Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

Which of the following is not true about subsidies in agriculture in India ?

Options:

They encourage adoption of technology

The make required inputs affordable to the farmers

It reduces the cost of production for the producers

It increases the cost of production for the producers

Correct Answer:

It increases the cost of production for the producers

Explanation:

The correct answer is option (4) : It increases the cost of production for the producers

In fact, subsidies are intended to do the opposite. Subsidies in agriculture are intended to make required inputs (such as seeds, fertilizers, pesticides, etc.) more affordable to farmers, thereby reducing the cost of production. They also encourage the adoption of technology by making it more accessible and affordable.