Which of the following is NOT a determinant of the supply of a commodity?
A. Technology
B. Tastes and preferences of consumers
C. Cost of production
D. Price of the commodity
Answer: Option B
Solution (By JKSSB Mock Tests)
Tastes and preferences of consumers affect demand, not supply. Supply is determined by price, cost of production, technology, prices of related goods, and government policies.
Explanation:
Financial repression encompasses a set of policies—interest-rate ceilings, high reserve requirements, directed credit and capital controls—that hold real interest rates low and facilitate cheap financing of the government.
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