Political Science · Governance & Public Policy in India
Which of the following statements is/are INCORRECT about the Essential Commodities Act (ECA), 1955?
- 1. the ECA was enacted to ensure the easy availability of essential commodities to consumers
- 2. government intervention through the ECA can increase price volatility of essential commodities
- 3. the ECA incentivises the development of storage infrastructure
A1 and 2 only
B1 and 3 only
C3 only ✓ Correct
D1, 2 and 3
Correct answer: (C) 3 only — Only the third statement is incorrect, so the answer is 3 only.
Explanation
★Only the third statement is incorrect, so the answer is 3 only.
★The ECA was indeed enacted for easy availability of essentials.
★Its stock limits can indeed raise price volatility.
★But the ECA discourages, rather than incentivises, storage infrastructure.
★So statement 3 is the incorrect one.
★So the answer is 3 only.
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