Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:
What is the potential negative consequence of fertilizer and pesticide subsidies?
Options:
Decreased use of resources.
Harmful effects on the environment.
Reduction in crop yields
Both 2 and 3
Correct Answer:
Harmful effects on the environment.
Explanation:
The subsidies for fertilizers and pesticides can result in overuse of these resources, which can be harmful to the environment. This implies that the subsidies create incentives for wasteful usage and disregard for environmental concerns.