Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsPOVERTY3 Marks
Question
Price rise fuels poverty. Explain.
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Answer
Rapid increase in price:
Events and situations of war, drought, low national production, rapid increase in demand, increase in production cost, price of goods and services as well as edible goods, etc. rise the price at a much faster rate.
Price rise reduces purchasing power of low income group.
It reduces standard of living and increases poverty. On the other side, increasing price benefits businessman, traders and big farmers.
The society again falls in the trap of unequal distribution of income.
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