CUET PG Agriculture Science Questions and Answers Set B

Question: What does the term "opportunity cost" refer to in agricultural economics?
a) The total cost of production incurred by farmers
b) The cost of purchasing inputs for agricultural production
c) The value of the next best alternative foregone when a choice is made
d) The market price of agricultural products

Answer: c

Question: Which of the following factors does NOT influence the demand for agricultural products?
a) Changes in consumer preferences
b) Changes in input prices
c) Changes in income levels
d) Changes in government policies

Answer: b

Question: What is the primary objective of agricultural price support policies?
a) To maximize farmers' profits
b) To stabilize agricultural prices
c) To increase agricultural exports
d) To reduce government intervention in agriculture

Answer: b

Question: Which market structure is characterized by many buyers and sellers, homogeneous products, and
free entry and exit from the market?
a) Monopoly
b) Oligopoly
c) Monopolistic competition
d) Perfect competition

Answer: d

Question: What is the concept of price elasticity of demand?
a) The percentage change in quantity demanded divided by the percentage change in price
b) The absolute change in quantity demanded divided by the absolute change in price
c) The slope of the demand curve
d) The area under the demand curve

Answer: a

Question: What is the primary function of agricultural market intermediaries?
a) To produce agricultural products
b) To regulate agricultural prices
c) To facilitate the exchange of agricultural products between producers and consumers
d) To promote agricultural products

Answer: c

Question: What is the main purpose of agricultural cooperatives?
a) To compete with other producers
b) To increase the cost of agricultural products
c) To provide marketing services and collective bargaining power to farmers
d) To reduce the quality of agricultural products

Answer: c

Question: Which of the following is NOT a characteristic of a monopoly market structure?
a) Single seller
b) Many buyers
c) Control over price
d) Barriers to entry

Answer: b

Question: What is the purpose of agricultural price policies?
a) To regulate agricultural prices
b) To reduce the cost of agricultural products
c) To promote the production of agricultural products
d) To discourage farmers from marketing their products

Answer: a

Question: What is the concept of economies of scale in agricultural production?
a) The cost advantages that arise when the scale of production increases
b) The cost disadvantages that arise when the scale of production increases
c) The fixed costs of production
d) The variable costs of production

Answer: a

Question: Which of the following is NOT a function of agricultural market infrastructure?
a) To reduce the production of agricultural products
b) To increase the cost of agricultural products
c) To facilitate the storage, transportation, and processing of agricultural products
d) To promote the use of traditional marketing techniques among farmers

Answer: a

Question: What is the role of agricultural extension services in marketing?
a) To regulate agricultural prices
b) To promote the use of modern marketing techniques among farmers
c) To reduce the production of agricultural products
d) To increase the cost of agricultural products

Answer: b

Question: How does contract farming influence agricultural marketing?
a) By increasing the cost of agricultural products
b) By reducing the quality of agricultural products
c) By providing farmers with assured markets and prices
d) By limiting the availability of agricultural products

Answer: c

Question: What is the significance of market intelligence in agricultural marketing?
a) It helps farmers produce more crops.
b) It helps farmers reduce their costs.
c) It helps farmers make informed decisions about when, where
c) It helps farmers make informed decisions about when, where, and how to sell their products.

Answer: c

Question: How does e-commerce impact agricultural marketing?
a) It reduces the need for intermediaries.
b) It increases the cost of agricultural products.
c) It decreases the availability of agricultural products.
d) It limits the market reach of agricultural products.

Answer: a

Question: What role does government regulation play in agricultural marketing?
a) To increase the cost of agricultural products
b) To regulate agricultural prices and ensure fair practices
c) To discourage farmers from marketing their products
d) To promote the use of traditional marketing techniques among farmers

Answer: b

Question: What is the role of agricultural marketing boards in promoting agricultural products?
a) To reduce the production of agricultural products
b) To increase the cost of agricultural products
c) To provide marketing services and promote agricultural products in domestic and international markets
d) To limit the availability of agricultural products

Answer: c

Question: How do market information systems benefit farmers in agricultural marketing?
a) By increasing the cost of agricultural products
b) By reducing the quality of agricultural products
c) By providing timely information on market prices, demand, and trends
d) By discouraging farmers from marketing their products

Answer: c

Question: What are the challenges faced by small-scale farmers in agricultural marketing?
a) Limited access to markets and market information
b) Excessive government regulation
c) High production costs
d) Low demand for agricultural products

Answer: a

Question: How does globalization impact agricultural marketing?
a) It reduces competition in agricultural markets.
b) It increases market access and opportunities for agricultural products.
c) It decreases the need for market intelligence.
d) It restricts the movement of agricultural products across borders.

Answer: b

Question: Which type of agriculture market involves the direct sale of agricultural products from producers to consumers, often bypassing intermediaries?
a) Wholesale market
b) Retail market
c) Terminal market
d) Direct market

Answer: d

Question: Where are agricultural products typically sold in a wholesale market?
a) To individual consumers
b) To retailers or processors in large quantities
c) To other farmers for further cultivation
d) To government agencies for storage

Answer: b

Question: Which type of market is characterized by a centralized location where agricultural products are bought, sold, and distributed to wholesalers or retailers?
a) Wholesale market
b) Retail market
c) Terminal market
d) Direct market

Answer: c

Question: In a retail market, agricultural products are typically sold to whom?
a) Processors
b) Government agencies
c) Individual consumers
d) Farmers

Answer: c

Question: What role do terminal markets play in the agricultural supply chain?
a) They facilitate direct sales between farmers and consumers.
b) They provide storage facilities for agricultural products.
c) They act as distribution centers for agricultural products.
d) They regulate agricultural prices.

Answer: c

Question: Which type of market primarily deals with the trading of agricultural commodities such as grains, oilseeds, and livestock?
a) Wholesale market
b) Retail market
c) Terminal market
d) Direct market

Answer: a

Question: What distinguishes a direct market from other types of agriculture markets?
a) It involves the sale of agricultural products in bulk quantities.
b) It relies heavily on intermediaries for distribution.
c) It facilitates direct transactions between producers and consumers.
d) It is primarily focused on international trade.

Answer: c

Question: Where are agricultural products typically stored in a terminal market?
a) In processing facilities
b) In retail stores
c) In warehouses or storage facilities
d) In farmers' fields

Answer: c

Question: Which type of market primarily involves the sale of agricultural products to other businesses for further processing or resale?
a) Wholesale market
b) Retail market
c) Terminal market
d) Direct market

Answer: a

Question: In which type of market are transactions typically conducted through auctions or negotiated sales?
a) Wholesale market
b) Retail market
c) Terminal market
d) Direct market

Answer: a

Question: What is the primary function of a retail market in the agricultural supply chain?
a) To facilitate direct sales between farmers and consumers
b) To store and distribute agricultural products in bulk quantities
c) To provide a centralized location for trading agricultural commodities
d) To sell agricultural products directly to individual consumers

Answer: d

Question: Which of the following types of markets is often associated with farmers' cooperatives?
a) Wholesale market
b) Retail market
c) Terminal market
d) Direct market

Answer: d

Question: Which type of market is characterized by intense competition among numerous buyers and sellers, resulting in price fluctuations?
a) Wholesale market
b) Retail market
c) Terminal market
d) Direct market

Answer: a

Question: What is the significance of a terminal market in the agricultural supply chain?
a) It serves as a platform for direct sales between farmers and consumers.
b) It provides storage facilities for agricultural products.
c) It acts as a centralized location for trading and distribution.
d) It focuses on selling agricultural products to individual consumers.

Answer: c

Question:  Which type of market typically operates on a seasonal basis, catering to specific crops or agricultural products?
a) Wholesale market
b) Retail market
c) Terminal market
d) Direct market

Answer: c

Question: In which type of market are transactions conducted primarily through online platforms or digital channels?
a) Wholesale market
b) Retail market
c) Terminal market
d) Direct market

Answer: b

Question: What is the primary purpose of a wholesale market in the agricultural supply chain?
a) To sell agricultural products directly to consumers
b) To facilitate bulk sales to retailers or processors
c) To provide storage facilities for agricultural products
d) To serve as a distribution center for agricultural products

Answer: b

Question: Which type of market typically involves long-term contracts between producers and buyers for the sale of agricultural products?
a) Wholesale market
b) Retail market
c) Terminal market
d) Direct market

Answer: d

Question: Which type of market is known for its focus on product quality, presentation, and packaging?
a) Wholesale market
b) Retail market
c) Terminal market
d) Direct market

Answer: b

Question: What is the primary advantage of a direct market for farmers?
a) Access to international markets
b) Higher prices for agricultural products
c) Reduced marketing costs and intermediaries
d) Bulk sales to retailers or processors

Answer: c

Question: Which type of agriculture credit is provided for the purchase of agricultural inputs such as seeds, fertilizers, pesticides, and machinery?
a) Short-term credit
b) Medium-term credit
c) Long-term credit
d) Crop loans

Answer: a

Question: What is the primary purpose of medium-term credit in agriculture?
a) To finance the purchase of land for agricultural purposes
b) To meet the working capital requirements of farmers
c) To finance the purchase of agricultural machinery and equipment
d) To fund long-term development projects in agriculture

Answer: c

Question: Which type of agriculture credit is provided for the construction of farm structures, purchase of land, or long-term agricultural investments?
a) Short-term credit
b) Medium-term credit
c) Long-term credit
d) Crop loans

Answer: c

Question: What is the primary source of short-term credit for farmers in India?
a) Commercial banks
b) Regional rural banks
c) Cooperative banks
d) Moneylenders

Answer: a

Question: Which type of financial institution is known for providing specialized agricultural credit to farmers at concessional interest rates?
a) Commercial banks
b) Regional rural banks
c) Cooperative banks
d) Microfinance institutions

Answer: c

Question: What role do regional rural banks (RRBs) play in agricultural credit?
a) Providing long-term credit for agricultural investments
b) Extending short-term credit for agricultural inputs
c) Offering specialized credit schemes for women farmers
d) Financing agricultural research and development projects

Answer: b

Question: What is the primary advantage of crop loans for farmers?
a) Lower interest rates
b) Flexible repayment terms
c) Government subsidies
d) Collateral-free borrowing

Answer: d

Question: Which type of agriculture credit is designed to meet the short-term financing needs of farmers for crop production?
a) Term loans
b) Crop loans
c) Investment loans
d) Working capital loans

Answer: b

Question: What distinguishes Kisan Credit Cards (KCCs) from traditional agricultural loans?
a) Lower interest rates
b) Collateral requirements
c) Flexible repayment options
d) Access to credit through a revolving cash credit limit

Answer: d

Question: What is the primary purpose of investment loans in agriculture?
a) To finance short-term crop production activities
b) To meet the working capital needs of farmers
c) To fund long-term agricultural investments and development projects
d) To provide emergency relief assistance to farmers

Answer: c