Question

What shows that the public distribution system is inefficient?

• A. That $38\%$ of subsidies on grain does not reach the targeted group.
• B. That one-third of subsidies is siphoned out of the supply chain.
• C. That the government has to spend Rs. $3.65$ for transferring Rs. $1$ to the poor.
• D. A and B
  

Answer 1

The correct option is D A and B

The last paragraph of the passage reads as - 'Studies by the Planning Commission have shown that the public distribution system has become so inefficient that 38% of subsidies on grain does not reach the targeted group and almost a third of it is siphoned out of the supply chain.'

The above two points are Option A and Option B put together.

Therefore, Option D is the right answer.

Options A and B are incorrect because the right answer is Option D Which is a combination of the two.

There is no evidence in the passage to suggest that Option C is the right answer.

Therefore it is incorrect.