Economic Awareness - Sectors of Indian Economy
Which administrative measure is commonly used to control inflation caused by supply shortages?
Which administrative measure is commonly used to control inflation caused by supply shortages?
easy Q13 of 15
Step-by-Step Solution
Step 1: Identify administrative measures
Administrative measures include government actions like price controls, rationing, and import of essential goods to manage supply-side inflation.Step 2: Match measure to supply shortage
Price controls directly limit prices to prevent inflation due to supply shortages, unlike monetary tools which affect demand.Final Answer:
Price Controls → Option DQuick Check:
Administrative inflation control = Price Controls ✅
Quick Trick: Price controls curb inflation from supply constraints
Common Mistakes:
- Confusing monetary tools with administrative measures
Master "Sectors of Indian Economy" in Economic Awareness
Start learning the concept with an interactive lesson.
Want More Practice?
15+ quiz questions · All difficulty levels · Free
Free Signup - Practice All QuestionsMore Economic Awareness Quizzes