Print Friendly, PDF & Email

SOLUTIONS + Quiz: Insights Revision Test for Prelims 2018- DAY – 6

SOLUTIONS

INSIGHTS REVISION TEST for Preliminary Exam 2018: Test – 6

To give this test as QUIZclick here.

Henceforth, we will be posting solutions separately after each Revision test.  We will also post Interactive Quiz along with this post (it’s easy to prepare quiz using plugin in early morning when traffic is low)

 

INSIGHTS IAS REVISION PLAN FOR PRELIMS 2018 - DAILY REVISION TESTS

Welcome to Insights IAS Revision Plan for UPSC Civil Services Preliminary Exam – 2018.

If you are wondering why these questions are posted, please refer to the detailed Timetable provided HERE.

These questions serve TWO purposes: One to test your revision skills; Second is to give you a glimpse into topics that you might have missed during revision. 

If you score ow marks, please don’t feel bad. Revise more effectively and try to learn from mistakes. Wish you all the best. 

 


 

 

1). Consider the following statements about agriculture in India:

  1. The dynamics of agricultural growth reflect a reduction in the share of crop sector
  2. The agriculture sector in India necessitates re-orientation in policies towards activities like dairying and livestock development along with gender-specific interventions
  3. This has impacted the sources of incomes of the farm households.

Which of the above statements is/are correct:

a) 1 and 2 only

b) 2 and 3 only

c) 1, 2 and 3

d) 2 only

Solution:c

chart1

As can be seen from the above chart that there has been decline in the share of cropping. Thus we need to focus on other sectors along with gender specific incentives to promote agriculture. Also this has borne positive effects on sources of income for farmers.

The government has tried to come up with expansion of Kisan Credit Card scheme to livestock and fisheries. Also dairy fund and fisheries fund were established to promote these sectors further. The government also encouraged women oriented interventions such as SHG bank linkage programmes.

 

The need of gender specific interventions

With growing rural to urban migration by men, there is ‘feminisation’ of agriculture sector. The Survey points out the predominant presence of women at all levels — production, pre-harvest, post-harvest processing, packaging, marketing — of the agricultural value chain. Hence there is need of ‘inclusive transformative agricultural policy’, aimed at gender-specific interventions.

 

Impacted the sources of incomes of the farm households

The decrease in share of crop sector in the total gross value added of the agriculture and allied sector has impacted the sources of incomes of the farm households. As can be seen from Figure 2 in 2002-03 the share of livestock in total farm incomes was just 4 per cent which increased to 13 per cent by 2012-13.


2). As per Census 2011, consider the following:

  1. Out of total female main workers, agricultural labourers are more than cultivators.
  2. There is high gender disparity in ownership of landholdings in agriculture
  3. There is concentration of operational holdings by women in the marginal and small holdings categories.

Which of the above statements is/are correct:

a) 1 and 2 only

b) 2 and 3 only

c) 1, 2 and 3

d) 2 only

Solution:c

Women have less equitable share of land and thus form greater part of labour rather than cultivators. There is huge disparity in gender ownership of land. As can be seen by thee table above, most of the women cultivators are operating on small or marginal land holdings.

 

Census 2011

  • out of total female main workers, 55% were agricultural labourers & 24% cultivators.
  • 8% of the operational holdings were owned by women, which reflected the gender disparity in ownership of landholdings in agriculture.

 


3). Government has been implementing various schemes which help improve the entitlements of women farmers, which will prove to be advantageous in bridging the policy gaps. In the light of this statement which of the following is true:

a) Earmarking at least 30 per cent of the budget allocation for women beneficiaries in all ongoing schemes/programmes and development activities.

b) Recognising the critical role of women in agriculture, the Ministry of Agriculture and Farmers Welfare has declared 9th January of every year as Women Farmer’s Day.

c) Making reservations for women in panchayats

d) None of the above

Solution: a

Option b should be 15 October and reservation of women has no significant bearing on life of women farmers and entitlements to women in relation to land, credit etc. and 9th January is the Pravasi Bhartiya Diwas. Hence it can easily be eliminated.

Because of increasing feminization of agriculture the government has adopted following measures to ensure mainstreaming of women in agriculture sector: 

• Earmarking at least 30% of the budget allocation for women beneficiaries in all ongoing schemes/programmes and development activities. 

• Initiating women centric activities to ensure benefits of various beneficiary-oriented programs/schemes reach them. 

• Focusing on women self-help group (SHG) to connect them to micro-credit through capacity building activities and to provide information and ensuring their representation in different decision-making bodies. 

• Recognizing the critical role of women in agriculture, the Ministry of Agriculture and Farmers Welfare has declared 15th October of every year as Women Farmer’s Day. 

 

For more: https://www.thehindubusinessline.com/economy/agri-business/govt-earmarks-30-of-funds-in-agri-schemes-for-women/article9836999.ece

International Day of Rural Women
15 October 

http://www.un.org/en/events/ruralwomenday/

option c: 73rd constitutional amendment has provided for reservation of 1/3 seats in panchayat for women


 

4). Consider the following statements with respect to agriculture mechanisation:

  1. The sale of tractors in India cannot be taken as the only measure of farm mechanization but to a great extent it reflects the level of mechanization.
  2. Indian tractor industries have emerged as the largest in the world and account for about one-third of total global tractor production.

Which of the above statements is/are correct:

a) Only 1

b) Only 2

c) 1 and 2

d) None of the above

Solution: c

The Economic Survey says that the sale of tractors to a great extent reflects the level of mechanization. Indian tractor industries have emerged as the largest in the world and account for about one-third of total global tractor production, the Survey adds. While the trend is encouraging, the Economic Survey notes that more needs to be done. It is estimated that percentage of agricultural workers of total work force would drop to 25.7 per cent by 2050 from 58.2 per cent in 2001. “Thus, there is a need to enhance the level of farm mechanization in the country. Due to intensive involvement of labour in different farm operations, the cost of production of many crops is quite high,” Chief Economic Advisor Arvind Subramanian said.

Farm mechanization and crop productivity has a direct correlation as farm mechanization saves time and labour, reduces drudgery, cut down production cost in the long run, reduces post-harvest losses and boosts crop output and farm income. Use of improved implements has potential to increase productivity up to 30 per cent and reduce the cost of cultivation up to 20 per cent. At present, Indian farmers are adapting farm mechanization at a faster rate in comparison to recent past. Although, the sale of tractors in India cannot be taken as the only measure of farm mechanization but to a great extent it reflects the level of mechanization. Indian tractor industries have emerged as the largest in the world and account for about one-third of total global tractor production.

 

Growth in tractor industry

According to ICRA rating agency the domestic growth in FY 2016-17 was fuelled 

  • favourable farm sentiments as the southwest monsoon performance remained healthier compared to the previous two fiscals
  • While the monsoon performance augured well for kharif production, it also replenished reservoir levels that supported rabi sowing despite weak winter monsoons
  • increasing rural wages
  • scarcity of farm labour

5). Climate Smart Agriculture aims to tackle which of the following main objectives:

  1. Sustainably increasing agricultural productivity and incomes;
  2. Adapting and building resilience to climate change;
  3. Reducing and/or removing greenhouse gas emissions wherever possible.

Which of the above is/are correct:

a) 1,2 and 3

b) 1 and 2

c) Only 1

d) None of the above

Solution: d

Above options are related to Climate Smart Agriculture:

 

 (CSA) may be defined as an approach for transforming and reorienting agricultural development under the new realities of climate change (Lipper et al. 2014). 1 The most commonly used definition is provided by the Food and Agricultural Organisation of the United Nations (FAO), which defines CSA as “agriculture that sustainably increases productivity, enhances resilience (adaptation), reduces/removes GHGs (mitigation) where possible, and enhances achievement of national food security and development goals”. In this definition, the principal goal of CSA is identified as food security and development (FAO) while productivity, adaptation, and mitigation are identified as the three interlinked pillars necessary for achieving this goal.

 

Climate Sustainable Agriculture

 

Please check here: https://www.theguardian.com/sustainable-business/food-blog/sustainable-agriculture-10-things-climate-change

 


 

6). ‘While the farmers are advised to undertake on-line trade, it is also important that they avail themselves of post-harvest loans by storing their produce in the accredited warehouses’. These statements are related to which of the following schemes:

  1. E-NAM (National Agriculture Market)
  2. TReDS (Trade Receivables electronic discounting system)
  3. e-NWR (Negotiable Warehouse Receipts)
  4. e-RAKAM (Rashtriya Kisan Agri Mandi)

Answer using codes below:

a) 1,2 and 3

b) 1,3 and 4

c) 1,2,3 and 4

d) 2,3 and 4

Solution: b

National Agriculture Market or e-NAM is a pan-India, unified national electronic agriculture market for agricultural commodities. It was launched by Ministry of Agriculture, Government of India, to facilitate farmers, traders, buyers, exporters and processors with a common platform for trading commodities.

The scheme for setting up and operating the institutional mechanism for facilitating the financing of trade receivables of MSMEs from corporate buyers through multiple financiers will be known as Trade Receivables Discounting System (TReDS)

Negotiable warehouse receipts allow transfer of ownership of that commodity stored in a warehouse without having to deliver the physical commodity. These receipts are issued in negotiable form, making them eligible as collateral for loans.

The Union Government has launched e-Rashtriya Kisan Agri Mandi (e-RaKAM) portal to provide a platform for farmers to sell agricultural produce.


7). Which of the following statements is correct?

a) Interest subvention scheme is implemented by NABARD and RBI

b) Interest subvention defines short term loans as loans given for 6 months

c) Interest subvention does not cover post-harvest loans

d) All of the above statements are correct

Solution: a

Short term under this scheme is defined as loans for less than one year. The scheme covers post-harvest loans and also provides for restructured loans in case of natural calamities. The interest subvention scheme for farmers aims at providing short term credit to farmers at subsidised interest rate.  The policy came into force with effect from Kharif 2006-07. The scheme is being implemented for the year 2017-18.

The interest subvention will be given to Public Sector Banks (PSBs), Private Sector Banks, Cooperative Banks and Regional Rural Banks (RRBs) on use of own funds and to NABARD for refinance to RRBs and Cooperative Banks.

The Interest Subvention Scheme will continue for one year and it will be implemented by NABARD and RBI.

The scheme has been running since 2006-07. Under this, the farmers can avail concessional crop loans of upto Rs.3 lakh at 7% rate of interest.  It also provides for an additional subvention of 3%.  Prompt Repayment within a period of one year from the date of advance.  As a measure to check distress sale, post-harvest loans for storage in accredited warehouses against Negotiable Warehouse Receipts (NWRs) are available for upto 6 months for KCC holding small & marginal farmers.  During the year 2016-17, the volume of short term crop loan lent stood at Rs.6,22,685 crore, surpassing the target of Rs. 6,15,000 crore.

For more: http://pib.nic.in/newsite/PrintRelease.aspx?relid=165625


8). Consider the following statements:

  1. The off take of food grains is primarily under the National Food Security Act, 2013 (NFSA) and other welfare schemes of the Government of India.
  2. Recently the stocks of FCI were also liquidated by conducting open market sale of food grains

Which of the above statements is/are correct:

a) Only 1

b) Only 2

c) Both 1 and 2

d) None of the above

Solution: c

Open Market Sale Scheme (OMSS) refers to selling of foodgrains by Government / Government agencies at predetermined prices in the open market from time to time to enhance the supply of grains especially during the lean season and thereby to moderate the general open market prices especially in the deficit regions.

In addition to maintaining buffer stocks and making a provision for meeting the requirement of the Targeted Public Distribution Scheme and Other Welfare Schemes (OWS), Food Corporation of India (FCI) on the instructions from the Government, sells wheat and rice in the open market from time to time to enhance the supply of wheat and rice especially during the lean season and to moderate the open market prices especially in the deficit regions. For transparency in operations, the Corporation has switched over to e- auction for sale under Open Market Sale Scheme (Domestic). The FCI conducts a weekly auction to conduct this scheme in the open market using the platform of commodity exchange NCDEX (National Commodity and Derivatives Exchange Limited). The State Governments/ Union Territory Administrations are also allowed to participate in the e-auction, if they require wheat and rice outside TPDS & OWS.

The present form of OMSS comprises 3 schemes as under:

(i) Sale of wheat to bulk consumers/private traders through e-auction.

(ii) Sale of wheat to bulk consumers/private traders through e-auction by dedicated movement.

(iii) Sale of Raw Rice Grade ‘A’ to bulk consumers/private traders through e-auction.


9). Consider the following statements:

  1. The Economic Cost of foodgrains consists of three components, namely, pooled cost of grains, procurement incidentals and the cost of distribution.
  2. Food subsidy only considers issue price

Which of the above statements is/are correct:

a) Only 1

b) Only 2

c) 1 and 2

d) None of the above

Solution: a

Food subsidy is calculated based on economic cost and issue price. (Economic cost of FCI- Issue price). Food prices play an important role in the well-being of the poor and poverty reduction in developing countries. Therefore, there are government interventions in foodgrains markets in one form or another for several decades, starting during the Second World War. Government interventions can be either through direct participation as a provider or as a buyer (procurer) of foodgrains, or indirect participation in markets through taxes, subsidies, regulations, etc. The main objectives of these interventions are to ensure remunerative prices to the farmers in order to increase foodgrains production, improve access to food for economically vulnerable people, and stabilise foodgrains prices and availability in the country. This paper is an attempt to address some of the issues related to food subsidy in India. It deals with the components, magnitude and trends in food subsidy


10). Consider the following statements:

  1. Achieving the sustainability of cities entails integration of four pillars – social development, economic development, environmental management, and effective urban governance.
  2. The regulation of municipal bonds in India is under SEBI)

Which of the above statements is/are correct:

a) Only 1

b) Only 2

c) Both 1 and 2

d) None of the above

Solution: c

Municipal bonds (or “munis” for short) are debt obligations issued by states, cities, counties and other governmental entities to fund day-to-day obligations and to finance capital projects such as building schools, highways and other projects for the public good. For example, if a municipal corporation wants to establish a new metro rail link, then it can issue municipal bonds to fund the project. Institutional investors and the public are the buyers of municipal bonds. Revenue earned by the metro rail network will be used to repay the interest and principal to the investors of these bonds.

The four pillars of sustainability are: cultural vibrancy, economic prosperity, environmental responsibility and social justice. Informed by local community conversations, themes are starting to take root within each pillar and between pillars, and these are guiding the Sustainability Roundtable. Although themes and goals may be organized by pillars, it is the linkages and integration of these that will drive sustainability, highlighting opportunities for innovation, collaboration and trust building while reducing duplication of efforts. It strives to build collaborative networks and citizen’s work together on common goals, our hope is that we have a balanced merging of these four pillars, helping us to become a more sustainable community, enhancing the well-being of all citizens and of the natural world. Sustainable endeavors to support both the Town and County with their Integrated Community Sustainability Plans (ICSP) while evolving complimentary goals that have been identified within the community.


11). Consider the following statements about International solar alliance:

  • ISA has three programmes Scaling Solar Applications for Agricultural Use, Affordable Finance at Scale and Scaling Solar Mini-grids.
  • UN member countries which are located beyond the Tropics can not join the ISA

Which of the above is/are correct:

a) Only 1

b) Only 2

c) Both 1 and 2

d) None of the Above

Solution :a

ISA

  1. is a treaty based international inter-governmental alliance of 121 solar resource rich countries lying fully or partially between the Tropics of Cancer and Capricorn
  2. Aim is to address the special energy needs of solar rich countries and will provide a platform to collaborate on addressing the identified gaps through a common, agreed approach
  3. There are no targets or legal obligations imposed on member-countries.
  4. UN member countries which are located beyond the Tropics can join the ISA as “Partner Countries
  5. Paris Declaration (30th November, 2015)
  • prospective member countries share the collective ambition to undertake innovative and concerted efforts for reducing the cost of finance and cost of technology for immediate deployment of competitive solar generation.
  • formulate financial instruments to effectively mobilize more than US$1000 billion dollars in investments that will be required by 2030 for the massive deployment of affordable solar energy and pave the way for future solar generation, storage and good technologies for each prospective member country’s individual needs.
  1. The alliance has partnered with World Bankto launch Global Solar Atlas at an ISA event at the World Future Energy Summit in Abu Dhabi. Global Solar Atlas is a free online tool that displays annual average solar power potential at any location in the world and thus identify potential sites for solar power generation.

 


12). Which of the following statements is correct:

a) Zero Effect, Zero Defect is a policy initiative to enhance energy efficiency and resources efficiency in Medium & Small Industries

b) The Global Climate Risk Index 2018 has put India amongst the 25 most vulnerable countries in the world.

c) The Fifteenth Finance Commission Terms of Reference outlined forests as an important aspect for consideration

d) None of the above

Solution:a

Prime Minister Narendra Modi launched the National SC/ST hub and the Zero Defect, Zero Effect (ZED) scheme for Micro, Small and Medium Enterprises (MSMEs)

Zero Defect, Zero Effect (ZED) model

  1. It signifies two things:
  • Production mechanisms wherein products have no defects
  • Production process which has zero adverse environmental and ecological effects.

 

  1. Aim — achieve high quality manufacturing that’s also green. 
  2. Scope — spans across all sectors of manufacturing and service industry with a special focus on micro, small and medium enterprises (MSME).

 

The Global Climate Risk Index 2018 has put India amongst the six most vulnerable countries in the world. The Fifteenth Finance Commission Terms of Reference outlined climate change as an important aspect for consideration. “the continuing imperative of the national development programme including New India – 2022”. Taken together with its need for resources for essential spending in areas such as defence, security, infrastructure and climate change.

 

Global Climate Risk Index 2018

  1. released by the Germanwatch, an independent Berlin-based development and environmental organization.
  2. The Germanwatch comes out with the CRI by analysing number of deaths per 1,00,000 inhabitants, extent of financial losses and loss per unit of Gross Domestic Product (GDP) of countries. Economic and population data from International Monetary Fund (IMF) was taken into account while arriving at the ranking.
  3. The CRI indicates a level of exposure and vulnerability to extreme events.
  4. The countries affected most in 2016 were Haiti, Zimbabwe as well as Fiji
  5. India – 6th (4th – 2017)

13). Consider the following statements:

  1. The Producer Price Index (PPI) measures the average change in the prices of goods and services, either as they leave the place of production called Output PPI or as they enter the production process called Input PPI.
  2. PPI contrasts with other measures such as the Consumer Price Index (CPI) which measures changes in prices from buyers or consumers perspective.

Which of the above statements is/are correct:

a) Only 1

b) Only 2

c) 1 and 2

d) None of the above

Solution: c

Producer Price Index (PPI) measures the average change in the price of goods and services either as they leave the place of production, called output PPI or as they enter the production process, called input PPI. PPI estimates the change in average prices that a producer receives.

PPI Vs Wholesale Price Index (WPI)

WPI captures the price changes at the point of bulk transactions and may include some taxes levied and distribution costs up to the stage of wholesale transactions. PPI measures the average change in prices received by the producer and excludes indirect taxes.

PPI removes the multiple counting bias inherent in WPI.

WPI does not cover services and whereas PPI includes services.

PPI Vs Consumer Price Index (CPI)

PPI estimates the change in average prices that a producer receives while CPI measures the change in average prices that a consumer pays. The prices received by the producers differ from the prices paid by the consumers on account of various factor such as taxes, trade and transport margin, distribution cost etc.


14). Consider the following statements:

  1. The Housing Price Indices (HPIs) are a broad measure of movement of residential property prices observed within a geographic boundary
  2. The first official housing price index for the country named ‘NHB RESIDEX’ was launched in July, 2007 by the National Housing Bank (NHB).

Which of the above statements is/are correct:

a) Only 1

b) Only 2

c) 1 and 2

d) None of the above

Solution: c

ALL INDIA Housing Price Indices (HPIs) are a broad measure of movement of residential property prices observed within a geographic boundary.

  • It is quarterly report released by Reserve Bank of India
  • When started in 2007 it was only for Mumbai then it’s expanded to cover 9 more cities. So now there are 10 cities — Mumbai, Delhi, Chennai, Kochi, Kolkata, Bengaluru, Lucknow, Ahmedabad, Jaipur and Kanpur.
  • It is based on transaction data received from housing registration authorities in 10 cities.

 ‘NHB RESIDEX’

  1. 1st official housing price index for the country was launched in July, 2007 by the National Housing Bank (NHB)
  2. base year — FY 2012-13 – changed to ensure capturing the latest information and accurately reflect the current economic situation in the country
  3. NHB RESIDEX covers 50 cities (18 State/UT capitals and 37 Smart Cities)
  4. Initially, NHB RESIDEX was computed using market data, which 2010 onwards, was shifted to valuation data received from banks and housing finance companies (HFCs). Thereafter, data was sourced from Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) from 2013 to 2015
  5. NHB RESIDEX aspires to bring in greater transparency into India’s real estate markets by providing more structure, science, and discipline to property valuation
  6. NHB RESIDEX includes housing price indices (HPI), land price indices (LPI) and building materials price indices (BMPI), and also housing rental index (HRI)

·               Housing Price Indices (HPI) – represents the price changes in residential housing properties.

·               Housing Rental Index (HRI) – track the movement in housing rental prices over a period of time using market data.

·               Land Price Indices (LPI) – Land Price Indices will be built using market data and registration data. Land being the raw material for housing and industrial development, it is important to track its prices for maintaining economic efficiencies.

·               Building Materials Price Indices (BMPI) – Building Materials Price Indices will comprise of prices trends of traditional (like cement, steel, sand, brick, wood etc.) and energy saving (glass, fibre etc.) building materials.

 


15). Consider the following statements:

  1. Market intervention scheme is regulating the prices of onion, tomatoes and potatoes
  2. Price stabilization scheme is for wheat and rice

Which of the above statements is/are correct:

a) Only 1

b) Only 2

c) 1 and 2

d) None of the above

Solution: a

Market Intervention Scheme or market intervention scheme is for perishable commodities whereas price stabilization scheme is also for horticulture produce.

Market Intervention Scheme (MIS) is a price support mechanism implemented on the request of State Governments for procurement of perishable and horticultural commodities in the event of a fall in market prices. The Scheme is implemented when there is at least 10% increase in production or 10% decrease in the ruling rates over the previous normal year.

Market Intervention Scheme works in a similar fashion to Minimum Support Price based procurement mechanism for food grains, but is an adhoc mechanism.

Its objective is to protect the growers of these horticultural/agricultural commodities from making distress sale in the event of bumper crop during the peak arrival period when prices fall to very low level. Thus it provides remunerative prices to the farmers in case of glut in production and fall in prices.

Proposal of MIS is approved on the specific request of State/Union Territory (UT) Government, if the State/UT Government is ready to bear 50% loss (25% in case of North-Eastern States), if any, incurred on its implementation. Further, the extent of total amount of loss shared is restricted to 25% of the total procurement value which includes cost of the commodity procured plus permitted overhead expenses.

The Department of Agriculture & Cooperation is implementing the scheme. Under MIS, funds are not allocated to the States. Instead, central share of losses as per the guidelines of MIS is released to the State Governments/UTs, for which MIS has been approved, based on specific proposals received from them.

Under the Scheme, in accordance with MIS guidelines, a pre-determined quantity at a fixed Market Intervention Price (MIP) is procured by NAFED as the Central agency and the agencies designated by the state government for a fixed period or till the prices are stabilized above the MIP whichever is earlier. The area of operation is restricted to the concerned state only.

 

Price Stabilisation Fund (PSF) refers to any fund constituted for the purpose of containing extreme volatility in prices of selected commodities. The amount in the fund is generally utilised for activities aimed at bringing down/up the high/low prices say for instance, procurement of such products and distribution of the same as and when required, so that prices remain in a range.

Many countries use such dedicated funds for stabilisation of major petroleum product prices, particularly if they are importers. Some countries use such funds for stabilising not just commodity prices but a variety of key macroeconomic variables such as the exchange rate (which is nothing but the price of the domestic currency expressed in terms of an external currency), benchmark stock indices etc. The operational details of such funds vary from country to country.

India first created a price stabilisation fund for some export oriented plantation crops in 2003, and this ceased to exist in 2013. Another fund was created in 2015 for perishable agricultural and horticultural commodities, but initially limited to support potato and onion prices only.

http://pib.nic.in/newsite/PrintRelease.aspx?relid=160050


16).If a trade union is able to negotiate higher wages, the following would be a consequence:

a) Employment will increase and unemployment will decrease.

b) Both employment and unemployment will decrease.

c) Employment will decrease with no change in unemployment.

d) Employment will decrease and unemployment will increase.

 

Solution:d

 

As wages have increased the companies will try to cut down hiring and also there will be more people who will be looking for work as a consequence.

Thus, wage negotiations have positive as well as negative effects. It is good for the trade unions but bad for the non-members.


17). If as a result of households’ wish to save more, there is a change in equilibrium income and no change in equilibrium saving, this is an example of ___________

a) market imperfection

b) the law of diminishing returns

c) the paradox of thrift

d) market failure

Solution: c

Paradox of thrift was popularized by the renowned economist John Maynard Keynes.

It states that individuals try to save more during an economic recession, which essentially leads to a fall in aggregate demand and hence in economic growth. Such a situation is harmful for everybody as investments give lower returns than normal.

Description: Keynes further said that such a mass increase in savings eventually hurts the economy as a whole.

Keynesians also argue that consumption, or spending, drives economic growth. Thus, even though it makes sense for individuals and households to cut back consumption during tough times, this is the wrong prescription for the larger economy. A pullback in aggregate consumer spending might force businesses to produce even less, deepening the recession. This disconnect between individual and group rationality is the basis of the savings paradox.

Law of diminishing returns: It explains that when more and more units of a variable input are employed on a given quantity of fixed inputs, the total output may initially increase at increasing rate and then at a constant rate, but it will eventually increase at diminishing rates.

In other words, the total output initially increases with an increase in variable input at given quantity of fixed inputs, but it starts decreasing after a point of time.

Market imperfections theory  is based on facts that everyone does not have the same homogenous expectations , there are no unlimited buyers and sellers , nor does everyone have the same information. It assumes there is no perfect competition.

Perfect competiton on the other hand states that the buyers and sellers have the same information, all firms sell an identicle product, the price of the product is determined by the market.

 

Market failure is a situation in which the allocation of goods and services is not efficient, often leading to a net social welfare loss.

It is a scenarios where individuals’ pursuit of pure self-interest leads to results that are not efficient i.e., each individual makes the correct decision for him/herself, but those prove to be the wrong decisions for the group. In traditional microeconomics, this is shown as a steady state disequilibrium in which the quantity supplied does not equal the quantity demanded.


18). Which of the following will cause the exchange rate of a currency to go up?

a) An increase in investment flows into the country.

b) An increase in the demand for imports

c) A balance of payments deficit.

d) Speculation that the exchange rate will fall.

Solution: a

 

The supply of dollars would exceed demand for dollars which will cause the currency to move up against other major currencies. This is due to the fact that foreign investors would supply dollars. This can be in the form of FDI or FII.

Increase in import demand will cause demand for dollars to rise having an opposite effect.

A bop deficit would also cause exchange to depreciate

A speculation that exchange rate is going to fall will lead to panic selling by FII as they would loose value. Egs: FII investment of 100 RS.– Investment at rs/$ 50 is worth $2 but with depreciation to rs/$60 this would be worth less than $2.


19). Consider the following statements about accessible India Campaign:

  1. Accessible India Campaign or (Sugamya Bharat Abhiyan) is the nationwide flagship campaign of the Department of Empowerment of Persons with Disabilities (DEPwD), Ministry of Social Justice and Empowerment.
  2. The aim of the Campaign is to make a barrier free and conducive environment for Divyangjans all over the country.
  3. The campaign has been divided into three verticals: Built Environment; Transport and Information & Communication Technology (ICT) ecosystem.

Which of the above statements is/are correct:

a) 1 and 2

b) 2 and 3

c) 1 and 3

d) 1,2 and 3

Solution:d

Accessible India Campaign (AIC)

  • flagship campaign of the Department of Empowerment of Persons with Disabilities (DEPwD), Ministry of Social Justice and Empowermet
  • aim — make a barrier free and conducive environment for Divyangjans all over the country
  • It was launched by the Prime Minister Shri Narendra Modi on International Day of Persons with Disabilities on 3rd December, 2015.
  • It is based on the principles of the Social Model of Disability, that disability is caused by the way society is organised, and not the person’s limitations and impairments. The physical, social, structural and attitudinal barriers prevent People with Disabilities from participating equally in the socio-cultural and economic activities. A barrier-free environment facilitates equal participation in all the activities and promotes an independent and dignified way of life.
  • The campaign has the vision to build an inclusive society in which equal opportunities are provided for the growth and development of Persons with Disabilities (PwDs) so that they can lead productive, safe and dignified lives.
  • For creating universal accessibility for Persons with Disabilities, the campaign has been divided into three verticals: Built Environment; Transport and Information & Communication Technology (ICT) ecosystem.

20) With reference to BharatNet, consider the following statements:

 

  1. It is being funded through the Universal Service Obligation Fund (USOF)
  2. Under this project, states contribute free Rights of Way for establishing the Optical Fibre Network
  3. It’s previous name is National Optical Fibre Network

Which of the above statements is/are correct?

a) 1 and 3 Only

b) 2 and 3 Only

c) 1 Only

d) 1,2 and 3

 

Solution: d)

 

https://www.insightsonindia.com/2017/07/20/insights-daily-current-affairs-20-july-2017/

 

National Optical Fibre Network (NOFN) is an ambitious initiative to trigger a broadband revolution in rural areas. NOFN was envisaged as an information super-highway through the creation of a robust middle-mile infrastructure for reaching broadband connectivity to Gram Panchayats.

The National Optical Fibre Network (NOFN) aims to connect all the 2,50,000 Gram panchayats in the country and provide 100 Mbps connectivity to all gram panchayats (GPs). To achieve this, the existing fibres of PSUs (BSNL, Railtel and Power Grid) were utilised and incremental fibre was laid to connect to Gram Panchayats wherever necessary. Dark fibre network thus created was lit by appropriate technology thus creating sufficient bandwidth at the Gram Panchayats.

Non-discriminatory access to the NOFN was provided to all the service providers like Telecom Service Providers (TSPs), ISPs, Cable TV operators and Content providers to launch various services in rural areas. The NOFN project was funded by the Universal Service Obligation Fund (USOF).

 

Based on NOFN experiences, newer, updated and upgraded version – BharatNet was conceived as a nation-wide broadband network.

 

BharatNet is a project of national importance to establish, by 2017, a highly scalable network infrastructure accessible on a non-discriminatory basis, to provide on demand, affordable broadband connectivity of 2 Mbps to 20 Mbps for all households and on demand capacity to all institutions, to realise the vision of Digital India, in partnership with States and the private sector.

The entire project is being funded by Universal service Obligation Fund (USOF), which was set up for improving telecom services in rural and remote areas of the country. The objective is to facilitate the delivery of e-governance, e-health, e-education, e-banking, Internet and other services to the rural India.

 

The project is a Centre-State collaborative project, with the States contributing free Rights of Way for establishing the Optical Fibre Network. 


21) Plastic microbeads are used in

 

  1. Shower/bath products
  2. Insect repellants
  3. Shaving creams
  4. Deodorants
  5. Toothpaste

Select the correct answer using codes below:

 

a) 1,2,3 and 5 Only

b) 1, 3, 4 and 5 Only

c) 1 and 3 Only

d) 1,2,3,4 and 5

 

Solution: d)

 

https://www.insightsonindia.com/2017/07/20/insights-daily-current-affairs-20-july-2017/

 

 

Microbeads are manufactured solid plastic particles of less than one millimeter in their largest dimension.[1] They are most frequently made of polyethylene but can be of other petrochemical plastics such as polypropylene and polystyrene. They are used in exfoliating personal care products, toothpastes and in biomedical and health-science research

 

Based on information presented in scientific literature considering personal care products, microbeads have been found in scrubs/peelings, shower/bath products, facial cleaners, creams, deodorants, makeup foundations, nail polishes, eye colours, shaving creams, bubble baths, hair colourings, insect repellants, toothpaste, eye shadows, blush powders, hairsprays, liquid makeups, mascaras, baby products, lotions, and sunscreens. Microbeads may also be found in other consumer uses/products including cleaning products and printer toner (Norwegian Environment Agency, 2014). Some products contain substantial quantities of microbeads. For example, Napper and Thompson (2015, in press) quantified microbeads incorporated in personal care products as exfoliants and showed that abundance varied considerably among products (137,000 – 2,800,000 per 150ml bottle). Some products that are used on a daily basis could result in release to household waste water of 94,500 microbead particles per application (Napper & Thompson, 2015 in press).

 

http://www.ec.gc.ca/ese-ees/adda4c5f-f397-48d5-ad17-63f989ebd0e5/microbeads_science%20summary_en.pdf

 

https://www.theguardian.com/environment/2018/jan/09/plastic-microbeads-ban-enters-force-in-uk

 


22) Effective strategy to eliminate Manual scavenging in India should include

 

  1. Eliminating insanitary latrines through demolition and conversion into sanitary latrines
  2. Developing a comprehensive rehabilitation package for manual scavengers through a survey
  3. Empowering dalit women
  4. Accepting that the practice still exists and correctly identifying manual scavengers
  5. Community awareness and sensitization of local administration

Select the correct answer using codes below:

a) 2,3, 4 and 5 Only

b) 1,2,3 and 4 Only

c) 1,2 and 5 Only

d) 1,2,3,4 and 5

 

Solution: d)

 

https://www.insightsonindia.com/2017/07/19/insights-daily-current-affairs-19-july-2017/

 

 

Helps in Mains too, so have provided whole detail below:

 

 

Manual scavenging refers to the practice of manually cleaning, carrying, disposing or handling in any manner, human excreta from dry latrines and sewers. It often involves using the most basic of tools such as buckets, brooms and baskets. The practice of manual scavenging is linked to India’s caste system where so-called lower castes were expected to perform this job. Manual scavengers are amongst the poorest and most disadvantaged communities in India.

In 1993, India banned the employment of people as manual scavengers. In 2013, landmark new legislation in the form of the Manual Scavengers Act was passed which seeks to reinforce this ban by prohibiting manual scavenging in all forms and ensures the rehabilitation of manual scavengers to be identified through a mandatory survey.

Despite progress, manual scavenging persists in India. According to the India Census 2011, there are more than 2.6 million dry latrines in the country. There are 13,14,652 toilets where human excreta is flushed in open drains, 7,94,390 dry latrines where the human excreta is cleaned manually. Seventy three percent of these are in rural areas and 27 percent are in urban areas.

According to the House Listing and Housing Census 2011, states such as Andhra Pradesh, Assam, Jammu and Kashmir, Maharashtra, Tamil Nadu, Uttar Pradesh and West Bengal account for more than 72 percent of the insanitary latrines in India.

The Government of India has adopted a two-pronged strategy of eliminating insanitary latrines through demolition and conversion into sanitary latrines, and developing a comprehensive rehabilitation package for manual scavengers through a survey.

However, while manual scavenging for many may have ended as a form of employment, the stigma and discrimination associated with it lingers on, making it difficult for former or liberated manual scavengers to secure alternate livelihoods and raising the fear that people could once again return to manual scavenging in the absence of other opportunities to support their families. Correctly identifying manual scavengers remains a key challenge. A comprehensive rehabilitation package has recently been put together that includes livelihoods and skill development, access to education for children of former manual scavengers and alternate livelihoods.

Legislation in search of dignity

In 1993, the Government of India enacted the Employment of Manual Scavengers and Construction of Dry Latrines (Prohibition) Act which prohibited the employment of manual scavengers for manually cleaning dry latrines and also the construction of dry toilets, that is, toilets that do not operate with a flush. It provided for imprisonment of upto a year and a fine. In 2013, this was followed by the Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013, which is wider in scope and importantly, acknowledged the urgency of rehabilitating manual scavengers.

Key features of the Act :

  • Prohibits the construction or maintenance of insanitary toilets
  • Prohibits the engagement or employment of anyone as a manual scavenger
  • Violations could result in a years’ imprisonment or a fine of INR 50,000 or both
  • Prohibits a person from being engaged or employed for hazardous cleaning of a sewer or a septic tank
  • Offences under the Act are cognizable and non-bailable
  • Calls for a survey of manual scavengers in urban and rural areas within a time bound framework

There remain several challenges in implementing the legislation to ensure that manual scavengers can work and live with dignity. These include :

  • Time frame within which land is to be allotted as part of the rehabilitation package for former manual scavengers as provided for in the 2013 Act
  • Correct and timely identification of insanitary latrines and manual scavengers
  • Implementation of provision regarding prohibiting ‘hazardous cleaning’ of sewers and septic tanks
  • While the Act is encouraging in that it focuses on the responsibility of officials to ensure its implementation, it does not outline administrative measures beyond conduct rules that can be imposed if officials do not implement the Act

Towards comprehensive rehabilitation

Manual scavengers are at a double disadvantage. They are members of lower castes and as such, face enormous discrimination in society, and second, are disadvantaged because they are manual scavengers who clean human excreta. The challenge of rehabilitation is urgent, and requires a comprehensive approach that moves beyond expanding income generation or providing loans, to focus on various aspects crucial to secure the future of the next generation of liberated manual scavengers.

A comprehensive rehabilitation package could:

  • Ensure discrimination-free, secure and alternate livelihoods by providing skill development and livelihoods training to women, linking them to government employment schemes and entitlements as well as ensuring their land rights. Vocational training linked to employment for young people, and support to liberated manual scavengers in building alternate livelihoods could go a long way in ensuring steady, stable livelihoods for the future.
  • Create a favourable environment through community awareness and sensitization of local administration.
  • Build the capacity of the community to promote rehabilitation efforts and self-reliance and also build leadership in the community with a particular focus on Dalit women

http://swachhindia.ndtv.com/39-deaths-in-100-days-how-manual-scavenging-continues-to-exist-in-india-despite-it-being-illegal-10184/


 

23) With reference to the International Civil Aviation Organisation (ICAO), consider the following statements:

 

  1. It is a specialised agency of the United Nations
  2. It is a trade association representing airlines

Which of the above statements is/are correct?

a) 1 Only

b) 2 Only

c) Both 1 and 2

d) Neither 1 nor 2

 

Solution: a)

 

https://www.insightsonindia.com/2017/07/19/insights-daily-current-affairs-19-july-2017/

 

 

The International Civil Aviation Organization (ICAO) is a specialized agency of the United Nations. It codifies the principles and techniques of international air navigation and fosters the planning and development of international air transport to ensure safe and orderly growth.[2] Its headquarters are located in the Quartier International of Montreal, Quebec, Canada.

 

ICAO is distinct from other international air transport organizations, like the International Air Transport Association (IATA), a trade association representing airlines; the Civil Air Navigation Services Organization (CANSO), an organization for Air navigation service providers (ANSPs); and the Airports Council International, a trade association of airport authorities.

 


24) With reference to the Technology and Innovation Support Center (TISC) program, consider the following statements:

 

  1. It is an initiative of the Department of Industrial Policy and Promotion (DIPP) to promote innovation in India
  2. The objective of introducing the TISC in India is to stimulate a dynamic, vibrant and balanced Intellectual Property Rights (IPRs) system in India to foster creativity and innovation

Which of the above statements is/are correct?

a) 1 Only

b) 2 Only

c) Both 1 and 2

d) Neither 1 nor 2

 

Solution: b)

 

https://www.insightsonindia.com/2017/07/15/insights-daily-current-affairs-14-july-2017/

 

 

Technology and Innovation Support Centers

The WIPO Technology and Innovation Support Center (TISC) program provides innovators in developing countries with access to locally based, high quality technology information and related services, helping them to exploit their innovative potential and to create, protect, and manage their intellectual property (IP) rights.

Services offered by TISCs may include:

  • Access to online patent and non-patent (scientific and technical) resources and IP-related publications;
  • Assistance in searching and retrieving technology information;
  • Training in database search;
  • On-demand searches (novelty, state-of-the-art and infringement);
  • Monitoring technology and competitors;
  • Basic information on industrial property laws, management and strategy, and technology commercialization and marketing.

 

India has set up two centres:

 

The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry, Government of India, has signed an Institutional agreement with Anna University to establish India’s second Technology and Innovation Support Center (TISC) at the Centre for Intellectual Property Rights (CIPR), Anna University, Chennai, under the World Intellectual Property Organization’s (WIPO) TISC program.

 

WIPO’s Technology and Innovation Support Center (TISC) program provides innovators in developing countries with access to locally based, high quality technology information and related services, helping them to exploit their innovative potential and to create, protect, and manage their Intellectual Property Rights (IPRs).

 

CIPR has an experience of filing more than 185 Patents, 29 Trademarks, 39 Copyrights, 25 Industrial Design and has also assisted in filing 12 International Patent Applications. Anna University has been accredited with 6th rank among Universities, 8th rank among Engineering Colleges and 13th rank in the overall category in India, by the National Institutional Ranking Framework (NIRF) ranking of the Ministry of Human Resource Development. CIPR has also organized IPR awareness programs as well as six certificate courses on IPR related subjects.

 

The objective of the TISC is to stimulate a dynamic, vibrant and balanced Intellectual Property Rights (IPRs) system in India to foster creativity and innovation, thereby promoting entrepreneurship and enhancing social, economic and cultural development by establishing a network of TISCs in India. Over 500 TISCs operate worldwide and establishing a TISC in India will give the host institutions access to the global network. TISC will give an impetus to knowledge sharing, sharing of best practices among the TISCs, capacity building, generation and commercialization of Intellectual Properties.

 

http://www.wipo.int/tisc/en/


 

25) With reference to the National Investment and Infrastructure Fund (NIIF), consider the following statements:

 

  1. It is structured under the Securities and Exchange Board of India (SEBI) Regulations
  2. It envisages infrastructure development in commercially viable projects, both greenfield and brownfield, including stalled projects

Which of the above statements is/are correct?

a) 1 Only

b) 2 Only

c) Both 1 and 2

d) Neither 1 nor 2

 

Solution: c)

 

https://www.insightsonindia.com/2017/07/15/insights-daily-current-affairs-15-july-2017/

National Investment and Infrastructure Fund (NIIF) is a fund created by the Government of India for enhancing infrastructure financing in the country.

This is different from the National Investment Fund.

NIIF was proposed to be set up as a Trust, to raise debt to invest in the equity of infrastructure finance companies such as Indian Rail Finance Corporation (IRFC) and National Housing Bank (NHB). The idea is that these infrastructure finance companies can then leverage this extra equity, manifold. In that sense, NIIF is a banker of the banker of the banker.

NIIF is envisaged as a fund of funds with the ability to make direct investments as required. As a fund of fund it may invest in other SEBI registered funds.

Its creation was announced in the Union Budget 2015-16. The operational framework was approved on 20 August 2015.NIIF got registered with SEBI as Category II Alternative Investment Fund (AIF) on December 28, 2015. A website was created on 8 June 2016.Mr. Sujoy Bose, Director and Global Co-Head, Infrastructure and Natural Resources, International Finance Corporation(IFC), Washington DC, was appointed as the first Chief Executive Officer (CEO) of NIIF Ltd on 27 June 2016. Its first investment was made in January 2018.

Financial Times (London) had adjudged NIIF as the Most Innovative structure in Asia Pacific under Finance category.

 

Objective

The objective of NIIF would be to maximize economic impact mainly through infrastructure development in commercially viable projects, both greenfield and brownfield, including stalled projects. It could also consider other nationally important projects, for example, in manufacturing, if commercially viable.

 

Functions of NIIF

The functions of NIIF are as follows:

  1. Fund raising through suitable instruments including off-shore credit enhanced bonds, and attracting anchor investors to participate as partners in NIIF;
  2. Servicing of the investors of NIIF.
  3. Considering and approving candidate companies/institutions/ projects (including state entities) for investments and periodic monitoring of investments.
  4. Investing in the corpus created by Asset Management Companies (AMCs) for investing in private equity.
  5. Preparing a shelf of infrastructure projects and providing advisory services.