UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Each day, we will cover one new subject. Attempt today’s subject quiz on Economy to check your progress. Come back tomorrow to solve the MCQs on International Relations. Don’t miss checking the answers and explanations at the end of the quiz.

With reference to the Pradhan Mantri Fasal Bima Yojana (PMFBY), consider the following statements:

1. The scheme was launched in the year 2016.

2. The scheme is compulsory for loanee farmers, who possess a crop loan account/Kisan Credit Card (KCC) account.

3. All the state governments are paying farmers’ premiums, and providing insurance for free.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

With reference to the wool production in India, consider the following statements:

1. Wool production in the year 2022-23 has decreased as compared to previous year.

2. Jammu & Kashmir is the largest producer of wool.

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

Consider the following pairs with reference to the price deficiency payments (PDP):

Which of the pair(s) given above is/are correctly matched?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

With reference to the Financial Inclusion Index, consider the following statements:

1. The FI-Index has been constructed without any base year.

2. The Reserve Bank of India launches the Index.

3. The index is published biannually.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

With reference to the Windfall Tax, consider the following statements:

1. It is levied in the form of Cess under the central excise department.

2. The windfall tax on petrol and aviation turbine fuel (ATF) is maximum.

3. It is revised every month based on global crude oil prices.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

FYI:

— The insured gross cropped area of non-loanee farmers under Pradhan Mantri Fasal Bima Yojana (PMFBY) has reached a new high, indicating growing acceptance of the Centre’s crop insurance scheme.

— The proportion of non-loanee area in the total insured area under the PMFBY have been hovering around 24 per cent during the last five years — 23.93 per cent in 2021-22, 24.52 per cent in 2020-21, 22.38 per cent in 2019-20, and 24.3 per cent in 2018-19.

— The government launched the PMFBY from kharif 2016. In 2020, the government revamped the scheme’s operational guidelines, and the revised guidelines came into effect from kharif 2020. Hence, statement 1 is correct.

— Initially, the scheme was compulsory for loanee farmers, who possess a crop loan account/Kisan Credit Card (KCC) account to whom credit limit is sanctioned/renewed for the notified crop during the crop season. However, from Kharif 2020, it was made voluntarily. Hence, statement 2 is not correct.

— Under the PMFBY, farmers have to pay premium at the rate of 2 per cent of sum insured or actuarial rate whichever is less for kharif food and oilseeds crops (all cereals, millets, and oilseeds, pulses), 1.5 per cent for rabi food and oilseeds crops (all cereals, millets, and oilseeds, pulses), and 5 per cent for kharif and rabi annual commercial/annual horticultural crops.

— In several states, including Assam, Andhra Pradesh, Odisha, Maharashtra, and Tripura, the state governments are paying farmers’ premiums, providing insurance for free. Hence, statement 3 is not correct.

Therefore, option (a) is the correct answer.

FYI:

— Wool production has increased by 2.12% in 2022-23 as compared to previous year. Hence, statement 1 is not correct.

— The top five wool-producing states are Rajasthan (47.98%), Jammu and Kashmir (22.55%), Gujarat (6.01%), Maharashtra (4.73%), and Himachal Pradesh (4.27%). Hence, statement 2 is not correct.

— Ewes contribute 72.17% of total wool output, whereas Ram/Wether and Lamb contribute only 13.92% and 13.91%, respectively, of total wool production across the country.

Therefore, option (d) is the correct answer.

(Source: dahd.nic.in)

FYI:

— The price deficiency payments (PDP) entails the government not physically purchasing or stocking any crop, and simply paying farmers the difference between the market price and MSP, if the former is lower.

— PDP was tried out first in Madhya Pradesh through a Bhavantar Bhugtan Yojana. Hence, statement 1 is not correct.

— Under this arrangement, the market price for a crop was determined by the average modal (most-quoted) rate in Madhya Pradesh’s Agricultural Produce Market Committee (APMC) mandis, as well as two other agricultural states, during the selling month.

— The price difference vis-à-vis the MSP was payable on the actual quantity sold by the farmer, backed by an “anubandh patra” (sale agreement with trader), “tol parchi” (weighment slip), and “bhugtan patra” (payment letter signed by both parties).

— Haryana’s PDP scheme, called Bhavantar Bharpai Yojana (BBY), is being implemented mainly in bajra (pearl millet), mustard, and sunflower seed, although technically is also covers groundnut, chana (chickpea), moong, and 16 vegetable and 3 fruit crops. Hence, statement 2 is not correct.

Therefore, option (d) is the correct answer.

FYI:

— The Reserve Bank of India has launched a composite Financial Inclusion Index (FI-Index) to capture the extent of financial inclusion across the country. Hence, statement 2 is correct.

— The FI-Index has been conceptualised as a comprehensive index incorporating details of banking, investments, insurance, postal as well as the pension sector in consultation with the Government and respective sectoral regulators.

— The index captures information on various aspects of financial inclusion in a single value ranging between 0 and 100, where 0 represents complete financial exclusion and 100 indicates full financial inclusion.

— The FI-Index comprises of three broad parameters viz., Access (35%), Usage (45%), and Quality (20%) with each of these consisting of various dimensions, which are computed based on a number of indicators.

— The Index is responsive to ease of access, availability and usage of services, and quality of services, comprising in all 97 indicators.

— A unique feature of the Index is the Quality parameter which captures the quality aspect of financial inclusion as reflected by financial literacy, consumer protection, and inequalities and deficiencies in services.

— The FI-Index has been constructed without any ‘base year’ and as such it reflects the cumulative efforts of all stakeholders over the years towards financial inclusion. Hence, statement 1 is correct.

— The FI-Index will be published annually in July every year. The annual FI-Index for the period ending March 2021 is 53.9 as against 43.4 for the period ending March 2017. Hence, statement 3 is not correct.

Therefore, option (b) is the correct answer.

(Source: rbi.org.in)

FYI:

— The Centre reimposed the windfall tax on domestically produced crude oil revising it to Rs 6,400 per tonne while also scrapping the export duty on diesel.

— This is the 19th revision of the windfall tax, which was first imposed on July 1, 2022, due to a surge in global crude prices caused by the ongoing Russia-Ukraine war.

— The windfall tax on petrol and aviation turbine fuel (ATF) continues to be zero. Hence, statement 2 is not correct.

— The windfall tax is levied in the form of cess under the central excise department. Hence, statement 1 is correct.

— It is revised every fortnight based on global crude oil prices. Hence, statement 3 is not correct.

— The government started levying windfall gains to tax super-normal profits of oil producers and fuel exporters. It had mandated that companies sell the equivalent of 50 per cent of their gasoline exports and 30 per cent of their diesel exports domestically in the current fiscal year.

Therefore, option (a) is the correct answer.

Daily subject-wise quiz — Polity and Governance (Week 45)

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 45)

Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 45)

Daily subject-wise quiz — Economy (Week 44)

Daily subject-wise quiz – International Relations (Week 44)

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