Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsPOVERTY2 Marks
Question
How increase in war and defence expenses increase poverty?
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Answer
Due to the issue of security, the expenses of defense expenditure increases.
This type of expenditure are non-developing expenses.
The increase in these expenses directly effect on developing expenses.
At the end, the ratio of development was lower and poverty increased.
The limited resources of country are transferred to defence production and import.
That is why the production of primary goods reduced and during war time people think of scarcity in the future which increase the price rise of society, and poverty increases in the society.
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