Development Cor Tee AO he Vt) EYatemelitluitd Reforms since 1991i) Multiple Choice Questions (MCQ) on Assertion-Reasoning Type Read the following statements-Assertion (A) and Reason (R), and solect the correct alternative in cach case, fl (@) 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'but Reason (R) is not the correct explanation of Assertion (A) (6) Assertion (A) is true but Reason(R) Is false. (d) Assertion (A) ts false but Reason(R) is true. 1, Assertion (Ayr 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’ foreign trade. 2, Assertion (A) Britishers destroyed indigenous handicraft market in India Reason (R) 1 India was made market for Britith manufactured products 3. Assertion (4): During British mule, India sow huge drain of wealth. [Reason (Rs India geaemed large esport surplus during the period. 4. Assertion (4): During the British colonial rule in India, Britishers built roads extensively to cover the nation. Reason (R)+ Roads vere built by Britishers primarily to mobilise army. 5. Assortion (d):Under the British colonial rule, the agricultural production decreased. Reason (R)s In absolute terms, the agricultural sector experienced some growth due to the expansion of the spgregate area under cultivation. 6 Assertion (A): Commercialisation of agriculture helped farmers in improving their economic condition. Reason (R)s Instead of producing food crops, now they were producing cash crops which were to be ultimatel used by British industries back home. 7+ Assertion (A)iIndia developed « sound industrial base under the colonial rule. Reason (R)s The countrys world famous handicraft industries declined. 8 Assertion (A): During the second half of the 15th century, modern industry began to take root in India. Reason (Ri Initially. this development was confined to the setting up of cotton and jute textile mills Subsequently the irom and steel industries began coming up in the bepinning of the 20th century. A few other industries in the fields of sugar, cement, paper. etc. came up after the Second World War. 9. Assortion (A)s The restrictive policies of commodity production, trade and tariff pursued by the colonial govemment adversely affected the stmucture and composition of India’ foreign trade. Reason (R): India became an exporter of primary products such as rawr sills cotton, wool, sugar, indigo, ju ete, and an importer of finished consumer goods like cotten, sill and woollen clothes and capital goods like light ‘machinery produced in the factories of Britain. 10. Assertion (A)i Indizs foreign trade during the colonial period generated a large export surplus. But it came at 1 huge cost ro the country’s economy. Reason (R).The esential commodities like food grains, clothes, kerosene etc. were scarcely available in th domestic market. Secondly, the export surplus did not result in any flawr of gold or silver into India. Rather, this vwas used to meet war expenses, payment for imports of invisible items, etc, by the British Goverment (leading to the drain of India's wealth}. 1. Assertion (4): Under the colonial regime, there was no infrastructure development. Reason (R): Under the colonial regime, basic infrastmcrure such as railways, ports, water transport, posts telegraphs did develop though these efforts were spiced with selfish motives.12, 1a 14, 15. 16. 17. 18. 19. 20 a. 2. 23. 24 “Assertion (A)+ Under the colonial regime, the motive behind infrastructure development vas to provide basic amenities to the people. Reason (R): The real motive behind infrastructure development was to subserve various colonial interest. Assertion (A): During the colonial rule, there always remained an acute shortage of all weather roads, Reason (R): People mostly living in rural areas suffered grievously during natural calamities and famines Assertion (A): The social benefits, which the Indian people gained owing to the introduction of the railyrays were out-weighted by the country’s huge economic loss Reason (Rj It fostered commercialisation of Indian agriculture which adversely affected the self-sufficiency of the village economies in India. Secondly, the benefits of increase in India’s exports did not accrue to the Indian people. Assertion (A)iThe colonial government also took measures for developing the inland trade and sea lanes. However, these measures were far from satisfactory, Reasou (R)s The inland waterways proved uneconomical as in the case of the coast canal on the Orissa coast. Though the canal was built at a huge cost, yet it failed to compete with the railways, which soon transversed the region cunning parallel to the canal, and had to be ultimately abandoned. Assertion (A): On the eve of independence, the sodal and economic challenges before the county were Reason (R): The agriculmral sector suffered from extremely low productivity: ‘The industrial sector was crying, for modernisation, diversification, capacity building and increased public investment. Infrastructure facilities needed up-gradation and expansion. There was a prevalence of rampant poverty and unemployment. Assertion (A)iThe sole purpose of the British colonial rule in India was to reduce the country to being a raw material supplier. Reason (R): Fhe intention was to reduce India to the status of a mere exporter of important raw materials for the upcoming modem industries in Britain and.to tum India into a sprawling market for the finished products af those industries so that their continued expansion could he ensured to the maximum advantage of their home country — Britain Assertion (A): An understanding of the Indian economy before independence is necessary. Reasou (R)ilt will help to know and appreciate the level of economic development achieved during the post- independence period, “Assertion (A): Agriculture was the main source of livelihood for mast people Reason (R): About 65 percent of the country’s population lived mostly in villages and derived livelihood directly or indirectly from agriculture Assertion (A: Indias economy under the British colonial rule remained fundamentally agrarian. Reason (R).About 85% of the country’s population detived livelitood directly or indirectly from agriculture Assertion (A)iThe main cause of the stagnation in the agricultural sector in India under the British colonial rule was the zamindari system. Reasou (R):The stagnation in the agricultural sector was caused mainly beciuse of the various systems of land sertlemenc that were introduced by the colonial govemment, particularly che zamindari system, Assertion (A);The zamindari sistem of revenue settlement introduced by the colonial govemment caused immense misery and social tension among the cultivators, Reason (R);The main interest of the zamindars was only ro collect rent regardless of the economic condition of the cultivators Assertion (A): The main interest of the zamindars was only to collect rent regardless of the economic condition of the cultivators, which caused immense misery and social tension among the cultivators. Reason (R); Dares for depositing specified sums of revenue were fixed by the British, failing which the zamindars ‘were to lose their rights Assertion (A): More than Halfof Indias Foreign trade was restricted to Britain Reasoa (R): Britain maintained Monopoly control on Indias Import and ExportL@ 26 3% 44 5 @ é@ 72@ 86 9 (a) 10. (a) ll. (d) 12. (d) 13. (a) 14. (a) 15. (a) 16. (a) 17. (a) 18. (a) 19. (co) 20. (a) 21. (a) 22. fa) 23. (b) 24. (a)# Multiple Choice Questions (MGQ) on Assertion-Reasoning Type Read the following stutements-Assertion (A) and Reason (R), and select the correct alternative in each case: (a) Both Amertion (A) and Reason (R) aretrue and Reason (R) is the correct explanation of Assertion (A). (b) Both Amertion (A) and Reason (R) ate true but Reason (R) is not the correct explanation of Assertion (A) (©) Assertion (A) is true but Reason (R) is false, (d) Assertion (A) is false but Reason(R) is true, 1. Assertion (A): The major policy initiatives Le. land reforms and green revolution helped India to became self sufficient in food grains production. ‘Reasoa (R)s The proportion of people depending on agriculture did not dedine as expected 2, Amertion (A)sDespite the implementation of green revolution, 65 per cent of our population continued to be enguged in the agriculture sector «ill 1990, ‘Reasow (R): The industrial sector and the service sector did not absorb the people working in the agricultural sector. 3. Asertion (A) In the second phase of the green revolution (mid 1970s to mid. 1980), the HYV technology benefited only the more affluent states and the wheat growing regions. Reason (Rs [n the second phase of the green revolution, che HV technology spread to a larger number of states and benefited more variety of crops. 4, Assertion (A): Allthe iveyearp lansha vegiven equalimportancetothe goals ofgrowth, modernisation, self relianceand equity. Reason (R)s Due to limited resources, a chotee has to be made in each plan about which of the goals is to be given primary importance. 5. Assertion ():Modemisation refers only to the use of new technology. Reason (R)s Modernisation also refers to changes in social outlook such as che recognition that women should hhave the same rights as men. A modern society makes use of the talents of women in the work place ~in banks, factories, schools etc. 6, Assertion (A)sGrovrth.modernisation andselFrelianceby themselves, may notimprove thelivingcondition of people. ‘Reasoa (R) A country can have high growth, the most modem technology developed in the country itself, but ‘most of its people are living in poverty. So, it is important to ensure that benefits of economic prosperity reach the poor sections as wall instead of being enjayed only by the rich, 7+ Assertion (A):Under ownership of land holdings, all types of agricultural labourers got benefit. Reason (Rv Even when the tillers got ownership of land, the poorest of the agricultural Isbourers (such as sharscroppers and landless labourers) did not get benefit from land reforms, 8. Assertion (A),Growth in agricultural output is important bur it is not enough. Reason (R)s IF larger proportion of this increase is consumed by the farmers themselves instead of being sold inthe market, the higher output will not make much of a difference to the economy as a whole. If on the other hhand, a substantial amount of agricultural produce is sold in the market by the farmers, the highor ourput can ‘make a difference to the economy. 9. Assertion (A): Creen revolution caused the increased disparities between small and big farmers. ‘Reasoa (Rye Since only the big farmers could afford the required inpurs (fertilisers, pesticides, icigation facilities, tc) thereby reaping most of the benefits of the green revolution. 10, Assertion (A): While the nation had immensely benefited from the green revolution, the technology involved ‘was not free from risks. Reason (R)The HYY seeds wore more prone to attack by pests and the small farmers who adopted chis technology could lose everything in a pest attack.LL 12. 1B. 4, 5. 16, 19. 20, a. 2, 23. Assertion (A). Because of the steps taken by the government, che green revolution benefited the small as well as rich farmers Reason (R).The government provided loans at a low interest rate to small farmers and subsidised fertilisers so thatsmall farmers could also haveaccess to the needed inputs. As.a result, the output on small farms equalled the output on large farms in the course of time. Assertion (A)slc was necessary to use subsidies to pro by farmers. Reason (R): Any new technology will be looked upon as being risky by Famers. Subsidies were therefore, needed to encourage farmers to test the new technology, Assertion (A). Eliminating subsidies will violate the goal of equity. Reason (R): Poor famers will not be able to afford the required inputs without subsidies. It will increase the inequality between rich and poor farmers, and thus will violate the goal of equity. Assertion (A): In India, between 1950 and 1990, the proportion of population depending on agriculture declined significandly, Reason (R): The proportion of India's population depending on agriculture did not decline significantly (67.5% in 1950 to 64.9% by 1990), However, the proportion of GDP contribured by agriculrure dedined. Assertion (A): Door nations can progress only if they have a good industrial sector, Reason (R): At the time independence, the variety of industries was very narrow. Assertion (A)s At the time of independence, the state had to play an etiensive role in promoting the industrial sector. an incentive for adoption of the new HIYV technology Reason (R): Indian industrialists did not have the capital to undertake investment in industrial ventures requined for the development of our economy; nor was the market big enough to encourage industrialists to undertake major projects even if they had the capital to do so. Assertion (A) Under Industrial Policy Resolution, 1956 the stare would have complete control of chose industries that were vital for the economy: The policies of the private sector would have to be complimentary to those of the public sector, with the public sectar leading the way. Reason (R): The decision to develop the Indian economy on socialist lines led to the policy of the private sector controlling the commanding heights of the economy. Assertion (A) Under Industrial Policy Resolution, 1956no new industry wasallowed in the private sector unless a license was obtained from the government. Reason (R) This policy was used for promoting industry in backward regionss it was easier to obtain a License if the industrial unit was established in an economically backward area. In addition, such units were given certain concessions such as tar benefits and electricity ata lower tariff Assertion (A}sThe small scale industries generate more employment than large scale industries. Reason (R): Small seae industries were also given concessions such as lower excise duty and bank loans at lower Assertion (A): Tarif and quotas increase impor. Reason (R) The effect of tariffs and quotas is that they restrict imports and therefore, protect the domestic firms From foreign competition. Assertion (A): The achievements of India’s industrial sector during the first seven plans are impressive Reason (R): The proportion of GDP contributed by the industrial sector increased in the period from 11.8 per cent in 1950-51 to 24.6 per cent in 1990-91, Assertion (A) The industrial sector became well diversified by 1990. Reason (R): No longer was Indian industry restricted to cotton textiles and jute. The industrial sector became well diversified due to the public sector and the promotion of small scale industries. Protection from foreign competition enabled the development of indigenous industries in the areas of electronics and automobile sectors. Assertion (A) The need to obrain a license to start an industry was misused by industrial houses. Reason (R): A big industrialist would get a license not for starting a new firm but to prevent competitions fm starting, new firms,25. 26. 2. 28. 29. 31. 32. Assertion (A):The protection from foreign competition proved to do more harm than good. Reason (R): Due to restrictions on imports, the Indian consumers had to purchase whatever the Indian producers produced. The producers were aware that they had a captive market. They had no incentive to improve the quality of their goods as they could sell low quality items at a high price. Competition from imports forces our producers to be more efficient. Assertion (A) The public sector firms should be evaluated on the basis of the extent to which they contribute to the welfare of people and not on the profits they earn. Reason (R): A few economists point out thar the public sector is not meant for earning profits but to promote the welfare of the nation. Assertion (A):Land ceiling means fixing the minimum size of land owned by an individual. Reason (R): The purpose of land ceiling was to reduce the concentration of land ownership in a few hands. Assertion (A): Quotas specify the quantity of goods which can be imported, Reason (R): The effect of quotas is thae they restrict imports and, therefore, protect the domestic firms from foreign competition Assertion (A): India is a mixed economy. Reason (R): In a mixed economy, the market will provide whatever goods and services it ean produce well, and the government will provide essential goods and services which the marke fails to do. Assertion (A): India opted for economic planning through five year plans. Reason (R): To achieve the common goals of growth, mod. ation, self-reliance and equi Assertion (A): The new Green Revolution is leading to foreign ownership over most of India’s farmland, undermining farmers’ interests. Reason (R): New Green Revolution is driven by private (and foreign) interest—notably MNCs like Monsanco, Assertion (A): "Growth and social justice” is the central objective of Indian plans. Reason (R): India opted for planning to utilise available resources efficiently and to establish social justice. Assertion (A):Subsidies were needed to encourage farmers. Reason (R): Any new technology is looked upon as heing risky by farmers]Economic Reforms since 1991 = Multiple Choice Questions (MCQ) on Assertion-Reasoning Type 1 10. ‘Read the following statements-Assertion (A) and Reason (R), and select the correct alternative in each case: (@) Both Assertion (A) and Reason (R) are true and Reasoa (RY) is the correct explanation of Assertion (A), (6) Both Assortion (A) and Reason (R) are trae but Reason (R) is not the correct explanation of Assortion (A) (©) Assertion (A) is true but Reason(R) is false. (qd) Amertion (A) is false but Reason(R) 1s true. Assortion (A)s Those public sector undertakings which are making: profits should be privatised. Reason (R)1 Only loss making PSUs should be privatised. Profit making PSUs should mot be privatised only for drawing out funds'ta cover the deficit in government budget. Assertion (A). The opening up of the Indian Economy has led to a rapid increase in Foreign Direct Investments and Foreign Exchange Reserves of the country. Reason (R)s The foreign investment has increased from about US $100 million in 1990-91 to US $ 30 billion in 2017-18, India been able to register an increase in the foreign exchange reserves from about US § é billion in 1990-91 to about US § 413 billion in 2018-19. Assertion (AsRecently the Government of India has decided to merge MINL and BSNL on account of rising losses. Reason (R)s The Goverment has merged the two los: incurting businesses, with a motive to achieve higher economic and functional efficiency, and to minimise possible losses. Assertion (A)iIndia is often. called as outsourcing huib/favourite outsourcing destination of the world. Reason (R):lndia has vast skilled manpower which enhances the faith of MINCs for investment in India. MNCs get various types of lucrative offers from the Indian government such as tax holidays, tax concessions etc. Assortion (A)s Evary year goverment fixes a target For disinvestment of Public Sector Enterprises (PSE&). Reason (R): Disinvestment is an excellent tool for discarding the less incurting Public Sector Enterprises (PSE). Assertion (GATT was established in 1948 with 23 countries as the global trade organisation. Reason (R); To administer all multilateral trade agreements by providing equal opportunities to all countries in the international market for trading purposes. Assertion (A): World Trade Organisation (YZT.Q) established in 1995, as a successor grganisation to Ceneral Agreement on Tiade and Tariff (GATT). Reason (R): GATT was established in 1948 with 23 countries as the global trade organisation to administer all ‘multilateral tride agreements by providing equal opportunities to all countries in the international market for trading purposes. 6. Assertion (A)Liberalisation of trade and investment regime was initiated to increase international competitiveness of industeial production and also foreign investments and technology into the economy, Reason (R):The aim was also to promote the efficiency of local industries and adoption of modem technologies. Assertion (A): ‘The reform process has been widely criticised for not being able to address some of the basic problems facing our economy. Reason (R)s The reform proces did not work in arvas of employment, agriculture, industry, infrastructure development and fiscal management. Assertion (A) According to the government, the purpose of disinvestment was mainly to increase the resources only. Reason (R)e It was envisaged that private capital and managerial capabilities could be effectively utilised to improve the performance of the PSUs. The government envisage that privatisation. could provide strong impetus to the inflow of FDI.iL 12 13. 4 15. 16. V7. 18. 19. 2k. ‘Assertion (A), Tariffs are taxes imposed to restrict the imports by a country. Reason (RhThe purpose is providing protection to its domestic industries from competition from foreign firms. Assertion (A)iThe SWTO agreements cover trade in services to facilitate international multilateral trades only ‘through removal of tariffand non-tariff. Reason (R)iThe WTO agreements cover trade in goods as-well as services to facilitate bilateral and multilateral international trade. Assertion (A)sAs an important member of WEQ. India has been in the forefront of framing fair global rules. regulations and safeguards and advocating the interests of the developing: werld, Reason (Rh: India has kept its commitments towards liberalisation of trade by removing quantitative restrictions on imports and reducing tariff rates. Assertion (A);During the reform period the growth of agriculture has declined. Reason (R}+ Reforms have not been able to benefit agriculture, where the growth rate hasbeen decelerating, and even negative. ‘Assertion (A):During the reform period, employment generation increased. Reason (Rt): Though the GDP growth rate increased (from 5.6% during 1980-91 to 8.2% during 2007-12), however the reform led growth has not generated sufficient employment opportunities in the country. ‘Assertion (A)\The Parliament passed a lan Goods and Services Tax Act 20 16, to simplify and introduce a unified indirect tax system in India. Reason (R):This is expected te generate additional revenue for the govemment, reduce tax evasion and creare ‘one nation, one tax and one marker’. Assertion (A):During the reform period the growth of the service sector has gone up. Reason (RhThe service sector continued to witness « high level of growth. ‘Assertion (A)sAs a form of economic activity, outsourcing has intensified in recent times Reason (R)s Because of the growth of fast modes of communication, particularly the growth of Information ‘Technology (IT). ‘Assertion (A):Disinvestment of PSUs/PSEs is the best way to improve their efficiency. Reason (Rj: Though the government was able to mobilise sbout °1,00.057 crore through PSU disinvestment, however there has been 2 substantial loss to the government as the assets of PSUs have been undervalued and sold to the private secor. ‘Assertion (A):RBI had to change its role fram controller to facilitator of financial sector in India. Reason (R/RBI allowed banks to take independent decisions on many matters without consulting and to allow the establishment of private sector banks—both Indian as well as foreign banks. ‘Assertion (A)sTax and tariff reductions had a negative impact on developmental and welfare expenditures. Reason (R}: Tax reduction in the reform period, aimed at yielding larger revenue and curb tax evasion, have not resulted in increase in tax revenue for the government. Also tariff reduction has curtailed the scape for raising revenue through custom duties, In order to artract foreign investment, tax incentives were provided to foreign investors which further reduced the scope for raising tax revenues. This has a negative impact on developmental and welfare expenditures. ‘Assertion (A): Globalisation has widened the economic disparities among nations and people. Reason (Rs Globalimtion is viewed as 2 stratepy of the developed countries to expand their markets in other countries. It has compromised the welfare and identity of people belonging to poor countries, Further, it has increased the income and quality of consumption of only high income groups, Assertion (A), GST is applicable throughout the country with one rate for all types of goods/services, Reason (Rt GST is applicable throughout the country with one rate For ane type of goods/service. ‘Assertion (A): Economic reforms were introduced in 1991 due to a financial crisis and pressurefrom intemational organisations like the World Bank and IMF. Reason (R)sThe economy was facing problems of declining foreign exchange, growing imports without matching, tise in exports and high inflation. 1 9. id) 2. @) co) (a) 3 u 19, @ 4 12, 20. @ 7 @ @ 8 a) 16. @) 24. (b) 10. (d) 18 @) @ @| —2 Sain int hl. oe | ate ll i — Current Challenges , Facing the Indian CLL # Multiple Choice Questions (MCQ) on Assertion-Reasoning Type | Read the following statements-Assertion (A) and Reason (R), and select the correct alternative in each cases (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 tue but Reason (R) is not the correct explanation of Assertion (A) (0) Assertion (A) is true but Reason(R) is false. (d) Assertion (A) is false but Reason(R) is true. 1. Assertion (A): Rapid increase in economic growth surely trickles down to the people under the absolutely poor category, Reason (Rt) : Population growth has resulted in a very low growth in per capita income. ‘The Green Revolution hhas increased the regional disparity and also the gap between the rich and the poor farmers 2, Assertion (A): Calotie-based norm is not an adequate measure to identify the pot. Reason (R): This method does not differentiate between the very poor and the other poot. This mechanism takes into account expendicure on food and a few other items as proxy for income. Ic ignores many other vital factors associated with poverty; for instance, the accessibility to basic education, health care, drinking water and sanitation, 3. Assertion (A): "Food for Work’ is one of the noted poverty alleviation programmes initiated in the 1970s Reason (R): It was envisaged that incomes and employment for the poor could be raised through the creation of additional assets and by means of work generation5 6 a nL. 12 13. Assertion (A), ‘Poverty is not only a challenge for India but also for the world. Reason (R) 1 About 300 million people of the world are not able to meet their basic needs. More than one-fifth o: ‘the world’s poor live in India alone. ‘Assertion (A): More than three-fourth of the poor in India still reside in villages. Reasoa (R) : In 1973-74, more than 80% of the poor resided in rural areas and this situation has not changed ever in 2011-12. Assertion (A): Casual labourers are among the most vulnerable in society. Reason (R) : They have no job security; na assets , limited skills sparse opportunities and no surplus to sustain them, Assertion (A); Poverty is closely related to nature of employment. Reasou (R); Unemployment or under employment and the casual and intermittent nature of wook in both urban an: run areas that compels indebtedness, in turn, reinforces poverty. Assertion (A): Indebtedness is one of the significant factors of poverty. Reasou (R). Indebtedness, due to unemployment, causes poverty. ‘Assertion (A)’Monthly Per Capita Expenditure (MPCE) mechanism satisfactorily identifies the poor household in our counery. Reasoa (RY It groups.ll the poor together and does not differentia between the very poor and the other poor. Als, thi ‘mechanism takes into account expendicure an food and only a few select items 25 proxy for income. Assertion (A); Povey is a multi-dimensional challenge for India. Reason (R) « Reducing poverty implies reduction in income inequalities and unemployment problems, etc. Assertion (A); The government's approach to poverty reduction was of three dimensions. Reason (Rh The govemment has been following three approaches 1 reduce poverty in India + growth orienta development, specific poverty alleviation programmes and meeting the minimum needs of the poor. Assertion (A);The fruits of development have not raxched all stions of the population in India. Reasoa (Rs Some sections of people, some sectors of the economy, some regions of the country can compete eve with developed countries in terms of social and economic development, yet, there are many others who have noi been able to come aut of the vicious circle of poverty. Assertion (A)s Mest members of schedule castes and schedule tribes are nor able co participate in che emerging] employment opportunities in different sectors of the urban and rural economy. Reason (R)s They do not have the necessary knowledge and skill to do so. TEE EE 1. @ 2 f@) 3 f@) 4.) 3% @) » fa) (a) & @) 2@ I0@ ha i2@ 1 @rz Human Capital Formation i) Multiple Choice Questions (MCQ) on Assertion-Reasoning Type Read the following statements-Assertion (A) and Reason (R), and select the correct alternative in each case {@) 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 but Reason (R) is not the correct explanation of Assertion (A) (6) Assertion (A) is true bur Reason(R) is false. (d) Assertion (A) is false but Reason (R) is true. 1, Assertion (A): During 1952-2014 the increase in education expenditure has been uniform, Reason (R): Throughout this period, there has been irregular rise and fall. 2. Assertion (Aj: We need investment in human capital. Reason (Rj: To produce more human capital (szy, doctors, engineers...) out of human resources. 3. Assertion (A) Like education, health is also considered important. Reason (Rs Health is as an important input for the development of a nation as much as it is important for the development of an individual. 4. Assertion (A) Firms will insist that the workers should work for a specific period of time, after their on-the-job training. Reason (R): During that time period, it can recover the benefits of the enhanced productivity owing to the training. 5. Assertion (Aji Govemment intervention is essential in the education and health service markets in India. Reason (R): Education and health care services create both private and social benefits, 6. Assertion (A): Expenditure on migration is a source of human capital formation. Reason (R): The enhanced earnings in the new place outweigh the costs of migration; Hence, expenditure on ‘migration isalso a source of human capital formation. 7. Assertion (A): Expenditure incurred for acquiring information relating to the labour market and other markets isa source of human capital formation. Reason (Rt): Because this information is necessary to make decisions regarding investments in human capital as well as for efficient utilisation of the acquired human capital stock. ‘8. Assertion (A) The causality between human capital and economic growth flows in either directions. Reason (R): Higher income causes building of high level of human capital and vice-versa, that is high level of ‘human capital causes growth of income. 9. Assertion (Ajy Expenditure regarding on-the-job training is 1 source of human capital formation. Reasoa (R). The return of such expenditure in the form of enhanced labour productivity is more than the cost oft, 10, Assertion (A); Both private and public institutions exist in the education and health service markets in India. Reason (R)s Expenditures on education and health make substantial long-term impact and they cannot be easily reversed. 11. Assertion (A): Financial resources should be transferred from tertiary education to elementary education. Reason (R)s As we expand elementary education (ie. school education), we need more teachers who are trained through tertiary education (ie. higher educational institutions like colleges and universities etc.). Therefore, expenditure on all levels of education should be increased. 12, Assertion (A): Spending on education by individuals is similar to spending. on capital goods by companies. Reason (R)s Companies spend on capital goods with the objective of increasing furure profits over a period of time. Likewise, individuals invest in education with the objective of increasing their future income.13. Assertion (A): Health expenditure is a source of human capita formation. Reasoa (R)s Health expenditure directly increases the supply of healthy labour force and is, thus, a source of human capital formation. 14, Assertion (A): Expenditure regarding on-the-job training is a source of human capital formation. Reason (R)s Expenditure regarding, on-the-job training is a source oF human capital formation as the return of such expenditure in the form of enhanced labour productivity s more than the cost of it. 15. Assertion (A); Expenditure on migration isa source of human capital formation. Reason (Rt}s The enhanced eamings in the new place outweigh the costs of migration. 16. Assertion (A): Expenditure on different levels of education in. India is the same. Reason (Rs Hementary education takes a major share of total education expenditure and the share of the higher/teriary education (institutions of higher leaming like colleges, polytechnics and universities) isthe least. 17. Assertion (A); It is necessary to incur expenditure for acquiring information relating to the labour market and other marlets. Reasow (R): To know the level of salaries associated with various types of jobs whether the educational institutions provide the right type of employable skills and at what cost. This information is necessary to make decisions regarding investmentsin human capital as-well as for efficient utilisation of the acquited human capital stock, 18. Assertion (A); Both private and public institutions exist in the education and health service markets. Reason (Rs Education and health care services create both private and social benefits. 19. Assertion (A): Government of India enacted the Right of Education Act in 2009. Reason (Rt): To make free education a fundamental right ofall children in the age group of 6-14 years. 20. Assertion (A): Govemment of India started levying a 2 per cent ‘education cass’ on all Union taxes. Reason (Rt): The revenues from education ces: may'he used for spending on elementary education. 21, Assertion (4): The Education Commission (1964-66) had recommended that at least 8 per cent of GDP be spenton education, Reasoa (Bt): To make a noticeable rate of growth in educational achievements. L@ 2 @ 3. (b) 4. fa) 5. (b) 6 (a) 7. fa) & % fa) 10. (b) LL fd) 12. @) 13. fa) 14 @) 15. @) 16. (d) 17. (a) 18. (a) 19. (ay 20. (a) 2L id)(? Read the following statements-Assortion (/t) and Reason (R), and solect the correct alternative in each case. (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) ate true but Reason (R) is not the correct explanation of Assertion (A) (6) Assertion (A) is true but Reasoa(R) is false, (d) Assortion (A) is false but Reasoa(R) is true. Multiple Choice Questions (MCQ) on Assertion-Reasoning Type 1. Assertion (A): The IT has a positive impact on the agriculture sector. Reason (Rj As it can disseminate information regarding emerging technologies and its applications, prices, ‘weather and soil conditions for growing. different craps etc. 2. Assertion (Aj: In India. the farming, community uses the mixed crop-livestock farming system. Reason (Rs Cattle, goats, fowl ace the widely held species. Livestock production provides increased stability in income, food security, transport, fuel and nuttition for the family. 3. Assertion (A): The yields from organic farming are more than modern agricultural furming. ‘Reasou (R)s The yields from organic farming are less than modern agricultural farming in the initial years. 4, Assertion (A)s The idea of village development being at the centre of the overall development of the nation is relevant even today, when we see around us fast growing cities with large industries and modem information technology hubs. ‘Reason (R): More chan two-third of India’s population depends on agriculture that is yet to become productive; one-third of rural India still lives in abject poverty. 5. Assertion (A). After the initiation of reforms, the growth dite of agricultural sector decelerared te about 3 per ‘ent per annum during 1991-2012, which was lower than the eatlier years. ‘Reason (R)s Decline in public investment since 1991 6 Assertion (A): Even today; more than 10 per cent of goods produced in farms are wasted. ‘Reason (Rs The current infrastructure facilities are quite inadequate to meet the growing demand. 7. Assertion (Aj: Agriculture loan default rate have been chronically high. ‘Reasow (R)s Its alleged thar farmers are deliberately refusing to pay back loans. & Assertion (Aj: Rural development is necessary. Reason (R): Inadequate infrastructure, lack of altemate employment opportunities in the industry or service sector, increasing casualisation of employment etc., impede rural development. 9. Assertion (Aj: The fishing community regards the water body as ‘mother’ or ‘provider’. Reason (R): Because the water bodies (sea, oceans, rivers, lakes, natural aquatic ponds, streams etc.) are an integral and life-giving source for the fishing community. 10. Assertion (A): Small and marginal farmers find it difficult to adapt to orgunic farming, ‘Reasow (R)s Organic farming may have a shorter shelf life than sprayed produce. Answer Key 4 (ay 5. (a) 6. (b) a) . (a) 2 (a) 10. (b) 3. (d)