What is the term used for the difference between the original price and the price at the fair price shops that is compensated by the government?

Discount

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Profit

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Income

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Subsidy

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Solution

The correct option is D Subsidy
Under the public distribution system, essential commodities like foodgrains, pulses, sugar, and kerosene are distributed through fair price shops. These provisions are bought at subsidised prices through ration cards provided to individuals. The difference between the original price and the rate of items at fair price shops that is paid by the governement is called subsidy.

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At a toy shop price of all the toys is reduced to 66 % of the original price.What is the sale price of a toy that originally costs Rs. 90?

Statement: The vegetable traders feel that the prices of onion will again go up shortly in the State 'P'

Courses of Action:

I. The 'P' State Government should purchase and store sufficient quantity of onion in advance to control prices.

II. The 'F' State Government should make available network of fair price shops for the sale of onions during the period of shortage.

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