100 important Agricultural Economics MCQs with answers.
100 important Agricultural Economics MCQs with answers.
✅ Agricultural Economics MCQs – (1–100)
1. Who is considered the father of Agricultural Economics in India?
A. M.S. Swaminathan
B. V.T. Krishnamachari
C. R.C. Desai
D. C. Ramasamy & M L dantewala
✅ Answer: D. C. Ramasamy & M L dantewala
2. The term “Green Revolution” was coined by:
A. Norman Borlaug
B. William Gaud
C. M.S. Swaminathan
D. Benjamin Franklin
✅ Answer: B. William Gaud
3. MSP is recommended by:
A. Ministry of Agriculture
B. Planning Commission
C. NITI Aayog
D. Commission for Agricultural Costs and Prices (CACP)
✅ Answer: D. CACP
4. In India, agriculture is classified as:
A. Primary sector
B. Secondary sector
C. Tertiary sector
D. Quaternary sector
✅ Answer: A. Primary sector
5. NABARD was established in the year:
A. 1980
B. 1982
C. 1985
D. 1991
✅ Answer: B. 1982
6. Agricultural price policy is mainly aimed at:
A. Enhancing exports
B. Reducing imports
C. Ensuring fair prices for farmers
D. Encouraging cooperative farming
✅ Answer: C. Ensuring fair prices for farmers
7. Who regulates the credit flow to agriculture in India?
A. RBI
B. SBI
C. NABARD
D. Finance Ministry
✅ Answer: A. RBI
8. The demand for agricultural products is generally:
A. Perfectly elastic
B. Elastic
C. Inelastic
D. Unitary elastic
✅ Answer: C. Inelastic
9. Which of the following is not included in agricultural marketing?
A. Storage
B. Processing
C. Transportation
D. Research
✅ Answer: D. Research
10. Buffer stock is maintained to:
A. Export food grains
B. Meet future demand
C. Stabilize prices
D. Increase imports
✅ Answer: C. Stabilize prices
11. The first agricultural census in India was conducted in:
A. 1951
B. 1960
C. 1970
D. 1971
✅ Answer: D. 1971
12. Which of these is an example of direct tax in agriculture?
A. Land revenue
B. Fertilizer subsidy
C. Irrigation fee
D. Input subsidy
✅ Answer: A. Land revenue
13. The elasticity of supply in agriculture in the short run is:
A. Perfectly elastic
B. More than 1
C. Less than 1
D. Zero
✅ Answer: C. Less than 1
14. Which is not a function of money in agricultural economics?
A. Medium of exchange
B. Unit of account
C. Store of value
D. Source of power
✅ Answer: D. Source of power
15. Agricultural labor is considered:
A. Capital
B. Fixed asset
C. Variable input
D. Intermediate input
✅ Answer: C. Variable input
16. Price spread refers to:
A. Cost of cultivation
B. Cost of marketing
C. Difference between farm and retail price
D. Cost of production
✅ Answer: C. Difference between farm and retail price
17. Crop Insurance Scheme was launched in India in:
A. 1985
B. 1990
C. 1999
D. 2002
✅ Answer: A. 1985
18. PM-KISAN scheme provides how much per annum to farmers?
A. ₹4,000
B. ₹6,000
C. ₹8,000
D. ₹10,000
✅ Answer: B. ₹6,000
19. Which of the following is not an agricultural input?
A. Seed
B. Fertilizer
C. Tractor
D. Grocery
✅ Answer: D. Grocery
20. The concept of opportunity cost is most relevant to:
A. Production
B. Consumption
C. Scarcity
D. Inflation
✅ Answer: C. Scarcity
21. In India, food inflation is mainly affected by:
A. Core inflation
B. International oil prices
C. Monsoon and supply-side constraints
D. Service sector wages
✅ Answer: C. Monsoon and supply-side constraints
22. Institutional credit to farmers is mainly disbursed by:
A. Moneylenders
B. SHGs
C. Cooperative banks and commercial banks
D. NGOs
✅ Answer: C. Cooperative banks and commercial banks
23. The main aim of e-NAM is to:
A. Promote export
B. Digitize agricultural land records
C. Create national market for agri-produce
D. Provide insurance
✅ Answer: C. Create national market for agri-produce
24. Agricultural economics mainly deals with:
A. Urban development
B. Price mechanism only
C. Allocation of scarce resources
D. Industrial economics
✅ Answer: C. Allocation of scarce resources
25. The term “Agri-business” includes:
A. Only production
B. Only processing
C. Production, processing and marketing
D. Only marketing
✅ Answer: C. Production, processing and marketing
26. Minimum Support Price is declared by:
A. State Government
B. RBI
C. Central Government
D. NITI Aayog
✅ Answer: C. Central Government
27. Which index is used to measure inflation in agricultural commodities?
A. Consumer Price Index
B. Wholesale Price Index
C. Agri Price Index
D. GDP Deflator
✅ Answer: B. Wholesale Price Index
28. Who conducts the agricultural census in India?
A. NSSO
B. Ministry of Agriculture
C. CSO
D. FCI
✅ Answer: B. Ministry of Agriculture
29. Contract farming is defined as:
A. Leasing out of land
B. Employment for farmers
C. Agreement between farmers and firms
D. Sharecropping
✅ Answer: C. Agreement between farmers and firms
30. Cropping intensity (%) is calculated by:
A. Net area sown / Total area × 100
B. Gross cropped area / Net area sown × 100
C. Irrigated area / Total area × 100
D. Cropped area / Population × 100
✅ Answer: B. Gross cropped area / Net area sown × 100
31. HDI includes all except:
A. Life expectancy
B. Education
C. Income
D. Agricultural productivity
✅ Answer: D. Agricultural productivity
32. Which of the following is not a Kharif crop?
A. Rice
B. Maize
C. Barley
D. Jowar
✅ Answer: C. Barley
33. Price elasticity of demand for most food grains is:
A. Zero
B. Less than one
C. More than one
D. Equal to one
✅ Answer: B. Less than one
34. Which one is a non-institutional source of rural credit?
A. Cooperative banks
B. Regional rural banks
C. Moneylenders
D. Commercial banks
✅ Answer: C. Moneylenders
35. A ‘landless labourer’ owns:
A. Large land
B. Marginal land
C. No land
D. Irrigated land
✅ Answer: C. No land
36. Which is a disguised form of unemployment in agriculture?
A. Seasonal unemployment
B. Involuntary unemployment
C. Underemployment
D. Educated unemployment
✅ Answer: C. Underemployment
37. Which cost is not considered in C2 cost calculation by CACP?
A. Hired labour
B. Interest on capital
C. Family labour
D. Storage loss
✅ Answer: D. Storage loss
38. GDP from agriculture in India is approx:
A. 10%
B. 14-18%
C. 25%
D. 40%
✅ Answer: B. 14-18%
39. “One District One Product” scheme is linked with:
A. Green Revolution
B. Doubling Farmers' Income
C. Export Promotion
D. Land Reforms
✅ Answer: C. Export Promotion
40. Which of these is not part of farm management?
A. Marketing
B. Planning
C. Budgeting
D. Subsidy
✅ Answer: D. Subsidy
41. Which law states "as more and more units of variable input are added to fixed input, marginal product declines”?
A. Law of Diminishing Marginal Utility
B. Law of Increasing Returns
C. Law of Diminishing Returns
D. Law of Constant Returns
✅ Answer: C. Law of Diminishing Returns
42. Which of the following is an example of external economy?
A. Use of HYV seeds
B. Electricity in village
C. Use of pesticides
D. Fertilizer subsidy
✅ Answer: B. Electricity in village
43. Which sector has the highest employment in India?
A. Industry
B. Services
C. Agriculture
D. IT
✅ Answer: C. Agriculture
44. GDP stands for:
A. Gross Domestic Price
B. Gross Domestic Product
C. Gross Demographic Production
D. General Domestic Product
✅ Answer: B. Gross Domestic Product
45. Total cost =
A. Fixed cost + Marginal cost
B. Variable cost + Marginal cost
C. Fixed cost + Variable cost
D. Total revenue – Profit
✅ Answer: C. Fixed cost + Variable cost
46. Agricultural subsidies are part of:
A. Revenue Expenditure
B. Capital Expenditure
C. Revenue Receipts
D. Capital Receipts
✅ Answer: A. Revenue Expenditure
47. Which committee recommended the setting up of NABARD?
A. Rangarajan Committee
B. Shivaraman Committee
C. Kelkar Committee
D. Dantwala Committee
✅ Answer: B. Shivaraman Committee
48. Land ceiling is related to:
A. Export policy
B. Area limit on land holdings
C. Minimum wages
D. Irrigation cost
✅ Answer: B. Area limit on land holdings
49. The term “Agricultural Economics” was first used by:
A. Adam Smith
B. Turgot
C. Arthur Young
D. Alfred Marshall
✅ Answer: C. Arthur Young
50. Which is not a method of agricultural marketing?
A. Cooperative marketing
B. Contract farming
C. Forward trading
D. Black marketing
✅ Answer: D. Black marketing
51. In India, the majority of marginal farmers have holdings of:
A. Above 2 hectares
B. Less than 1 hectare
C. 1–2 hectares
D. More than 5 hectares
✅ Answer: B. Less than 1 hectare
52. Agricultural income is:
A. Taxable under Income Tax Act
B. Exempted from income tax
C. Taxed only in cities
D. Always taxed at 30%
✅ Answer: B. Exempted from income tax
53. The term “Terms of Trade” in agriculture refers to:
A. Trade balance
B. Export-import ratio
C. Ratio of prices received to prices paid by farmers
D. Retail price index
✅ Answer: C. Ratio of prices received to prices paid by farmers
54. Farm budgeting is primarily used for:
A. Banking
B. Marketing
C. Planning farm operations
D. Insurance
✅ Answer: C. Planning farm operations
55. The formula of Net Present Value (NPV) is:
A. Total revenue – Total cost
B. Present value of benefits – Present value of costs
C. Gross revenue – Depreciation
D. Revenue ÷ Cost
✅ Answer: B. Present value of benefits – Present value of costs
56. Break-even point occurs when:
A. TR = TC
B. TR > TC
C. TC > TR
D. TR = 0
✅ Answer: A. TR = TC
57. The value of output per hectare is known as:
A. Yield
B. Land productivity
C. Physical productivity
D. Marginal output
✅ Answer: B. Land productivity
58. Which of the following affects cropping pattern the most?
A. Irrigation
B. Soil fertility
C. Government policy
D. All of the above
✅ Answer: D. All of the above
59. Who first introduced the concept of farm management?
A. Alfred Marshall
B. Arthur Young
C. G.F. Warren
D. Samuelson
✅ Answer: C. G.F. Warren
60. Gross domestic product at factor cost excludes:
A. Depreciation
B. Net indirect taxes
C. Wages
D. Rent
✅ Answer: B. Net indirect taxes
61. Credit required for the purchase of tractor is:
A. Short-term
B. Medium-term
C. Long-term
D. None of the above
✅ Answer: C. Long-term
62. Most critical constraint in Indian agriculture is:
A. Capital
B. Labour
C. Land
D. Irrigation
✅ Answer: D. Irrigation
63. The principle of equi-marginal return is used in:
A. Pricing
B. Production
C. Resource allocation
D. Market analysis
✅ Answer: C. Resource allocation
64. Marginal cost is:
A. Fixed cost per unit
B. Variable cost per unit
C. Change in total cost due to one additional unit
D. Total cost ÷ Output
✅ Answer: C. Change in total cost due to one additional unit
65. Isoquants represent:
A. Equal cost
B. Equal returns
C. Equal inputs
D. Equal output
✅ Answer: D. Equal output
66. Who bears the risk in agriculture?
A. Trader
B. Government
C. Farmer
D. Bank
✅ Answer: C. Farmer
67. Which type of land tenure system existed during British India?
A. Zamindari
B. Ryotwari
C. Mahalwari
D. All of the above
✅ Answer: D. All of the above
68. Capital formation in agriculture means:
A. Consumption increase
B. Increase in productive assets
C. Increase in taxes
D. Fall in prices
✅ Answer: B. Increase in productive assets
69. Consumption function shows relationship between:
A. Savings and investment
B. Income and consumption
C. Price and demand
D. Output and input
✅ Answer: B. Income and consumption
70. Agricultural holding size in India is:
A. Increasing
B. Decreasing
C. Constant
D. Doubled
✅ Answer: B. Decreasing
71. Crop loan is usually given for:
A. 1 year
B. 2–3 years
C. More than 5 years
D. None
✅ Answer: A. 1 year
72. Which is a Kharif crop?
A. Wheat
B. Barley
C. Paddy
D. Gram
✅ Answer: C. Paddy
73. Agricultural productivity is highest in which state? (As per recent reports)
A. Punjab
B. UP
C. Haryana
D. Kerala
✅ Answer: A. Punjab
74. The marginal productivity of fixed input eventually:
A. Increases
B. Decreases
C. Remains constant
D. Becomes zero
✅ Answer: B. Decreases
75. Law of diminishing returns applies only in:
A. Long run
B. Short run
C. Medium run
D. Always
✅ Answer: B. Short run
76. The biggest share in agricultural subsidies goes to:
A. Power
B. Fertilizer
C. Irrigation
D. Seeds
✅ Answer: B. Fertilizer
77. Real income is:
A. Income after tax
B. Income adjusted for inflation
C. Nominal income
D. Gross income
✅ Answer: B. Income adjusted for inflation
78. Terms of trade is favorable to agriculture when:
A. Prices received > prices paid
B. Prices received = prices paid
C. Prices received < prices paid
D. No change in prices
✅ Answer: A. Prices received > prices paid
79. “Doubling Farmers’ Income by 2022” committee was headed by:
A. Ashok Dalwai
B. Ramesh Chand
C. M.S. Swaminathan
D. Arvind Subramanian
✅ Answer: A. Ashok Dalwai
80. Kisan Credit Card was launched in:
A. 1995
B. 1998
C. 2001
D. 2005
✅ Answer: B. 1998
81. GDP from agriculture includes:
A. Forestry and logging
B. Fishing
C. Livestock
D. All of the above
✅ Answer: D. All of the above
82. Who conducts the Livestock Census?
A. Ministry of Finance
B. Ministry of Agriculture & Farmers Welfare
C. Animal Husbandry Department
D. Planning Commission
✅ Answer: C. Animal Husbandry Department
83. The farm mechanization level in India is approximately:
A. 20%
B. 45%
C. 60%
D. 80%
✅ Answer: B. 45%
84. Depreciation cost is a part of:
A. Fixed cost
B. Variable cost
C. Opportunity cost
D. Sunk cost
✅ Answer: A. Fixed cost
85. Which is a method of demand forecasting in agriculture?
A. Least square method
B. Market survey
C. Trend projection
D. All of the above
✅ Answer: D. All of the above
86. If price increases and demand falls, the demand is:
A. Perfectly elastic
B. Inelastic
C. Elastic
D. Unit elastic
✅ Answer: C. Elastic
87. The law of variable proportion is also known as:
A. Law of demand
B. Law of supply
C. Law of diminishing returns
D. Law of marginal utility
✅ Answer: C. Law of diminishing returns
88. Gross margin is:
A. Total cost – Total revenue
B. Total revenue – Variable cost
C. Fixed cost + Variable cost
D. Total revenue + Subsidy
✅ Answer: B. Total revenue – Variable cost
89. Engel’s law is related to:
A. Consumption and income
B. Land and rent
C. Labour and wages
D. Utility and satisfaction
✅ Answer: A. Consumption and income
90. Futures market in agriculture deals with:
A. Actual purchase
B. Forward contracts
C. Spot trading
D. Post-harvest trading
✅ Answer: B. Forward contracts
91. Which of the following is a market intervention scheme?
A. PMFBY
B. MIS
C. MGNREGA
D. PMGSY
✅ Answer: B. MIS
92. Per capita availability of food grains is measured in:
A. Kg/year
B. Tons/year
C. Quintals/year
D. Grams/day
✅ Answer: A. Kg/year
93. The slope of production possibility curve is:
A. Upward
B. Downward concave
C. Downward convex
D. Linear
✅ Answer: B. Downward concave
94. Which input is fixed in short-run production function?
A. Labour
B. Capital
C. Land
D. Water
✅ Answer: C. Land
95. The relationship between input and output is shown by:
A. Demand curve
B. Supply curve
C. Production function
D. Budget line
✅ Answer: C. Production function
96. "Agmark" is related to:
A. Quality control
B. Land records
C. Crop insurance
D. Price support
✅ Answer: A. Quality control
97. Cobb-Douglas function is used to explain:
A. Demand
B. Production
C. Cost
D. Utility
✅ Answer: B. Production
98. If a farmer applies more fertilizer but output falls, he is in:
A. Stage I of production
B. Stage II
C. Stage III
D. Equilibrium
✅ Answer: C. Stage III
99. The capital-output ratio measures:
A. Labour productivity
B. Investment efficiency
C. Wage ratio
D. Price elasticity
✅ Answer: B. Investment efficiency
100. Which economist said, “Agriculture is the backbone of Indian economy”?
A. Amartya Sen
B. Jawaharlal Nehru
C. Raj Krishna
D. M.S. Swaminathan
✅ Answer: B. Jawaharlal Nehru
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