Economic Development Archives

31. ‘e-Kisan Upaj Nidhi’ is launched by which one of the following ministr

‘e-Kisan Upaj Nidhi’ is launched by which one of the following ministries of the Government of India ?

Ministry of Agriculture and Farmers Welfare

Ministry of Consumer Affairs, Food and Public Distribution

Ministry of Ports, Shipping and Waterways

Ministry of Food Processing Industries

This question was previously asked in

UPSC Combined Section Officer – 2024

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The correct answer is B) Ministry of Consumer Affairs, Food and Public Distribution.

The ‘e-Kisan Upaj Nidhi’ (Digital Gateway) was launched by the Department of Food and Public Distribution, which falls under the Ministry of Consumer Affairs, Food and Public Distribution. The initiative aims to provide farmers with warehousing options for their produce.

This digital platform facilitates online registration of farmers, storage of their produce in registered warehouses under the Warehousing Development and Regulatory Authority (WDRA), and obtaining electronic Negotiable Warehouse Receipts (eNWRs). This enables farmers to store their produce closer to their location and secure post-harvest loans.

32. Which one of the following is an example of optional money ?

Which one of the following is an example of optional money ?

Currency note

Coins

Cheque

Bond

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UPSC Combined Section Officer – 2024

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Optional money, also known as fiduciary money, is money that is accepted based on the trust between the payer and the payee. Unlike legal tender (currency notes and coins issued by the central bank/government), it is not legally compulsory for everyone to accept optional money in payment. A cheque is a classic example of optional money; a seller or creditor is not legally bound to accept a cheque, they can insist on payment in legal tender.

– Legal Tender: Currency (notes and coins) that a debtor is legally permitted to offer a creditor in payment of a debt, and the creditor is legally required to accept.
– Optional Money (Fiduciary Money): Money accepted based on trust, not legal compulsion.
– Examples of Optional Money: Cheques, Bank Drafts, Promissory Notes (in certain contexts).

While cheques are optional money, they form a crucial part of the modern payments system, facilitating large-value transactions and reducing the need for carrying large amounts of cash.

33. How does agriculture fuel Indian industrial development ? By opening

How does agriculture fuel Indian industrial development ?

By opening up market for industrial products
By providing food and clothing to labourers
By supplying raw materials

Select the correct answer using the code given below :

1 only

2 and 3 only

3 only

1, 2 and 3

This question was previously asked in

UPSC Combined Section Officer – 2024

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Agriculture fuels Indian industrial development in multiple ways:
1. **Market for industrial products:** A prosperous agricultural sector increases the income of the rural population, creating a demand for industrial goods such as textiles, consumer goods, fertilizers, pesticides, machinery, and tools.
2. **Food and clothing for laborers:** Agriculture provides essential food grains, vegetables, fruits, and raw materials like cotton and jute for clothing, which are necessary to sustain the labor force engaged in industries.
3. **Supply of raw materials:** Many key industries are agro-based, relying heavily on agricultural produce as raw materials, such as the textile industry (cotton, jute, silk), sugar industry (sugarcane), food processing industry (grains, fruits, vegetables), and vegetable oil industry (oilseeds).
All three statements correctly describe how agriculture supports industrial growth.

– Linkage between agriculture and industry: Demand, Supply of inputs (labor sustenance, raw materials), Capital formation (agricultural savings can be invested in industry).
– Agro-based industries are a significant part of the industrial sector in India.

This interdependency highlights the importance of balanced development between the agricultural and industrial sectors for overall economic growth in a country like India.

34. The purpose of land reforms was : Increase in production Increase t

The purpose of land reforms was :

Increase in production
Increase the purchasing power of the rural population
Ensure distributive justice with economic growth

Select the correct answer using the code given below :

1 and 2 only

2 and 3 only

1 and 3 only

1, 2 and 3

This question was previously asked in

UPSC Combined Section Officer – 2024

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The purpose of land reforms in India was multi-faceted:
1. **Increase in production:** By abolishing intermediaries, providing security of tenure to tenants, and consolidating fragmented holdings, reforms aimed to give cultivators a direct stake in the land and encourage investment in inputs and technology, leading to increased productivity.
2. **Increase the purchasing power of the rural population:** Distributing land to the landless and providing security and fair rent to tenants improved their economic status and income, thereby increasing their purchasing power for goods and services.
3. **Ensure distributive justice with economic growth:** A primary goal was to reduce the stark inequalities in land ownership inherited from colonial and feudal systems, distributing land more equitably and empowering the marginalized sections of rural society, thus promoting economic growth that was more inclusive and just.
All three listed points accurately reflect the key objectives behind land reform measures implemented in India after independence.

– Key pillars of land reforms in India: Abolition of intermediaries, Tenancy reforms, Ceilings on landholdings, Consolidation of landholdings.
– Objectives: Equity, Productivity, Social justice, Poverty reduction.

While land reforms achieved partial success, implementation faced challenges such as legal hurdles, lack of political will, poor record-keeping, and resistance from powerful landholders.

35. The demand for which one of the following commodities will be almost p

The demand for which one of the following commodities will be almost perfectly inelastic ?

Gold

Cars

Dining out

Basic food grains

This question was previously asked in

UPSC Combined Section Officer – 2024

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Perfectly inelastic demand means the quantity demanded does not change at all when the price changes. Demand for basic necessities, especially staple food grains, tends to be highly inelastic because people need them for survival regardless of the price, particularly for low-income households where these form a significant portion of consumption. While demand is rarely perfectly inelastic in reality, basic food grains are the best example among the given options of a commodity with very low price elasticity of demand. Gold, cars, and dining out are generally considered luxury or discretionary items with relatively elastic demand.

– Elasticity of demand measures the responsiveness of quantity demanded to price changes.
– Inelastic demand: Quantity demanded changes little with price changes.
– Perfectly inelastic demand: Quantity demanded does not change with price changes (vertical demand curve).
– Necessities tend to have more inelastic demand than luxuries.

Examples of goods with highly inelastic demand include life-saving medicines, essential basic food items, and addictive substances (though the latter has ethical implications).

36. What is the shape of the short run marginal cost curve ?

What is the shape of the short run marginal cost curve ?

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UPSC Combined Section Officer – 2024

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The short-run marginal cost (MC) curve is typically U-shaped. Initially, as output increases, marginal cost falls due to increasing marginal returns from the variable input (e.g., labor). However, as output continues to increase, the firm encounters diminishing marginal returns to the variable input (due to fixed factors like capital), causing marginal cost to rise. This initial fall followed by a rise gives the MC curve its U-shape.

– Marginal Cost (MC) is the cost of producing one additional unit of output.
– Short-run costs are affected by fixed and variable factors.
– The U-shape is a result of the Law of Variable Proportions (or Diminishing Marginal Returns).

The short-run average variable cost (AVC) and average total cost (ATC) curves are also typically U-shaped. The MC curve intersects both the AVC and ATC curves at their minimum points.

37. National Investment and Infrastructure Fund is registered under which

National Investment and Infrastructure Fund is registered under which one of the following Acts ?

Companies Act, 2013

RBI Act, 1934

Indian Trusts Act, 1882

Cooperative Societies Act, 1912

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UPSC Combined Section Officer – 2024

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The National Investment and Infrastructure Fund (NIIF) is registered under the Indian Trusts Act, 1882. It was established by the Government of India as an investment vehicle for funding infrastructure projects. It operates as a fund manager and manages funds under SEBI (Alternative Investment Funds) Regulations, 2012. NIIF Limited, which is the investment manager of NIIF, is registered under the Companies Act, 2013, but the fund structure itself is often based on a trust or company structure depending on the category. NIIF Master Fund is registered as a Category II Alternative Investment Fund (AIF) under the SEBI AIF Regulations, structured as a trust under the Indian Trusts Act, 1882.

– NIIF is an investment vehicle focused on infrastructure.
– It is structured as a trust.
– Registered under the Indian Trusts Act, 1882.

NIIF manages three funds: Master Fund (Category II AIF), Fund of Funds (Category II AIF), and Strategic Opportunities Fund (Category II AIF). The Master Fund primarily invests in core infrastructure sectors like roads, ports, airports, power, etc.

38. Yellow Revolution is related to which one of the following crop produc

Yellow Revolution is related to which one of the following crop productions ?

Pulses

Oil seeds

Sunflower

Rice

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UPSC Combined Section Officer – 2024

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The Yellow Revolution in India is a term associated with the increase in the production of edible oilseeds. It was launched to increase the production of nine oilseeds: groundnut, rapeseed-mustard, soybean, safflower, sunflower, niger, sesamum, linseed, and castor.

– Yellow Revolution: Increase in edible oilseed production.
– Green Revolution: Wheat and Rice production.
– White Revolution: Milk production.
– Blue Revolution: Fish production.

Sam Pitroda is considered the father of the Yellow Revolution in India. The revolution involved the use of improved seeds, fertilizers, and irrigation techniques to boost oilseed yield.

39. Why were Banks nationalised in India ? 1. To borrow money from USA

Why were Banks nationalised in India ?

1. To borrow money from USA
2. To follow the IMF guidelines
3. To provide the Government of India more control of credit delivery

Select the correct answer using the code given below:

1 only

2 and 3

3 only

1, 2 and 3

This question was previously asked in

UPSC Combined Section Officer – 2024

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The primary reason for nationalizing banks in India (initially in 1969 and further in 1980) was to align the banking sector with the socialist planning goals of the government. This included ensuring that credit flowed to priority sectors like agriculture and small-scale industries, expanding banking services to rural areas, and reducing the concentration of wealth in the hands of a few industrialist families who controlled private banks. Reason 3, “To provide the Government of India more control of credit delivery,” accurately reflects this key objective.

Nationalization aimed to make banking a tool for socio-economic development and planned economic growth by giving the government control over credit allocation.

Reasons 1 and 2 are incorrect. Bank nationalization was an internal policy decision driven by domestic economic and political considerations, not a means to borrow from the USA or to follow IMF guidelines. In fact, IMF prescriptions often lean towards privatization rather than nationalization.

40. The ‘Interest Rate Policy’ is a component of which one of the followin

The ‘Interest Rate Policy’ is a component of which one of the following policies ?

Fiscal Policy

Monetary Policy

Trade Policy

Direct Control

This question was previously asked in

UPSC Combined Section Officer – 2024

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Interest Rate Policy is a key component of Monetary Policy. Monetary Policy refers to the actions undertaken by a central bank (like the Reserve Bank of India) to manipulate the money supply and credit conditions to stimulate or constrain economic activity.

Central banks use tools like policy interest rates (e.g., repo rate, reverse repo rate) to influence the overall cost of borrowing and lending in the economy.

Fiscal Policy is related to government spending and taxation. Trade Policy concerns international trade regulations. Direct Control is a broad term and not a specific policy category containing interest rates in this context. Monetary policy, through interest rate adjustments and other measures, impacts inflation, economic growth, and liquidity in the financial system.