UPSC Prelims 2020 · GS Paper I
Question 63: Economy and Social Development
Which of the following factors/policies were affecting the price of rice in India in the recent past ?
- 1.Minimum Support Price
- 2.Government’s trading
- 3.Government’s stockpiling
- 4.Consumer subsidies
Select the correct answer using the code given below :
AnswerUPSC’s answer is (d).
All four affect rice prices in India. The MSP sets a floor for farm prices. Government trading, through procurement, open-market sales and export or import policy, moves supply. Stockpiling by the Food Corporation of India, through buffer stocks, affects availability. Consumer subsidies under the public distribution system change demand in the open market.
- 1. MSP sets a floor for farm prices.
- 2. Government trading changes market supply.
- 3. Buffer stocks affect availability and prices.
- 4. Consumer subsidies change demand.
How you could have got this
- If you were sure statement 1 is correct, (c) goes: it leaves 1 out.
What you needed to know: MSP sets a floor for farm prices.
- Then, if you were sure statement 2 is correct, (b) goes: it leaves 2 out.
What you needed to know: Government trading changes market supply.
- Then, if you were sure statement 3 is correct, (a) goes: it leaves 3 out.
What you needed to know: Buffer stocks affect availability and prices.
Only (d) is left. You didn’t need statement 4.
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: leaves out stockpiling, which affects availability.
- (b) Wrong: leaves out government trading.
- (c) Wrong: leaves out MSP and consumer subsidies.
- (d) Right: all four affect rice prices.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2020, General Studies Paper I, Series A. The paper on upsc.gov.in.