Daily Static MCQs for UPSC & State PSC Exams - Economy (08 June 2023)

Daily Static MCQs Quiz for UPSC, IAS, UPPSC/UPPCS, MPPSC. BPSC, RPSC & All State PSC Exams

Subject : Economy

1. Consider the following statements:

1. Food grains in the deficit areas and among the poorer strata of society is distributed at a price lower than the market price known as Issue Price.
2. The MSP is declared by the government every year after the sowing season.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) 1 and 2 only
(d) Neither 1 nor 2

Answer: (A)

Explanation: The Minimum Support Price (MSP) is declared by the government every year before the sowing season to provide incentives to the farmers for raising the production of these crops. The purchased foodgrains are stored in granaries. This buffer stock is created by the government. This is done to distribute foodgrains in the deficit areas and among the poorer strata of society at a price lower than the market price also known as Issue Price. This also helps resolve the problem of shortage of food during adverse weather conditions or during the periods of calamity. Hence, statement 1 is correct while statement 2 is incorrect.

2. With reference to “Dekho Apna Desh" scheme, consider the following statements:

1. It aims to promote tourism and encourage people to explore the rich cultural heritage and diversity of India.
2. It primarily encourages the elite class citizens of the country to travel within India rather than abroad.
3. It is intended to offer financial help to tourists travelling to different parts of India.

How many statements given above are correct?

(a) Only one
(b) Only two
(c) All three
(d) None

Answer: (B)

Explanation:

  • Dekho Apna Desh scheme aims to promote tourism and encourage people to explore the rich cultural heritage and diversity of India. It is intended to offer financial help to tourists travelling to different parts of India. Hence, statement 1 and 3 are correct.
  • This scheme primarily targets the middle-class citizens of the country, encouraging them to travel within India rather than abroad. Hence, statement 2 is incorrect.

3. Consider the following statements regarding PM Awas Yojana (PMAY):

1. It is a Credit Linked Subsidy Scheme (CLSS) for affordable houses for middle and low income groups.
2. It is a central sector scheme under Ministry of Rural Development.
3. Union Budget 2023-24 increased the allocation for PMAY by 66% from previous fiscal year.

Which of the above statements is/are correct?

(a) 1 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (B)

Explanation:

  • Giving a huge boost to affordable housing, the Union Budget presented on February 1 increased the allocation for the PM Awas Yojana (PMAY) by 66%. The scheme was created to assist the middle-income community, economically disadvantaged groups (EWS) and low-income groups (LIG). This Credit Linked Subsidy Scheme (CLSS) is aimed to provide its beneficiaries with an interest subsidy to avail loans to purchase or build a house. Hence, statement 1 and 3 are correct.
  • PMAY is Government’s mission - Housing for All by 2022 and it is a Centrally Sponsored Scheme (CSS). Hence, statement 2 is incorrect.

4. Consider the following statements, with reference to PPP (Public Private Partnership) model:

Statement I: It is an arrangement between the government and private sector for the provision of public assets and also includes Public Services.
Statement II: In such time of arrangement, the risk is entirely shared by the private entity.

Which one of the following is correct in respect to the above statements?

(a) Both Statement I and Statement II are correct and Statement II is the correct explanation for Statement I.
(b) Both Statement I and Statement II are correct and Statement II is not the correct explanation for Statement I.
(c) Statement I is correct but Statement II is incorrect.
(d) Statement I is incorrect but Statement II is correct.

Answer: (C)

Explanation: PPP (Public Private Partnership) model is an arrangement between the government and private sector for the provision of public assets and also includes Public Services. In PPP (Public Private Partnership), there is a well defined allocation of risk between the private sector and public entity. Hence, Statement I is correct but Statement II is incorrect.

5. Consider the following statements, with reference to Special Drawing Rights (SDR):

1. It is an international reserve asset, created by IMF in 1969.
2. It has having its own value i.e. not based on any other currency.
3. It is neither a currency nor a claim on the IMF.

Which of the statements given above are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (C)

Explanation:

  • Special Drawing Rights (SDRs) is an international reserve asset, created by the IMF in 1969 to supplement its member countries official reserves. Hence, statement 1 is correct.
  • Its value is based, on a basket of five currencies the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling. Hence, statement 2 is incorrect.
  • It is neither a currency nor a claim on the IMF. Hence, statement 3 is correct.