2020 GS Paper I, all questions

UPSC Prelims 2020 · GS Paper I

Question 61: Economy and Social Development

In India, which of the following can be considered as public investment in agriculture ?

  1. 1.Fixing Minimum Support Price for agricultural produce of all crops
  2. 2.Computerization of Primary Agricultural Credit Societies
  3. 3.Social Capital development
  4. 4.Free electricity supply to farmers
  5. 5.Waiver of agricultural loans by the banking system
  6. 6.Setting up of cold storage facilities by the governments

Select the correct answer using the code given below :

a1, 2 and 5 only
b1, 3, 4 and 5 only
c2, 3 and 6 only
d1, 2, 3, 4, 5 and 6

AnswerUPSC’s answer is (c).

Public investment in agriculture is government spending that creates assets or capacity: computerising Primary Agricultural Credit Societies, building social capital (for instance farmers' organisations, rural institutions and training) and setting up cold storage facilities. Fixing MSP, free electricity and loan waivers are price support or subsidy measures, which are transfers and do not create assets.

  • 1. MSP is a price support measure, not investment.
  • 2. Computerising PACS builds institutional capacity.
  • 3. Social capital development counts as public investment.
  • 4. Free electricity is a subsidy.
  • 5. Loan waivers are a transfer, not an investment.
  • 6. Cold storage creates physical assets.

How you could have got this

  1. If you were sure statement 1 is not correct, (a), (b) and (d) go: each of them includes 1.

    What you needed to know: MSP is a price support measure, not investment.

    The red flag in statement 1 is “all”. In UPSC’s papers, statements with “all” were true 41% of the time (76 statements). A hint, not a rule.

Only (c) is left. You didn’t need statements 2, 3, 4, 5 or 6.

Which options go is worked out from UPSC’s key and the options, not by a model.

Why each option is right or wrong
  • (a) Wrong: MSP and loan waivers are support measures, not investment.
  • (b) Wrong: MSP, free electricity and loan waivers are not investment.
  • (c) Right: PACS computerisation, social capital and cold storage.
  • (d) Wrong: includes MSP, free electricity and loan waivers.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2020, General Studies Paper I, Series A. The paper on upsc.gov.in.