BACHELOR IN APPLIED ECONOMICS

YEAR – II

AGRICULTURAL ECONOMICS

Kindly read the following instructions before attempting the question paper:
 Answer ALL the following questions. Each question carries 1 mark.
 There is NO NEGATIVE marking.
 Choose only One correct option.
 Scribbling in the question paper is strictly not allowed.

1. AGMARK seal will be issued by

(a) Agricultural Marketing Director of DMI

(b) Council of State Agricultural and Marketing Boards
(c) Agricultural Marketing Advisor of DMI
(d) None of the above

2. Export-import bank was established on 1st January

(a) 1980
(b) 1982
(c) 1983
(d) 1981

3. The main function of Regional Rural Bank (RRB)

(a) To open more number of branches in rural areas

(b) To encourage deposit mobilisation
(c) To advance loans to weaker sections
(d) To control inflation

4. Under National Agricultural Insurance Scheme (NAIS), crop claims maximum under
(a) Groundnut
(b) Cotton
(c) Chillies
(d) Sunflower

5. Indian grain storage management and research institute is located at

(a) Ahmednagar
(b) Pune
(c) Saharanpur
(d) Hapur

6. Which of the following is considered as protector of national wealth

(a) Market information

(b) Warehousing
(c) Processing unit
(d) Transportation

7. In __________ market, future sale and purchase of commodities will take place at current
time

(a) International
(b) Perfect
(c) Spot
(d) Forward

8. Minimum support prices for major agricultural products are fixed by government

(a) Before starting of sowing season

(b) After sowing
(c) In middle of crop period
(d) After harvesting
9. An increase either in real output (GDP) or in real output per capita is called ________

(a) Growth rate

(b) Economic efficiency
(c) Economic growth
(d) Economic development

10. Changes in government spending and tax collection designed to achieve a full
employment and non-inflationary domestic output is called ___________

(a) Economic planning

(b) Fiscal policy
(c) Economizing problem
(d) None of the above

11. A tax imposed by a nation on an imported good is called ____________

(a) GNP
(b) Net profit
(c) Foreign exchange
(d) Tariff

12. The implicit change in real income resulting from the effects of a change in a
commodity’s price on quantity demand?

(a) Substitution effect

(b) Income effect
(c) Labour effect
(d) All of the above

13. The annual amount that borrower must pay a lender over an above the total borrowed

(a) Interest
(b) Loan
(c) Interest rated
(d) None of the above

14. Any financial institution that serves to channel loan able funds savers to borrowers

(a) IMF
(b) Financial Intermediary
(c) None of the above
(d) Both option A and B

15. A type of unemployment caused by insufficient total spending __________

(a) Under employment

(b) Cyclical unemployment
(c) Under development
(d) None of the above

16. A rise in the general level of prices in an economy __________

(a) Inflation
(b) Dearnen
(c) Deflation
(d) None of the above

17. The absence of artificial barriers to trade among individuals and firms in different nations

(a) Trade union

(b) Free economy
(c) Free trade
(d) None of the above
18. Situation in which government intervention in an economy worsens outcomes
__________

(a) Government failure

(b) Government inefficiency
(c) Market perfection
(d) None of the above

19. Number of people and their level of skills is called _________

(a) Physical resources

(b) Capital resources
(c) Labour resources
(d) Human resources

20. An agreement among sellers of a commodity to set a common price or share their
commodity market

(a) Collusion
(b) Monopoly
(c) Oligopoly
(d) Heteropoly

21. Which nutrients are found deficient in 'Black Soil'?

A.  Iron
B.  Nitrogen and Phosphorus
C.  Lime
D.  Potash

22. Which of the following statement is incorrect?

A.  Red soils are rich in iron
B.  Laterite soil is a local soil
C.  Tea, Cassava, Rubber and Cashews grow in Laterite Soil.
D.  The production and classification of soil is known as edaphology.

23.  Which of the following statement is incorrect about Bio-Gas Plant?

A.  It is also known as Bio-gas and Bio-gas.
B.  It has 60% Carbon Di-oxide, 20% Methane and 5% Oxygen.
C.  The bacteria found under Bio-gas plant work under a temperature gradient of 32 to 1560 F
D.  Garbage and Cow dung etc.

24. What is 'Azolla'?

A.  A grass that grows in cold water
B.  An organism that grows in cold water
C.  An animal found in Siberia
D.  None of the above

25.  Indian soils are deficient in which of the following nutrient?

A.  Nitrogen
B.  Sulphur
C.  Iron
D.  Magnisium

26.  Which of the following statement is incorrect?

A.  India has highest rank in milk production across the world
B.  The first military Dairy farm was established in Allahabad.
C.  Cows are the biggest source of milk production in India.
D.  National Dairy Development Board was established in 1970.

27.  Which of the following best describes the top meat producing States in India in
descending order?
A.  Uttar Pradesh>Andhra Pradesh>West Bengal
B.  Uttar Pradesh>Kerala>West Bengal
C.  Uttar Pradesh>Kerala> Andhra Pradesh
D.  Kerala>Andhra Pradesh>West Bengal

28.  Which of the following variety of cow is known to produce highest amount of Milk?
A.  Haryani
B.  Nagauri
C.  Sahiwaal
D.  Khillari

29. Which of the following is not an Indian breed of cow?

A.  Saahiwal
B.  Jersey
C.  Malwi
D.  Mewati

30.  Which of the following statements is incorrect?

A.  Uttar Pradesh has maximum number of Buffaloes.
B.  Bhadavari is the breed of Buffalo which produces highest quantity of milk.
C.  Central Buffalo Research Institute is located in Hissar, Haryana
D.  India has highest rank in milk production across the world

31. TRIFED was established in the year 1987 for…?

(a). To develop marketing system for forest products.

(b). To develop marketing system for medicinal products.
(c). To develop marketing system for foreign products.
(d). To develop marketing system for non-agricultural products.

32. Which is known as the sunk cost?

(a). Retrospective cost.
(b). Fixed cost.
(c). Flow cash.
(d). Fixed cash.

33. Macro approach is a concept of…?

(a). Farm management.

(b). Production economics.
(c). Market surplus.
(d) All of the above.

34. Land holding of marginal farmer is?

(a). Less than 5 acre.

(b). More than 5 acre.
(c). Less than 2.5 acre.
(b). More than 2.5 acre.

35. The theory of absolute advantage was given by?

(a). Walker.
(b). Shane.
(c). Germy.
(d). Smith.

36. Contribution of agriculture in India’s GDP in the year 2016 was?

(a). 12 – 13%.
(b). 16.9 – 17.9%.
(c). 14.8 – 15. 8%.
(d). 13 – 14%.
37. In economics cash is a..?

(a). Working capital.

(b). Fixed capital.
(c). Flowing in one direction
(d). None of the above.

38. The theory of inflation was given by..?

(a). A. Walker.
(b). A. P. Lerner.
(c). S. M. Marker.
(d). W. Stan.

39. Production Economics is a..?

(a). Micro approach.

(b). Macro approach.
(c). Both a and b.
(d). None of the above.

40. Who is known as father of economics?

(a). J. M. Keynes.
(b). V. Anstey.
(c). F. Smith.
(d). Marshall.
Answer Key:

1. Agricultural Marketing Advisor of DMI

2. 1982

3. To control inflation

4. Groundnut

5. Hapur

6. Warehousing

7. Forward

8. Before starting of sowing season

9. Economic growth

10. Fiscal policy

11. Tariff

12. Labour effect

13. Interest

14. Both option A and B

15. Cyclical unemployment

16. Inflation

17. Free trade

18. Government inefficiency

19. Human resources

20. Oligopoly

21. Nitrogen and Phosphorus

22. The production and classification of soil is known as edaphology

23. It has 60% Carbon Di-oxide, 20% Methane and 5% Oxygen.

24.  A grass that grows in cold water

25.  Nitrogen

26. Cows are the biggest source of milk production in India.

27. Uttar Pradesh>Andhra Pradesh>West Bengal

28.  Haryani

29. Jersey

30. Bhadavari is the breed of Buffalo which produces highest quantity of milk.

31. To develop marketing system for forest products.

32. Retrospective cost. 

33. All of the above

34.  Less than 2.5 acre

35. Smith.

36. 16.9 – 17.9%

37. Working capital.

38. A. P. Lerner

39. Macro approach 

40. J. M. Keynes.