UPSC CIVIL SERVICES PRELIMINARY EXAMINATION
UPSC Prelims 2020— Question 73
Q73
Question
Which of the following factors/ policies were affecting the price of rice in India in the recent past? 1. Minimum support prices 2. Government trading 3. Government stockpiling 4. Consumer subsidies Select the correct answer using the code given below :
AnswerOption D
Explanation
This question tests rice prices and government intervention. The key concept is: Rice prices are influenced by MSP, government procurement/trading, public stockholding and consumer-side subsidies or food-distribution policies. These instruments can affect both producer incentives and market supply. The question therefore treats all four listed policy factors as relevant influences. The verified answer for the uploaded Set-B paper is option D.
Option A — 1, 2 and 4 only: This is not the correct option. The option does not match the verified combination or conclusion. The decisive point is the distinction explained above: Rice prices are influenced by MSP, government procurement/trading, public stockholding and consumer-side subsidies or food-distribution policies. These instruments can affect both producer incentives and market supply. The question therefore treats all four listed policy factors as relevant influences. Therefore this alternative should be eliminated even if part of its wording appears plausible in isolation.
Option B — 1,3 and 4 only: This is not the correct option. The option does not match the verified combination or conclusion. The decisive point is the distinction explained above: Rice prices are influenced by MSP, government procurement/trading, public stockholding and consumer-side subsidies or food-distribution policies. These instruments can affect both producer incentives and market supply. The question therefore treats all four listed policy factors as relevant influences. Therefore this alternative should be eliminated even if part of its wording appears plausible in isolation.
Option C — 2 and 3 only: This is not the correct option. The option does not match the verified combination or conclusion. The decisive point is the distinction explained above: Rice prices are influenced by MSP, government procurement/trading, public stockholding and consumer-side subsidies or food-distribution policies. These instruments can affect both producer incentives and market supply. The question therefore treats all four listed policy factors as relevant influences. Therefore this alternative should be eliminated even if part of its wording appears plausible in isolation.
Option D — 1, 2, 3 and 4: This is the correct option. It matches the verified conclusion because Rice prices are influenced by MSP, government procurement/trading, public stockholding and consumer-side subsidies or food-distribution policies. These instruments can affect both producer incentives and market supply. The question therefore treats all four listed policy factors as relevant influences. The wording of the option is consistent with the governing concept tested by the question.
For UPSC-style elimination, first identify the exact proposition being tested, then evaluate each statement independently before comparing the answer codes. Avoid treating a broad or absolute statement as correct merely because its general theme is familiar. The precise qualifiers in the question—such as 'all', 'only', 'cannot', 'largest', 'always' or a specific institutional role—often determine the answer. On that basis, option D is the verified answer.
Question Classification
SubjectEconomy
TopicInflation
SubtopicCPI
Question TypeStatement-based MCQ
Difficultymoderate
VerificationVerified