Subsidies Questions and Answers

Multiple Choice Questions and Answers (MCQ) on Subsidies for Civil Services Examinations

Question 1 : Which of the following is not an objective of food management in India?

a) Procurement of food grains from farmers at remunerative prices

b) Distribution of food grains to the consumer, particularly the vulnerable sections of the society, at affordable prices

c) Export of food grains to overcome current account deficit

d) Maintenance of food buffers for food security and price stability

Answer : b

Question 2 : The prices at which the government purchases food grains for maintaining the public distribution system and for building up buffer stocks is known as

a) Minimum support prices

b) Procurement prices

c) Issue prices

d) Ceiling prices

Answer : b

Question 3 :  Which of the following is not a merit of Green Revolution?

a) Increase in agricultural production

b) Reduction in the import of food grains

c) Prosperity of farmers

d) Removal of regional imbalances

Answer : d

Question 4 : The subsidy bill of the central government in 2016-17 was approximately

a) 1% of GDP

b) 1.5% of GDP

c) 2% of GDP

d) 2.5% of GDP

Answer : c

Question  5 : Which of the following items constitute the highest share among the subsidies given by the central government?

a) Food, fuel, and fertilizer

b) Interest, food, and fertilizer

c) Water, food, and fuel

d) Food, water, and fuel

Answer : a

Question 6 : Consider the following statements regarding minimum support price (MSP):

  1. Minimum support price is proposed by the Cabinet Committee on Economic Affairs
  2. Minimum amount support price is approved by the Commission for Agricultural Cost and Prices

Which of the above statements is/are not correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

Answer : c

Question 7 : In the context of agricultural revolution in India, which of the following statements is/are correct?

  1. White Revolution in the field of agricultural development is associated with modernization of sheep farming.
  2. The second Green Revolution is associated with the development of horticulture
  3. Blue Revolution in the field of agriculture is associated with improvement in the production of fish and marine products

Select the correct answer using the codes given below:

a) 1 only

b) 3 only

c) 2 and 3 only

d) 1, 2, and 3

Answer : c

Question 8 : Which of the following are the objectives of the Commission for Agricultural Costs and Prices (CACP)?

  1. To stabilize agricultural prices
  2. To ensure meaningful real income levels to the farmers
  3. To protect the interest of consumers by providing essential agricultural commodities at reasonable rates through public distribution system
  4. To ensure the growth of food-processing industries in India

Select the correct answer using the codes given below:

a) 1, 2, and 3

b) 1, 2 and 4

c) 1, 3, and 4

d) 1, 2, 3 and 4

Answer : a

Question 9 : Despite “self-sufficiency” in food production, freedom from hunger has not been achieved in India. Which of the following are the reasons for this failure?

  1. The Green Revolution has been restricted to small pockets of the country
  2. The cost of food is too high compared to the earnings of the poor
  3. Too much emphasis is laid on wheat and paddy compared to the coarse grains.
  4. The gains of Green Revolution have largely accrued to the production of cash crops rather than food crops.

Select the correct answer using the codes given below:

a) 1, 2 and 3

b) 1, 2 and 4

c) 1 , 3 and 4

d) 1 , 2, 3 and 4

Answer : a

Question 10 : Consider the following statements with reference to the public distribution system in India

  1. The public distribution system is operated under the joint responsibility of central and state governments
  2. The responsibility of procurement is with the central government, while the storage and distribution are responsibilities of state governments.
  3. The issue price of food grains for below poverty line families is fixed at 60% of the procurement cost
  4. The Antyodaya Anna Yojana has been launched in order to make the Targeted Public Distribution System ( TPDS) more focused towards the poor.

Which of the statements given above is /are correct?

a) 1 only

b) 2 and 3

c) 1 , 2 and 4

d) 2, 3 and 4

Answer : c