Q63 · UPSC Prelims 2020 · Set A · Economy

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Which of the following factors/policies were affecting the price of rice in India in the recent past?1.Minimum Support Price2.Government's trading3.Government's stockpiling4.Consumer subsidiesSelect the correct answer using the code given below

A 1, 2 and 4 only
B 1, 3 and 4 only
C 2 and 3 only
D 1, 2, 3 and 4

Correct answer: (d) 1, 2, 3 and 4

Explanation

  1. A

    1, 2 and 4 only

    1, 2 and 4 only. Stockpiling also moves prices.

  2. B

    1, 3 and 4 only

    1, 3 and 4 only. FCI/government trading also matters.

  3. C

    2 and 3 only

    2 and 3 only. Under-counts MSP and consumer subsidy.

  4. D

    1, 2, 3 and 4

    All four. MSP, government trading, stockpiling and consumer subsidies all affected rice prices.

Summary. Official key is (d) 1, 2, 3 and 4. Rice prices in India are a policy price: MSP, FCI buying and selling, buffer stocks, and food-subsidy issue prices all pull the same market.

Same topic · past papers

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  1. 2016 · Q15 · General Studies · 2 marks

    With reference to the International Monetary and Financial Committee (IMFC), consider the following statements: 1. IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work. 2. The World Bank participates as observer in IMFC's meetings. Which of the statements given above is/are correct?

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