| 1. Problem of hoarding by traders and black marketeers |
| 2. Taxation which gives the traders an opportunity to raise the prices of goods, the proportion of which is often more than the levy of taxes |
| 3. Administered Prices |
| 4. Hike in Oil Prices |
A) 1, 2, 3
B) 1, 2, 3, 4
C) 1, 2
D) None of the Above
Correct Answer: B
Solution :
| The main cost-push factor in India are: |
| (i) Fluctuations in output and supply in both agriculture and industry sectors. Fluctuations in output of food grains have been a major factor responsible for for rise in food-grain prices as well as general price. In same way, the supply of manufactured goods also did not increase adequately in last few years. Power breakdowns, strikes and lock-outs and shortage of transport facilities have been the major constraints responsible for lowering production of manufactured goods. With ever-rising demand for manufactured goods, the producers are in a position to hike the prices of their products. |
| (ii) Problem of hoarding by traders and black marketeers. |
| (iii) Taxation which gives the traders an opportunity to raise the prices of goods, the proportion of which is often more than the levy of taxes. |
| (iv) Administered Prices. |
| (v) Hike in Oil Prices. |
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