Daily Static MCQs Quiz for UPSC, IAS, UPPSC/UPPCS, MPPSC. BPSC, RPSC & All State PSC Exams
Subject : Economy (7 December 2023)
1. With reference to the Ryotwari system, consider the following statements:
1. In this system the Ryot or Tenant was the owner of the land.
2. Revenue was not fixed separately for the land owned by the Ryot.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (A)
Explanation: The Ryotwari system was implemented in Southern Tamil Nadu, Maharashtra, Berar, and Coorg. In this system, the Ryot or Tenant was the owner of the land and there was no intermediary between him and the state. The Ryot had the right to sell, transfer, mortgage, lease and gift land. As long as he continued to pay the land revenue fixed at the time of settlement, he could not be evicted. Tenants did not have these rights in the Zamindari system. Hence, statement 1 is correct.
In the Ryotwari system the settlement was temporary. Revenue was fixed separately for the land owned by the Ryot. The settlement was made for 20 years in Madhya Pradesh , for 30 years in Bombay (Maharashtra) and for 40 years in Madras (Tamil Nadu) and United Province (Uttar Pradesh). Hence, statement 2 is incorrect.
2. Consider the following statements:
1. India is one of the countries where there are specialized courts for redressal of consumer related problems.
2. Consumer Protection Act was amended in 2015 to strengthen the rights of consumers.
Which of the statements given above is/are incorrect ?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (B)
Explanation:A consumer is a person who buys goods or services for himself or someone else. 24th December is celebrated as National Consumer Day in India. In 1986, the Indian Parliament passed the Consumer Protection Act. India is one of those countries where there are many ways to solve consumer related problems. There are special courts for this. Hence, statement 1 is correct.
At present, there are more than 2000 consumer organizations in the country, out of which only 50-60 are fully organized and recognized for their functions. Yet, the consumer redress process is proving to be complex, expensive and time consuming. Consumer Protection Act (COPRA) was amended in 2019 to strengthen consumer rights. Hence, statement 2 is incorrect.
3. Which committee was constituted by the Government of India in 1991 to study the structure of direct and indirect taxes?
(a) Kelkar Committee
(b) Rekhi Committee
(c) Chelaiya Committee
(d) Yashwant Sinha Committee
Answer: (C)
Explanation: On August 29, 1991, the Government of India constituted a committee under the chairmanship of Raja J. Chelaiya to study the structure of direct and indirect taxes. This committee made many important recommendations in its report, some of which were later implemented.
Some important issues include, increasing the elasticity of all types of taxes, direct and indirect, increasing the share of direct taxes in gross tax revenue and GDP, making the tax system more equitable and broad based by changes in tax rates, Rationalizing the direct tax system so as to remove its inconsistencies and strengthen economic incentives, exploring new areas for taxation, etc. Hence, option (c) is the correct answer.
4. Consider the following pairs:
| Invisible Trade | Tourism |
| Non-gratuity income | Imports, more than exports |
| Trade deficit | Service trade |
How many of the above pairs are correctly matched ?
(a) Only one
(b) Only two
(c) Only three
(d) All four
Answer: (D)
Explanation: Invisible trade is international transactions that do not involve the exchange of tangible goods. In this there is import and export of services. Hence, pair 1 is not correctly matched.
Trade in services includes both gratuity and non-gratuity income. Gratuity income includes net international income derived from factors of production such as expenditure, land and capital.
Net sales received from service products like shipping, banking, tourism, software services etc. are called non-gratuity income. Hence, pair 2 is not correctly matched.
A trade deficit occurs when a country imports more goods and services than it exports to its trading partner. Trade deficit is also called negative balance of trade. Hence, pair 3 is not correctly matched.
5. With reference to Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), consider the following statements:
1. Under this Act, the objective is to provide 120 days of guaranteed wage employment every year .
2. Under this, one-third employment has been secured for women.
3. MNREGA was started in the year 2005.
How many of the above statements are correct ?
( a) Only one
(b) Only two
(c) All three
(d) None
Answer: (A)
Explanation: Mahatma Gandhi National Rural Employment Act 2005 ( MNREGA) is to provide wage employment for at least 100 days to every household to secure livelihood in rural areas. Hence, statement 1 is correct.
Its objective is to help in sustainable development so that problems like drought, deforestation and soil erosion can be avoided. Under this provision, one-third employment has been reserved for women. Under the National Employment Guarantee Fund established by the Central Government, if the applicant is not provided employment within 15 days, he/she will be entitled to daily unemployment allowance. Hence, statement 2 is correct.
The NREGA Act, passed by the Indian Parliament in August 2005, implemented in various states of the country on 2 February 2006 and was renamed MNREGA on 2 October 2009. Hence, statement 3 is incorrect.
