UGC NET ECONOMICS PAPER III UNIT IX MCQS SOLVED

Unit-IX

Role of Agriculture in Indian Economy – Share of Agriculture, interrelationship between agriculture and industry

Institutional aspects – Land reforms, Green revolution

Technological aspects – Agricultural inputs and shifts in production function

Capital formation in the rural sector – Savings, assets and credits

Strategies for rural development

Regional disparities in Indian agriculture

Cooperative movement in India – Organization, structure and development of different types of cooperatives in India

1. The National Horticulture Mission (NHM) has aimed at doubling the horticultural production. For this, the target year is
a. 2010
b. 2011
c. 2012
d. 2015

Ans. c

2. Which of the following statements pertaining to the strategy to raise agricultural output during the 11th Five- Year Plan are correct?
1. Double the rate of growth of irrigated area.
2. Improve water management, rain water harvesting and watershed development.
3. Provide easy access to credit at affordable rates.

Select the correct answer using the code given below:
a. 1 and 2 only
b. 2 and 3 only
c. 1 and 3 only
d. 1, 2 and 3

Ans. a

3. In the case of agriculture,
a. the demand has shifted to the right more than the supply has shifted to the right
b. the demand has shifted to the right less than the supply has shifted to the right
c. the demand has shifted to the left more than the supply has shifted to the left
d. the demand has shifted to the left less than the supply has shifted to the left
Ans. C

4. The agricultural price support program is an example of 
a. a price ceiling 
b. a price floor 
c. equilibrium pricing

Ans. C

5. Which category of the target groups is not included in the SHG bank linkage programme for micro-finance to agriculture?

(a) Unemployed non-agricultural labourers

(b) Agricultural and non-agricultural labourers

(c) Small and marginal farmers

(d) Artisans and craftsmen

Ans. (a)

6.            Assertion (A): Productivity of land in India is low.

 Reason (R): Small farmers are not motivated to produce more.

a.       Both A and R are true and R is the correct explanation of A

b.      Both a and R are true but R is NOT the correct explanation of A

c.       A is true but R is false

d.      A is false but r is true

Ans. c

7.            Which one of the following is not the objective of 'Precision Agriculture'?

(a)          Maximize crop production

(b)          Minimize the environmental damage

(c)           Consider spatial variability of land

(d)          Better price for the producer

Ans. b

5. The first State in India- which published its State Human Development Report, is?
(A) Kerala
(B) Madhya Pradesh
(C) Gujarat

17. The following Industrial Policy Resolution is known as the Economic Constitution of India?
(A) Industrial Policy, 1948
(B) Industrial Policy, 1956
(C) Industrial Policy, 1980
(D) Industrial Policy, 1991

6 ‘The Mid-day Meal’ scheme is covered under the Ministry of?
(A) Human Resource Development
(B) Health and Family Welfare
(C) Social Justice and Empowerment
(D) Consumer Affairs, Food and Public Distribution

Q. 17. Between 1951-52 and 1955-56 and 1985-86 and 1989-90, the share of agriculture in the GDP of India decreased from about 55% to about 33% and that of the tertiary sector increased from nearly 29% to 39%. This indicates that the

(a) productivity of land has been on the decline.

(b) the productivity of labour has been increasing.

(c) secondary sector has done much better than the primary and tertiary sectors.

(d) output of tangible commodities has not been increasing as fast as the GDP.

Ans: d

Q. 27. Which of the following method(s) are used to
compute national income in India?
1. Net output method.
2. Net income method.
3. Expenditure method.
Select the correct. answer using the codes given below:
Codes:
(a)2 alone
(b) 1 and 2
(c)3 alone
(d) l,2 and 3
Ans: d

2) Per Capita output would probably rise but output per worker would fall if;

(a) Capital deepening occurred rapidly.

(b) Labour force participation rate of the population rose

(c) Technical education of the work

(d) Involuntary saving was increased

(5) Economic growth:

(a) Is synonymous with economic development

(b) Refers to qualitative change experienced by an economic system

(c) When an economic system acquires greater productive capacity.

(d) Always result in increased real per capita output

(6) Capital deepening:

(a) Is an increase in the ration of labour to capital

(b) Necessarily increases real per capita output

(c) Is less likely to be effective in fostering growth in rich countries than in poor countries

(d) Can occur when saving rates are zero

(14) When a worker earns more than the just sufficient to keep him in his job, the excess income is called:

(a) An opportunity cost

(b) An economic rent

(c) Transfer earnings

(d) Surplus value

(15) There are 5 workers in a field and each one is paid at the rate of Rs. 200 per day. Later on raising wage rate by Rs. 50 per day to attract one more worker. If other costs remain constant, marginal input cost of employing the additional worker is:

(a) Rs. 400

(b) Rs. 45

(c) Rs. 700

(d) Rs. 300

(20) Green revolution refers to:

(a) Introduction of modern technology

(b) Reform in land tenure system

(c) Introduction of agro-based industry

(d) Boosting exports of agricultural products

(3) Livestock is:

(a) An independent Sector

(b) Sub-sector of Agriculture

(c) Should be a part of Agriculture

(d) Would become a part of Agriculture

(4) Unemployment Rate is a percentage relation with reference to:

(a) Total Population

(b) Civilian Labour Force

(c) Employed Persons

(d) Unemployed Persons

(e) None of these

(5) Devaluation of rupee would result into:

(a) Expensive exports

(b) Expensive Imports

(c) Expensive Labour

(d) Overvalued Rupee

(e) None of these

(9) If saving Rate is 12.0%, ICOR Value is 3% and Population Rate is 2.0%, then the Growth Rate would be:

(a) 2.0%

(b) 3.6%

(c) 4.0%

(d) 6.0%

(e) None of these

(ii) Fishery is the sub sector of:

(a) Agriculture

(b) Manufacturing

(c) Mining

(d) Both (b) and (c)

iv) In short run:

(a) Labour is variable

(b) Both labour and capital are variable

(c) Both labour and capital fixed

(d) None of these

(ix) The Marginal Revenue Product of labour MRPL is:

(a) MR x MP

(b) MR / MP

(c) MR – MP

(d) Both (b) and (c)

(x) In case of imperfect competition the MRPL is the:

(a) Supply of labour curve

(b) Demand for labour curve

(c) Both of these

(d) None of these

1.     What does infant mortality rate refer to?
(a) The ratio of number of children who die before their fifth birthday out of every 1000 live births
(b) The ratio of number of children who die before their first birthday out of every 100 live births
(c) The ratio of number of children who die before their fifth birthday out of every 100 live births
(d) The ratio of number of children who die before their first birthday out of everyl000 live births
Ans. (d)

6. Consider the following statements:
A. The Fifth Economic Census was conducted by CSO in the year 2007.
B. Intelligent Character Recognition (ICR) technology is being used for detailed processing of the data collected in the Fifth Economic Census.
Which of the statements given above is/are correct?
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (b)

7. During which of the following years, average growth/rate (at constant prices) of agriculture and allied sectors negative?
(a) 2002-03
(b) 2003-04
(c) 2005-06
(d) 2006-07
Ans. (a)

11. Which one of the following is not the target stipulated in the Tenth Five-Year Plan?
(a) Creating 50 million job opportunities
(b) Reduction in poverty ratio from 26 percent to 21 percent
(c) Reducing gender gaps in literacy and wages rates by 50 percent
(d) Doubling per capita income in 8 years
Ans. (d)

12. Consider the following items which are assigned weight in calculating wholesale price index in India
1. Primary articles
2. Fuel, power light and lubricants
3. Food products
4. Chemicals and chemical products
Which one of the following is the correct order of the above items in descending order in terms of their weight in the price index?
(a) 1-2-3-4
(b) 1-2-4-3
(c) 4-3-2-1
(d) 1-3-2-4
Ans. (b)

15.Consider the following sectors, contributing to India’s real GDP during the year 2005-06:
1. Agriculture and allied activities
2. Industry
3. Construction
4. Community social and personal services
Which one of the following is the correct descending order in respect of their contribution?
(a) 1-4-3-2 .
(b) 1-2-4-3
(c) 3-4-2-1
(d) 3-2-1-4
Ans. (c)

18. Among different items of import of capital goods to India during the year 2005-06, which one of the following was the highest in the value terms ?
(a) Machine tools
(b) Electronic goods including computer software
(c) Transport equipments
(d) Project goods
Ans. (a)

19. Among the items of export of agricultural and allied products from India during the year 2005-06, which one of the following was the highest in the value
(a) Tea
(b Coffee
(c) Rice
(d) Marine products
Ans. (c)

22. Consider the following statements about the National Agricultural Insurance Scheme (NAIS):
1. The scheme has been implemented from Rabi 1999-2000 season.
2. The scheme is availab1a non-loanee farmers only.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(c Neither 1 nor 2
Ans. (a)

25. In which one of the following years, the National Food Processing Policy was formulated?
(a) 2003
(b) 2004
(c) 2005
(d) 2006
Ans. (c)

26. Consider the following statements:
Accelerated Irrigation Benefit Programme (AIBP) was modified in the year 2004 to provide
1. the central assistance in the form of 70 percent loan and 30 percent grant for non-special category states.
2. the central assistance in the form of 10 percent loan and 90 percent grant for special category states.
3. the central assistance in the form of conversion of the loan to grant if projects are completed on schedule.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 3
(c) 2 and 3
(d) 1, 2 and 3
Ans. (d

27. The Command Area Development Programme (CADP) has been renamed as which one of the following?
(a) Command Area Development and Water Management Programme
(b) Command Area Development and Forest Conservation Programme
(c) Command Area Development and Pollution Control Programme
(d) None of the above
Ans. (a)

28. Consider the following statements:
A. The coverage of Integrated Child Development Programme is limited and often the youngest children in the 0-3 year age group get left out of its ambit.
B. According to ICMR, at any given time, 7-15% of Indian children suffer from mental disorder
Which of the statements given above is/are correct?
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (b)

30. The National Horticulture Mission (NHM) has aimed at doubling the horticultural production. For this, the target year is
(a) 2010
(b) 2011
(c) 2012
(d) 2015
Ans. (c)

33. Consider the following statements:
A. Varsha Bima, the rainfall insurance scheme, is managed by the Agricultural Insurance Company of India Ltd. (ATCIL).
B. The scheme was introduced during the 2007 south-west monsoon period.
Which of the statements given above is/are correct?
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (a)

37. Which one of the following is the proportion of rain-fed agriculture to the net sown area in India?
(a) 40%
(b) 50%
(c) 60%
(d) 72%
Ans. (a)

38. Consider the following statements about industrial relations on the basis of Economic Survey:
A. There was a constant decline in the number of strikes and lockouts during 2000-OS in India.
B. The maximum number of strikes and lockouts in the year 2006 were experienced by Kerala, followed by Tamil Nadu and West Bengal.
Which of the statements given above is/are correct?
(a) A only
(b) B only
(c) Both A and B
(d) Neither A nor B
Ans. (a)

45. Which of th€ following statements pertaining to the strategy to raise agricultural output during the 11th Five Year Plan, are correct?
A. Double the rate of growth of irrigated area.
B. Improve water management, rain water harvesting and watershed development.
C. Provide easy access to credit at affordable rates.
Select the correct answer using the codes given below:
(a) A and B
(b) B and C
(c) A and C
(d) A, B and C
Ans. (a)

46.. With one area of infrastructure is not included in Bharat Nirman Scheme (2005-09)?
(a) Irrigation
(b) Rural roads
(c) Rural health
(d) Rural housing
Ans. (c)

47. Which of the following is/are not monitorable target(s) for the 11th Five Year Plan?
A. Accelerate growth rate of GDP to 10% by the end of the plan and then maintain it in the 12th Five Year Plan.
B. Double per capita income by 201647.
C. Create 20 million new work opportunities.
Select the correct answer using the codes given below:
(a) A only
(b) B only
(c) C only
(d) B and C
Ans. (c)

21. With which one of the following is backward bending supply curve usually associated.

(a) Land

(b) Labour

(c) Capital

(d) Organisation

Ans. (b)

28. What is the major underlying assumption of efficiency wage models?

(a) Labour productivity depends on level of nutrition

(b) Labour productivity is independent of number of labourers -

(c) Capital productivity is maximum

(d) Capital and labour productivities are equal

Ans. (b)

33. To make meaningful international comparisons of income and living standards, which one of the following is most appropriate?

(a) A measure of purchasing power parity

(b) A measure of per capita income

(c) An index of poverty

(d) An index of infrastructure development

Ans. (a)

40. Match List-I with List-II  and select the correct answer using the code given below the lists:

List –I                                                                       List-II

(Type of Unemployment)                                              (Associated Fact)

A. Frictional Unemployment                      1.Non-availability of job

B. Structural Unemployment                      2. Marginal productivity is zero

C. Seasonal Unemployment                        3. Use of obsolete technology for production

D. Disguised Unemployment                     4. Population pressure on land

Code:

A B C D

(a) 4 2 1 3

(b) 1 3 4 2

(c) 4 3 1 2

(d) 1 2 4 3

Ans. (b)

41. According to the 60th Round of NSSO Survey on Employment and Unemployment, unemployment rate on current daily status basis (number of person days per 1000 person days) was highest for which one of the following categories?

(a) Rural male

(c) Urban male

(b) Rural female

(d) Urban female

Ans. (a)

42. Which one of the following committees was set up to review the concept of poverty line?

(a) S. Chakravarty Committee

(b) D.T, Lakdawala Committee

(c) K.N. Wanchoo Committee

(d) R.C. Dust Committee

Ans. (b)

43. Which one of the following countries has the highest life expectancy at birth?

(a) Pakistan

(b) India

(c) Nepal

(d) Sri Lanka

Ans. (d)

44. According to Census-2001 data, what is the urban population as percentage of total population of India?

(a) 23.3%

(b) 25.7%

(c) 27.8%

(d) 28.9%

Ans. (c)

45. Which category of the target groups is not included in the SHG bank linkage programme for micro-finance to agriculture?

(a) Unemployed non-agricultural labourers

(b) Agricultural and non-agricultural labourers

(c) Small and marginal farmers

(d) Artisans and craftsmen

Ans. (a)

46 Consider the following statements in respect of the Tenth Plan

1. This plan has specific monitorable targets in respect of poverty.

2. Decline in incremental capital-output ratio is to be achieved through creating new capacities.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both

(d) Neither 1 nor 2

Ans. (a)

47. The following Industrial Policy Resolution is known as the Economic Constitution of India?
(A) Industrial Policy, 1948
(B) Industrial Policy, 1956
(C) Industrial Policy, 1980
(D) Industrial Policy, 1991

Ans. c