Government Schemes & Policies MCQs for UPSC Prelims

62 practice questions on Government Schemes & Policies from the Economy section of the UPSC Prelims syllabus. 62 come with a written explanation and 37 are actual previous year questions. Try the sample set below - the answer stays hidden until you ask for it.

18 Easy 35 Medium 9 Hard 37 from past papers

Sample questions

Q1
Previous year question hard

The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus

  1. A transportation cost only
  2. B interest cost only
  3. C procurement incidentals and distribution cost
  4. D procurement incidentals and charges for godowns
Show answer and explanation

Correct answer: C - procurement incidentals and distribution cost

The economic cost of foodgrains to the FCI has three broad components: the MSP plus any bonus (the pooled procurement cost), the procurement incidentals (such as mandi charges, commission, gunny bags and freight up to the depot), and the distribution cost (handling, storage and freight to the fair price shops). So the missing element added to MSP-plus-bonus is procurement incidentals and distribution cost. The options listing only transportation, only interest, or incidentals with godown charges are incomplete and therefore wrong.

Q2
Previous year question easy

What is/are the advantage/advantages of implementing the 'National Agriculture Market' scheme? 1. It is a pan-India electronic trading portal for agricultural commodities. 2. It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce. Select the correct answer using the code given below :

  1. A 1 only
  2. B 2 only
  3. C Both 1 and 2
  4. D Neither 1 nor 2
Show answer and explanation

Correct answer: C - Both 1 and 2

The National Agriculture Market (e-NAM) is a pan-India electronic trading portal for agricultural commodities (statement 1) that gives farmers access to a wider market with prices reflecting the quality of their produce (statement 2). Both statements correctly describe its advantages. Hence both 1 and 2 are correct.

Q3
Previous year question hard

Consider the following statements : 1. The Accelerated Irrigation Benefits Programme was launched during 1996-97 to provide loan assistance to poor farmers. 2. The Command Area Development Programme was launched in 1974-75 for the development of water-use efficiency. Which of the statements given above is/are correct?

  1. A 1 only
  2. B 2 only
  3. C Both 1 and 2
  4. D Neither 1 nor 2
Show answer and explanation

Correct answer: B - 2 only

Statement 1 is incorrect: the Accelerated Irrigation Benefits Programme, launched in 1996-97, provided central loan assistance to state governments to help them complete large ongoing irrigation projects; it was never a scheme of loans to individual poor farmers. Statement 2 is correct: the Command Area Development Programme, started in 1974-75, aimed to bridge the gap between irrigation potential created and utilised and to improve water-use efficiency in the command areas of irrigation projects through field channels, land levelling and warabandi. Hence 2 only.

Q4
Previous year question easy

'Pradhan Mantri Jan-Dhan Yojana' has been launched for

  1. A providing housing loan to poor people at cheaper interest rates
  2. B promoting women's Self-Help Groups in backward areas
  3. C promoting financial inclusion in the country
  4. D providing financial help to the marginalized communities
Show answer and explanation

Correct answer: C - promoting financial inclusion in the country

PMJDY, launched in August 2014, is a National Mission for Financial Inclusion. It aims to give every household access to a basic bank account, along with a RuPay debit card, accident insurance cover and access to credit, remittance and pension services. It is not a housing loan scheme, so the first option is wrong. Promotion of women's SHGs is the domain of livelihood missions such as DAY-NRLM, not PMJDY. The scheme is universal in coverage and not targeted only at marginalized communities, so the last option is also incorrect.

Q5
Previous year question medium

Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes? 1. Working capital for maintenance of farm assets 2. Purchase of combine harvesters, tractors and mini trucks 3. Consumption requirements of farm households 4. Post-harvest expenses 5. Construction of family house and setting up of village cold storage facility Select the correct answer using the code given below:

  1. A 1, 2 and 5 only
  2. B 1, 3 and 4 only
  3. C 2, 3, 4 and 5 only
  4. D 1, 2, 3, 4 and 5
Show answer and explanation

Correct answer: B - 1, 3 and 4 only

Under the Kisan Credit Card scheme, short-term credit covers working capital for maintaining farm assets, consumption needs of the farm household, and post-harvest expenses (statements 1, 3 and 4). Buying combine harvesters and tractors and constructing houses or village cold-storage are investment or term-loan purposes, not short-term credit, so statements 2 and 5 are excluded. Hence the answer is 1, 3 and 4 only.

Q6
Previous year question medium

With reference to the 'National Intellectual Property Rights Policy', consider the following statements : 1. It reiterates India's commitment to the Doha Development Agenda and the TRIPS Agreement. 2. Department of Industrial Policy and Promotion is the nodal agency for regulating intellectual property rights in India. Which of the above statements is/are correct?

  1. A 1 only
  2. B 2 only
  3. C Both 1 and 2
  4. D Neither 1 nor 2
Show answer and explanation

Correct answer: C - Both 1 and 2

The National IPR Policy of 2016 reaffirms India's commitment to the Doha Development Agenda and the TRIPS Agreement, so statement 1 is correct. The Department of Industrial Policy and Promotion (DIPP) is the nodal agency for coordinating IPR matters in India, so statement 2 is correct. Hence both statements are correct.

Q7
Previous year question medium

How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor? 1. By setting up a large number of new manufacturing industries and agribusiness centres in rural areas 2. By strengthening 'self-help groups' and providing skill development 3. By supplying seeds, fertilizers, diesel pump-sets and micro-irrigation equipment free of cost to farmers Select the correct answer using the codes given below:

  1. A 1 and 2 only
  2. B 2 only
  3. C 1 and 3 only
  4. D 1, 2 and 3
Show answer and explanation

Correct answer: B - 2 only

Only statement 2 is correct, so the answer is (b). The National Rural Livelihood Mission (Aajeevika) works by mobilising rural poor households into self-help groups and their federations, providing them revolving funds, bank linkage and skill development for self-employment and placement. Statement 1 is wrong because the mission does not set up manufacturing industries or agribusiness centres; it builds community institutions and capabilities. Statement 3 is wrong because the mission does not distribute free seeds, fertilizers, diesel pump-sets or micro-irrigation equipment; input subsidies of that kind belong to other agricultural schemes, not NRLM.

Q8
Previous year question medium

Which one of the following best describes the main objective of 'Seed Village Concept'?

  1. A Encouraging the farmers to use their own farm seeds and discouraging them to buy the seeds from others
  2. B Involving the farmers for training in quality seed production and thereby to make available quality seeds to others at appropriate time and affordable cost
  3. C Earmarking some villages exclusively for the production of certified seeds
  4. D Identifying the entrepreneurs in villages and providing them technology and finance to set up seed companies
Show answer and explanation

Correct answer: B - Involving the farmers for training in quality seed production and thereby to make available quality seeds to others at appropriate time and affordable cost

The Seed Village Concept aims to train farmers in quality seed production so that good-quality seeds become available to other farmers locally at the right time and at affordable cost, improving seed replacement rates. It does not aim merely to make farmers use only their own seeds (a), nor to reserve whole villages for certified seed production (c), nor to set up commercial seed companies (d), so those options are wrong.

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