PRICE RISE AND CONSUMER AWARENESS. — Social Science STD 10 — Question
Gujarat BoardEnglish MediumSTD 10Social SciencePRICE RISE AND CONSUMER AWARENESS.4 Marks
Question
Why has it become necessary to control price rise$?$
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Answer
Reasons for controlling the price rise:
$(1)$ Price rise increases profit, income, purchasing power, demand of goods and services, etc. Increase in all these things makes lives of poor and middle class people miserable.
$(2)$ Due to price rise people are unable to save money. Moreover, generating capital for business and production also becomes difficult. As a result, there comes a halt in production of necessary commodities, new businesses, industries and employment.
$(3)$ Rise in imports reduces our foreign exchange which creates problems for our economy. due to price rise, foreign investment decreases.
$(4)$ Production of basic goods necessary for day to day life decreases and scarcity occurs. When people cannot even buy such basic goods, their living standards decrease. Poor, become poorer.
$(5)$ The cost of production increases and goods become expensive. As a result, exports have to raise the prices while exporting the goods. On the other hand, other countries may be selling same goods at cheaper prices and so our export would decrease. Increased import and decreased export disturbs the balance of exchange.
$(6)$ Living standard of poor and middle class deteriorates because of price rise. At time people who are unemployed or earn very less get involved into illegal and immoral activities like theft robbery murder crime , prostitution betting, hoarding, profiteering, black marketing, corruption, suicide, etc.
The morale of the society degrades.
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