"Subsidies provide an incentive for wasteful use of resources "Do u accept or reject?justify your answer

Dear Student, Subsidies, beyond a limit, encourage wasteful use of the resources. Example: Supply of free electricity to the farmers in Punjab has encouraged the use of electricity even for non-productive purposes, like to fulfill household needs, subsidies in such cases no longer remain an economic issue, and it becomes a political issue. Therefore,Subsidies provide an incentive for wasteful use of resources. Regards.

  • 5
What are you looking for?