Daily Current Affairs (MCQ) | Date 05.04.22

Q1. Vikramshila Gangetic Dolphin Sanctuary is in the state of

a. Uttar Pradesh
b. Bihar
c. Uttarakhand
d. West Bengal

Answer : b

Why is the Question ?

Vikramshila Gangetic Dolphin Sanctuary is located in Bhagalpur district of Bihar, India. The sanctuary is a 60 km stretch of the Ganges River from Munger to Kahalgaon in Bhagalpur district. Designated in 1991, it is a protected area for the endangered Gangetic dolphins in Asia. Once found in abundance, only a few hundred remains, of which half are found here. The Gangetic dolphins have been declared as the national aquatic animal of India.

Q2. Recently India has finalised a bilateral preferential trade agreement with

1. UAE
2. Australia
3. Germany

Select the correct answer from the codes given below

a. 1 and 2 only
b. 2 and 3 only
c. 2 only
d. 1, 2 and 3

Answer : c

Why is the Question ?

The India-Australia trade agreement
The story so far:
1. Recently, India and Australia signed an Economic Cooperation and Trade Agreement (ECTA). The landmark bilateral trade pact is the second trade agreement India has signed this year after inking a similar deal with the United Arab Emirates.
2. The ECTA is expected to increase trade between the two sides to $45-50 billion over five years, from the current estimate of $27 billion, and create over 10 lakh additional job opportunities.
3. Under this agreement, India will give 85% of Australia’s exports zero-duty access to its domestic market. India is expected to get zero-duty access to Australia for its goods over five years.
4. Earlier India signed a trade agreement with the UAE. 

Q3. Consider the following statements about the Purchasing Managers' Index

1. (PMI) is an index of the prevailing direction of economic trends
2. If PMI index is more than 50 then its means expansion in business activities
3. It only gives past information on market trends

Which of the above statements is/are correct?

a. 1 and 2 only
b. 2 and 3 only
c. 1 and 3 only
d. 1, 2 and 3

Answer : a

Why is the Question ?

The Purchasing Managers' Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. It consists of a diffusion index that summarises whether market conditions, as viewed by purchasing managers, are expanding, staying the same, or contracting. The purpose of the PMI is to provide information about current and future business conditions to company decision-makers, analysts, and investors.
The headline PMI is a number from 0 to 100. A PMI above 50 represents an expansion when compared with the previous month. A PMI reading under 50 represents a contraction, and a reading at 50 indicates no change. The further away from 50 the greater the level of change.
Manufacturing slows to 6-month low: PMI
1. The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) slid to 54 in March from 54.9 in February, with both production and sales growing at the slowest pace in six months, and inflation concerns driving down firms’ business confidence to the lowest level in two years.
2. A reading of 50 indicates no change in business activity levels. New export orders received by Indian goods producers declined modestly during March, ending an eight-month growth streak.
3. The slowdown was accompanied by an intensification of inflationary pressures.

Q4. Which of the following is/are correctly matched?

Select the correct answer from codes given below

a. 1 and 2 only
b. 2 and 3 only
c. 1 and 3 only
d. 1, 2 and 3

Answer : a

Why is the Question ?

Majuli Island is in Assam.

Q5. In the context of Minimum support Price regime in India, Comprehensive Cost (C2) includes

1. Unpaid Family Labour
2. Actual Paid out the cost on seeds, irrigation etc
3. Rent and interest forgone on owned land and machinery

Select the correct answer from codes given below

a. 1 and 2 only
b. 2 and 3 only
c. 1 and 3 only
d. 1, 2 and 3

Answer : d

Why is the Question ?

Who sets the MSP?
The Swaminathan Committee’s original recommendation was to fix the MSP at levels “at least 50 per cent more than the weighted average cost of production”. However, the Committee failed to define what constituted the weighted average cost of production.
The government fixes the MSP of 22 mandated agricultural crops based on the recommendation of the Commission for Agricultural Costs and Prices (CACP). The list of crops shielded by price fluctuations include 14 Kharif crops, six rabi crops, and two commercial crops. The CCAP is also responsible for fixing the fair and remunerative price (FRP) of sugarcane.
The CACP takes into consideration factors such as domestic and international prices, intercrop price parity, the overall demandsupply situation, and also the likely effect of the MSP on inflation.
How is the MSP calculated?
According to the formula prescribed by the Swaminathan Committee, there are three variables that determine production cost – A2, A2+FL, and C2.
1. A2 includes out-of-pocket expenses borne by farmers, such as term loans for machinery, fertilisers, fuel, irrigation, cost of hired labour and leasing land.
2. The second metric, A2+FL, takes into account the imputed value of unpaid labour on the part of family members, in addition to the paid-out cost.
3. The Comprehensive Cost (C2) is more reflective of the actual cost of production since it takes into account rent and interest forgone on owned land and machinery, over and above the A2+FL rate.
4. The ideal formula according to the Committee would be MSP = C2+ 50% of C2.

Budgetary constraints have held back governments from taking a generous approach while setting the MSP. However, this has not stopped legislators from paying lip service to the primacy of farmers’ interests in government policies.