NABARD Grade A Economic & Social Issues (ESI) Questions | Set-15

Correct Answer – C Price support mechanism for perishable and horticultural goods

Explanation: Market Intervention Scheme (MIS) is a price support mechanism implemented on the request of State Governments for procurement of perishable and horticultural commodities in the event of a fall in market prices.

• The Scheme is implemented when there is at least a 10% increase in production or a 10% decrease in the ruling rates over the previous normal year.
• Market Intervention Scheme works in a similar fashion to Minimum Support Price based procurement mechanism for food grains but is an ad-hoc mechanism.
• Its objective is to protect the growers of these horticultural/agricultural commodities from making distress sale in the event of the bumper crop during the peak arrival period when prices fall to a very low level. Thus it provides remunerative prices to the farmers in case of a glut in production and fall in prices.
• The Department of Agriculture & Cooperation is implementing the scheme.

Under MIS, funds are not allocated to the States. Instead, central share of losses as per the guidelines of MIS is released to the State Governments/UTs, for which MIS has been approved, based on specific proposals received from them.

Correct Answer – E. Maharashtra

Correct Answer – D All of the Above

Explanation: Wholesale Price Index (WPI) measures the average change in the prices of commodities for bulk sale at the level of early stage of transactions.

• The index basket of the WPI covers commodities falling under the three major groups namely Primary Articles, Fuel and Power and Manufactured products.

• In India, Office of Economic Advisor (OEA), Department of Industrial Policy and Promotion, Ministry of Commerce and Industry calculates the WPI.

Correct Answer: E. The Environment Protection Act, 1986

Explanation- Environment (Protection) Act of 1986
• In the wake of the Bhopal gas tragedy (1984), the government of India enacted the Environment (Protection) Act of 1986.
• The purpose of the Act is to implement the decisions of the United Nations Conference on the Human Environment of 1972, in so far as they relate to the protection and improvement of the human environment and the prevention of hazards to human beings, other living creatures, plants and property.
• The Act is an “umbrella” for legislations designed to provide a framework for Central Government, coordination of the activities of various central and state authorities established under previous Acts, such as the Water Act and the Air Act.
• In this Act, main emphasis is given to “Environment”, defined to include water, air and land and the inter-relationships which exist among water, air and land and human beings and other living creatures, plants, micro-organisms and property.

Correct Answer – B. It is an organ of the United Nations Organization

Explanation- The World Wide Fund for Nature:
• The World Wide Fund for Nature (WWF) is an international non-governmental organization founded on April 29, 1961, and is working on issues regarding the conservation, research and restoration of the environment.
• It is headquartered in Gland, Switzerland.
• It is the world’s largest conservation organization with over 5 million supporters worldwide, working in more than 100 countries, supporting around 1,300 conservation and environmental projects.
• The group’s mission is “to stop the degradation of the planet’s natural environment and to build a future in which humans live in harmony with nature.”

Correct Answer – C. Green Box Subsidies

Explanation- Subsidies are categorized into 3 boxes:

• Green Box: Subsidies which are no, or least market distorting includes measures decoupled from output such as income-support payments (decoupled income support), safety – net programs, payments under environmental programs, and agricultural research and-development subsidies.
• Blue Box: Only ‘Production limiting Subsidies’ under this are allowed. They cover payments based on acreage, yield, or number of livestock in a base year.
• Amber Box: Those subsidies which are trade distorting and need to be curbed. The Amber Box contains category of domestic support that is scheduled for reduction based on a formula called the “Aggregate Measure of Support” (AMS).

Correct Answer – E. None of the above is incorrect

Explanation- Intergovernmental Panel on Climate Change:
• It is a scientific intergovernmental body under the auspices of the United Nations.
• It was set up at the request of member governments.
• It was first established in 1988 by two United Nations organizations, the World Meteorological Organization (WMO) and the United Nations Environment Programme (UNEP).
• Membership of the IPCC is open to all members of the WMO and UNEP.
• The IPCC produces reports that support the United Nations Framework Convention on Climate Change (UNFCCC).
• IPCC reports cover all relevant information to understand the risk of human-induced climate change, its potential impacts and options for adaptation and mitigation.

Correct Answer – B. Montreal Protocol

Explanation- Kigali Agreement:
• A historic global climate deal was reached in Kigali, Rwanda at the Twenty-Eighth Meeting of the Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer (MOP28) in November, 2016.
• The Kigali Amendment which amends the 1987 Montreal Protocol aims to phase out Hydro fluorocarbons (HFCs), a family of potent greenhouse gases by the late 2040s.
• Under Kigali Amendment, in all 197 countries, including India have agreed to a timeline to reduce the use of HFCs by roughly 85% of their baselines by 2045.

Correct Answer – D. Health, Empowerment and Labour Market

Explanation- The 2010 HDR introduced the GII, which reflects gender-based inequalities in three dimensions – reproductive health, empowerment, and economic activity. Reproductive health is measured by maternal mortality and adolescent birth rates; Empowerment is measured by the share of parliamentary seats held by women and attainment in secondary and higher education by each gender and Economic activity is measured by the labour market participation rate for women and men. The GII can be interpreted as the loss in human development due to inequality between female and male achievements in the three GII dimensions.

Correct Answer – C. Depreciation

Explanation- Depreciation: The capital gets consumed during the year due to wear and tear. This wear and tear is called depreciation. E.g. We buy a new car for Rs.5,00,000. As the years pass by, the car gets used and needs maintenance. So after say for 5 years, the value of the car does not remain the same.