ASSERTION REASON

QUESTIONS
For Chapter -1, 2 and 3
of
INDIAN ECONOMY
DEVELOPMENT
Q-1. (A): India became an exporter of primary products and an
importer of finished consumer and capital goods produced in
Britain.
(R): Restrictive policies of commodity production, trade
and tariff structure, composition and volume of India’s
foreign trade.

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.
Q.2 (A): Zamindari (Semi Feudal Economy) in the colonial
era were also responsible for the misery of the cultivators.
(R): The terms of revenue settlement system introduced
were harsh on the Zamindars.

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.
Q.3. Assertion (A): Zamindari system brought instability to
Indian cultivation during the British rule.
Reason (R): Zamindari system led to frequent of the tillers
of the soil.

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.
Q.4. Assertion (A): Tata Iron and Steel company
(TISCO) was incorporated in 1707.
Reason (R): The opening of Suez Canal in 1869
reduced the cost of transportation and made access to
the Indian market easier.

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.
Q-5. Assertion (A): During the British rule the
production of cash crops improved the economic
condition of farmers.
Reason (R): Farmers were given higher prices to
produce cash crops.

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.
Q.6. Assertion (A): Prior to 1921, India was in the first
stage of demographic transition. Reason (R): The
second stage of demographic transition began after
1921.

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.
Q7. Assertion (A): On the eve of independence,
agriculture was the principal source of livelihood.
Reason (R): On the eve of independence, Indian
economy was a feudal 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.
Q.8 Assertion (A): Decline of Handicraft industry led to
increase in imports manufactured goods from Britain.
Reason (R): The Indian made goods could not
withstand the foreign competition of machine made
cheap goods.

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.
Q.9 . Assertion (A): Spread of railways led to expansion
of the market for the British products in India. Reason
(R): Spread of railways opened up only new
opportunities of economic growth.

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.
Q10. Assertion (A): The infrastructure facilities during
British rule were highly developed. Reason (R): The
main motive behind infrastructural development was
to serve various colonial interest.

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.
Q.11.Assertion (A): During the colonial rule india's
exports exceeded imports which resulted in a surplus of
the balance of trade. Reason (R): Trade surplus was
used for the development of the 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.
Q.12 Assertion (A): The tillers of the soil agricultural
practice merely as a source of subsistence.
Reason (R): The tillers of soil accumulated resources to
invest in agriculture while the owners of the soil
showed keen interest in the same.

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.
Q13. Assertion (A): there were systematic de-
industrialization of Indian industries during British
rule.
Reason (R): Indian economy was used as a source of
raw material and a market for sale of final goods in
order to exploit 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.
Q.14 Assertion (A): In mixed economic system, both
private and public sector play an important role.
Reason (R): In mixed economic system, equality is
promoted.

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.
Q.15 Assertion (A): In the first seven plans, trade was
characterized by what is commonly called inward
looking trade strategy.
Reason (R): This policy aimed at replacing or
substituting imports with domestic production.

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.
Q.16 Assertion (A): In 1950, the Planning Commission
was set up under the Chairperson of the then Prime
Minister Jawaharlal Nehru.
Reason (R): Prime minister is an ex- officio
chairperson of Planning Commission.

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.
Q.17 Assertion (A): In the first phase of Green
Revolution, all states received the HYV seeds. Reason
(R): The used of HYV seeds primarily benefited the
wheat growing regions only.

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.
Q.18 Assertion (A): In socialist economy, GDP growth
remains a slow process.
Reason (R): In socialist economy, production is not
directed by the principle of 'profit maximization'.

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.
Q.19. Assertion (A): At the time of independence, Indian
industrialists did not have the capital to undertake
investment in industrial ventures required for the
development of our economy.
Reason (R): The state have complete control of those
industries that were vital for the 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.
Q20. Assertion (A): The First Industrial Policy
Resolution in independent India was introduce in the
year 1948.
Reason (R): The First Five Year Plan was introduced in
1951 and the last five year Plan was introduced in 2017.

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.
Q-21. Assertion (A): The excessive regulation what is known as
permit license raj prevented certain firms from becoming
more efficient.
Reason (R): More time was spent by industrialists in trying
to obtain a license or lobby with the concerned ministries
rather than on thinking about how to improve their products.

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.
Q-22. Assertion (A): Equal distribution and equitable
distribution both are the same things.
Reason (R): GDP growth is a common goal of Five
Year Plans in 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.
23. Assertion (A): Industry provides employment which is
more stable than the employment in agriculture.
Reason(R): Economists have found that poor nations can
progress only if they have a good industrial 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.
24. Assertion (A): The twin goals of self-efficiency and self-
reliance were accorded a high priority during the first
seven year plans.
Reason (R): India wanted to be self-sufficient in order to
avoid uncertainties of supply from rest of the world.

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.
25.  Assertion (A): Modernization includes adaptation
of latest Technology in production and change in
Social Outlook.
Reason (R): Modernization raises the standard of
living of People of a country.

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.
26. Assertion (A): The planning policies during the period
1950-1990 failed to eradicate poverty or curb inflation in
the Indian economy.
Reason (R): The strategy of growth envisaged by the
planners proved to be a questionable dispensation for the
growth of Indian economy to the desired extent.

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.
27. 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.
28. Assertion (A): In New Economic Policy, 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.
29.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.
30.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.
31. 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.

32. 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.
33. 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.
34. Assertion (A): New economic Policy (NEP), 1991
was focused 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.
35. 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.
36. 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.
37. 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.
38.  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.
39. 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.
40. Assertion (A): GST consists of three components
such as Central GST (CGST), State GST (SGST) and
integrated GST (IGST).
Reason (R): Central GST and State GST will apply to
all transaction 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.