Agriculture in The National Economic

Total Questions: 35

1. Agricultural income tax is assigned to the State Government by: [1995]

(a) Finance Commission
(b) National Development Council
(c) Inter-State Council
(d) The Constitution of India

Correct Answer: (d) The Constitution of India

Solution:Art. 269 says taxes on income other than agricultural income shall be levied and collected by the Government of India and distributed between the Union and States. Entry 46 in the state list of Seventh Schedule.

This gives power to the state governments to impose agricultural income tax. The agency responsible for it is Finance Commission whose function is distribution of net proceed of taxes between centre and the state, to be divided as per their respective contributions to the taxes.

As per Income Tax Act, income earned from any of the under given three sources meant Agricultural Income;

(i) Any rent received from land which is used for agricultural purpose.

(ii) Any income derived from such land by agricultural operations including processing of agricultural produce, raised or received as rent in kind so as to render it fit for the market, or sale of such produce.

(iii) Income attributable to a farm house subject to the condition that building is situated on or in the immediate vicinity of the land and is used as a dwelling house, store house etc.

2. In which one of the following crops international trade is low in the context of total produce? [1995]

(a) Rice
(b) Coffee
(c) Rubber
(d) Wheat

Correct Answer: (a) Rice

Solution:Rice production is highest in India among cereals but its quality of rice cannot compete with other rice producing countries. Most of rice produced in India is meant for internal consumption. India is a major producer and exporter of Basmati rice.

3. In India, rural incomes are generally lower than the urban incomes. Which of the following reasons account for this? [1996]

1. A large number of farmers are illiterate and know little about scientific agriculture.

2. Prices of primary products are lower than of manufactured products.

3. Investment in agriculture has been low when compared to investment in industry.

Select the correct answer by using the codes given below:

(a) 1, 2 & 3
(b) 1 & 3
(c) 1 & 3
(d) 2 & 3

Correct Answer: (d) 2 & 3

Solution:Prevailing illiteracy in rural areas does not lower productivity. The farmer has adequate knowledge of farming techniques.

Low prices of primary products compared to the manufactured products and investment in the agriculture sector compared to the industry are major factors which accounts for low incomes in rural economy than in Urban economy.

4. Match List-1 with List-II and select the correct answer: [1997]

List-I (Commodities exported from India)	List-II (Countries of destination)
A. Iron ore	1. Russia
B. Leather goods	2. U.S.A
C. Tea	3. Japan
D. Cotton fabrics	4. U.K.
	5. Canada

Codes:

	A	B	C	D
(a)	5	1	2	3
(b)	3	1	4	2
(c)	1	5	4	3
(d)	3	4	1	2

(a) 5
(b) 3
(c) 1
(d) 3

Correct Answer: (b) 3

Solution:Iron ore is exported to Japan. Leather goods are exported to Russia. Tea is exported to U.K. Cotton fabric is exported to U.S.A

5. Consider the following statements: [1999]

Regional disparities in India are high and have been rising in recent years because:

1. There is persistent investment over time only in select locates.

2. Some areas are agro-climatically less conducive to development.

3. Some areas continue to face little or no agrarian transformation and the consequent lack of social and economic opportunities.

4. Some areas have faced continuous political instability.

Which of the above statements are correct?

(a) 1, 2 & 3
(b) 1,2 & 4
(c) 1,3 & 4
(d) 2, 3 & 4

Correct Answer: (a) 1, 2 & 3

Solution:The most appropriate answer is (a). Investment, weather conditions and agricultural transformation are the best indicators of agricultural development. Political stability plays a very small role in agricultural development.

6. Indian farmers are unhappy over the introduction of "Terminator Seed Technology" because the seeds produced by this technology are expected to: [1999]

(a) show poor germination
(b) from low-yielding plants despite the high quality
(c) give rise to sexually sterile plants
(d) give rise to plants incapable of forming viable seeds

Correct Answer: (c) give rise to sexually sterile plants

Solution:The terminator gene is a specific genetic sequence inserted into a seed's DNA. Once activated by a synthetic chemical catalyst of the manufacturer's choosing, the sequence renders the seed and crop it produces sterile.

This means that the farmer cannot retain seeds for future crops as is the practice in India. The farmer has to repurchase the seeds at a heavy cost.

7. The correct sequence in decreasing order of the four sugarcane producing States in India is: [2000]

(a) Maharashtra, U.P, Tamil Nadu, Andhra Pradesh
(b) U. P, Maharashtra, Tamil Nadu, Andhra Pradesh
(c) Maharashtra, U.P, Andhra Pradesh, Tamil Nadu
(d) U.P, Maharashtra, Andhra Pradesh, Tamil Nadu

Correct Answer: (b) U. P, Maharashtra, Tamil Nadu, Andhra Pradesh

Solution:The decreasing order of the sugarcane producing States in India is:

Uttar Pradesh- 132427.6842, Maharashtra-69648.0768, Karnataka-35732, Tamil Nadu-33919.17, Andhra Pradesh-15567 (2012-13 Data). According to 2022-23, decreasing order of sugarcane are: Maharashtra, UP, Karnatak and Tamil Nadu.

8. Consider the following statements: [2000]

1. Maharashtra has the highest acreage under Jawar in India

2. Gujarat is the largest producer of groundnut in India.

3. Rajasthan has the largest area of cultivable wastelands in India

4. Andhra Pradesh has the highest per hectare yield of maize in India

Which of these statements are correct?

(a) 1 & 4
(b) 2 & 3
(c) 1 & 3
(d) 2 & 4

Correct Answer: (c) 1 & 3

Solution:Maharashtra has the highest acreage under Jawar in India. Now, Gujarat is the largest producer of groundnut in India with a share of more than 50%. Rajasthan has the largest area of cultivable wastelands in India of around 84,929 sq. km.

Andhra Pradesh has the highest per hectare yield of maize in India followed by Tamil Nadu due to majority of the area being covered under Single Cross Hybrids (SCH.)

9. The annual agricultural production of a product for the period 1991-92 to 1998-99 is shown in the figure given below. Which one of the following is the product in question? [2001]

(a) Pulses
(b) Wheat
(c) Oilseeds
(d) Rice

Correct Answer: (d) Rice

Solution:In the given bar diagram the annual production of "Rice" for the period 1991-92 to 1998-99 is shown.

10. In terms of value, which one of the following commodities accounted for the largest agricultural exports by India during the three year period from 1997-1998 to 1999-2000? [2002]

(a) Cereals
(b) Marine products
(c) Spices
(d) Tea

Correct Answer: (b) Marine products

Solution:Largest agricultural exports were of marine products followed by tea and spices.

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