Rajasthan Economy: RAS Prelims MCQs
721 RAS Prelims practice MCQs on the economy of Rajasthan are on this page, in 11 chapters. They cover the macro overview and State budget, agriculture, industry, the service sector, energy and transport infrastructure, rural development and Panchayati Raj, the State Finance Commission, education, health and the major welfare schemes. Each question has an answer and an explanation.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
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I. It aims to provide adequate and timely credit support to farmers for their cultivation and other needs.
II. The credit limit is fixed based on operational landholding, cropping pattern, and scale of finance.
III. Only commercial banks are authorized to issue KCCs in Rajasthan; cooperative banks are excluded.
IV. It covers post-harvest expenses and consumption requirements of farmer households.
V. Tenant farmers and sharecroppers are eligible for the KCC scheme.
Which of the above statements are correct?
Explanation
The KCC scheme provides flexible credit for cultivation, post-harvest needs, and consumption. Eligibility extends to various categories, including tenant farmers. Statement three is incorrect because KCCs are issued by a wide range of institutions, including commercial, regional rural, and cooperative banks. This broad institutional support ensures that credit is accessible to farmers even in the remote rural areas of Rajasthan.List II.
List I: (Crop Type)
A. Kharif food and oilseed crops
B. Rabi food and oilseed crops
C. Annual commercial crops
D. Annual horticultural crops
List II: (Maximum Premium Rate)
i. 1.5%
ii. 2.0%
iii. 5.0%
iv. 5.0%
Explanation
Under the PMFBY, farmers pay a subsidized and capped premium rate. For Kharif food and oilseed crops, the rate is 2.0 percent. For Rabi food and oilseed crops, it is lower at 1.5 percent. Annual commercial and horticultural crops both have a maximum premium rate of 5.0 percent. The government covers the remainder of the premium to ensure insurance affordability.Explanation
Rajasthan’s short-term cooperative credit system is three-tiered. Primary Agricultural Credit Societies operate at the village level, and Central Cooperative Banks function at the district level. Statement two is incorrect because the Rajasthan State Cooperative Bank is the apex body at the state level. It provides leadership and refinance facilities to the district-level banks, ensuring a smooth flow of agricultural credit.I. It aims to provide financial support to farmers suffering crop loss due to non-preventable natural risks.
II. Enrolment under PMFBY is currently optional for farmers.
III. Yield losses due to localized calamities like hailstorms and landslides are assessed at the individual farm level.
Which of the above statements are correct?
Explanation
The PMFBY aims to protect farmers from financial losses caused by natural disasters. Currently, the scheme is optional for all farmers, including those with existing bank loans. For specific localized events like hailstorms or landslides, the assessment of crop damage is conducted at the individual farm level to ensure fair and accurate compensation for the affected farmers in the state.Explanation
Primary Cooperative Agriculture and Rural Development Banks operate at the Panchayat Samiti or Tehsil level in Rajasthan. These institutions are specifically designed to provide long-term credit to farmers for investments such as land development, minor irrigation, and the purchase of farm machinery. By functioning at the local level, they ensure that long-term financing is accessible to the rural farming community for asset creation.I. Occurrence of localized calamity (e.g., hailstorm)
II. Intimation of crop loss by the farmer to the insurance company or agriculture department within 72 hours
III. Joint loss assessment by the insurance company and state government officials
IV. Settlement of the claim amount directly into the farmer’s bank account
Which of the following is the correct order?
Explanation
The process for localized crop insurance claims follows a specific timeline. It begins with the occurrence of a disaster. The farmer must then intimate the loss within 72 hours. This is followed by a joint assessment of the damage by insurance company and government officials. Finally, once the loss is verified, the claim amount is settled directly into the farmer’s bank account.Statement I: The announcement of Minimum Support Price (MSP) aims to ensure that farmers are protected against sudden falls in market prices during bumper harvests.
Statement II: In Rajasthan, market prices for crops like Bajra and Mustard often fluctuate, necessitating government procurement at MSP.
Which of the following is correct based on the provided options?
Explanation
Minimum Support Price serves as a safety net to prevent farmers from suffering during price crashes caused by bumper harvests. In Rajasthan, major crops like pearl millet and mustard are prone to significant market price volatility. Therefore, the government conducts procurement at MSP to ensure farmers receive a fair return, directly fulfilling the objective of price protection mentioned in the first statement.I. A lack of sufficient procurement centers close to farm gates often hampers effective MSP operations.
II. Delayed payments to farmers for procured crops deter them from selling to government agencies.
III. Strict quality parameters (Fair Average Quality) sometimes result in the rejection of farmers’ produce.
IV. MSP procurement in Rajasthan covers 100% of the total agricultural production of the state.
Which of the above statements is incorrect?
Explanation
Procurement challenges include a lack of nearby centers, payment delays, and strict quality requirements. Statement four is incorrect because MSP procurement in Rajasthan does not cover the entire agricultural production of the state. It is restricted to specific quantities of designated crops and depends on the surplus produce brought by farmers to the centers, rather than being a universal purchase of all output.Explanation
The Government of Rajasthan launched the "Rajasthan Agro-processing, Agri-business and Agri-export Promotion Policy" in 2019. This comprehensive policy was designed to create an environment conducive to setting up processing units and increasing the state’s share in agricultural exports. It provides various financial incentives and subsidies to farmers, entrepreneurs, and cooperative societies to enhance value addition in the state’s agricultural sector.Answer key for these questions
| Q | Correct answer |
|---|---|
| 111 | (c) RAJFED (Rajasthan State Co-operative Marketing Federation Ltd.) for oilseed procurement. |
| 112 | (b) I, II, IV, and V only |
| 113 | (a) A-ii, B-i, C-iii, D-iv |
| 114 | (b) Central Cooperative Banks (CCBs) function at the state level as the apex body. |
| 115 | (d) I, II, and III |
| 116 | (a) Panchayat Samiti/Tehsil level |
| 117 | (a) I, II, III, IV |
| 118 | (a) Both Statement I and Statement II are correct and Statement II explains Statement I. |
| 119 | (b) IV only |
| 120 | (c) 2019 |
Key facts from Rajasthan Economy
- The RPSC syllabus lists the economy of Rajasthan as the second part of the Economy paper.
- Many questions ask for a Rajasthan-specific fact: a scheme, a year, a district or an institution.
- The State budget chapter tests terms such as revenue deficit and fiscal deficit through the FRBM Act and the State’s debt.
- Infrastructure chapters cover solar and wind energy, DISCOM finances, highways, the DMIC and the Jaipur Metro.
- The national economy chapters are on the Indian Economy page.
Frequently asked questions
How many RAS Prelims practice MCQs are there on Rajasthan Economy?
This page has 721 practice MCQs on Rajasthan Economy. Each has the correct answer, and most have an explanation.
Which chapters does the Rajasthan economy set cover?
Eleven chapters: macro overview and State budget; agriculture; industry; the service sector; energy infrastructure; transportation and communication; rural development and Panchayati Raj; State Finance Commission and fiscal devolution; education; health; and the major welfare schemes of the Rajasthan Government.
Is the Rajasthan economy in the RAS Prelims syllabus?
Yes. RPSC lists the economy of Rajasthan as the second part of the Economy paper, after economic concepts and the Indian economy, so both parts are examined in the same paper.
How can I prepare the Rajasthan economy chapters?
Keep a list of schemes with their year, objective and target group, and a list of district-wise crops and industries. Attempt each chapter, read the explanation of every miss and revise the list a few days later.