Which of the following factors may cause an increase in the Economic Cost of food grains procured by the Food Corporation of India (FCI)? Increase in the godown rental prices. Increase in the Minimum Support Price for food grains announced for the year. Increase in the price of crude oil. Increase in the export subsidies. Select the correct answer using the code given below:a)1, 2 and 3 onlyb)2, 3 and 4 onlyc)1 and 3 onlyd)1, 2, 3 and 4Correct answer is option 'A'. Can you explain this answer?

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Which of the following factors may cause an increase in the Economic Cost of food grains procured by the Food Corporation of India (FCI)?

Increase in the godown rental prices.

Increase in the Minimum Support Price for food grains announced for the year.

Increase in the price of crude oil.

Increase in the export subsidies.

Select the correct answer using the code given below:

a)
1, 2 and 3 only
b)
2, 3 and 4 only
c)
1 and 3 only
d)
1, 2, 3 and 4

Correct answer is option 'A'. Can you explain this answer?

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Which of the following factors may cause an increase in the Economic ...

Increase in the Economic Cost of food grains procured by the Food Corporation of India (FCI) can be influenced by various factors. Among the options provided, the factors that can cause an increase in the Economic Cost of food grains procured by the FCI are:

1. Increase in the godown rental prices:
- Godown rental prices refer to the cost of storing and maintaining the food grains in warehouses.
- If the rental prices of godowns increase, it directly adds to the overall cost of storage for the FCI.
- This increase in cost is transferred to the Economic Cost of food grains.

2. Increase in the Minimum Support Price (MSP) for food grains announced for the year:
- The MSP is the price at which the government procures food grains from farmers.
- If there is an increase in the MSP, it implies that the FCI has to pay a higher price to farmers.
- This leads to an increase in the Economic Cost of food grains procured by the FCI.

3. Increase in the price of crude oil:
- Crude oil is a major component in the transportation of food grains from the procurement centers to the storage facilities and distribution centers.
- If there is an increase in the price of crude oil, it directly affects the transportation costs incurred by the FCI.
- This increase in transportation costs adds to the overall Economic Cost of food grains.

Hence, the correct answer is option 'A' (1, 2, and 3 only), as these factors directly contribute to the increase in the Economic Cost of food grains procured by the FCI. The increase in export subsidies (option 4) is not directly related to the Economic Cost of food grains procured by the FCI.

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Which of the following factors may cause an increase in the Economic Cost of food grains procured by the Food Corporation of India (FCI)? Increase in the godown rental prices. Increase in the Minimum Support Price for food grains announced for the year. Increase in the price of crude oil. Increase in the export subsidies. Select the correct answer using the code given below:a)1, 2 and 3 onlyb)2, 3 and 4 onlyc)1 and 3 onlyd)1, 2, 3 and 4Correct answer is option 'A'. Can you explain this answer?

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