 2004) and the India-Association of Southeast Asian Nations Agreement (ASEAN, 2010). Outside Asia, FTAs have been agreed with Chile (2006) and MERCOSUR (2004).

Q10: Which of the following is correct regarding Common Market (CM)? A.A market where movement of factors of production is relatively free amongst member countries. B.A market where movement of factors of production is restricted amongst member countries. C.A market where member countries coordinate macro-economic and exchange rate policies. D.The free-trade agreement in which members apply a common external tariff (CET) schedule to imports from non members. Answer: A

Explanation: A common market is a customs union where movement of factors of production is relatively free amongst member countries whereas the economic union is a common market where member countries coordinate macro-economic and exchange rate policies.

Q11. Which among the following countries is not a member of Trans-Pacific Partnership (TPP)? A.Australia B.India C.Canada D.Chile Answer: B Explanation: Trans-Pacific Partnership (TPP) is among the two major mega regionals which has been signed but not yet ratified by member countries and it comprises twelve member countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam, as shown in the map below. The TPP will cover 40 percent of global GDP and 33 percent of world trade.

Bounty for the well off
Q1. Which of the following committees has submitted its recommendations on the possible tax rate under GST? A.   TSR Subramanian Committee B.   Dr Arvind Subramanian Committee C.   Rangrajan Committee D.   Vimal Jala Committee

Answer: B

Explanation: Committee headed by the Chief Economic Adviser Dr. Arvind Subramanian on Possible Tax rates under GST submits its Report to the Finance Minister; On the Revenue Neutral Rate (RNR), the Committee recommends the same in the range between 15 percent and 15.5  percent (Centre and states combined) with a preference for the lower end of that range based on the analysis made in the Report.

Q2. Consider the following statements regarding small savings in India: I.   “Small” savings schemes were initially created to mobilise saving by encouraging “small earners” to save, and offered above market  deposit rates in accessible locations like post offices for this purpose. II. small savings schemes offer high and fixed deposit rates (within year) and compete with banks, it is difficult for banks to reduce their own deposit rates and hence pass on policy rate cuts to consumers in form of lower lending rates. III. The government has reduced rates on some small savings schemes to make them more responsive to market conditions.

Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above

Answer: D

Explanation: “Small” savings schemes were initially created to mobilise saving by encouraging “small earners” to save, and offered above market deposit rates in accessible locations like post offices for this purpose. Recent discussions have focused on one efficiency cost of “small” savings schemes – how they hinder monetary policy transmission. Because small savings schemes offer high and fixed deposit rates (within year) and compete with banks, it is difficult for banks to reduce their own deposit rates and hence pass on policy rate cuts to consumers in form of lower lending rates. Recently, the government has reduced rates on some small savings schemes to make them more responsive to market conditions.

Q3. Which among the following companies is not a Public Sector Companies in India? A.   IRCL B.   IIFCL C.   Hindustan Zinc D.   PFC

Answer: C

Explanation: The government-owned corporations are termed as Public Sector Undertakings (PSUs) in India. In a PSU majority (51% or more) of the paid up share capital is held by central government or by any state government or partly by the central governments and partly by one or more state governments. Hindustan Zinc is Private Sector Company in India.

Q4. Merit goods and services are: A.   Merit goods are those goods and services that the government feels that people will over-consume, and which ought to be taxed at the point of use so that over consumption does not happened by well of households. B.   Merit goods are those goods and services that the government feels that people will under-consume, and which ought to be subsidised or provided free at the point of use so that consumption does not depend primarily on the ability to pay for the good or service. C.   A good which harms the consumer, for example, people don’t realise or ignore the costs of doing something e.g. smoking, drugs. D.   Those goods and services which have negative externalities.

Answer: B

Explanation: Merit goods are those goods and services that the government feels that people will under-consume, and which ought to be subsidised or provided free at the point of use so that consumption does not depend primarily on the ability to pay for the good or service. Both the state and private sector provide merit goods & services. We have an independent education system and people can buy private health care insurance.

Q5. Consider the following statements regarding Demerit goods: I.   Demerit goods harm the consumer, for example, people don’t realise or ignore the costs of doing something e.g. smoking, drugs. II. Usually, Demerit goods have negative externalities. III. Usually, Demerit goods have positive externalities.

Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above

Answer: B

Explanation: Merit and Demerit goods involve making a value judgement that something is good or bad for you. Examples of Demerit goods are smoking, drinking, takings drugs etc.

Q6. Which of the following statements is incorrect regarding the nature of subsidies? A.   Implicit subsidies include utilization of such techniques as exchange rate manipulation, price controls, and quantitative  restrictions on trade, as well as other methods of manipulating the terms of trade either for or against farmers. B.   Explicit agricultural subsidies include such programmes as government purchases of agricultural surpluses and government payments to farmers to keep land idle. C.   In case of explicit subsidy, there are governmental budgetary outlays while in case of implicit subsidy, supply prices are  suppressed. D.   In case of implicit subsidy, there are governmental budgetary outlays while in case of explicit subsidy, supply prices are suppressed.

Answer: D

Explanation: Generally, the Subsidies are government policies in aid of one or more industries, usually carrying a financial benefit to the industry. At the most conventional level, subsidies are government financial transfers to an industry, through payments to workers or to firms. Probably nobody would deny that the government is subsidizing the industry if it is paying part of the wages of workers in the industry or it is granting firms in the industry funds to make capital purchases. This is the narrowest definition of a subsidy.

Q7. The demerit goods should be taxed at A.   Higher rate B.   Lower rate C.   Tax free D.   Subsidised

Answer: A

Explanation: The demerit goods should be taxed at high rate while in case of merit goods, tax should be at lower rate. Goods that account for a large share of expenditures of poorer households, such as food, will typically be merit goods, and should therefore be taxed at low rates, made exempt from taxation, or even subsidized.

Q8. What is Revenue Neutral Rate? A.   Taxing procedure that allows the government to still receive the same amount of money despite changes in tax laws. B.   Taxing procedure that allows the government to still receive the higher amount of money despite no changes in tax laws. C.   Taxing procedure that allows the government to receive the lower amount of money despite changes in tax laws. D.   Taxing procedure that allows the government to receive the higher amount of money despite no changes in tax laws.

Answer: A

Explanation: Taxing procedure that allows the government to still receive the same amount of money despite changes in tax laws. The government may lower taxes for one particular group of people, but raise taxes for another group. This allows the revenue that they receive to remain unchanged (neutral).

Q9. Consider the following statement regarding the New Pension Scheme (NPS): I.   The minimum investment limit per year under NPS Tier-I account is Rs 6000/-. II. The Non-resident Indians (NRIs) are also allowed to invest in NPS. Which of the following statement(s) is/are correct? A.   Only I B.    Only II C.    Both of I and II D.    None of the above

Answer: C

Explanation: Reserve Bank of India (RBI) has allowed Non-resident Indians (NRIs) to invest in the National Pension System (NPS), under Foreign Exchange Management Act. The subscription amounts shall be paid by NRIs by inward remittance through normal banking channels or out of funds held in their non-resident external, foreign currency non-repatriable, or non-resident ordinary (NRO) accounts. There shall be no restriction on repatriation of the annuity or accumulated savings. Presently, the minimum investment limit per year under NPS Tier-I account is Rs 6000/-.

Mother and child schemes
Q1. Consider the following statements regarding the features of Deen Dayal Uphadyay Grameen Kaushal Yojna (DDUGKY): I.   Market-led, placement-linked training programme for rural youth undertaken in a PPP mode. II. Mandatory assured placement to 75% of the trained candidates. III. Social inclusion of candidates through mandatory coverage of socially disadvantaged groups, i.e. for SC/ST-50%, Minorities- 15%, and Women 33%).

Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above

Answer: D

Explanation: Rand it—Deen -Dayal Upadhyaya-Grameen Kaushalya Yojana (DDUGKY) is a Placement Linked Skill Development scheme for rural poor youth. This initiative is part of the National Rural Livelihood Mission (NRLM). DDU-GKY has its origin in the wage employment linked ‘Special Projects’ for skilling component of the Swarnajayanti Gram Swarojgar Yojana (SGSY), which was subsequently renamed as Aajeevika Skills when SGSY was converted as NRLM. The Placement Linked Skills scheme, Aajeevika Skills, has been recently been further revamped in terms or announcement of Antoydaya Divas on 25th September 2014 as Pandit Deen Dayal Upadhayaya Grameen Kaushalya Yojana (DDUGKY)). The skilling program for rural youth has now been refocused and repritorized to build the capacity of rural poor youth to address the needs of global skill requirements.

Q2. Consider the following statements regarding the funding of DDUGKY: I.   Deen Dayal Upadhyaya-Grameen Kaushalya Yojana (DDUGKY) is a Centrally Sponsored Scheme (CCS) follows the funding- for all States (excluding North-east States) - 75% by Central Government and 25% by State Government. II. North-east States-90% by Central Government 10% by State Government. III. DU-GKY provides funding support for placement linked skilling projects ranging from Rs. 25,696 per person to over Rs. 1 lakh, depending on the duration of the project and whether the project is residential or non-residential.

Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above

Answer: D

Explanation: DDUGKY provides funding support for placement linked skilling projects ranging from Rs. 25,696 per person to over Rs. 1 lakh, depending on the duration of the project and whether the project is residential or non-residential. DDUGKY funds projects of different duration, from three months, to six, nine and twelve months. Funding components include support for training costs, boarding and lodging (residential programmes), transportation costs, post-placement support costs, career progression and retention support costs.

Q3. Consider the following statements regarding the facts about National Food Security Act (NFSA) 2013: I.   Pregnant women and lactating mothers and children are entitled to get meals under the prescribed nutrition by MDM and ICDS and the age group would be 6 months to 14 years. II. NFSA 2013 will provide high nutrition food to the age group 14 years. III. Pregnant women and lactating mothers will be entitled to get maternity benefit of not less than Rs. 50,000.

Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above

Answer: A

Explanation: This program presents a promising opportunity to help improve nutrition during pregnancy, a problem which affects both urban and rural women, and the middle-class and the poor. Pregnant women and lactating mothers and children are entitled to get meals under the prescribed nutrition by MDM and ICDS. The age group would be 6 months to 14 years. NFSA 2013 will provide high nutrition food to the age group of 6 years. Pregnant women and lactating mothers will be entitled to get maternity benefit of not less than Rs. 6,000.

Q4. Consider the following statements regarding Swachh Bharat Mission: I.   The main goal of the programme is a clean India with all gram panchayats being open defecation free by 2019. II. The scheme aims to stop open defecation through construction of IHHL (individual household latrines), cluster toilets and community toilets (especially through PPP model). III. Solid and liquid waste management also forms an important component of the programme.

Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above

Answer: D

Explanation: The main goal of the Swachh Bharat Abhiyan is to clean India with all gram panchayats being open defecation free by 2019. The SBA (Urban) will last a span of five years and cover 4,041 statutory towns. The earlier mission on sanitation, Nirmal Bharat Abhiyan, has been restructured into Swachh Bharat Abhiyan (Rural). The urban component of SBA has been implemented by the Ministry of Urban Development, and similarly the rural component by the Ministry of Drinking Water and Sanitation. The total expenditure of Rs. 62,009 crores with Rs. 14,623 coming from the Centre has been allocated. The scheme aims to stop open defecation through construction of IHHL (individual household latrines), cluster toilets and community toilets (especially through PPP mode). In this programme, the Solid and liquid waste management have also been considered as the important component of the programme. Major thrust of the scheme is being given to information, education and communication of importance of cleanliness.

Q5: Consider the following statements regarding United Nation’s Sustainable Development Goals: I.   The United Nations on 25 September 2015, has adopted the resolution on “Transforming our world: the 2030 Agenda for Sustainable Development“, which has 169 targets in 17 goals called Sustainable Development Goals. II. The Sustainable Development goals are legally non-binding and have succeeded the eight MDGs, which were adopted in 2010 for fifteen years in Rio 20+ summit. III. Sustainable Development Goals (SDGs) outline broader sustainability agenda dealing with ‘five Ps’ people, planet, prosperity, peace, and partnership.

Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above

Answer: C

Explanation: The United Nations on 25 September 2015, has adopted the resolution on “Transforming our world: the 2030 Agenda for Sustainable Development“, which has 169 targets in 17 goals called Sustainable Development Goals. The Sustainable Development goals are legally non-binding and have succeeded the eight MDGs, which were adopted in 2000 for fifteen years in Rio 20+ summit. Sustainable Development Goals (SDGs) outline broader sustainability agenda dealing with ‘five Ps’ people, planet, prosperity, peace, and partnership.

Q6. Consider the following statements regarding Millennium Development Goals: I.   The MDGs posses eight goals in the areas of poverty alleviation, education, gender equality and empowerment of women, child and  maternal health, reducing HIV/AIDS and communicable diseases, environmental sustainability and building a global partnership for development. II. One of the goals is to end hunger, achieve food security and improved nutrition and promote sustainable agriculture. III. The most important aspects of the MDGs was that for more than a decade period, they remained in focus of not only global policy debates but also national policy planning in all countries.

Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above

Answer: D

Explanation: The MDGs posses eight goals in the areas of poverty alleviation, education, gender equality and empowerment of women, child and maternal health, environmental sustainability, reducing HIV/AIDS and communicable diseases, and building a global partnership for development. Its aim to end hunger, achieve food security and improved nutrition and promote sustainable agriculture. The most important aspects of the MDGs was that for more than a decade period, they remained in focus of not only global policy debates but also national policy planning in all countries.

Q7. Consider the following statements regarding Janani Suraksha Yojana (JSY): I.   Janani Suraksha Yojana (JSY) is a safe motherhood intervention under the National Rural Health Mission (NRHM) being implemented  with the objective of reducing maternal and neo-natal mortality by promoting institutional delivery among the poor pregnant women. II. The Yojana, launched on 12th April 2005, is being implemented in all states and UTs with special focus on low performing states. III. JSY is a 70 % centrally and remaining by state sponsored scheme and it integrates cash assistance with delivery and post-delivery care.

Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above

Answer: B

Explanation: Janani Suraksha Yojana (JSY) is a safe motherhood intervention under the National Rural Health Mission (NRHM) being implemented with the objective of reducing maternal and neo-natal mortality by promoting institutional delivery among the poor pregnant women. The Yojana, launched on 12th April 2005, is being implemented in all states and UTs with special focus on low performing states. JSY is a 100 % centrally sponsored scheme and it integrates cash assistance with delivery and post-delivery care. The success of the scheme is be determined by the increase in institutional delivery among the poor families.

Q8. Which among the following roles is not belongs to ASHA? A.   To identify the girl child as a beneficiary of the scheme and report or facilitate registration for ANC B.   To assist the pregnant woman to obtain necessary certifications wherever necessary, C.   To provide and / or help the women in receiving at least three ANC checkups including TT injections, IFA tablets D.   To identify a functional Government health centre or an accredited private health institution for referral and delivery

Answer: A

Explanation: The Asha as well as AWW like activists become the effective link between Government and poor women in this programme. Role of ASHA or other link health worker associated with JSY would be to: To identify pregnant woman as a beneficiary of the scheme and report or facilitate registration for ANC.

Q9. The UN’s Sustainable Development Goals commit to ending open defecation worldwide by the year A.   2020 B.   2025 C.   2030 D.   2050

Answer: C

Explanation: UN’s Sustainable Development Goals commit to ending open defecation worldwide by 2030. The success of these goals will naturally depend largely on the pace of reduction in open defecation in rural India, because this is where most people who defecate in the open live.

Q10. Consider the following statements regarding the Integrated Child Development Scheme (ICDS): I.   The Integrated Child Development Scheme (ICDS) comes under the purview of the Ministry of Women and Child Development (MWCD). II. According to the recent report released by MWCD the ICDS which was launched in 1975 has been working diligently to eliminate hazards to child health and development. III. Under the scheme the integrated package of services include supplementary nutrition, immunization, medical check-ups, recommendation services, pre-school non-formal education and nutrition & health awareness.

Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above

Answer: D

Explanation: The ICDS scheme aims at providing an integrated package of services. The purpose of providing these services as a package is because each of these issues is dependent on the other. In order to ensure that the overall care and education of the child is addressed the MWCD envisions the scheme as a complete parcel of provisions. The structure of ICDS is that it is a centrally funded scheme implemented through the States and Union Territories. Originally, financially it was 100% backed by the central government, except the supplementary nutrition, which must be provided by the State's resources.

JAM and Agriculture
Q1. Over the past year JAM trinity has thickened, spread and deepened their coverage at an astonishing rate in Indian economy. Here, JAM stands for: A. Jan Awas Mission B. Jawahar Awas Mission C. Jandhan, Aadhar and Moblie D. Jandhan, Atal Pension and Make in India Answer: C

Explanation: Large-scale, technology-enabled, real-time Direct Benefit Transfers can improve the economic lives of India’s poor, and the JAM Trinity—Jan Dhan, Aadhaar, Mobile—can help government implement them. Over the past year JAM has thickened and spread: Jan Dhan and Aadhaar deepened their coverage at an astonishing rate—respectively creating 2 and 4 million accounts per week—and several mobile money operators were licensed.

Q2. Consider the following statements regarding the PAHAL DBTL scheme: I.   The full form of PAHAL Yojana is Pratyaksh Hanstantarit Scheme and concerns the LPG customers. II. This scheme will reduce or prevent the unauthorised sale of LPG cylinders at higher rates and the purchase of multiple gas connections will be prevented. III. The PAHAL DBTL scheme considered as the world’s largest cash subsidy under the Direct Benefit Transfer Scheme. Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above Answer: D Explanation: The PAHAL DBTL ambitious scheme was earlier launched on June 1, 2013 by the previous Government with the objective of giving cash subsidy on cooking gas and it covered 291 districts. The present NDA government has comprehensively examined the PAHAL scheme and after reviewing the problems faced by the consumers, it modified the prior scheme and re-launched it in 54 districts on November 15, 2014 to cover 2.5 crore households. The second phase of this revised scheme started on January 1, 2015 to cover all the districts of the country.

Q3. Match List-I with List-II and select the correct answer using the codes given below the lists: List-I                                  List-II A. Red Revolution              1. Potatoes B. Round Revolution           2. Tomatoes C. Pink Revolution              3. Meat D. Golden Revolution         4. Fruits Code: A      B        C       D (a) 1       2        3       5 (b) 1      2        4       5 (c) 2      1        3       4 (d) 1      3        2       4 Answer: C

Explanation: The Rainbow Revolution means the various colour of indicate various farm practices such as Green Revolution (Foodgrains), White Revolution (Milk), Yellow Revolution (Oil seeds), Blue Revolution (Fisheries); Golden Revolution (Fruits); Silver Revolution (Eggs), Round Revolution (Potato), Pink Revolution (Meat), Grey Revolution (Fertilizers) and so on. Thus, the concept of Rainbow revolution is an integrated development of crop cultivation, horticulture, forestry, fishery, poultry, animal husbandry and food processing industry.

Q4. Consider the following statements regarding the production of pulses in India: I.   India happens to be the major producer and consumer of pulses, which is one of the major sources of protein for the population. II. India has low yields comparable to most countries such as on an average; countries like Brazil, Nigeria, and Myanmar have higher yields III. It is said that if all states were to attain even Bihar’s level of productivity, pulses production would increase by an estimated 41 per cent on aggregate. Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above Answer: D Explanation: India happens to be the major producer and consumer of pulses, which is one of the major sources of protein for the population. India has low yields comparable to most countries. On an average, countries like Brazil, Nigeria, and Myanmar have higher yields. Some states do much better than the all-India average, but even the key pulse producing state of Madhya Pradesh has yields (938 kg/ha) barely three-fifths that of China’s (1550 kg/ha). Q5. Which of the following schemes has been dedicated for irrigation purpose? A.   AIBP B.   IWMP C.   OFWM D.   All of the above Answer: D Explanation: The ongoing irrigation schemes are: the Accelerated Irrigation Benefit Programme (AIBP), Integrated Watershed Management Programme (IWMP) and On Farm Water Management (OFWM) – into the Prime Minister’s Krishi Sinchayi Yojana (PMKSY) offers the possibility of convergence of investments in irrigation, from water source to distribution and end-use.

Q6. Which of the following is not considered as the water intensive crop in India? A.   Cotton B.   Mustard C.   Soyabean D.   Sugar Answer: B Explanation: The water intensive crops are those which requires huge amount of water during irrigation and such water intensive crops India usually exports.

Q7. Consider the following statements regarding drip irrigation system: I.   In drip irrigation for example, perforated pipes are placed either above or slightly below ground and drip water on the roots and stems of plants, directing water more precisely to crops that  need it. II. An efficient drip irrigation system reduces consumption of fertiliser (through fertigation) and water lost to evaporation, and higher yields than traditional flood irrigation. III. Fertigation is the process of introducing fertiliser directly into the crop’s irrigation system. Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above Answer: D

Explanation: To increase productivity while conserving water (more for less), the farmers should adopt micro irrigation methods. In drip irrigation for example, perforated pipes are placed either above or slightly below ground and drip water on the roots and stems of plants, directing water more precisely to crops that need it. An efficient drip irrigation system reduces consumption of fertiliser (through fertigation) and water lost to evaporation, and higher yields than traditional flood irrigation.

Q8. Consider the following statements regarding the Minimum Support Price policy: I.   The crop prices are guaranteed by the government through the MSP but while the government announces MSP for 23 crops, effective MSP-linked procurement occurs mainly for wheat, rice and cotton. II. The policy of MSP exists for most farmers for most crops; its realistic impact is quite limited for most farmers in the country. III. Public procurement at MSP has disproportionately focused on wheat, rice and sugarcane and perhaps even at the expense of other crops such as pulses and oilseeds. Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above Answer: D Explanation: The policy of MSP exists for most farmers for most crops; its realistic impact is quite limited for most farmers in the country. This has resulted in buffer stocks of paddy and wheat to be above the required norms, but also caused frequent price spikes in pulses and edible oils, despite substantial imports of these commodities.

Q9. Consider the following sentence regarding the system of “Price Deficiency Payment”: I.   Under this system if the price in an Agriculture Produce Market Committee (APMC) mandi fell below the MSP then the farmer would be entitled to a maximum of, say, 50 per cent of the difference between the MSP and the market price. II. The subsidy could be paid to the farmer via Direct Benefits Transfer (DBT). III. Such a system would keep the quantum of the subsidy bill in check and also be consistent with India’s obligations to the WTO. Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above Answer: D Explanation: Emphasising on need for remunerative prices for farmers, the NITI Aayog has suggested adopting the system of "price deficiency payment". Under this system if the price in an Agriculture Produce Market Committee (APMC) mandi fell below the MSP then the farmer would be entitled to a maximum of, say, 50 per cent of the difference between the MSP and the market price.

Q10. Which of the following is not among the institutions for agricultural research in India? A.   RIRI B.   NARS C.   ICAR D.   CAZRI Answer: A

Explanation: Addressing India’s multiple challenges in agriculture will require significant upgradation of country’s national agriculture research and extension systems. India’s National Agricultural Research System (NARS) (comprising the Indian Council of Agricultural Research (ICAR), other central research institutes, and national research centres set up by ICAR), together with agriculture research universities played a key role in the Green revolution. In more recent years, however, agriculture research has been plagued by severe under investment and neglect. RIRI is an index was created by the department of economic affairs for the purpose of exposition in the economic survey. The index postulates that international rating agencies don't assign ratings the way that a rational investor would.

The chakarvuhya challenge
Q1. Consider the following statements regarding Indian economy's remarkable progress in increasing entry into the market economy: I.   Industrial licensing has been dismantled II. Public sector monopolies have been diluted III. Foreign direct investment has been considerably liberalised Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above Answer: D

Explanation: Since the early 1980s, the Indian economy has made remarkable progress in increasing entry into the market economy for instance, the industrial licensing has been dismantled, public sector monopolies have been diluted, some public sector assets have been privatised, foreign direct investment has been considerably liberalised, a process that has been accelerated under various government, and trade barriers have been reduced. Indeed, the narrative of reforms has been one of promoting entry by eliminating the barriers to it.

Q2. It is true that Indian economy has moved from socialism with restricted entry to “marketism” without exit form the former. The lack of exit from socialism creates at least three types of costs, which of the following cost is not associated with this: A.   Fiscal Cost B.   Opportunity Cost C.   Economic Cost D.   Political Cost Answer: B Explanation: Fiscal Cost is an increasing function of the taxes that will have to make up for the lost revenue, and/or the general equilibrium effects of greater deficits, via the greater interest costs and reduced private sector investment activity that result if the government borrows to finance the foregone revenue. Economic losses result from resources and factors of production not being employed in their most productive uses. The lack of exit can also have considerable political costs for governments attempting to reform the economy. The benefits of impeded exit often flow to the rich and influential in the form of support for "sick" firms.

Q3. Canalisation of imports means: A.   Exports and imports only through the agencies designated by the Central Government. B.   Exports and imports only through the agencies designated by the WTO. C.   Exports and imports only from the country which are already member of WTO. D.   The activities of exports and imports are to be done only through canals and sea ways. Answer: A

Explanation: "Canalisation" of exports and imports means exports and imports only through the agencies designated by the Central Government.

Q4. The Smartcards program was a tremendous success. Which of the following statements is correct? A.   Smart card program reducing payment delays by 19 per cent, increasing MGNREGA wages by 24 per cent and reducing leakages by 35 per cent. B.   The return on investing in Smartcards infrastructure was less than the cost of implementation. C.   90 per cent of beneficiaries also preferred the Smartcards system. D.   Smart Card programme is called as a classic case of the imbalance of power between concentrated losses and diffuse benefits. Answer: B Explanation: The Smartcards program was a tremendous success, reducing payment delays by 19 per cent, increasing MGNREGA wages by 24 per cent and reducing leakages by 35 per cent. The return on investing in Smartcards infrastructure was thus seven times the cost of implementation. 90 per cent of beneficiaries also preferred the Smartcards system (Muralidharan et. al. 2015)8. And yet, the perception was created that the program was mostly negative. This was a classic case of the imbalance of power between concentrated losses and diffuse benefits.

Q5. What are the reasons that even after LPG, Indian economy is not moving away from Socialistic economy? A.   Institutions B.   Interests C.   ideas/ideology D.   All of the above Answer: D

Explanation: It is useful to understand the exit problem of Indian economy from Socilistic economy, in terms of analytical categories because it aids in the search for solutions. In India, the exit problem arises because of three types of reasons, what might be called the three I’s: interests, institutions, and ideas/ ideology.

Q6. Who among the following had given one of the famous phrases “licence-quota-permit Raj”? A.   Amartya Sen B.   Rajagopalachari C.   Mahalanobis D.   Jawaharlal Nehru Answer: B

Explanation: Structural impediments to India’s economic progress have often been framed in relation to the problem of entry as evoked in the famous phrase--“licence-quota-permit Raj”--of C. Rajagopalachari, India’s original economic liberal.

Q7. A market economy requires: I.   unrestricted entry of new firms, new ideas, and new technologies so that the forces of competition can guide capital and labour resources to their most productive and dynamic uses. II. easy exit so that resources are forced or enticed away from inefficient and unsustainable uses. III. Restricted entry of new firms, new ideas, and new technologies so that the forces of competition can guide capital and labour resources to their most productive and dynamic uses. Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above Answer: B

Explanation: A market economy requires unrestricted entry of new firms, new ideas, and new technologies so that the forces of competition can guide capital and labour resources to their most productive and dynamic uses. But it also requires exit so that resources are forced or enticed away from inefficient and unsustainable uses.

Q8. Which of the followings high-powered committee set up by the finance ministry to redraw the contours of the country’s public private partnership (PPP) model has recommended ending the one-size-fits-all approach in dealing with project-specific risks, and advocated independent regulators? A.   Kelkar Committee B.   Rangrajan Committee C.   Gadgil Committee D.   Hazari Committee Answer: A

Explanation: The committee observed that given the urgency of India’s demographic transition and the experience the country has already gathered in managing PPPs, the government must now tweak the model by incorporating lessons learnt so far and making it more sophisticated.

Q9. Sometimes, the vested interest problem is aggravated by a certain imbalance or asymmetry that confers greater power on concentrated producer interests in relation to diffused consumer interests. Such imbalance or asymmetry was first identified by which of the following economists? A.   Alfred Marshal B.   David Ricardo C.   Vilfredo Pareto D.   Amartya Sen

Answer: C

Explanation: In context of current situation of Indian economy, interests regarded as the most powerful reason for lack of exit is the power of vested interests. Often, this vested interest problem is aggravated by a certain imbalance or asymmetry (first identified by the Italian economist Pareto) that confers greater power on concentrated producer interests in relation to diffused consumer interests.

Q10. Consider the following statements regarding CACP: I.   CACP stands for Commission of Agricultural Costs & Prices came into existence in January 1965. II. For CACP, it is mandated to recommend minimum support prices (MSPs) to incentivize the cultivators to adopt modern technology, and raise productivity and overall grain production in line with the emerging demand patterns in the country. III. CACP submits its recommendations to the government in the form of Price Policy Reports every year, separately for five groups of commodities namely Kharif crops, Rabi crops, Sugarcane, Raw Jute and Copra. Which of the following statement(s) is/are correct? A.   Only I B.    I and II C.    I and III D.   All of the above Answer: D Explanation: The Commission of Agricultural Costs & Prices (CACP since 1985, earlier named as Agricultural Prices Commission) came into existence in January 1965. Currently, the Commission comprises a Chairman, Member Secretary, one Member (Official) and two Members (Non-Official). The non-official members are representatives of the farming community and usually have an active association with the farming community.