Subsidies and Transfers
Economics ⇒ Government and the Economy
Subsidies and Transfers starts at 11 and continues till grade 12.
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Define the term 'subsidy' in the context of government and the economy.
Describe the concept of 'leakage' in the context of subsidies and transfers.
Describe two major objectives of providing subsidies in India.
Discuss the impact of subsidies on market prices.
Discuss the role of Direct Benefit Transfer (DBT) in improving the efficiency of subsidies in India.
Discuss two challenges faced by the government in implementing targeted subsidies.
Explain how subsidies can affect the allocation of resources in an economy.
A government provides a fertilizer subsidy of ₹500 per tonne to farmers. If a farmer buys 10 tonnes, what is the total subsidy received?
Which of the following is a disadvantage of universal subsidies? (1) They are cost-effective (2) They benefit only the poor (3) They can strain government finances (4) They are easy to target
Which of the following is a merit good often subsidized by the government? (1) Alcohol (2) Tobacco (3) Education (4) Gambling
Which of the following is a negative effect of subsidies? (1) Encourages innovation (2) Reduces government expenditure (3) Leads to inefficiency (4) Promotes competition
Which of the following is a transfer payment? (1) Payment for government employees (2) Old age pension (3) Purchase of military equipment (4) Construction of roads
Fill in the blank: ________ subsidies are provided to make education affordable for students from economically weaker sections.
Fill in the blank: ________ subsidies are provided to promote exports from India.
Fill in the blank: ________ subsidies are provided to promote the use of renewable energy sources.
Fill in the blank: ________ subsidies are provided to promote the use of solar panels in households.
State whether the following statement is true or false: 'Subsidies are always targeted at the poor.'
State whether the following statement is true or false: 'Subsidies can be used as a tool to achieve social justice.'
State whether the following statement is true or false: 'Subsidies can encourage the adoption of new technologies.'
State whether the following statement is true or false: 'Subsidies can sometimes create dependency among beneficiaries.'
