Agricultural Economics- ICAR JRF/SRF 2024

• Balance of Payments (BoP) Accounting: Transfer Payments:
• In the BoP accounts, unilateral transfer payments (such as gifts, grants, foreign aid, worker remittances, pensions received from abroad) involve transactions where money changes hands without any quid-pro-quo return of goods, services, or financial assets.
• These transfers are classified under the Current Account (under the Invisibles / Unilateral Transfers sub-head).
• Distractors:
• Capital Account: Records cross-border investment flows affecting foreign assets and liabilities (FDI, FPI, external commercial borrowings).
• Official Reserve Account: Tracks central bank foreign exchange reserve adjustments.

Correct option: (3) Current Account

• Tax Incidence and Elasticity:
• The division of an excise tax burden between consumers and producers depends on the relative elasticities of demand ($E_d$) and supply ($E_s$):

• 100% Tax Borne by Consumers: Occurs when demand is completely inelastic ($E_d = 0$, consumers must buy regardless of price) OR when supply is perfectly elastic ($E_s = \infty$) and demand is inelastic, forcing sellers to pass on the full tax increment in higher market prices without absorbing any share.
• Therefore, when demand is inelastic and supply is perfectly elastic, the whole tax burden falls upon the consumer.

Correct option: (3) the demand for a commodity is inelastic and supply is perfectly elastic

• LAMPS (Large-Sized Adivasi Multi-Purpose Societies):
• LAMPS were established in 1971 following the recommendations of the K.S. Bawa Committee (1971) appointed by the Ministry of Agriculture.
• Mandated to operate in tribal and scheduled areas to provide integrated credit, agricultural inputs, distribution of consumer necessities, and organized marketing of Minor Forest Produce (MFP) to protect tribal farmers from exploitation by unscrupulous moneylenders and middlemen.

Correct option: (1) 1971