CHAPTER-2-INDIAN ECONOMY 1950-1990

ASSERTION- REASON QUESTIONS

Sl.No. QuestionAssertion(A)& Reasons
1 Assertion: Capitalist economy has the motive of profit maximization.
Reason: Capitalist economy has no intervention of Government.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
2 Assertion: Tax incentives are provided to foreign investors which further reduced the
scope for raising tax revenues.
Reason: This has a negative impact on developmental and welfare expenditures of the
country.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
3 Assertion: The government borrows only from banks to finance the deficit caused.
Reason: Deficit is caused whenexpenditure is more than income.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
4 Assertion: Just a year after independence, efforts towards land reforms were introduced.
Reason: Ownership of land would give incentives to the tillers to invest in making
improvements.
A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
5 Assertion: Industrial Policy Resolution of 1956 was adopted, in accordance with the goal
of the state controlling the commanding heights of the economy
Reason : System of licences was used for all the industries after the IPR 1956.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.

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6 Assertion: - India was considered as an agrarian economy on the eve of independence.
Reason :- Around 30% people were depending on agriculture.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
7 Assertion: - As per Industrial policy-1956, the industries classified into 3 groups.
Reason: - Directly or indirectly all the industries were under the control of the
Government.

(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
8 Assertion: - In the first seven five year plans of India, the trade was commonly called an
‘inward looking’ trade strategy.
Reason :- Imports were protected by the imposition of tariff and quotas which protect
the domestic firms from foreign competition.

(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
9 Assertion:- The economic justification of subsidies in agriculture is, at present, a hotly
debated question.
Reason:-The zamindari system has not been abolished so far.

(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.

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10 Assertion:- The proportion of people depending on agriculture declined as expected
Reason:- The 2nd Industrial Policy Resolution was adopted in the year 1956.

(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
11 1. Assertion (A): Socialism appeal to Jawaharlal Nehru for India.
Reason (R): Jawaharlal Nehru was in favour of kind of socialism in Soviet Union.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true
12 Assertion (A): The main aim of capitalisin is to earn maximum profit.
Reason (R): Central problem in capitalism is solved through market forces of demand and
supply.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true
13 Assertion (A): PC Mahalanobis is known as architect of Indian planning. Reason (R): In
real sense, planning began with second five year plan based on ideas
Mahalanobis.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true
14 Assertion (A): GDP is the indicator of economic growth of a country.
ToReason (R): GDP is like a piza, if size of piza increase it will distribute between more
people.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true

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15 Assertion (A): Equity is a very important goal for planning Reason (R): Equity means
benefit of economic prosperity must reach to poor section also.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true

16 Assertion (A): Five-year plans give a big push to the basic and capital goods industries.
Reason (R): Indian economy is now ranked as the eleventh largest industrial economy
in the world.
Select the correct alternative from the following:-
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.

17 Assertion : A good indicator of economic growth is steady increase in Gross domestic

product (GDP).
Reason : GDP is the market value of all goods and services produced in a country during
a
year

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.
18 Assertion (A): The major policy initiatives i.e. land reforms and Green revolution
helped India to become self-sufficient in food grains production.
Reason (R): The proportion of people depending on agriculture did not decline as
expected.
Select the correct alternative from the following :-
a) Both A and R are true and R is correct explanation of A.
b) Both A and R are true and R is not correct explanation of A .
c) A is true R is false.
d) A is false and R is true.
19 Assertion(A) It was necessary to bring balanced regional development in context of
Industrial development
Reason® Government provided tax sops and introduced licensing policy in Industrial
policy Resolution (IPR) 1956
a) Both A and R are true and R is correct explanation of A.
b) Both A and R are true and R is not correct explanation of A.
c) A is true R is false.
d) A is false and R is true.

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20 Assertion (A): Development of small scale industries requires protection from large scale
industries.
Reason (R): Government reserves small scale industries by providing tax concession &
low interest rate.

a) Both A and R are true and R is correct explanation of A.

b) Both A and R are true and R is not correct explanation of A.
c) A is true R is false.
d) A is false and R is true.
a) Both A and R are true and R is correct explanation of A.

21 Assertion: India became exporter of primary product and importer of finished consumer
and capital goods produced in Britain
Reason: Restrictive policies of commodity production, trade and tariff pursued by the
colonial government adversely affect the structure composition and volume of Indian
foreign trade.
( A) Both assertion and reason are true and reason is the correct explanation of assertion.
(B) both assertion and reason are true but reason is not the correct explanation of
assertion.
© Assertion is true but reason is false.
(D) The assertion is false but reason is true.
22 Assertion: The majority of the major policy initiative for example land Reform and green
revolution helped India to become self sufficient in food grain production
Reason :The proportion of people depending on agriculture did not decline as expected

( A) Both assertion and reason are true and reason is the correct explanation of assertion.
(B) both assertion and reason are true but reason is not the correct explanation of
assertion.
© Assertion is true but reason is false.
(D) The assertion is false but reason is true.
23 Assertion: Every year government fixes a target for disinvestment of public sector
enterprises .
Reason? Dis investment is an excellent tool for discarding the loss incurring in public
sector enterprises PSEs.
( A) Both assertion and reason are true and reason is the correct explanation of assertion.
(B) both assertion and reason are true but reason is not the correct explanation of
assertion.
© Assertion is true but reason is false.
(D) The assertion is false but reason is true.

24 Assertion :Five year plans give a big post to the basic and capital goods industries
Reason: Indian economy is now and as the eleventh largest industrial economy in the
world
( A) Both assertion and reason are true and reason is the correct explanation of assertion.
(B) both assertion and reason are true but reason is not the correct explanation of
assertion.
© Assertion is true but reason is false.
(D) The assertion is false but reason is true.

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25 Assertion: Economic and social equality was considered as the principal goal of planning
Reason: Real income of the people decrease due to high rate of inflation
( A) Both assertion and reason are true and reason is the correct explanation of assertion.
(B) both assertion and reason are true but reason is not the correct explanation of
assertion.
© Assertion is true but reason is false.
(D) The assertion is false but reason is true.

26 Assertion (A): In mixed economic system, equality is promoted.

Reason (R): In mixed economy, the government sector places high priority on the
maximization of social welfare.
(A) Both assertion and reason are true and reason is the correct explanation of assertion.
(B) Assertion and reason are true but reason is not the correct explanation of assertion
(C) Assertion is true, reason is false
(D) Assertion is false, reason is true
27 Assertion (A): Discovery of more and more resources along with development of
innovative technology leads to increase in GDP.
Reason (R): A consistent increase in GDP leads to a consistent in the flow of goods and
services in the economy over a long period of time.
(A) Both assertion and reason are true and reason is the correct explanation of assertion.
(B) Assertion and reason are true but reason is not the correct explanation of assertion
(C) Assertion is true, reason is false
(D) Assertion is false, reason is true
28 Assertion (A): The gains of Green Revolution is eluded small and marginal farmers.
Reason (R): HYV technology required expensive inputs which were beyond the reach of
the marginal farmers.
(A) Both assertion and reason are true and reason is the correct explanation of assertion.
(B) Assertion and reason are true but reason is not the correct explanation of assertion
(C) Assertion is true, reason is false
(D) Assertion is false, reason is true
29 Assertion (A): Government of India maintains buffer stock of food grains to release food
grains through PDS and to meet emergency situations.
Reason (R): The concept of buffer stock in India was introduced in Fifth Five Year Plan.
(A) Both assertion and reason are true and reason is the correct explanation of assertion.
(B) Assertion and reason are true but reason is not the correct explanation of assertion
(C) Assertion is true, reason is false
(D) Assertion is false, reason is true

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30 Assertion (A): The proponents of agricultural subsidy are against its elimination.
Reason (R): The gulf between the rich and poor farmers will expand if subsidies are
eliminated.
(A) Both assertion and reason are true and reason is the correct explanation of assertion.
(B) Assertion and reason are true but reason is not the correct explanation of assertion
(C) Assertion is true, reason is false
(D) Assertion is false, reason is true

ANSWER

Q.No. Answer
1 B
2 B
3 D
4 ABoth A and R are true and R is correct explanation of A
5 C
6 (C) Assertion is true, reason is false.
7 (A) Both Assertion and reason are true and reason is correct explanation of assertion.
8 (A) Both Assertion and reason are true and reason is correct explanation of
assertion.
9 (C) Assertion is true, reason is false.
10 (B) Assertion and reason both are true but reason is not the correct explanation of
assertion.
11 C
12 A
13 A
14 A
15` A
16 C
17 B
18 D
19 A
20 A
21 A
22 B
23 B
24 B
25 C
26 (a) Both Assertion and reason are true and reason is the correct explanation of
assertion

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27 (b) Both assertion and reason are true and reason is not the correct explanation of
assertion
28 (a) Both assertion and reason are true and reason is the correct explanation of
assertion
29 (c) Assertion is true but reason is false
30 (a) Both assertion and reason are true and reason is the correct explanation of
assertion

PREPIRED BY : PGT ECONOMICS OF BHUBANESWAR, GUWAHATI,

KOLKATA, RANCHI, SILCHAR AND TINSIKIA REGION.

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 CHAPTER-5-HUMAN CAPITAL FORMATION
ASSERTION- REASON QUESTIONS
1 Read the following statements - Assertion (A) and Reason (R):
Assertion (A) –Expenditure on migration is a source of human capital formation.
Reason(R) –Migration to other countries involves cost of transportation from one place to another and
higher cost of living in the migrated places.
From the given alternatives choose the correct one:
Alternatives:
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.
2 Read the following statements - Assertion (A) and Reason (R):
Assertion (A) – There is no depreciation of human capital like physical capital.
Reason(R) – Investment is required to maintain efficiency of human capital.
From the given alternatives choose the correct one:
Alternatives:
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.
3 Read the following statements - Assertion (A) and Reason (R):
Assertion (A) – Education contributes to economic growth.
Reason(R) - Education confers higher earning capacity on people.
From the given alternatives choose the correct one:
Alternatives:
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.
4 Read the following statements - Assertion (A) and Reason (R):
Assertion (A) – Spread of education is necessary to control the population growth rate.
Reason(R) –Modernisation, gender equality and social awareness has deep impact on the mind set of
people.
From the given alternatives choose the correct one:
Alternatives:
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.

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5 Read the following statements - Assertion (A) and Reason (R):
Assertion (A)-Human capital formation is required for effective use of physical capital.
Reason(R) – Formation of human capital raises life expectancy of the people.
From the given alternatives choose the correct one:
Alternatives:
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 explanationof Assertion
(A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
6 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives
given below:
Assertion (A): Education on migration is the source of human capital formation.
Reason (R): Migration to other countries involves the cost of production from one place to another
and the higher cost of living on the migrated place.
(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.
7 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives
given below:
Assertion (A): Spread of education is necessary to control the population growth rate.
Reason (R): Human capital formation decreases quality of life.
(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.
8 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives
given below:
Assertion (A): Educated person is able to generate more income
Reason (R): The labour skill of an educated person is more than that of an uneducated person.
(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
9 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives
given below:
Assertion (A): Human Capital Formation is required for effective use of physical capital
Reason (R): Formation of human capital raises life expectancy of the people.
(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
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10 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives
given below:
Assertion (A): The Apex body in the field of Medical Research is AICTE.
Reason (R): Reason (R): The Apex body in the field of Medical is Indian council of Medical
Research(ICMR).
(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.
11 ASSERTION: Expenditure on education is the most effective way of enhancing and enlarging the
productive workforce in the country
REASON: Monetary benefits of education far exceed the cost of education.
(A) Assertion and reasons both are correct statements and reason is correct explanation for assertion.
(B) Assertion and reasons both are correct statements, but reason is not correct explanation for assertion.
(C) Assertion is correct statement, but reason is wrong statement.
(D) Assertion is wrong statement, but reason is correct statement.
12 ASSERTION: Human Capital formation is the process of adding to the stock of human capital over
time.
REASON: Migration contributes to human capital formation as it facilitates utilization of inactive skills
of the people.
(A) Assertion and reasons both are correct statements and reason is correct explanation for assertion.
(B) Assertion and reasons both are correct statements, but reason is not correct explanation for assertion.
(C) Assertion is correct statement, but reason is wrong statement.
(D) Assertion is wrong statement, but reason is correct statement.
13 ASSERTION: The Government of India tries to regulate the education sector through various
organizations.
REASON: Education promotes the cultural standard of the citizens.
(A) Assertion and reasons both are correct statements and reason is correct explanation for assertion.
(B) Assertion and reasons both are correct statements, but reason is not correct explanation for assertion.
(C) Assertion is correct statement, but reason is wrong statement.
(D) Assertion is wrong statement, but reason is correct statement.
14 ASSERTION: Human capital formation gives birth to innovation, invention, and technological
improvements.
REASON: Human capital formation generates a change in the emotional and material environments of
growth.
(A) Assertion and reasons both are correct statements and reason is correct explanation for assertion.
(B) Assertion and reasons both are correct statements, but reason is not correct explanation for assertion.
(C) Assertion is correct statement, but reason is wrong statement.
(D) Assertion is wrong statement, but reason is correct statement.
15 ASSERTION: Human capital formation facilitates innovations.
REASON: Innovation is the lifeline of growth.
(A) Assertion and reasons both are correct statements and reason is correct explanation for assertion.
(B) Assertion and reasons both are correct statements, but reason is not correct explanation for assertion.
(C) Assertion is correct statement, but reason is wrong statement.
(D) Assertion is wrong statement, but reason is correct statement.

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16
ASSERTION (A) on the job training is a source of human capital formation.

REASON (B) after on the job training of employees, firm insist that workers should work for a
specific period of time.

(A) Both assertion and reason are true and the reason is the correct explanation of the assertion.
(B) assertion and reason both are true but reason is not the correct explanation of assertion.
(C) Assertion is true. Reason is false.
(D) Assertion is false. Reason is true

17
ASSERTION (A) education contributes to economic growth.

REASON (B) education confers higher earning capacity on people.

(A) Both assertion and reason are true and the reason is the correct explanation of the assertion.
(B) assertion and reason both are true but reason is not the correct explanation of assertion.
(C) Assertion is true. Reason is false.
(D) Assertion is false. Reason is true

18
ASSERTION (A) the spread of education is necessary to control the population growth.

REASON (B)human capital formation decreases the quality of life.

(A) Both assertion and reason are true and the reason is the correct explanation of the assertion.
(B) assertion and reason both are true but reason is not the correct explanation of assertion.
(C) Assertion is true. Reason is false.
(D) Assertion is false. Reason is true

19
ASSERTION (A) the facilities for the formation of human capital have remained adequate.

REASON (B) the resources allocated to human capital formation have been much less than the
resources.

(A) Both assertion and reason are true and the reason is the correct explanation of the assertion.
(B) assertion and reason both are true but reason is not the correct explanation of assertion.
(C) Assertion is true. Reason is false.
(D) Assertion is false. Reason is true

20 ReadthefollowingAssertion(A)andReason(R)andchoosethecorrectalternativesgivenbelow:
Assertion(A):Educationcontributestoeconomicgrowth.
Reason(R):Educationconfershigherearningcapacity onpeople.
a) Both Assertion (A) and Reason (R) are true and R is the correct explanation of
Assertion(A.)
b) BothAssertion(A)andReason(R)are truebutReason(R)isNOTthecorrect
explanation f Assertion (A)
c) Assertion(A)istrue butReason(R)isfalse.
d) Assertion(A)isfalse butReason(R)istrue

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21 Read the following Assertion(A) and Reason (R) and choose the correct alternatives given below
Assertion (A): On the job training is a source of human capital formation.
Reason (R): After on the job training of employees, firm insist that the workers should work for
specified period of time.
(A) Both Assertion (A) and Reason (R) are true and 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)
(C) Assertion (A) is true but Reason (R) is false.
(D) Assertion (A) is false but Reason (R) is true
22 Read the following Assertion (A) and Reason (R) and choose the correct alternatives given below
Assertion (A): The facilities for the formation of human capital have remained adequate.
Reason (R): The resources allocated to human capital formation have been much less than the resources
required.
(A) Both Assertion (A) and Reason (R) are true and 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)
(C) Assertion (A) is true but Reason (R) is false.
(D) Assertion (A) is false but Reason (R) is true
23 28 Read the following Assertion(A) and Reason (R) and choose the correct alternatives given
below.
Assertion (A): ICMR regulates health sector in India
Reason (R): The full form of ICMR is international council of medical research.
(A) Both Assertion (A) and Reason (R) are true and 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)
(C) Assertion (A) is true but Reason (R) is false.
(D) Assertion (A) is false but Reason (R) is true
24 Assertion: Expenditure on information is considered an important source of human capital formation.
Reason: A person who is educated, trained and skilled can be unemployed due to lack of expenditure on
information.
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 explanationof Assertion
(A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true

25 Assertion: Enrolment of girls’ students of poor family has increased considerably.

Reason: Various schemes have been initiated by the government in the promotion of education among
under privileged section of society.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation ofAssertion
(A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanationof Assertion
(A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true

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26 Assertion: Education creates a positive impact on career prospects of people by increasing their standard
of living and quality of life.
Reason: There is a downward trend in inequality world- wide with a rise in the average education level.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation ofAssertion
(A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanationof Assertion
(A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true
27 Assertion: Rising population is a serious roadblock in the process of human capital formation in India.
Reason: Migration facilitates utilisation of human capital.
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 explanationof Assertion
(A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true
28 Read the following statements- Assertion (A) & Reason (R). Choose one of the correct alternatives
given below:
Assertion (A) :Expenditure regarding on-the-job training is a sources of human capital formation and
investment.
Reason ( R ) : The return of on-the – job training is in form of enhanced labour productivity which is
more than the cost of it.
(A) Both Assertion (A) & Reason (R) is true
(B) Both Assertion (A) & Reason (R ) is false
(C) Assertion (A) is true but Reason (R) is False
(D) Assertion (A) is False but reason (R) is true
29 Read the following statements- Assertion (A) & Reason (R). Choose one of the correct alternatives
given below:
Assertion (A) :The relation between human capital and economic growth flows in either directions.
Reason (R ) : High level of economic growth means more investment in human capital formation –
better schools , colleges, research institution , hospitals and high level of human capital like doctors ,
scientist , engineers , professors causes growth of income or vice versa
(A)Both Assertion (A) & Reason (R) is true
(B)Both Assertion (A) & Reason (R ) is false
(C)Assertion (A) is true but Reason (R) is False
(D)Assertion (A) is False but reason (R) is true
30 Read the following statements- Assertion (A) & Reason (R). Choose one of the correct alternatives
given below:
Assertion (A) Human capital aims at increasing the quality of life through better education and health
facilities whereas human development focuses on increasing the labour productivity through education
and health facilities
Reason (R ) : Both human capital and human development regards education and health as a medium of
increasing productivity
(A) Both Assertion (A) & Reason (R) is true
(B) Both Assertion (A) & Reason (R ) is false
(C)Assertion (A) is true but Reason (R) is False
(D)Assertion (A) is False but reason (R) is true

6|Page 8 October 2021,ZIET BHUBANESWAR

31 Read the following statements- Assertion (A) & Reason (R). Choose one of the correct alternatives
given below:
Assertion (A): Human capital creates both private and social benefits
Reason (R ) : The benefits from a human capital not only flows to those who pay for it but also to the
society in general.
A) Both Assertion (A) & Reason (R) is true
(B) Both Assertion (A) & Reason (R ) is false
(C)Assertion (A) is true but Reason (R) is False
(D)Assertion (A) is False but reason (R) is true
32 Read the following statements- Assertion (A) & Reason (R). Choose one of the correct alternatives
given below:
Assertion (A): Immigration enhances the process of human capital formation whereas the emigration
hampers the process human capital formation.
Reason (R ) : There is loss of valuable human capital in case of emigration not in case of immigration.
(A) Both Assertion (A) & Reason (R) is true
(B) Both Assertion (A) & Reason (R ) is false
(C)Assertion (A) is true but Reason (R) is False
(D)Assertion (A) is False but reason (R) is true

ANSWER

1-B 2-A 3-A 4-A 5-B 6-B 7-C 8-A 9-B 10-D
11-A 12-A 13-B 14-B 15-A 16-B 17-A 18-C 19-D 20-A
21-B 22-D 23-C 24-A 25-A 26-B 27-B 28-A 29-A 30-B
31-A 32-B

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KOLKATA, RANCHI, SILCHAR AND TINSIKIA REGION.
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7|Page 8 October 2021,ZIET BHUBANESWAR

 CHAPTER-6-RURAL DEVELOPMENT
ASSERTION- REASON QUESTIONS
Sl Question
1 Assertion (A): NABARD was set up in 1982 to coordinate the activities of all institutions
involved in rural financing system.
Reason (R): Commercial banks and other financial institutions have failed to develop a culture
of deposit mobilization.
Choose the correct option for below given questions
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.
2 Assertion (A): IT can play a critical role in achieving sustainable development and food
security in 21st century.
Reason (R): Farmers are very keen to learn computer.
Choose the correct option for below given questions
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.
3 Assertion (A): TheSHGs promote thrift in small proportions by a minimum contribution from
each member. .
Reason (R): Macro credit refers to credit and other financial services provided to the poor
through SHG s.
Choose the correct option for below given questions
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of

1|Page 8 October 2021,ZIET BHUBANESWAR

 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.
4 Assertion (A): The diversification has a positive impact on the agriculture sector.
Reason (R): As it can disseminate formation regarding emerging Technologies and its
applications, prices, weather and soil conditions for growing different crops etc.
Alternatives:
(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 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
5 Assertion (A): The yields from organic farming are more than modern agricultural farming.
Reason (R): The yields from organic farming are less than modern agricultural farming in the
initial years.
Alternatives:
(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 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
6 Assertion (A): Even today more than 10% of goods produced in farms are wasted.
Reason (R): The current storage facilities are quite inadequate to meet the growing demands.
Alternatives:
(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 correct explanation of

2|Page 8 October 2021,ZIET BHUBANESWAR

 Assertion (A)
(C) Assertion (A) is true but Reason (R) is false
(D) Assertion (A) is false but Reason (R) is true.
7 Assertion (A): agriculture loan default rates have been chronically high.
Reason (R): It is alleged that farmers are deliberately refusing to pay back loans.
Alternatives:
(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 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.
8 Assertion (A): The fishing community regards the water body as mother or provider.
Reason (R): Because the water bodies (sea, Ocean, rivers, lakes, natural aquatic ponds etc.) are
integral and life- giving source for the fishing community.
Alternatives:
(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 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
9 1. Assertion: Rural development is comprehensive term which essentially focuses on the action of
overall development of rural areas.

Reason: It is required to develop the standard of living of rural people.

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
10 2. Assertion: Use of HYV seeds was done by the farmers

Reason: It was one of the reforms under NEP.

A. Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of

3|Page 8 October 2021,ZIET BHUBANESWAR

 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
Assertion (A) is false but Reason (R) is true
11 3. Assertion: Diversification of crops shifted from single cropping system to multiple cropping.

Reason: It increases the risk of market arises due to price fluctuations.

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
12 4. Assertion: Role of Information technology was essential in rural sector.

Reason: Farmers were interested in learning computers.

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
13 Read the Assertion (A) and Reason (R) and choose the correctalternative: -
Assertion (A) :- Rural development includes only agricultural development
Reason (R) :- Rural development aims at improving the economic and social conditions of people living
in village
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of A
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct explanation of A
c) Assertion (A) is true and Reason (R) is false
d) Assertion (A) is false and Reason (R) is true
14 Read the Assertion (A) and Reason (R) and choose the correct alternative:-
Assertion (A) :- The focus of self help group is largely on the rural poor.
Reason (R) :- Rural poor have no sustainable access to formal banking system
Alternatives:
e) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of A
f) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct explanation of A
g) Assertion (A) is true and Reason (R) is false
h) Assertion (A) is false and Reason (R) is true
15 Read the Assertion (A) and Reason (R) and choose the correct alternative:-
Assertion (A) :- India ranks first in world in milk production
Reason (R) :- India’s milk production increased due to operation flood.
Alternatives:
i) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of A
j) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct explanation of A
k) Assertion (A) is true and Reason (R) is false

4|Page 8 October 2021,ZIET BHUBANESWAR

 l) Assertion (A) is false and Reason (R) is true
16 Read the Assertion (A) and Reason (R) and choose the correct alternative:-
Assertion (A) :- Indian government took various measures to improve agricultural marketing.
Reason (R) :- Farmers were often forced to sell at low prices due to lack of required market
information.
Alternatives:
m) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of A
n) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct explanation of A
o) Assertion (A) is true and Reason (R) is false
p) Assertion (A) is false and Reason (R) is true
17 Read the Assertion (A) and Reason (R) and choose the correct alternative:-
Assertion (A) :- Diversification of crop production lead to shift from single cropping system to multi
cropping system
Reason (R) :- It reduced the income of farmers due to increase in market risk because of price
fluctuation.
Alternatives:
q) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of A
r) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct explanation of A
s) Assertion (A) is true and Reason (R) is false
t) Assertion (A) is false and Reason (R) is true
18 Assertion:Cooperative marketing is a significant progressive step in the context of the
agricultural market system.
Reason: Milk cooperative in Gujarat is a brilliant example of cooperative marketing in rural
India.

(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
19
Assertion: Minimum support price purchases from the farmers are kept as buffer stocks by the
government.
Reason: Public distribution system implies distribution of food grains through fair price shops
at subsidized rates.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
20

Assertion:Measures were taken by the government to improve agricultural marketing.

Reason: Farmers while selling the product were not earning profits.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of assertion.

5|Page 8 October 2021,ZIET BHUBANESWAR

 (C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
21 Assertion: Use of HYV seeds was done by the farmers.
Reason: It was one of the reforms under NEP.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
22 Assertion:Rural development is essential for Indian economic development.
Reason: Rural development creates opportunities in rural areas for education.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.

ANSWER

1-B 2-C 3-C 4-A 5-D 6-B 7-A 8-A 9-A 10-C
11-C 12-C 13-D 14-A 15-A 16-A 17-C 18-A 19-B 20-A
21-C 22-A

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GUWAHATI, KOLKATA, RANCHI, SILCHAR AND TINSIKIA REGION .
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