Assertion Reason: Economic Reforms (LPG)

1.Assertion (A) Every year government fixes a target for disinvestment of Public Sector enterprises (PSEs). Reason (R): Disinvestment is an excellent tool for discarding the loss incurring Public Sector Enterprises (PSEs)

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.

... Answer is A)

2.Assertion (A): In New Economic Poicy, greater reliance was placed on market forces. Reason (R): Excessive government control had given rise to corruption, undue delays and inefficiency.

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.

... Answer is A)

3.Assertion (A): There was a significant need to introduce a policy measure which could improve the efficiency and productivity in an economy. Reason (R): As a result, LPG model of growth was introduced in 1991 which provided a structural shift in the policy perspective of Indian economy.

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.

... Answer is A)

4.Assertion (A): Globalization means integration of various economics of the world leading towards the emergence of a cohesive global economy. Reason (R): For globalization, the important ingredient is to facilitate the migration of human resources.

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.

... Answer is B)

5.Assertion (A): There has been a structural shift in the role of the RBI from regulator to facilitator of the financial sector. Reason (R): financial sector has to consult RBI before taking any decision.

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.

... Answer is C)

6.Assertion (A): In India, indirect taxes constitute a large share of government revenue. Reason (R): Taxes are essential for development.

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.

... Answer is B)

7.Assertion (A): Selling of part of an equity of the PSUs is called disinvestment. Reason (R): The main reason for disinvestment is to keep all the operational units of the country under the private sector.

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.

... Answer is C)

8.Assertion (A): New economic Policy (NEP), 1991 was focussed on liberalization, privatization and globalization. Reason (R): The policy was necessitated because of the crisis situation in the economy in 1991.

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.

... Answer is A)

9.Assertion (A): In order to manage the crisis, India approached IMF and World Bank which granted 7 billion dollar as a loan. Reason (R): Foreign exchange reserves declined to its lowest level with a reluctance from other countries to lend to India.

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.

... Answer is A)

10.Assertion (A): 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.

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.

... Answer is B)

11.Assertion (A): As an immediate measure to resolve the financial crisis, India devalued its currency in 1991. Reason (R): This allowed India to meet its import bill and resolve the BOP deficit.

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.

... Answer is A)

12.In order to attract investors, Special Economic Zones (SEZ) were set up. Reason (R): SEZ is geographical reason that has economic laws different from the country's typical economic laws.

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.

... Answer is A)

13. Assertion (A): Agriculture sector experienced an increase in growth during the reform period. Reason (R): Decline in public investment and removal of fertilizer subsidy adversely affected the status of agriculture.

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.

... Answer is D)

14.Assertion (A): GST consists of three components such as Centrl GST (CGST), State GST (SGST) and integrated GST (IGST). Reason (R): Central GST and State GST will apply to all transacton of goods and services.

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.

... Answer is C)

15.Assertion (A): India is emerging as an important outsourcing destination of the world. Reason (R): India offer an abundant supply of labour at a low wage rate.

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.

... Answer is A)

16.New Economic Policy (NEP) has encourage disinvestment by the government. Reason (R): Owing to NEP, monetary policy of the government has come under a severe stress.

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.

... Answer is C)

17.Assertion (A): In India financial sector is regulated and controlled by the Reserve Bank of India. Reason (R): Prior to liberalization, tax structure was quite complex and tax rates were quite high.

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.

... Answer is B)

18.Assertion (A): Government decided to develop Navratnas as global players in their respective areas of industrialization. Reason (R): Navratnas are highly efficient profit making PSUs and are revenue generators for the government.

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.

... Answer is A)

19.Assertion (A): World Trade Organisation (WTO) replaced the General Agreement on Tariffs and Trade (GATT). Reason (R): Globalization is the outcome of the policies of Liberalization and Privatization.

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.

... Answer is B)

20.Assertion (A): New economic reforms paved way for increased consumer sovereignty. Reason (R): Diverse global markets allows a wide variety of goods and services to be available to the consumers.

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.

... Answer is A)