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Indian Economy and Social Development

241 questions

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Question 221Question →

With reference to economic concepts related to inflation dynamics and price controls, consider the following statements:

1. Inflation tax refers to the implicit economic penalty borne by individuals holding cash balances, as rising price levels erode purchasing power and effectively transfer real resources to net debtors.
2. Disinflation describes a economic condition where the general price level of goods and services persistently declines below zero over time.
3. Core inflation measures general price level changes while excluding volatile commodity groups such as food and energy items.

Which of the statements given above is/are correct?

Show answer & explanation

Answer: 1 and 3 only

Answer

Statements 1 and 3 are correct.
The correct answer identifies that Statement 1 and Statement 3 are correct. Inflation tax refers to the loss of purchasing power on money held during inflationary periods, effectively benefiting net debtors. Core inflation isolates non-volatile economic price changes by excluding food and energy elements. Statement 2 is false because a negative rate of inflation is termed deflation, whereas disinflation simply means a slowdown in positive inflation.

Step-by-Step Solution

1
Evaluate Statement 1 regarding inflation tax.
Inflation tax is the financial loss incurred by cash holders during inflation. As price levels increase, the real value of uninvested currency declines, which acts as a transfer of real purchasing power from cash holders to net debtors (like government issuers of fiat currency). Thus, Statement 1 is correct.
Inflation diminishes the real purchasing power of monetary units.
2
Evaluate Statement 2 regarding disinflation.
Disinflation refers to a slowdown in the rate of inflation (e.g., inflation falling from 6% to 3%), while price levels continue to rise at a slower pace. Deflation, not disinflation, refers to a period where general price levels drop below zero. Thus, Statement 2 is incorrect.
Distinguishing between a decline in the rate of inflation and an absolute fall in general price levels.
3
Evaluate Statement 3 regarding core inflation.
Core inflation is calculated by taking headline consumer inflation and removing volatile components like food and fuel/energy prices to reflect underlying long-term price trends. Thus, Statement 3 is correct.
Core inflation isolates non-volatile structural price changes.

Key Concept

Inflation Taxonomy and Measurement Metrics
Estimated Time:1m 15s
Question 222Question →

Match the flagship social sector initiatives and welfare schemes of the Government of India in List-I with their corresponding primary objectives and target focus areas in List-II:

Click a left item, then click its matching right item

Items

Sukanya Samriddhi Yojana (SSY)
PM Garib Kalyan Anna Yojana (PMGKAY)
Mission Vatsalya
PM Tele-MANAS Initiative

Matches

Show answer & explanation

Answer

Sukanya Samriddhi Yojana matches with the small savings scheme for the girl child; PM Garib Kalyan Anna Yojana matches with the provision of free foodgrains under NFSA; Mission Vatsalya matches with institutional child protection and welfare services; PM Tele-MANAS Initiative matches with nationwide 24/7 tele-mental health counseling support.
Each scheme is accurately mapped to its core objective: Sukanya Samriddhi Yojana addresses financial savings for the girl child, PM Garib Kalyan Anna Yojana provides foodgrain security, Mission Vatsalya covers child protection architecture, and PM Tele-MANAS provides round-the-clock tele-mental health support.

Step-by-Step Solution

1
Analyze Sukanya Samriddhi Yojana (SSY)
Identify that SSY is a small savings account scheme tailored for securing financial resources for a girl child's future education and marriage.
It was launched specifically under the Beti Bachao Beti Padhao initiative.
2
Analyze PM Garib Kalyan Anna Yojana (PMGKAY)
Identify that PMGKAY is a social protection scheme providing free foodgrains to NFSA households.
It acts as a primary safety net to ensure food security for vulnerable populations.
3
Analyze Mission Vatsalya
Identify that Mission Vatsalya focuses on child welfare infrastructure, institutional care, and child safety services.
It is the main central umbrella scheme for child care and protection.
4
Analyze PM Tele-MANAS Initiative
Identify that PM Tele-MANAS provides universal 24/7 tele-mental health assistance.
It acts as a digital infrastructure offering psychological counseling across the country.

Key Concept

Objectives and Institutional Architecture of Indian Welfare Schemes
Question 223Question →

Below are four inflation concepts listed under Column-I and their economic descriptions under Column-II. Match each item in Column-I with its appropriate description in Column-II.

Click a left item, then click its matching right item

Items

Demand-Pull Inflation
Cost-Push Inflation
Stagflation
Suppressed Inflation

Matches

Show answer & explanation

Answer

Demand-Pull Inflation matches with price increases driven by aggregate demand exceeding supply capacity; Cost-Push Inflation matches with price increases resulting from supply disruptions and higher input costs; Stagflation matches with persistent rise in price levels accompanied by economic stagnation and elevated unemployment; Suppressed Inflation matches with excess demand pressures held back from open market price reflection due to administrative price controls.
Demand-pull inflation occurs when aggregate demand outpaces aggregate supply. Cost-push inflation is driven by increased input costs reducing aggregate supply. Stagflation is the simultaneous presence of economic stagnation (low growth, high unemployment) and rising inflation. Suppressed inflation refers to underlying inflationary pressures that are prevented from showing in official indices due to government price ceiling enforcement or rationing.

Step-by-Step Solution

1
Identify Demand-Pull Inflation definition
Matches with description of aggregate demand outstripping aggregate supply capacity.
Demand-pull inflation arises when total demand expands faster than the economy's potential production capacity.
2
Identify Cost-Push Inflation definition
Matches with description of supply disruptions and increased production input costs.
Cost-push inflation is driven by supply-side shocks that raise production costs such as wages or crude oil.
3
Identify Stagflation definition
Matches with description of persistent inflation alongside economic stagnation and high unemployment.
Stagflation combines economic stagnation (sluggish growth and unemployment) with price inflation.
4
Identify Suppressed Inflation definition
Matches with description of excess demand restrained by administrative price controls and rationing.
Suppressed inflation occurs when government price caps prevent prices from rising to market-clearing levels.

Key Concept

Types of Inflation and Price Control Mechanisms
Question 224Question →

Consider the following statements regarding the Pradhan Mantri Matru Vandana Yojana (PMMVY), a maternity benefit program in India:

1. It is implemented by the Ministry of Women and Child Development as a Centrally Sponsored Scheme.
2. Under the updated Mission Shakti guidelines, monetary incentives are extended for a second child, provided the second child is a girl.
3. Women in regular employment with Central or State Governments or Public Sector Undertakings are excluded from receiving benefits under the scheme.

Which of the statements given above are correct?

Show answer & explanation

Answer: 1, 2 and 3

Answer

Statements 1, 2, and 3 are all correct.
The option stating that all three statements (1, 2 and 3) are correct is right. PMMVY is a Centrally Sponsored Scheme under the Ministry of Women and Child Development. Under Mission Shakti, benefits cover the first child as well as a second girl child, while excluding women with regular formal government or PSU employment.

Step-by-Step Solution

1
Evaluate Statement 1 regarding institutional setup
PMMVY is administered by the Ministry of Women and Child Development across states as a Direct Benefit Transfer Centrally Sponsored Scheme.
Funding is shared between the Centre and States (60:40 ratio for general states, 90:10 for NE/Himalayan states).
2
Evaluate Statement 2 regarding scheme expansion
Under the revamped Mission Shakti framework, PMMVY 2.0 offers financial assistance for the first child (₹5,000) and an additional maternity benefit of ₹6,000 for a second child if born a girl.
This revision aims to discourage female foeticide and promote a positive sex ratio at birth.
3
Evaluate Statement 3 regarding eligibility exclusions
Pregnant Women and Lactating Mothers who are in regular employment with Central/State Governments or PSUs, or in receipt of similar statutory maternity benefits, are excluded.
The scheme focuses social security and wage compensation on women in the unorganized sector.

Key Concept

Pradhan Mantri Matru Vandana Yojana (PMMVY) architecture, target beneficiary exclusions, and Mission Shakti expansion.
Question 225Question →

Arrange the following historical milestones and methodological updates in India's national income accounting in correct chronological order from earliest to latest:

Drag items to arrange them in the correct order

Show answer & explanation

Answer

The correct chronological sequence begins with Dadabhai Naoroji's early estimate (1867–68), followed by Dr. V.K.R.V. Rao's scientific study (1931���32), the setting up of the National Income Committee (1949), and finally the adoption of GVA at basic prices with base year 2011–12 in 2015.
The correct timeline begins with Dadabhai Naoroji (1867–68), followed by Dr. V.K.R.V. Rao's scientific estimation (1931–32), the post-independence National Income Committee (1949), and concludes with the 2015 statistical revision to the 2011–12 base year adopting GVA at basic prices.

Step-by-Step Solution

1
Identify the year for Dadabhai Naoroji's national income estimation
1867–68 (earliest non-official estimate in pre-independence India)
Establishes the starting historical baseline for national income accounting in India.
2
Identify the year for Dr. V.K.R.V. Rao's scientific estimate
1931–32 (first systematic and scientific academic estimate)
Follows the early informal estimates of the late 19th century.
3
Identify the year for the creation of the National Income Committee
1949 (Government of India initiative under P.C. Mahalanobis with D.R. Gadgil and V.K.R.V. Rao)
Marks the first official post-independence institutional setup.
4
Identify the year for the base year update to 2011–12 with GVA at basic prices
2015 (CSO structural revision replacing GDP at factor cost)
Represents the modern reform standard for Indian national accounts.

Key Concept

Chronological evolution of Indian National Income Accounting
Estimated Time:1m 15s
Question 226Question →

Evaluate the following statements concerning price index compilation and inflation management mechanisms in India:

I. The Consumer Price Index (CPI) Combined assigns a weight of over 45% to Food and Beverages, whereas the Wholesale Price Index (WPI) assigns a combined weight of less than 25% to food items.
II. The Wholesale Price Index incorporates price changes for service sectors such as healthcare, education, and transport, whereas the Consumer Price Index measures only physical commodities.
III. An increase in the Cash Reserve Ratio (CRR) by the Reserve Bank of India functions as a quantitative monetary policy tool to absorb excess liquidity from commercial banks and control demand-pull inflation.

Which of the statements given above are correct?

Show answer & explanation

Answer: I and III only

Answer

Statements I and III are correct, while statement II is incorrect.
The correct response identifies statements I and III as accurate. In India's price index architecture, CPI Combined features a significantly higher food weight (~45.86%) than WPI (under 25%). Additionally, raising CRR is a standard contractionary monetary instrument used by the RBI to absorb banking liquidity and manage demand-pull inflation. Statement II is false because services are strictly excluded from WPI and included in CPI Combined.

Step-by-Step Solution

1
Analyze Statement I regarding commodity weightages in CPI and WPI baskets.
Statement I is correct. CPI Combined allocates ~45.86% to Food and Beverages, whereas WPI allocates ~15.26% to Primary Food Articles and ~8.45% to Manufactured Food Products, totaling under 25%.
Understanding the difference in basket weights is essential for interpreting retail vs wholesale inflation dynamics.
2
Analyze Statement II regarding coverage of the service sector in price indices.
Statement II is incorrect. WPI tracks price fluctuations only for wholesale tangible goods and excludes services entirely. CPI Combined includes services such as education, healthcare, housing, and transport.
Identifying sector coverage differences prevents misattribution of index scopes.
3
Analyze Statement III regarding monetary policy impacts of CRR on liquidity.
Statement III is correct. Increasing CRR forces commercial banks to park a higher proportion of deposits with the RBI, shrinking lendable bank reserves and mitigating demand-driven inflationary pressure.
Evaluating quantitative monetary policy mechanisms confirms how liquidity absorption impacts demand-pull inflation.

Key Concept

Structural differences between CPI and WPI (weights and service inclusion) and quantitative monetary policy tools (CRR).
Question 227Question →

Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) serves as a cornerstone of India's healthcare social security architecture by offering secondary and tertiary care hospitalization coverage. Which of the following statements regarding the structural design and eligibility criteria of AB-PMJAY are correct?

Select all that apply

Show answer & explanation

Answer: It provides a health cover of up to ₹5 lakh per family per year for hospitalization without any ceiling on family size, age, or gender.; Target beneficiary identification is based on specified occupational and socio-economic deprivation criteria mapped from the Socio-Economic Caste Census (SECC) 2011.

Answer

The correct statements are that AB-PMJAY provides ₹5 lakh health insurance per family per year without caps on size or age, and beneficiary identification is derived from the deprivation and occupational criteria of SECC 2011.
The statements highlighting the ₹5 lakh annual family cover with no cap on family size or age, alongside beneficiary selection grounded in SECC 2011 deprivation and occupational metrics, accurately describe AB-PMJAY's social security framework.

Step-by-Step Solution

1
Analyze financial coverage and demographic restrictions
AB-PMJAY provides a cashless cover of ₹5 lakh per family annually for secondary and tertiary care, explicitly omitting any restriction on family size, gender, or age.
Ensuring coverage for larger families and elderly dependents is vital for comprehensive social safety nets.
2
Examine the funding mechanism between Centre and States
AB-PMJAY operates as a Centrally Sponsored Scheme rather than a 100% Central Sector Scheme. The cost is shared between the Centre and State Governments.
Health is a State subject under the Seventh Schedule, requiring shared fiscal and operational responsibilities.
3
Verify beneficiary identification source and pre-existing condition rules
Beneficiaries are automatically identified via SECC 2011 deprivation criteria. Furthermore, pre-existing diseases are covered from the very first day without any waiting period.
Immediate coverage of pre-existing illnesses prevents out-of-pocket medical expenditure traps for vulnerable households.

Key Concept

Ayushman Bharat PM-JAY Architecture, Beneficiary Entitlement, and Fiscal Sharing
Question 228Question →

Which of the following statements regarding the price indices (WPI and CPI) and monetary inflation control mechanisms in India are correct?

Select all that apply

Show answer & explanation

Answer: The Wholesale Price Index (WPI) measures price changes strictly for physical goods and excludes service sector transactions, whereas the Consumer Price Index (CPI) includes services such as medical care, education, and transport.; An upward adjustment of the Cash Reserve Ratio (CRR) by the Reserve Bank of India reduces the loanable funds available with commercial banks, thereby helping to suppress demand-pull inflation.

Answer

The correct statements are that WPI excludes services while CPI includes them, and that an increase in CRR by the RBI absorbs liquidity from commercial banks to curb demand-pull inflation.
The statement describing index coverage correctly notes that WPI excludes services while CPI incorporates service categories. Furthermore, the statement on monetary intervention accurately explains that increasing the CRR locks bank funds with the RBI, reducing overall money supply and restricting demand-pull inflation.

Step-by-Step Solution

1
Analyze index coverage and service inclusion in WPI vs CPI.
WPI monitors wholesale price trends of commodities only, omitting services. CPI measures consumer end-user retail prices and explicitly includes services like transport, healthcare, and education.
This confirms that the comparison regarding service coverage between WPI and CPI is factual.
2
Evaluate the quantitative monetary tool (CRR) impact on inflation.
Raising the Cash Reserve Ratio forces commercial banks to park more cash reserves with the RBI, shrinking money supply and credit capacity in the economy.
Lower credit capacity lowers consumer spending and aggregate demand, directly countering demand-pull inflation.
3
Verify publishing authorities and basket weightages of CPI and WPI.
CPI Combined is published by the National Statistical Office (NSO), MoSPI (not the Office of Economic Adviser). Furthermore, food items have a higher weightage in CPI (~45.86%) than in WPI (~24.38%).
Identifies the false statements regarding publishing authority and food weightage.

Key Concept

Structural differences between WPI and CPI metrics and quantitative monetary policy mechanisms for managing inflation.
Question 229Question →

Match the following agricultural trade and subsidy terms (List-I) with their corresponding economic provisions under international and national policy frameworks (List-II):

Click a left item, then click its matching right item

Items

Amber Box Subsidies
Green Box Subsidies
Blue Box Subsidies
De Minimis Limit

Matches

Show answer & explanation

Answer

Amber Box Subsidies pair with trade-distorting price supports subject to reduction; Green Box Subsidies pair with decoupled support causing minimal trade distortion; Blue Box Subsidies pair with direct payments under production-limiting programs; and De Minimis Limit pairs with the 10% support threshold for developing nations.
Under WTO agricultural trade negotiations, subsidies are classified into specific colored boxes according to their potential to distort international market prices. Amber Box encompasses trade-distorting subsidies subject to reduction commitments. Green Box includes non-distorting public services and decoupled direct payments. Blue Box applies to conditional production-limiting schemes. The De Minimis provision allows developing countries a allowable limit of 10% of agricultural output value for trade-distorting domestic support.

Step-by-Step Solution

1
Identify the nature of Amber Box subsidies in agricultural economics.
Amber Box covers actionable, trade-distorting measures like procurement at Minimum Support Price (MSP) and power/fertilizer subsidies.
These measures directly affect market prices and production quantities.
2
Analyze Green Box provisions.
Green Box consists of non-distorting or minimally distorting government services like R&D, disaster relief, and general infrastructure.
They are exempt from any expenditure caps or reduction obligations under WTO agreements.
3
Evaluate Blue Box and De Minimis conditions for developing economies.
Blue Box relates strictly to supply-management or production-limiting subsidies, while De Minimis establishes a 10% cap for developing countries (5% for developed countries) on product-specific and non-product-specific support.
Understanding these limits is vital for analyzing India's agricultural policy trade disputes.

Key Concept

WTO Agricultural Subsidy Classification and Domestic Support Provisions
Question 230Question →

Which of the following statements correctly describes the key eligibility criteria and structural framework of the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) scheme?

Show answer & explanation

Answer: It is a voluntary and contributory pension scheme for unorganized workers aged 18 to 40 years with a monthly income of ₹15,000 or less, providing a minimum assured pension of ₹3,000 per month upon reaching 60 years of age.

Answer

The Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) is a voluntary and contributory pension scheme for unorganized workers aged 18 to 40 years with a monthly income of ₹15,000 or less, providing a minimum assured pension of ₹3,000 per month after attaining 60 years of age.
The statement identifying PM-SYM as a voluntary and contributory pension scheme for unorganized workers aged 18 to 40 years earning ₹15,000 or less monthly with a guaranteed ₹3,000 pension at age 60 is correct. It accurately reflects all core parameters established by the Ministry of Labour and Employment.

Step-by-Step Solution

1
Identify the target group and income ceiling of PM-SYM
PM-SYM targets unorganized workers (home-based workers, street vendors, midday meal workers, head loaders, rickshaw pullers, landless agricultural laborers, etc.) earning ₹15,000 or less per month.
Establishing target beneficiary parameters filters out formal sector workers and higher-income individuals.
2
Verify entry age limits and contribution structure
The entry age is between 18 and 40 years. Beneficiaries make monthly contributions matching an equal 50% share contributed by the Central Government.
Understanding the contributory mechanism ensures clarity on funding responsibility between subscriber and government.
3
Determine pension benefits and fund management agency
Subscribers receive an assured minimum pension of ₹3,000 per month upon attaining 60 years of age. The fund is managed by LIC and administered by the Ministry of Labour and Employment.
Evaluating payout structures and implementing agencies differentiates PM-SYM from other social security schemes like APY or PM-KMY.

Key Concept

Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Scheme Architecture
Estimated Time:1m 0s
Question 231Question →

Consider the following statements regarding the National Food Security Act (NFSA), 2013 in India:

1. Under the Act, food security entitlements extend to up to 75% of the rural population and up to 50% of the urban population.
2. Beneficiaries under the Antyodaya Anna Yojana (AAY) are entitled to 35 kg of foodgrains per household per month, whereas Priority Households receive 5 kg of foodgrains per person per month.
3. The identification of eligible Priority Households is conducted directly by the Central Government based on NITI Aayog guidelines.

Which of the statements given above is/are correct?

Show answer & explanation

Answer: 1 and 2 only

Answer

Statements 1 and 2 are correct, while Statement 3 is incorrect.
The correct response identifies that Statements 1 and 2 are accurate statutory features of the National Food Security Act, 2013. The act provides legal entitlements for 75% of rural and 50% of urban populations, allocating 35 kg/month per household for AAY beneficiaries and 5 kg/month per person for Priority Households. Statement 3 is incorrect because section 10 of the NFSA specifically mandates State Governments to identify priority households within their allocated coverage limits.

Step-by-Step Solution

1
Evaluate Statement 1 regarding NFSA coverage limits.
NFSA 2013 mandates legal entitlement to subsidized foodgrains for up to 75% of the rural population and up to 50% of the urban population (covering overall ~67% of India's population). Statement 1 is correct.
This establishes the statutory demographic scope of the act.
2
Evaluate Statement 2 regarding monthly foodgrain entitlements.
Under NFSA 2013, Antyodaya Anna Yojana (AAY) households continue to receive 35 kg of foodgrains per household per month, while Priority Households are entitled to 5 kg per person per month. Statement 2 is correct.
NFSA categorizes beneficiaries into AAY and Priority Households with distinct entitlement metrics.
3
Evaluate Statement 3 regarding administrative responsibility for beneficiary identification.
While the Central Government determines state-wise coverage allocations based on Census data, the actual identification of eligible priority households is delegated to State Governments and Union Territory administrations. Statement 3 is incorrect.
Federal administrative division reserves beneficiary identification for states/UTs.

Key Concept

National Food Security Act (NFSA) 2013 Statutory Coverage and Division of Responsibilities
Question 232Question →

Match the flagship social sector schemes listed in List-I with their respective Nodal Implementing Ministries listed in List-II:

Click a left item, then click its matching right item

Items

Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi)
Pradhan Mantri POSHAN Shakti Nirman (PM POSHAN)
Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN)
Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM)

Matches

Show answer & explanation

Answer

Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) matches with Ministry of Housing and Urban Affairs; Pradhan Mantri POSHAN Shakti Nirman (PM POSHAN) matches with Ministry of Education; Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) matches with Ministry of Tribal Affairs; and Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) matches with Ministry of Rural Development.
Each scheme is accurately paired with its responsible Union Ministry: PM SVANidhi is managed by the Ministry of Housing and Urban Affairs; PM POSHAN by the Ministry of Education; PM JANMAN by the Ministry of Tribal Affairs; and DAY-NRLM by the Ministry of Rural Development.

Step-by-Step Solution

1
Identify the nodal ministry for urban informal sector welfare schemes, specifically PM SVANidhi.
PM SVANidhi provides working capital loans to street vendors and is administered by the Ministry of Housing and Urban Affairs.
Street vending and urban informal employment fall under urban affairs governance.
2
Identify the nodal ministry responsible for school nutrition initiatives under PM POSHAN.
PM POSHAN covers elementary school children and is led by the Department of School Education and Literacy, Ministry of Education.
The scheme links nutritional support directly with primary and upper-primary school enrollment.
3
Determine the administrative leadership for tribal welfare initiatives like PM JANMAN.
PM JANMAN addresses infrastructure and livelihood gaps in PVTGs led by the Ministry of Tribal Affairs.
PVTGs are specially vulnerable tribal communities falling under tribal development jurisdiction.
4
Identify the implementing ministry for rural livelihood programs under DAY-NRLM.
DAY-NRLM mobilizes rural poor households into Self Help Groups under the Ministry of Rural Development.
Rural poverty reduction and self-employment are core mandates of the Ministry of Rural Development.

Key Concept

Nodal Administrative Structure of Central Welfare Initiatives
Question 233Question →

Consider the following statements regarding the Pradhan Mantri Kisan Maan-dhan Yojana (PM-KMY):

1. It is a Centrally Sponsored Scheme administered by the Ministry of Rural Development.
2. Small and Marginal Farmers (SMFs) holding cultivable land up to 2 hectares, in the age group of 18 to 40 years, are eligible to join the scheme.
3. Beneficiaries are entitled to receive an assured minimum monthly pension of ₹3,000 upon attaining the age of 60 years.

Which of the statements given above are correct?

Show answer & explanation

Answer: 2 and 3 only

Answer

Statements 2 and 3 are correct. PM-KMY is a Central Sector pension scheme for Small and Marginal Farmers aged 18 to 40 holding up to 2 hectares of cultivable land, providing a guaranteed monthly pension of ₹3,000 from age 60.
The combination specifying statements 2 and 3 is correct. PM-KMY is a voluntary old-age pension scheme for small and marginal farmers owning up to 2 hectares of cultivable land. Eligible entry age is 18 to 40 years, and it assures a monthly pension of ₹3,000 after attaining 60 years of age. Statement 1 is incorrect because it is a Central Sector Scheme implemented by the Ministry of Agriculture and Farmers Welfare.

Step-by-Step Solution

1
Evaluate Statement 1 regarding Nodal Ministry and Scheme Type
Statement 1 is incorrect.
Pradhan Mantri Kisan Maan-dhan Yojana (PM-KMY) is a 100% central sector scheme implemented by the Department of Agriculture, Cooperation and Farmers Welfare (Ministry of Agriculture and Farmers Welfare) in partnership with LIC, not the Ministry of Rural Development.
2
Evaluate Statement 2 regarding Target Beneficiaries and Entry Age
Statement 2 is correct.
The scheme targets Small and Marginal Farmers (SMFs) who own cultivable land up to 2 hectares as per land records of the concerned State/UT, with an entry age of 18 to 40 years.
3
Evaluate Statement 3 regarding Social Security Pension Benefit
Statement 3 is correct.
Upon reaching 60 years of age, enrollees get a fixed monthly pension of ₹3,000, funded via matching equal monthly contributions by the subscriber and the Central Government.

Key Concept

Pradhan Mantri Kisan Maan-dhan Yojana (PM-KMY) Social Security Framework
Question 234Question →

In the context of agricultural economics and food security mechanisms in India, which of the following statements correctly defines the Central Issue Price (CIP)?

Show answer & explanation

Answer: The price at which the government allocates foodgrains to States and Union Territories for distribution under the Targeted Public Distribution System.

Answer

The Central Issue Price (CIP) is the subsidized rate at which the Central Government supplies foodgrains from the central pool to State Governments and Union Territories for distribution to targeted beneficiaries through the Public Distribution System (PDS).
The Central Issue Price (CIP) is defined as the subsidized price fixed by the Government of India to issue wheat, rice, and coarse grains from the central pool managed by the Food Corporation of India (FCI) to states and UTs for distribution under the Public Distribution System (PDS) and National Food Security Act (NFSA).

Step-by-Step Solution

1
Analyze the functional definition of Central Issue Price (CIP) in Indian agricultural policy.
Identify that CIP relates directly to public distribution of foodgrains rather than farmer procurement or open market sales.
Different pricing mechanisms serve distinct operational goals in food management (MSP for procurement, OMSS for market intervention, CIP for welfare distribution).
2
Compare CIP against related agricultural price terms (MSP, OMSS reserve price, statutory prices).
Confirm that CIP is the rate set for issuing grain to states under NFSA/TPDS.
Under NFSA 2013, specified central issue prices apply for subsidized grain allocation to beneficiaries.

Key Concept

Central Issue Price (CIP) and Public Distribution System Economics
Estimated Time:1m 15s
Question 235Question →

Regarding the Pradhan Mantri Suraksha Bima Yojana (PMSBY), a key component of India's social security architecture, which of the following statements are correct?

Select all that apply

Show answer & explanation

Answer: It provides an accidental death and permanent total disability risk cover of ₹2 lakh to the subscriber.; Individuals having a savings bank or post office account in the age group of 18 to 70 years are eligible to join.; The annual premium of ₹20 per subscriber is automatically debited from the subscriber's bank account in a single installment.

Answer

The statements confirming a ₹2 lakh cover for accidental death/total disability, eligibility for bank account holders aged 18 to 70 years, and an auto-debited annual premium of ₹20 are correct. The statement claiming administration under the Ministry of Health and Family Welfare is incorrect.
The correct statements accurately state the features of Pradhan Mantri Suraksha Bima Yojana (PMSBY): it offers ₹2 lakh coverage for accidental death or permanent total disability, targets individuals aged 18 to 70 with bank/post office accounts, and features an annual auto-debit premium of ₹20.

Step-by-Step Solution

1
Examine the risk coverage provisions of PMSBY
Confirm that accidental death and permanent total disability are covered up to ₹2 lakh (and partial permanent disability up to ₹1 lakh).
Risk coverage parameters define the primary benefit structure of the social security scheme.
2
Verify age limits and target beneficiary qualifications
Confirm that subscribers must be between 18 and 70 years old with an active bank/post office account.
Eligibility windows establish the age envelope and financial inclusion prerequisites.
3
Inspect the nodal administrative Ministry and premium details
Identify that the scheme falls under the Department of Financial Services (Ministry of Finance) with a ₹20 annual auto-debit premium, making the health ministry claim false.
Financial social security schemes are managed by the Ministry of Finance, not the health ministry.

Key Concept

Pradhan Mantri Suraksha Bima Yojana (PMSBY) Framework and Eligibility
Question 236Question →

Regarding the components and operational mechanisms of the Pradhan Mantri Annadata Aay Sanraksan Abhiyan (PM-AASHA) umbrella scheme for agricultural price support in India, which of the following statements are correct?

Select all that apply

Show answer & explanation

Answer: Under the Price Support Scheme (PSS), physical procurement of notified pulses, oilseeds, and copra is undertaken by central nodal agencies with state support.; The Price Deficiency Payment Scheme (PDPS) covers oilseeds and pays registered farmers the difference between MSP and the market price without physical crop procurement.

Answer

The correct statements are those stating that PSS involves physical procurement of notified pulses, oilseeds, and copra by central agencies, and that PDPS provides direct price-difference payments to oilseed farmers without physical crop procurement.
The statements describing physical procurement under PSS by central nodal agencies (like NAFED) for pulses, oilseeds, and copra, as well as direct price-difference compensation under PDPS for oilseeds without physical procurement, accurately depict the provisions of PM-AASHA.

Step-by-Step Solution

1
Analyze the core objective and structure of the PM-AASHA umbrella scheme.
PM-AASHA was approved in 2018 to ensure remunerative prices to farmers for oilseeds, pulses, and copra through three distinct sub-schemes: PSS, PDPS, and PPPS.
Understanding sub-scheme distinctions is essential for evaluating agricultural price intervention policies.
2
Evaluate the operational mechanism of the Price Support Scheme (PSS).
PSS handles physical procurement of pulses, oilseeds, and copra via agencies like NAFED when market prices dip below MSP, making the statement regarding physical procurement correct.
PSS is the traditional physical intervention leg of central price support.
3
Evaluate the mechanism of the Price Deficiency Payment Scheme (PDPS).
PDPS covers oilseeds and compensates farmers directly via bank transfer for the price deficit without taking physical delivery or storing crops, making the direct payout statement correct and the warehousing statement incorrect.
PDPS reduces central storage and handling overheads while insulating farmers against market price crashes.
4
Examine the scope of the Private Procurement and Stockist Scheme (PPPS).
PPPS is piloted exclusively for oilseeds in selected districts to involve private players in MSP protection, not for central pool staples like wheat and rice.
Wheat and rice procurement remains strictly governed by FCI and state procurement agencies for PDS requirements.

Key Concept

PM-AASHA Agricultural Price Protection Architecture
Question 237Question →

Consider the following statements regarding the National Social Assistance Programme (NSAP) in India:
1. It is a Centrally Sponsored Scheme administered by the Ministry of Rural Development.
2. It directly aims to fulfill the Directive Principles of State Policy under Article 41 of the Constitution of India regarding public assistance in cases of old age, disablement, and sickness.

Which of the statements given above is/are correct?

Show answer & explanation

Answer: Both 1 and 2

Answer

Both 1 and 2 are correct.
Both statements are correct. The National Social Assistance Programme (NSAP) is a flagship social security initiative launched in 1995. It operates as a Centrally Sponsored Scheme administered by the Ministry of Rural Development, providing financial assistance to senior citizens, widows, and persons with disabilities living below the poverty line. Furthermore, it directly operationalizes Article 41 of the Directive Principles of State Policy (DPSP), which instructs the State to provide public assistance in cases of old age, disablement, and undeserved want.

Step-by-Step Solution

1
Analyze Statement 1 regarding the administrative and funding nature of NSAP.
The National Social Assistance Programme (NSAP) was launched on August 15, 1995, and functions as a Centrally Sponsored Scheme under the Ministry of Rural Development.
Verifying the nodal ministry and scheme classification.
2
Analyze Statement 2 regarding the constitutional foundation of NSAP.
Article 41 of the Directive Principles of State Policy directs the State to secure public assistance in cases of unemployment, old age, sickness, and disablement, which forms the direct basis for social security schemes like NSAP.
Verifying the constitutional linkage under Part IV of the Indian Constitution.
3
Synthesize the statement evaluations to select the correct option.
Since both statements are factually correct, the option representing 'Both 1 and 2' is the correct choice.
Combining findings from step 1 and step 2.

Key Concept

National Social Assistance Programme (NSAP) and Directive Principles of State Policy (Article 41)
Question 238Question →

Consider the following statements regarding the Decentralized Procurement Scheme (DCP) implemented for foodgrain management and public distribution in India:

1. State governments directly procure, store, and issue foodgrains for the Targeted Public Distribution System (TPDS) within their jurisdiction.
2. Participation in the Decentralized Procurement Scheme is mandatory for all Indian States under the provisions of the National Food Security Act (NFSA), 2013.
3. Surplus stocks procured by a participating state beyond its local welfare requirements are handed over to the Food Corporation of India (FCI) for the central pool.

Which of the statements given above is/are correct?

Show answer & explanation

Answer: 1 and 3 only

Answer

Statements 1 and 3 are correct. The Decentralized Procurement Scheme (DCP) allows state governments to directly procure, store, and distribute foodgrains, handing over any surplus to the Food Corporation of India (FCI). However, participation in the scheme is voluntary for states, not mandatory under NFSA 2013.
Statements 1 and 3 are factual and correct. The Decentralized Procurement Scheme (DCP), initiated in 1997-98, aims to build local procurement capacities, reduce transit losses, and cater directly to regional consumption preferences. Participating state governments directly procure foodgrains at Minimum Support Price (MSP), store them, and issue them under TPDS. Any excess stock beyond the state's welfare requirement is surrendered to FCI for national redistribution. Statement 2 is false because adoption of DCP is optional and voluntary for state governments.

Step-by-Step Solution

1
Evaluate Statement 1 regarding state procurement and distribution under DCP.
Statement 1 is correct.
The DCP scheme was introduced in 1997-98 to encourage local procurement, minimize cross-transportation of foodgrains, and enhance procurement efficiency by enabling state agencies to procure and distribute directly under TPDS.
2
Evaluate Statement 2 regarding the statutory mandatory status of DCP under NFSA 2013.
Statement 2 is incorrect.
DCP is a voluntary operational framework option offered by the Central Government to States; it is not a mandatory statutory clause imposed on all states by the National Food Security Act (NFSA) 2013.
3
Evaluate Statement 3 regarding handling of surplus foodgrain stock.
Statement 3 is correct.
If a DCP state procures foodgrains in excess of its targeted requirement for internal welfare distribution, the surplus quantity is handed over to the Food Corporation of India (FCI) to maintain the central pool.

Key Concept

Decentralized Procurement Scheme (DCP) operational mechanics and state-level foodgrain management
Estimated Time:1m 15s
Question 239Question →

Consider the following statements regarding the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY):
1. It provides a renewable life insurance cover of ₹2 lakh for death due to any cause to individuals in the age group of 18 to 50 years having a bank account.
2. It is structured as a Centrally Sponsored Scheme where the annual premium cost is shared between the Union and State Governments in a 60:40 ratio.
3. The scheme is offered and administered through the Life Insurance Corporation of India (LIC) and other participating life insurers in tie-up with banks.

Which of the statements given above are correct?

Show answer & explanation

Answer: 1 and 3 only

Answer

The statement combination '1 and 3 only' is correct. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offers a ₹2 lakh life insurance cover for individuals aged 18 to 50 years with a savings bank account, administered by LIC and partner life insurers. Statement 2 is incorrect because PMJJBY is a subscriber-funded social security scheme with automatic premium deduction, not a Centrally Sponsored cost-shared scheme.
The correct response identifies statements 1 and 3 as true. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a flagship social security life insurance scheme offering a ₹2 lakh cover for death due to any reason to individuals aged 18–50 years holding a savings bank account. It is implemented through LIC and other life insurers in partnership with participating banks. Statement 2 is false because the premium is paid entirely by the policyholder via auto-debit rather than through a 60:40 Centre-State funding split.

Step-by-Step Solution

1
Evaluate Statement 1 regarding target beneficiary age limit and insurance coverage.
PMJJBY is available to people in the age group 18 to 50 years who have a bank account and consent to auto-debit. It provides a risk coverage of ₹2 lakh in case of death due to any reason. Statement 1 is correct.
Verifying basic eligibility conditions and policy coverage payout.
2
Evaluate Statement 2 regarding funding architecture and central/state share.
PMJJBY is a voluntary social security scheme funded directly by the subscriber through auto-debit from their bank account. It is not a Centrally Sponsored Scheme with a 60:40 budgetary sharing ratio. Statement 2 is incorrect.
Distinguishing between subscriber-funded micro-insurance schemes and budgetary fiscal grant schemes.
3
Evaluate Statement 3 regarding nodal implementing agencies and financial institutions.
The scheme is offered through the Life Insurance Corporation (LIC) and other life insurance companies that tie up with participating banks to administer subscriber enrollment and claims. Statement 3 is correct.
Checking the administrative and operational delivery architecture.

Key Concept

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Eligibility and Financial Architecture
Question 240Question →

Regarding the Atal Pension Yojana (APY), a core component of India's social security architecture, which of the following statements are correct?

Select all that apply

Show answer & explanation

Answer: The scheme is targeted at workers in the unorganized sector within the entry age group of 18 to 40 years.; Subscribers receive a guaranteed fixed minimum pension ranging from ₹1,000 to ₹5,000 per month upon attaining 60 years of age.

Answer

The correct statements are the one specifying the target entry age of 18 to 40 years for unorganized sector workers and the one stating the guaranteed fixed minimum monthly pension ranging from ₹1,000 to ₹5,000 upon reaching 60 years of age.
The statement regarding the age band of 18 to 40 years for unorganized sector workers is correct because APY mandates a minimum 20-year contribution window before turning 60. The statement regarding pension slabs is also correct because the scheme promises ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 guaranteed per month.

Step-by-Step Solution

1
Evaluate the eligibility criteria regarding age and targeted beneficiary group.
Unorganized sector workers aged between 18 and 40 years are eligible to join APY, making this statement accurate.
APY requires at least 20 years of continuous contributions prior to attaining the pension age of 60.
2
Identify the nodal administrative agency regulating the scheme.
The scheme operates under the administrative control of PFRDA, making the attribution to IRDAI incorrect.
PFRDA oversees pension schemes in India, while IRDAI handles insurance products.
3
Check the guaranteed benefit structure provided at age 60.
Subscribers get a guaranteed monthly pension option between ₹1,000 and ₹5,000, making this statement accurate.
The Central Government guarantees the minimum pension shortfall if accumulated investment returns are lower than expected.
4
Verify income-tax restriction amendments.
Taxpayers are restricted from joining APY as of October 1, 2022, making the claim of unrestricted taxpayer eligibility incorrect.
The scheme focuses government subsidies on non-taxpaying low-income informal workers.

Key Concept

Atal Pension Yojana (APY) Architecture and Eligibility
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