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Deciphering the Economics

Indian Economy Reason Assertion Based Examples 3

REASON-ASSERTION BASED QUESTIONS

Choose the correct alternative from the following in each question given below:

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

(c) Assertion (A) is true but Reason (R) is false.

(d) Assertion (A) is false but Reason (R) is true


(1) Assertion (A): India became an exporter of primary products and an importer of finished consumer and capital goods produced in Britain.

Reason (R): Restrictive policies of commodity production, trade, and tariff pursued by the colonial government adversely affected the structure, composition, and volume of India’s foreign trade.

Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(2) Assertion (A): GST consists of three components such as Central GST (CGST), State GST (SGST), and Integrated GST (IGST).

Reason (R): Central GST (CGST) and State GST (SGST) will apply to all transactions of goods and services.

Ans. (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

(3) Assertion (A): The growth rate of rice has not kept pace with the growth rate of wheat.

Reason (R): Green Revolution has failed to increase the production of rice substantially in the rainfed areas of Eastern India.

Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(4) Assertion (A): Special Economics Zones (SEZs) were set up to attract foreign investors.

Reason (R): SEZ is a geographical reason that has economic laws different from the country’s typical economic laws, Usually, the goal is to increase foreign investment.

Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(5) Assertion (A): Pakistan received finance from western nations and remittances from emigrants to the middle countries.

Reason (R): This helped the country in stimulating economic growth.

Ans. (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

(6) Assertion (A): All the three countries have started planning their development strategies in similar ways, India announced its first five-year plan in 1951, Pakistan announced it in 1956, and China announced it in 1953.

Reason (R): Till the 1980s, all three countries had similar growth rates and per capita incomes.

Ans. (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

(7) Assertion (A): The privatization process leads to a change in management with a change in ownership.

Reason (R): Change in management is not a necessary condition for the process of privatization.

Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(8) Assertion (A): New Economic Policy (NEP), 1991 was focused on liberalization, privatization, and globalization.

Reason (R): The policy was necessitated because of the crisis in the economy in 1991.

Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(9) Assertion (A): Competition Act 2002 came into force and MRTP Act was repealed.

Reason (R): MRTP Act was too restrictive and curtailed fair competition in the market.

Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

(10) Assertion (A): Disguised unemployment is present in India.

Reason (R): Agriculture productivity at the margin is close to zero.

Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

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