Question

Which of the following statements favour(s) the adoption of the New Economic Policy?

• A. The New Economic Policy could lead to an increase in employment opportunities and job security.
• B. Due to competition between foreign and domestic producers, consumers could get access to a variety of products.
• C. The open market could facilitate monopoly of certain companies.
• D. The New Economic Policy could bring in equality in income distribution.

Answer 1

The correct option is B Due to competition between foreign and domestic producers, consumers could get access to a variety of products.

The New Economic Policy provided access to foreign companies to the Indian market. It led to a fierce competition between foreign players and domestic producers. The consumers benefited due to this competition as they got access to a variety of products at lower prices.