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GS Paper IUPSC Prelims 2018
Industry & Infrastructure
Question No. 356Interactive Test Mode
00:00
+2-0.66

Q356. If a commodity is provided free to the public by the Government, then

If a commodity is provided free to the public by the Government, then

Select the correct option below (or cross out options to eliminate)
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Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2018 • Indian Economy

Correct Answer: Option (C) — the opportunity costs are transferred from the consumers of the product to the tax-paying public.

Concept & Option Breakdown

Standard Reference Verified

Opportunity cost represents the value of the next best alternative foregone when resources are allocated to a particular use. Providing goods or services 'free of charge' to users does not eliminate the economic cost of the resources (land, labor, capital, tax revenue) used to produce them. Instead, the economic burden and opportunity cost are transferred from the direct consumers to the tax-paying public who fund the state budget.

Elimination Heuristic & Exam Approach

'There is no such thing as a free lunch.' The cost does not vanish (not zero); it is borne by the tax-paying public through government expenditure.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2018 (Q356)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Industry & Infrastructure
Official Answer KeyOption (C) — the opportunity costs are transferred from the consumers of the product to the tax-paying public.

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Frequently Asked Questions — UPSC Prelims 2018 Q356

What is the official answer for UPSC Prelims 2018 GS Paper I Question 356 (Indian Economy)?

The official UPSC answer key for this 2018 Indian Economy (Industry & Infrastructure) question is Option (C): "the opportunity costs are transferred from the consumers of the product to the tax-paying public.". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2018 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Industry & Infrastructure". You can explore all repeated questions from Industry & Infrastructure in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Industry & Infrastructure UPSC Prelims question using option elimination?

'There is no such thing as a free lunch.' The cost does not vanish (not zero); it is borne by the taxpaying public through government expenditure.

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