Consider the following : 1. Areca nut 2. Barley 3. Coffee 4. Finger millet 5. Groundnut 6. Sesamum 7. Turmeric The Cabinet Committee on Economic Affairs has announced the Minimum Support Price for which of the above ?
- A.1, 2, 3 and 7 only
- B.2, 4, 5 and 6 only
- C.1, 3, 4, 5 and 6 only
- D.1, 2, 3, 4, 5, 6 and 7
Correct answer
Explanation
The correct answer is B, 2, 4, 5 and 6 only. Barley, finger millet, groundnut and sesamum are among the crops covered by Minimum Support Price, while areca nut, coffee and turmeric are not. The Cabinet Committee on Economic Affairs approves MSP every season on the recommendation of the Commission for Agricultural Costs and Prices. The list covers 22 mandated crops: kharif crops such as paddy, ragi (finger millet), groundnut and sesamum, rabi crops such as wheat and barley, and two commercial crops, jute and copra; sugarcane gets a Fair and Remunerative Price instead. Plantation crops and spices like coffee, areca nut and turmeric are left to the market and to their commodity boards. Option A is wrong because it includes areca nut, coffee and turmeric and leaves out finger millet, groundnut and sesamum. Option C is wrong because it includes areca nut and coffee and drops barley. Option D is wrong because three of the seven items have no MSP. Exam tip: copra gets an MSP, but areca nut, coffee and turmeric do not.
Practice Questions
View allThe Nehru-Mahalanobis Strategy of Development was implemented for the first time by which one of the following Five-Year Plans?
- A.First Five-Year Plan
- B.Second Five-Year Plan
- C.Third Five-Year Plan
- D.Seventh Five-Year Plan
Show answer
The Second Plan (1956–61) was built on the model prepared by the statistician P. C. Mahalanobis, which gave priority to heavy and basic industries.
Read the full explanation →The Insolvency and Bankruptcy Board of India (IBBI) was established in the year
- A.2014
- B.2015
- C.2016
- D.2017
Show answer
The Insolvency and Bankruptcy Board of India was set up on 1 October 2016 under the Insolvency and Bankruptcy Code, 2016.
Read the full explanation →Consider the following statements : 1. An additional spending by the Government of ₹ X is likely to have less impact on income than an additional transfer of ₹ X to households. 2. An additional spending by the Government of ₹ X is likely to have less impact on income if it is not accompanied by an expansion in money supply. Which of the statements given above is/are correct ?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
Show answer
Government spending adds to income more than an equal transfer, and its effect is smaller when money supply is not expanded alongside it.
Read the full explanation →Which one of the following central features is not associated with Capitalist Economy?
- A.There is generalised commodity production - it has market value.
- B.Productive wealth is held predominantly in private hands.
- C.Economic life is organised according to market principles.
- D.Economic organisation is based on planning, a supposedly rational process of resource allocation.
Show answer
Allocation of resources through central planning is the mark of a socialist or command economy, not a capitalist one. In a capitalist economy, the means of production such as land, factories and capital are owned mainly by private individuals and firms.
Read the full explanation →Consider the following statements:
I. The Second Five-Year Plan sought to promote development which would establish socialistic pattern of society in India.
II. Between 1966 and 1969, three Annual Plans were formulated.
III. The Ninth Five-Year Plan could not take off at its stipulated time in the 60th year of India's Independence.
Which of the statements given above are correct?
- A.I and II only
- B.I and III only
- C.II and III only
- D.I, II and III
Show answer
Statements I and II are true, but the Ninth Plan began in 1997, the fiftieth year of Independence, not the sixtieth.
Read the full explanation →