School of Distance Education

University of Calicut
School of Distance Education
IV Semester M.A. Economics
ECO4 E06- AGRICULTURAL ECONOMICS
Multiple Choice Questions

1. The Green Revolution has not been as green as it has been made out to be because
A. it created big farmers
B. it is confined to select regions
C. it is confined only to wheat
D. none of the above
2. The agency started with the responsibility of buffer stocking is
A Commission for Agricultural Costs and Prices
B Food Corporation of India
C National Cooperative Union of India
D Central Warehousing Corporation of India
3. Green Revolution in India was introduced in 20th century during decade’s of_______for
adopting new agricultural strategy.
A. 1960s
B. 1970s
C. 1950s
D. 1990s
4. Who among the following used the term 'Evergreen Revolution' for increasing agricultural
production in India?
A. Norman Borlaug
B. M.S Swaminathan
C. Raj Krishna
D. R.K.V Rao

5. Who is the father of Green Revolution in the World?

A. Norman Borlaug

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B. M.S Swaminathan

C. Raj Krishna

D. R.K.V Rao

6. Who was the father of Green Revolution in India?

A. Norman Borlaug

B. M.S Swaminathan

C. Raj Krishna

D. R.K.V Rao

7. Green Revolution refers to___________.

A. Use of green manure

B. Grow more crops

C. High Yield Variety Programme

D. Green Vegetation

8. The Green Revolution in India was an introduction of high-yielding varieties (HYV) of seeds for
_________.
A. Millet

B. Pulse

C. Wheat

D. Oilseed

9. Which of the following state was chosen as the initiation site in India for Green Revolution?
A. Punjab

B. Tamil Nadu

C. Andhra Pradesh

D. Bihar

10. Which of the following was included as part of the land reforms initiated in India?

A. Abolition of intermediaries’

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B. Tenancy reforms
C. Reorganization of agriculture
D. All the above
11. Which of the following states has the highest irrigation coverage?
A. Punjab
B. Karnataka
C. Uttar Pradesh
D. Uttarakhand
12. Which of the following was not a measure under the tenancy reforms?
A. Regulation of rent
B. Security of tenure
C. Ownership rights to tenants
D. None of the above

13. Which is a correct equation?

A. TP= AP/N
B. AP= TP/N
C. AP= TP x N
D. TP= AP- N
14. Diminishing marginal returns implies:
A. Decreasing average variable costs
B. Decreasing marginal cost
C. Increasing marginal cost
D. Decreasing average fixed cost

15. Law of diminishing returns is also known as

A. Variable proportion
B. returns to scale
C. Isoquant
D. Price line
16. Demand function Q = f(P), the variable P denotes
A. Product
B. Production
C. Price
D. Profit
17. TR – TC is also known as
A. Revenue

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B. Profit
C. Cost
D. None of the above
18. Slope of Total product Curve is called
A. MP B. AP C. TP D. MC
19. Marginal rate of technical substitution is the ratio of
A. Price to income B. Marginal utility
C. Marginal products D. Marginal revenue
20. Which of the following is not a feature of Cobb Douglas production factor
A. Linearity B. Homogencity
C. constant returns D. Increasing returns
21. Law of variable proportion explains for
A. Shortrun
B. Long run
C. Medium
D. None of the above
22. Cobb-Douglas production-
A. is linear
B. is homogeneous
C. shows constant returns to scale
D. all the above

23. Which one of the following is not a factor of production?

A. Land
B. Labour
C. Capital
D. Bank Loan

24. Marginal cost is defined as

A. the change in total cost due to one unit change in output.

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B. the change in total cost due to one unit change in input.

C. the ratio of total cost to total output
D. the ratio of total cost to total input
25. __________ cost is also known as Alternative Cost.
A. Opportunity
B. Actual
C. Real
D. Money
26. The additional cost incurred to produce an additional unit of output is _______
A. Marginal cost B. Variable cost
C. Fixed cost D. Opportunity cost
27. __________ cost remains constant even if production is stopped.
A. Fixed B. Variable
C. Semi-Variable D. Marginal
28. Total input is maximum when _____________
A. MP = 0 B. MP is increasing
C. MP is decreasing D. MP is constant
29. Economies and diseconomies of scale explain why the:
A. short-run average fixed cost curve declines so long as output increases
B. marginal cost curve must intersect the minimum point of the firm's average total
cost curve.
C. long-run average total cost curve is typically U-shaped.
D. short-run average variable cost curve is U-shaped.
30. When the total product curve is falling, the:
A. marginal product of labor is zero.
B. marginal product of labor is negative.
C. average product of labor is increasing.
D. average product of labor must be negative.
31. With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50.
Its output is:
A. 200 units. B. 400 units. C. 800 units. D. 1,600 units.

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32. The short run is a time period in which:

A. all resources are fixed.
B. the level of output is fixed.
C. the size of the production plant is variable.
D. some resources are fixed and others are variable.
33. Variable costs are:
A. sunk costs.
B. multiplied by fixed costs.
C. costs that change with the level of production.
D. defined as the change in total cost resulting from the production of an additional
unit of output.
34.The firm's short-run marginal-cost curve is increasing when:
A. Marginal product is increasing.
B. Marginal product is decreasing.
C. total fixed cost is increasing
D. average fixed cost is decreasing.
35. The law of diminishing returns only applies in cases where:
A. there is increasing scarcity of factors of production.
B. the price of extra units of a factor is increasing.
C. there is at least one fixed factor of production.
D. capital is a variable input

36.Indian production of tea in the world stands at

A. First
B. Second
C. Third
D. Fourth

37. Which among the following has the function of recommending Minimum Support Prices for
various commodities to the Government?
A. National Farmers Commission
B. Agriculture Cost & Price Commission
C. Central Statistical Organization
D. .Department of Agriculture

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38. Sona, PB 18 and Kalyan were the High Yielding Variety Seeds used in HYVS programme for
which among the following crops?
A. Wheat
B.Rice
C.cotton
D.Maize
39. The father of ‘Operation Flood’ is
A. MS. Swaminathan
B. Verghese
C. Amartya Sen
D. Uma Kapila
40. In which of the following year was the Food Corporation of India (FCI) set up?
A. 1955
B. 1960
C. 1965
D. 1970
41.Which one of the following regions has the largest area of wheat production?
A. Asia
B. North America
C. Europe
D. South America

42.In India which of the following has the highest share in the disbursement of credit
to agriculture and allied activities?
A. Micro finance Institutions
B. Regional Rural Banks
C. Commercial Banks
D. Cooperative Banks
43.Which country among the following has the largest cultivated area of cotton in the
world?
A. India
B. Egypt
C. Pakistan

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D. U.S.A.
44.National Agriculture Insurance Schema replacing Comprehensive Crop Insurance
Scheme (CCIS) was introduced in the year
A. 1997
B. 1998
C. 1999
D. 2000
45.What is the major function of NABARD?
A. Deal in government securities
B. Provide loans to the public
C. Provide loans to Commercial Banks and Regional Rural Banks for the
development of the rural sector
D. Accept deposits from the public
46.The term Green Revolution was coined by
A. Dr. MS. Swaminathan
B. Dr. Norman Borlaug
C. Dr. Manmohan Singh
D. Dr. William Gande

47.‘Doha Round of WTO’ is related with, which of the following?

A. Agriculture
B. Industry
C. Services
D. Investment

48.During which plan was Green Revolution introduced in India?

A. First Plan
B. Second Plan
C. Annual Plan
D. Third Plan
49.Which sector is the backbone of Indian economy?

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A. Service Sector
B. Financial Sector
C. Tourism Sector
D. Agriculture Sector

50. Which among the following is not a cereal?

A. Rice
B. Wheat
C. Gram
D. Maize
51. Who announced the introduction of National Food Security Act?

A. Pranab Mukherjee
B. Manmohan Singh
C. P.Chidambaram
D. Arun Jaitley
52. Who announced the launch of Rashtriya Krishi Vikas Yojana?

A. Narendra Modi
B. Dr. Manmohan Singh
C. Atal Bihari Vajpayee
D. I.K.Gujral

53. When did the Government present Kisan Credit Card Scheme?

A. April 1853
B. August 1998
C. July 1991
D. November 1995

54. The abnormal increase in buffer stock of FCI in recent times is due to
A. procurement prices are above market prices
B. additional storage facility created by FCI
C. transport bottlenecks in wheat producing regions
D. series of bumper harvest
55. In order to promote village industralisation, Government of India has set up the
Mahatma Gandhi Institute for Rural Industralization in
A. Porbandar

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B. Hyderabad
C. Kolkata
D. Wardha
56. In which of the following year was the Food Corporation of India (FCI) set up?
A. 1955
B. 1960
C. 1965
D. 1970
57. Which decade of Indian planning has the best for agricultural growth?
A. Fifties
B. Sixties
C. Seventies
D. Eighties
58. Where is the Central Food Technological Research Institute (CFTRI) situated?
A. Lucknow
B. Mysore
C. Karnal
D. Bangalore
59. The Blue Revolution is related with
A. Milk production
B. Oilseed production
C. Food grain production
D. Fish production
60. Which one of the following apex co-operative organization at the national level of
India?
A. RRBs
B. FCS
C. TRIFED
D. NAFED

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61. The head office of the National Bank for Agriculture and Rural
Development(NABARD) located in
A. Lucknow
B. Mumbai
C. New Delhi
D. Hyderabad
62. Which is not a source of Agriculture finance in India?
A. Co-operative societies
B. Commercial Banks
C. Regional Rural Banks
D. None of these
63. National Seed Policy, 2002 is based on the recommendation of
A. Kelkar Committee
B. M.V. Rao Committee
C. Y.V. Reddy Committee
D. Abhijit Sen Committee
64. Which of the following in respect of Indian agriculture is not correct?
A. India is the largest producer of mango, banana, cheeku and acid lime
B. India is the largest producer of coconuts
C. India is the 3 r d largest producer of chemical fertilizers
D. India is second largest producer of vegetables

65. The ____ was the largest integrated dairy, development programme of the world,
started by National Dairy Development Board in 1970.
A. Operation Animal Husbandry
B. Operation White Revolution
C. Operation Flood
D. Operation White Star
66. Where is the Central Rice Research Institute located?

A.Bangaluru
B.Kanpur

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C.Coimbatore
D.Cuttack
67. Who is known as Father of White Revolution in India?

A.M.S. Swaminathan
B.V. Kurien
C.K.N. Bahal
D.B.P. Pal
68. Where first Agriculture University of India was established?

A.Kumarganj, Faizabad
B.Pantnagar
C.Kanpur
D.Naini, Allahabad
69. In which among the following years, essentials commodities act enacted?
A. 1955
B. 1958
C. 1961
D. 1975

70. When the productive capacity of an economy is inadequate to create sufficient number of jobs is
called.
A. Seasonal unemployment
B. Structural unemployment
C. Disguised unemployment
D. Cyclical unemployment
71. Which of the following is a Kharif crop?
A. Wheat
B. Maize
C. Gram
D. Barbey

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72. Import quota is:

A. Tariff
B. Non-Tariff barrier
C. Concession
D. International Obligation.
73. Regional Rural Bank was started in:
A. 1975
B. 1991
C. 1969
D. 1972
74. PDS stands for
A. Price Distribution system
B. Public Division system
C. Public Distribution System
D. None of these
75. Indian Green Revolution started from?

A.Pantanagar
B.Bangaluru
C.Kanpur
D.Delhi
76. Which is the commercial crop
A. Rice
B. Wheat
C. Tea
D. None of these
77. India’s unemployment is estimated by
A. Finance Ministry
B. RBI
C. NSSO

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D. ISO
78. Which sector is considered as the work force of Indian Economy?
A. Primary
B. Secondary
C. Tertiary
D. None of these
79. An Economy which does not have any relation with ret of the world is known as:
A. Mixed economy
B. Open economy
C. Closed economy
D. Socialist economy
80. FDI stands for :
A. Future direct investment
B. Foreign direct investment
C. Further direct investment
D. Fund for direct investment

81. A Closed economy means:

A. Only exports are take place
B. Money supply is controlled
C. Digital financing take place
D. Neither exports nor imports
82. The first chairman of planning commission:
A. Sardar Vallabhai Pattel
B. Indira Gandhi
C. Dr. Rajendra Prasad
D. Jawaharlal Nehru
83. The total expenditure for agriculture was the highest in which five year plan
A. Fourth Five Year Plan
B. Third Five Year Plan
C. Second Five Year Plan

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D. First Five Year Plan

84. The contribution of Indian agricultural sector is :
A. Increasing
B. Decreasing
C. Constant
D. None Of There
85. Indian Economy is :
A. Socialist Economy
B. Gandhian Economy
C. Mixed Economy
D. Free Economy
86. Which among the following does not belong to welfare schemes for the farmers?

A. Kisan Credit Card Scheme

B. SHG Bank Linkage Programme
C. National Agricultural Insurance Scheme
D. Employee Referral Scheme

87. When was the new agricultural policy established?

A. July 2000
B. March 2002
C. March 2004
D. January 2004
88. Which of the following is the largest fertiliser producer in India?
A. Coromande International Ltd.
B. Indian Farmers Fertiliser Corporation Limited
C. Gujarat State Fertilizers & Chemicals Ltd.
D. Rashtriya Chemicals & Fertlizers Ltd.
89. Which sector is the backbone of Indian economy?
A. Service Sector
B. Financial Sector
C. Tourism Sector
D. Agriculture Sector
90. When the quantity demanded equals quantity supplied
A. the government must be intervening in the market.
B. there is a shortage.
C. there is a surplus.

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D. none of the above

91. A decrease in the quantity supplied is represented by a
A. Rightward Shift in the Supply Curve.
B. Movement down The Supply Curve.
C. Leftward Shift in the Supply Curve.
D. Movement up The Supply Curve.
92. Because of increasing marginal cost, most supply curves
A. are horizontal.
B. have a negative slope.
C. are vertical.
D. have a positive slope.
93. A supply curve shows the relation between the quantity of a good supplied and
A. The price of the good. Usually a supply curve has negative slope.
B. Income. Usually a supply curve has positive slope.
C. Income. Usually a supply curve has negative slope.
D. The price of the good. Usually a supply curve has positive slope.
94. Each point on a supply curve represents
A. The highest price sellers can get for each unit over time.
B.the lowest price buyers will accept per unit of the good.
C. The lowest price for which a supplier can profitably sell another unit.
D. The highest price buyers will pay for the good.
95. A complement is a good
A. Used in conjunction with another good.
B. Used instead of another good.
C. Of lower quality than another good.
D. Of higher quality than another good.
96. A drop in the price of a compact disc shifts the demand curve for prerecorded tapes leftward.
From that you know compact discs and prerecorded tapes are
A. Normal goods.
B. Substitutes.
C. Inferior goods.

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D. Complements.
97. Each point on the demand curve reflects
A. The highest price consumers are willing and able to pay for that particular unit of
a good.
B. The highest price sellers will accept for all units they are producing.
C. The lowest-cost technology available to produce a good.
D. All the wants of a given household.
98. Which of the following definitely causes a fall in the equilibrium price?
A. A decrease in both demand and supply
B. An increase in demand combined with a decrease in supply
C. A decrease in demand combined with an increase in supply
D. An increase in both demand and supply

99. A surplus occurs when the price is

A. Equal to the equilibrium price.
B. Greater than the equilibrium price.
C. Less than the equilibrium price.
D. None of the above because the existence of a surplus is independent of the price
of the good.
100. Multiple cropping refers to:
A. Cultivation of wheat and rice
B. Cultivation of two crops in alternate rows
C. Cultivating more than one crop on the same field each year.
D. Cultivating crops and rearing animals on the same farm.

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ANSWER KEY
1 C 21 A 41 A 61 B 81 D
2 B 22 B 42 C 62 D 82 D
3 B 23 D 43 C 63 B 83 A
4 B 24 A 44 C 64 B 84 B
5 A 25 A 45 C 65 C 85 C
6 B 26 A 46 D 66 D 86 D
7 C 27 A 47 A 67 B 87 A
8 C 28 A 48 C 68 B 88 B
9 A 29 B 49 D 69 C 89 D
10 D 30 B 50 C 70 B 90 D
11 A 31 C 51 A 71 B 91 B
12 D 32 D 52 B 72 B 92 D
13 B 33 C 53 B 73 A 93 D
14 C 34 B 54 A 74 C 94 C
15 A 35 C 55 D 75 A 95 A
16 C 36 A 56 C 76 C 96 B
17 B 37 B 57 B 77 D 97 A
18 A 38 A 58 B 78 A 98 C
19 C 39 B 59 D 79 C 99 B
20 D 40 C 60 D 80 B 100 C

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