Economics · Public Economics
Suppose that the government adopts a food subsidy policy for the BPL (Below Poverty Line) category. Which of the following is not an economic impact of this programme?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1There is an additional cost to the government due to this policy.
- 2The assistance to BPL households via food subsidy imposes a certain pattern of consumption, a certain choice of spending their income.
- 3The government is certain that the BPL households will consume more food than earlier.
- 4The market price of food is affected by this policy so that other consumers have to pay more for food now.✓
Correct answer
The market price of food is affected by this policy so that other consumers have to pay more for food now.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Public Economics MCQs →Want more practice questions on Public Economics?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Public Economics