agriculture sector subsidy & food processing section 3 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 16

Corporation tax in India is levied on income of a company. Which one of the following does not include Corporation tax?

a) Interest on securities

b) Profit from business

c) Capital gain

d) Sale proceed of assets

Question : 17

Which one of the following is the objective of the National Watershed Development project for rainfed areas of India?

a) Integrated Watershed Management

b) Sustainable farming systems

c) Reclamation of Forest Area

d) Both (a) and (b)

Question : 18

What is an AmberBox subsidy?

1. These include direct payments to farmers to limit production and certain government assistance to encourage agriculture and rural development in developing countries.
2. These include government policies of Minimum Support Prices (MSP) for agricultural products or any help directly related to production quantities (for eg. power, fertiliser, seeds, pesticides, irrigation etc.).
3. These include amounts spent on research, disease control, infrastructure and food security.

a) Only II

b) I & III

c) Only I

d) III & II

Question : 19

With reference to India’s food policy, consider the following statements:

1. It seeks to avert famines by maintaining a buffer stock
2. It ensures remunerative price for the farmers so that they do not switch crops
3. It encourages surplus production for the export market
4. It aims to maintain general price line.

a) 1, 2 and 4

b) 1, 2, 3 and 4

c) 1 and 4

d) 1 and 2

Question : 20

Consider the following reasons :

1. Lack of irrigation facilities, low productivity of land.
2. Single crop mode of cultivation.
3. Indian Agriculture gamble on the monsoon.

a) 1 and 3

b) 1, 2 and 3

c) 2 and 3

d) 2 only