Daily Quiz: UPSC Prelims Marathon – March 6, 2018

Both the statements are correct.

WTO’s Special Safeguard Mechanism (SSM) is a protection measure allowed for developing countries to take contingency restrictions against agricultural imports that are causing injuries to domestic farmers. It is a tool that will allow developing countries to raise tariffs temporarily to deal with import surges or price falls.

The “Nairobi Package” was adopted at the WTO’s Tenth Ministerial Conference, held in Nairobi, Kenya, from 15 to 19 December 2015. It contains a series of six Ministerial Decisions on agriculture, cotton and issues related to least-developed countries (LDCs). A Ministerial Declaration outlining the Package and the future work of the WTO was adopted at the end of the five-day Conference. The matters related to agriculture mentioned in the Nairobi Package are Special Safeguard Mechanism for Developing Country Members, Public Stockholding for Food Security Purposes, Export Competition.

Statement 1 is incorrect. While share represents part of ownership of a company, debenture acknowledges loan or debt to the company. Thus, a shareholder is a participant in the profits as well as losses of the company.

Statement 2 is incorrect. Dividend is paid on share, which is an appropriation of profits, but a debenture holder is paid interest over the lifetime of the debenture and principal amount at the end of life.

Both the statements are correct.

District Mineral Foundation (DMF) is a trust set up as a non-profit body, in those districts affected by the mining works, to work for the interest and benefit of persons and areas affected by mining related operations. It is funded through the contributions from miners. Its manner of operation comes under the jurisdiction of the relevant State Government.

Setting up of District Mineral Foundations (DMFs) in all districts in the country affected by mining related operations was mandated through the Mines and Minerals (Development & Regulation) Amendment Act, (MMDRA) 2015.  On 16 September 2015, Central Government issued a notification directing states to set up DMF.

All are key characteristics of organic farming.

1. Protecting the long term fertility of soils by maintaining organic matter levels, encouraging soil biological activity, and careful mechanical intervention
2. Providing crop nutrients indirectly using relatively insoluble nutrient sources which are made available to the plant by the action of soil micro-organisms
3. Nitrogen self-sufficiency through the use of legumes and biological nitrogen fixation, as well as effective recycling of organic materials including crop residues and livestock manures
4. Weed, disease and pest control relying primarily on crop rotations, natural predators, diversity, organic manuring, resistant varieties and limited (preferably minimal) thermal, biological and chemical intervention
5. The extensive management of livestock, paying full regard to their evolutionary adaptations, behavioural needs and animal welfare issues with respect to nutrition, housing, health, breeding and rearing
6. Careful attention to the impact of the farming system on the wider environment and the conservation of wildlife and natural habitats

If the supply of money remains the same when there is an increase in demand for money, there will be an increase in the rate of interest.

An increase in the supply of money typically lowers interest rates, which in turns generates more investment and puts more money in the hands of consumers, thereby stimulating spending. Businesses respond by ordering more raw materials and increasing production.

Both the statements are correct.

Structural unemployment refers to a mismatch between the jobs available and the skill levels of the unemployed. It is caused by forces other than the business cycle. It occurs when an underlying shift in the economy makes it difficult for some groups to find jobs.

Disguised unemployment exists where part of the labor force is either left without work or is working in a redundant manner where worker productivity is essentially zero. It is unemployment that does not affect aggregate output.

Public Debt in India includes only Internal and External Debt incurred by the Central Government. Internal Debt includes liabilities incurred by resident units in the Indian economy to other resident units, while External Debt includes liabilities incurred by residents to non-residents. The Public Account Liabilities is a type of liability.

The total Union Government Liabilities constitutes the following three categories:

1. Internal Debt
2. External Debt
3. Public Account Liabilities