Agriculture's Contribution to Government Revenue

Description: Agriculture's Contribution to Government Revenue
Number of Questions: 14
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Tags: indian economics economic impact of agriculture and food security on india agriculture's contribution to government revenue
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Which of the following is NOT a major source of agricultural revenue for the Indian government?

  1. Taxes on agricultural produce

  2. Export duties on agricultural products

  3. Import duties on agricultural products

  4. Subsidies to farmers


Correct Option: D
Explanation:

Subsidies to farmers are a form of government expenditure, not revenue.

Which of the following agricultural products contributes the most to the Indian government's revenue?

  1. Rice

  2. Wheat

  3. Sugarcane

  4. Cotton


Correct Option: C
Explanation:

Sugarcane is the most heavily taxed agricultural product in India.

How much of the Indian government's total revenue comes from agriculture?

  1. Less than 10%

  2. 10-20%

  3. 20-30%

  4. More than 30%


Correct Option: A
Explanation:

Agriculture contributes less than 10% of the Indian government's total revenue.

Which of the following is NOT a way in which the Indian government can increase its revenue from agriculture?

  1. Increasing taxes on agricultural produce

  2. Increasing export duties on agricultural products

  3. Increasing import duties on agricultural products

  4. Providing subsidies to farmers


Correct Option: D
Explanation:

Providing subsidies to farmers would decrease the government's revenue from agriculture.

What is the impact of agricultural revenue on the Indian economy?

  1. It helps to finance government programs

  2. It helps to stabilize the economy

  3. It helps to promote economic growth

  4. All of the above


Correct Option: D
Explanation:

Agricultural revenue helps to finance government programs, stabilize the economy, and promote economic growth.

Which of the following is NOT a challenge to increasing the Indian government's revenue from agriculture?

  1. The political power of farmers

  2. The need to protect food security

  3. The need to promote agricultural exports

  4. The need to reduce agricultural subsidies


Correct Option: C
Explanation:

Promoting agricultural exports would increase the government's revenue from agriculture.

What is the future of agricultural revenue in India?

  1. It will continue to decline

  2. It will remain stable

  3. It will increase

  4. It is uncertain


Correct Option: D
Explanation:

The future of agricultural revenue in India is uncertain and depends on a number of factors, including the political power of farmers, the need to protect food security, and the need to promote agricultural exports.

Which of the following is NOT a way in which the Indian government can use agricultural revenue to promote economic growth?

  1. Investing in agricultural research and development

  2. Providing subsidies to farmers

  3. Building infrastructure in rural areas

  4. Promoting agricultural exports


Correct Option: B
Explanation:

Providing subsidies to farmers would not promote economic growth.

What is the impact of agricultural revenue on the Indian government's budget?

  1. It helps to reduce the budget deficit

  2. It helps to increase the budget deficit

  3. It has no impact on the budget deficit

  4. It is uncertain


Correct Option: A
Explanation:

Agricultural revenue helps to reduce the budget deficit by providing the government with additional revenue.

Which of the following is NOT a way in which the Indian government can use agricultural revenue to finance government programs?

  1. Investing in education

  2. Investing in healthcare

  3. Investing in infrastructure

  4. Providing subsidies to farmers


Correct Option: D
Explanation:

Providing subsidies to farmers would not finance government programs.

What is the impact of agricultural revenue on the Indian government's ability to provide public services?

  1. It helps to improve the government's ability to provide public services

  2. It hinders the government's ability to provide public services

  3. It has no impact on the government's ability to provide public services

  4. It is uncertain


Correct Option: A
Explanation:

Agricultural revenue helps to improve the government's ability to provide public services by providing the government with additional revenue.

Which of the following is NOT a way in which the Indian government can use agricultural revenue to promote food security?

  1. Investing in agricultural research and development

  2. Providing subsidies to farmers

  3. Building infrastructure in rural areas

  4. Promoting agricultural exports


Correct Option: D
Explanation:

Promoting agricultural exports would not promote food security.

What is the impact of agricultural revenue on the Indian government's ability to reduce poverty?

  1. It helps to reduce poverty

  2. It hinders poverty reduction

  3. It has no impact on poverty reduction

  4. It is uncertain


Correct Option: A
Explanation:

Agricultural revenue helps to reduce poverty by providing the government with additional revenue that can be used to fund anti-poverty programs.

Which of the following is NOT a way in which the Indian government can use agricultural revenue to promote sustainable agriculture?

  1. Investing in agricultural research and development

  2. Providing subsidies to farmers

  3. Building infrastructure in rural areas

  4. Promoting agricultural exports


Correct Option: D
Explanation:

Promoting agricultural exports would not promote sustainable agriculture.

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