Question

SECTION -A
1. As India increases its output, it creates more pollution. Its government encourages economic growth
by promoting investment and free trade. It is considering cutting taxes, spending more on education,
lowering import tariffs and removing some import quotas
The Indian government intervenes in its economy for a number of reasons, including to reduce pollution
The causes of pollution include vehicles and private and public sector factories which emit harmful
gases. With reductions in the cost of producing cars and rising incomes, more cars are being produced
and purchased in India.
Producers and car drivers base their decisions on just their private costs and benefits. Some farmers
burn their fields after harvesting to increase the growth of their next crop, even though their action
causes pollution. Also, some owners of mines do not take sufficient care to ensure that minerals and
metals do not leak into local water supplies. As well as affecting pollution, the relative size of the primary
sector can influence average income
To reduce pollution, the Indian government subsidizes bus travel. It also requires buses to run on natural
gas rather than on more polluting diesel and petrol. Reduced pollution can attract more foreign tourists.
Foreign tourism and changes in the foreign exchange rate affect the current account of a country's
balance of payments. It has been predicted that India's foreign exchange rate is likely to rise in the future.
ANSWER THE FOLLOWING QUESTIONS BASED ON THE ABOVE INFORMATION
(a) State why India is a mixed Economy? (2 marks)
Your answer
This is a required question
No

Answer 1

Answer:

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Answer 2

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