UPSC Essentials — Daily subject-wise quiz : Economy (Week 18)

1. The market value of goods and services taken at constant prices is the nominal GDP.

2. The value of goods and services taken at current prices is the real GDP.

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

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

QUESTION 2

With reference to the fertilisers, consider the following statements:

1. The scheme – Promotion of Alternate Nutrients for Agriculture Management Yojana (PRANAM) seeks to reduce the use of chemical fertiliser.

2. The total requirement of Urea and DAP (Di-ammonium Phosphate) has decreased from 2018 to 2022.

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

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

QUESTION 3

With reference to the ANTARDRISHTI, consider the following statements:

1. It is a financial inclusion dashboard launched by NITI Aayog.

2. It will provide the required insight to assess and monitor the progress of financial inclusion by capturing relevant parameters.

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

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

QUESTION 4

Which of the following released the Report on Currency and Finance?

(a) NITI Aayog

(b) Reserve Bank of India

(c) Ministry of Home Affairs

(d) Department of Economic Affairs

QUESTION 5

With reference to the e-NAM (National Agricultural Market), consider the following statements:

1. It is an online trading platform for agricultural produce aiming to help farmers, traders, and buyers with online trading and getting a better price by smooth marketing.

2. In Punjab, wheat is registered under e-NAM.

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

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

ANSWERS TO MCQs

1. (d)

FYI:

— GDP is the total market value of all goods and services produced in the economy during a particular year, inclusive of all taxes and subsidies on products.

— The market value taken at current prices is the nominal GDP. Hence, statement 1 is not correct.

— The value taken at constant prices — that is prices for all products taken at an unchanged base year — is the real GDP. Hence, statement 2 is not correct.

— In simple terms, real GDP is nominal GDP stripped of inflation. Real GDP growth thus measures how much the production of goods and services in the economy has increased in actual physical terms during a year.

— Nominal GDP growth, on the other hand, is a measure of the increase in incomes resulting from rise in both production and prices.

Therefore, option (d) is the correct answer.

2. (a)

FYI:

— In order to reduce the use of chemical fertilisers by incentivising states, the Union government plans to introduce a new scheme – PM PRANAM, which stands for PM Promotion of Alternate Nutrients for Agriculture Management Yojana.

— The proposed scheme intends to reduce the subsidy burden on chemical fertilisers, which is expected to increase to Rs 2.25 lakh crore in 2022-2023, which is 39 per cent higher than the previous year’s figure of Rs 1.62 lakh crore. Hence, statement 1 is correct.

— The total requirement of four fertilisers — Urea, DAP (Di-ammonium Phosphate), MOP (Muriate of potash), NPKS (Nitrogen, Phosphorus and Potassium) — increased by 21 per cent between 2017-2018 and 2021-2022. Hence, statement 2 is not correct.

— The kharif season (June-October) is critical for India’s food security, accounting for nearly half the year’s production of foodgrains, one-third of pulses and approximately two-thirds of oilseeds. A sizable amount of fertiliser is required for this season.

— The amount of fertiliser required varies each month according to demand, which is based on the time of crop sowing, which also varies from region to region. For example, the demand for urea peaks during June-August period, but is relatively low in March and April, and the government uses these two months to prepare for an adequate amount of fertiliser for the kharif season.

Therefore, option (a) is the correct answer.

3. (b)

FYI:

— The Reserve Bank of India launched a Financial Inclusion Dashboard, named, ANTARDRISHTI. Hence, statement 1 is not correct.

— The dashboard will provide the required insight to assess and monitor the progress of financial inclusion by capturing relevant parameters. Hence, statement 2 is correct.

— The facility will also enable to gauge the extent of financial exclusion at granular levels across the country so that such areas can be addressed. The dashboard, presently intended for internal use in the RBI, will further facilitate greater financial inclusion through a multi-stakeholder approach.

— The Reserve Bank has been promoting financial inclusion through various policy initiatives. To measure the extent of financial inclusion, RBI had constructed the Financial Inclusion (FI) Index in 2021, based on three dimensions of financial inclusion, viz., ‘Access’, ‘Usage’ and ‘Quality’.

Therefore, option (b) is the correct answer.

(Source: http://www.rbi.org.in)

4. (b)

FYI:

— The Reserve Bank of India released the Report on Currency and Finance 2021-22.

— It provides a frank assessment of the state of the Indian economy, beginning from its analysis of the economic slowdown prior to the pandemic, and going on to its evaluation of the post-Covid scenario, and the challenges facing the economy.

— The report has also outlined the policy agenda for a post-Covid economy, beginning with the “rebalancing” of monetary and fiscal policies.

Therefore, option (b) is the correct answer.

5. (a)

FYI:

— E-NAM (National Agriculture Market) is an online trading platform for agriculture produce aiming to help farmers, traders, and buyers with online trading and getting a better price by smooth marketing. Hence, statement 1 is correct.

— It was launched by the Centre in 2015 and the government had to extend it in a phased manner across the 585 mandis of the country by December 31, 2019.

— Punjab was included in it in April 2018. While the deadlines has been missed, under e-NAM all mandis have to be made live on the e-NAM portal by Centre for online transaction of agricultural commodities.

— The farmers growing wheat and paddy, which comes under the assured Minimum Support Price (MSP) category, would not be registered under it. In Punjab, the farmers who grow seven commodities including basmati, cotton, maize, green peas, potato, kinnow, and moong dal (pulse) are registered under e-NAM. Hence, statement 2 is not correct.

Therefore, option (a) is the correct answer.

Previous Daily Subject-Wise-Quiz

Daily subject-wise quiz — Polity and Governance (Week 18)

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 18)

Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 18)

Daily subject-wise quiz — Economy (Week 17)

Daily subject-wise quiz – International Relations (Week 17)

(The UPSC Essentials Indian Express is now on Telegram- Indian Express UPSC Hub. Click here to join our YouTube channel and stay updated with the latest updates.

Also Read

UPSC Essentials | Get Inspired: B K Singh, former forest officer on Veera...

UPSC Weekly Current Affairs Quiz : August 05 to August 12, 2023

UPSC Essentials | Weekly news express : Major Bills of Monsoon Session 2023

UPSC Essentials | Society & Social Justice : Urbanisation and associated ...

Note: Catch the UPSC Weekly Quiz every Saturday evening and brush up on your current affairs knowledge.)