How El Niño could damage India’s economy | Explained
A poor monsoon can damage the economy in three ways: it affects agricultural output, reducing the sector’s contribution to the economy; it hits rural income, denting aggregate demand; and it threatens to push up food prices, causing inflation.
Read source at The Hindu — Business →Prelims Practice MCQs
According to the article, which sector is most affected by a poor monsoon in terms of its contribution to the economy?
- A.Agriculture
- B.Manufacturing
- C.Services
- D.Information Technology
The text states that a poor monsoon affects agricultural output, reducing the sector's contribution to the economy.
What is the primary impact of El Niño on India’s rural income according to the article?
- A.It leads to higher inflation rates.
- B.It results in increased food prices.
- C.It causes a decline in agricultural productivity.
- D.It reduces rural income, affecting aggregate demand.
The text states that El Niño hits rural income, denting aggregate demand.
What is the potential consequence of a poor monsoon on food prices in India?
- A.It could lead to inflation.
- B.It might cause deflation.
- C.It may result in stable prices.
- D.It can increase the cost of living.
The text states that a poor monsoon threatens to push up food prices, causing inflation.