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Give an example of indirect inervention by government in market mechanism. |
Answer» <html><body><p><br/></p>Solution :Under indirect <a href="https://interviewquestions.tuteehub.com/tag/intervention-1049983" style="font-weight:bold;" target="_blank" title="Click to know more about INTERVENTION">INTERVENTION</a>, market price is changed indirectly via shifting the demand and supply curves through taxes and subsidies. Sales <a href="https://interviewquestions.tuteehub.com/tag/tax-1239527" style="font-weight:bold;" target="_blank" title="Click to know more about TAX">TAX</a>, <a href="https://interviewquestions.tuteehub.com/tag/subsidy-654596" style="font-weight:bold;" target="_blank" title="Click to know more about SUBSIDY">SUBSIDY</a> on essential goods and <a href="https://interviewquestions.tuteehub.com/tag/excise-978933" style="font-weight:bold;" target="_blank" title="Click to know more about EXCISE">EXCISE</a> duty are the examples of indirect intervention.</body></html> | |