Important Questions on Agriculture Economics

In exams like SSC, Banking, Railways, and others, we find many questions from the General Awareness section. In this section, Economics topics are considered very important. we will provide topic-wise practice questions so that students can be able to practice more and more and get most of the questions correct in this section. In this article, we will provide a practice set from the Agriculture Economics section.

Que 1. KCC was introduced in India-

(a)  September 1998
(b) October 1998
(c) July 1998.
(d) August 1998

Answer: (d) August 1998
Explanation:-  Kisan Credit card is launched by the RBI with the help of framers in August 1998.

Que2. KCC was launched by-

(a) NABARD
(b) RBI
(c) RRB
(d) SBI

Answer: (a) RBI
Explanation:- The KCC was launched by the RBI in 1998 for the help of farmers to buy fertilizers, seeds, pesticides etc. & draw cash for their production.

Que3. Kisan Credit Card (KCC) offers credit to the farmers by-

(a) Cash credit.
(b) Term loan.
(c) Both a and b.
(d) None of the above

Answer: (c) cash credit & term loan.
Explanation: Kisan Credit Card offers both cash credit and term credit to the farmers.

Que4. The loans are provided through KCC-

(a) Term loans
(b) Equity loan.
(c) Credit Card loan
(d) Fixed loan

Answer: (a) Term loans
Explanation:-  The term loans are defined as the short-term loans offered to businesses for capital expenditure and expansion, among others. It is generally given a tenure of 84 months.

Que5. KCC was prepared on the recommendation of –

(a) S. N. Roy Committee
(b) R. B. Gupta Committee
(c) S. Desai Committee
(d) R. G. Desai Committee

Answer: (b) R. B. Gupta Committee
Explanation:-  The Kisan Credit Card(KCC) was recommended by the R.B. Gupta committee in 1998 to ensure the farmers could get help through banks to get a certain amount for their needs to buy Agri-products.

Que 6. NABARD is-

(a) An autonomous body.
(b) Fully owned by the Government of India.
(c) Private-public Sector
(d) All of the above

Answer: (b) Fully owned by govt. of India
Explanation:-  NABARD( National Bank for Agriculture and Rural Development) is a fully owned government body of the Indian government. It was dedicated to the service of the nation by the late Prime Minister Smt. Indira Gandhi on 05 November 1982.

Que 07. NABARD was formed in-

(a) August 12, 1982
(b) July 12, 1982
(c) September 12, 1982
(d) October 12, 1982

Answer: (b) July 12, 1982
Explanation:-  NABARD came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the  Agricultural Refinance and Development Corporation (ARDC).

Que 8. The current chairman of NABARD is-

(a) H. D. Patel
(b) P. G. Desai
(c) R. Ghosh
(d) Govinda Rajulu Chintala

Answer: (d) Govinda Rajulu Chintala
Explanation:-  Govinda Rajulu Chintala took charge as Chairman of the National Bank for Agriculture and Rural Development (NABARD). His tenure will last till his superannuation.

Que9. NABARD was established on the recommendations of-

(a) B. Shivaraman Committee.
(b) R. Ramanujam Committee.
(c) B. S. Rajaram Committee.
(d) S. Shivaraman Committee.

Answer: (a)  B. Shivaraman Committee
Explanation:-  On the recommendation of the B. Shivaraman Committee the NABARD was established by late PM Indira Gandhi in 1982.

Que 10. Which is a scheme of NABARD related to agriculture?

(a) Agri Clinic
(b) Agribusiness Centers Scheme
(c)  Both a and b
(d) None of the above
Answer: (b)  Agribusiness Centers Scheme
Explanation:- This scheme is launched to create gainful self-employment opportunities for unemployed agricultural graduates, agricultural diploma holders, and intermediates in agriculture.

Que 11. Office of AGMARK is located at/in-

(a) Mumbai
(b) Delhi
(c) Faridabad
(d) Udaipur

Answer: (c)  Faridabad
Explanation:- AGMARK is a quality certificate that labels a product pure and of necessary quality as per guidelines specified by a governing body. It acts as a third-party guarantee for agricultural products consumed in India. It is effective since 1937 & amended in 1986.

Que 12. The AGMARK in India was legally enforced in by-

(a) 1937, the Agricultural Produce (Grading and Marking) Act
(b) 1938, the Horticulture Produce (Grading and Marking) Act 
(c) 1937, the Agri-Horti Produce (Grading and Marking) Act
(d) 1938, The Agri-Horti Produce (Grading and Marking) Act

Answer: (a) 1937, the Agricultural Produce (Grading and Marking) Act.
Explanation:-  AGMARK is a certification mark for agricultural produce, assuring that they conform to a grading standard notified by the Directorate of Marketing & Inspection (DMI), Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture & Farmers Welfare under Agricultural Produce (Grading Marking) Act, 1937.

Que 13. The AGMARK was amended in-
(a) 1985
(b) 1986
(c) 1987
(d) 1988

Answer: (a) 1986
Explanation:-  The AGMARK was firstly come into action in 1937 & later on amended in 1986 with some new grade standards.

Que14. Which one is not a certification mark in India for food products?

(a) FSSAI
(b) FPO
(c) AGMARK
(d) India Organic

Answer: (c) AGMARK
Explanation:-  AGMARK is a quality certificate that labels an agricultural product are pure or not.

Que 15. Variable costs are the sum of?

(a) Marginal cost
(b) Fixed cost
(c) Average cost
(d). All of the above

Answer: (d) All of the above
Explanation :-  variable cost = cost / unit * total no. of units=  marginal cost + Fixed cost +  Average cost.

Que 16. The variable cost changes?

(a) When the quality of the good or service that a business produces changes.
(b) As the quantity of the good or service that a business produces changes.
(c) Both a and b.
(d) None of the above.

Answer: (b) When the quality of the good or service that a business produces changes.
Explanation:-  Variable costs change based on the amount of output produced. Variable costs may include labour, commissions, and raw materials.

Que17.  The full form of AGMARK is?

(a) Agricultural Grading and Marketing
(b) Agricultural Products Grading and Marketing
(c) Agricultural Produce Grading and Marketing
(d) Agricultural Marketing

Answer: (c) Agricultural Products Grading and Marketing
Explanation: AGMARK is Agricultural Products Grading and Marketing.

Que18.  Dumping is seen in?

(a) Monopoly
(b) Oligopoly
(c) Duopoly
(d) All of the above

Answer: (a) Monopoly
Explanation:-  A situation of international price discrimination, where the price of a product when sold in the importing country is less than the price of that product in the market of the exporting country. so the dumping can be seen in monopoly.

Que19.  which of the following includes in fixed cost?

(a) Taxes
(b) Insurance
(c) Depreciation of machinery
(d) All of the above

Answer: (d) All of the above
Explanation:-  The term fixed cost is defined as a cost that does not change with an increase or decrease in the number of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities.

Que20.  Marginal cost is the change in the total cost…..

(a) That arises when the quantity produced is incremented by one unit.
(b) That arises when the quantity produced is incremented by two units.
(c) That arises when the quantity produced is incremented by several units.
(d) None of the above.

Answer: (a) That arises when the quantity produced is incremented by one unit.
Explanation:-  the marginal cost is the change in total production cost that comes from making or producing one additional unit.
• Marginal cost = change in product cost/ change in quantity.