Assertion and Reason based question:-

1. A:- The progress of the modern industry remained very slow.

R:- There was hardly any capital goods industry to help promote industrialization in India.
2. 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 tarrif pursued by the colonial government adversely
affected the structure , composition and volume of India’s foreign trade.
3. A:- Britain maintained a monopoly control over India’s exports and imports.
R:- The opening of Suez Canal further intensified British control over India’s foreign trade.
4. A:- Suppose the literacy rate in a state is 78% and the net attendance ratio in secondary stage is 47%.
R:- More than half of the students are going to other states for elementary education.
5. A:- A good indicator of economic growth is steady increase in GDP.
R:- The GDP is market value of final goods and services produced in the domestic territory of the country.
6. A:- Adoption of new technology is the production of goods and services to increase the output is called
modernization.
R:- Modernisation does not refer only to the use of technology but also to change in social outlook.
7. A:- The first seven five year plans gave importance to self-reliance.
R:- Self-reliance means avoiding imports of those goods which could be produced in India itself.
8. A:- Land ceiling means fixing the maximum size of land which could be owned by an individual.
R:- The purpose of land ceiling was to reduce the concentration of land ownership in a few hands.
9. A:- The major policy initiatives that is land reforms and green revolution helped India to become self-sufficient
in food grains production.
R:- The proportion of people depending on agriculture did not decline as epected.
10. A:- During the colonial rule there was neither growth nor equity in the agriculture sector.
R:- The policy makers of independent India had to solve the issues related to agriculture which they did through
land reforms.
11. A:- Just a year after independence, steps were taken to abolish intermediaries and to make the tillers the owners
of land.
R:- The idea behind this move was that ownership of land would give incentives to the tillers to invest in making
improvements.
12. A:- The stagnation in agriculture during colonial rule was permanently broken by the Green revolution.
R:- This refers to the large increase in production of food grains, especially wheat and rice resulting from the use
of HYV seeds.
13. A:- In accordance with the goal of the state controlling the commanding heights of the economy, IPR 1956 was
adopted.
R:- This resolution formed the basis of the second five year plan, the plan which tried to build the basis for a
socialist pattern.
14. A:- Under the IPR 1956, the private sector was kept under state control through licensing system. No new
industry was allowed unless a license was obtained from the government.
R:- The objective of such policy was to ensure that the private sector enterprises do not grow at a faster pace than
public sector enterprises.
15. A:- When calculating total value of goods and services produced in a country, the value of all goods and services
at each stage of production should be calculated.
R:- At each stage of production some value is added to a goods and services, therefore , the value added at each
stage of production is added to derive the total value of goods and services in an economy.
16. A:- Under IPR 1956, even an existing industry had to obtain a license for expanding output or for diversifying
production.
R:- This was meant to ensure that the quantity of goods produced was not more than what the economy required.
17. A:- The excessive regulation of what came to be called the Permit license raj prevented certain firms from
becoming more efficient.
R:- More time was spent by industrialists in trying to obtain license or lobby with concerned ministers rather
than or thinking about how to improve their products.
18. A:- While the nation had immensely benefited from the green revolution, the technology involved was not free
from risks.
R:- The green revolution would have favoured the rich farmers only if the state did not play an extensive role in
ensuring that the small farmers also gains from the new technology.
19. A:- There are several goods and services that the society needs; however , the private sector does not produce all
of them.
R:- Private sector is profit driven.
20. A:- Every year government fixes a target for disinvestment of Public Sector Enterprises.
R:- Disinvestment is an excellent tool for discarding the loss incurring Public Sector Enterprises.
21. A:- Rapid improvement in technology has been one major factor that has stimulated the globalization process.
R:- Developing countries are likely to become at par with developed countries in terms of technological
development due to globalization.
22. A:- India approached the IBRD, popularly known as World bank and the IMF, and received $ 7 billion as loan to
manage the crisis.
R:- India announced its NEP in 1991.
23. A:- A tax on imports makes the market for imported goods lucrative in terms of earning higher profits.
R:- Taxes are imposed to ensure smooth trade between nations and higher tax revenues for the governments of
the countries.
24. A:- GDP shows how big an economy is.
R:- GDP is the value of all goods and services produced within domestic territory of a country in the year.
25. A:- The removal of barriers to trade is known as liberalization.
R:- Federalization of trade allows businesses to freely decide which goods to import and export.
26. A:- Privatization means giving greater role to the private sector in the nation building process and a reduced role
to the public sector.
R:- The government has also made attempts to improve the efficiency of PSU’s by giving them autonomy in
taking managerial decisions.
27. A:- Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
R:- Foreign trade expands the choice of goods beyond what is domestically produced.
28. A:- Globalization leads to increased competition in international and domestic markets.
R:- Globalization also makes the consumer better off as the have a wider variety of goods to choose from at
lower prices.
29. A:- Owing to globalization, many Indian companies have expanded their wings to many other countries.
R:- It is an outcome of the set of various policies that are aimed at transforming the world towards greater
interdependence and integration.
30. A:- Reliance industry is a privately-owned firm.
R:- Government is a major stakeholder in reliance industries.
31. A:- An individual who manufactures flour from wheat is engaged in primary sector.
R:- When some process of manufacturing is used the product is a part of secondary sector.
32. A:- Many of the services such as voice-based business processes, record keeping, accountancy are being
outsourced by multinational companies to India.
R:- The low wage rates and availability of skilled manpower in India have made it a destination for global
outsourcing in the post-reform period.
33. A:- The growth of GDP increased from 5.6% during 1980-91 to 8.2 % during 2007-12.
R:- GDP growth rate has increased in the reform period, it has not generated sufficient employment opportunities
in the country.
34. A:- Demonetization was a new initiative taken by the Government of India in 8 November 2016.
R:- Demonetization tackled the problem of corruption, black money, terrorism and circulation of fake currency
in the economy.
35. A:- Even with expanded employment opportunities, the poor will not be able to buy for themselves all the
essential goods and services.
R:- Three major programmes that aim at improving the food and nutritional status of the poor are Public
Distribution System, Integrated Child Development Scheme and Midday Meal Scheme.
36. A:- Pradhan Mantri Jan-Dhan Yojana encourages people in India to open bank accounts.
R:- Besides promoting saving habits, this scheme tends to transfer all the benefits of government schemes and
subsidies to account holders directly.
37. A:- If India, is to solve the problem of poverty, it has to find viable and sustainable strategies to address the
causes of poverty.
R:- To identify poor government has to design schemes and also have to help poor the poor to come out of their
situation.
38. A:- High growth alone is not sufficient to reduce poverty.
R:- Government policies have failed to address the vast majority of vulnerable people who are living on or just
above the poverty line.
39. A:- Rakesh is an educated and skilled worker who earns a high monthly salary as he is employed in private bank
in a city.
R:- All service sectors in India are growing extremely well and each individual engaged in any kind of tertiary
activity earns a high income.
40. A:- Reena works five days a week , receives her income on the last day of each month and gets medical facilities
from her firm.
R:- Reena is working in organized sector.
41. A:- Mohan is a shopkeeper who pays his taxes on time. He has employed two workers Rakesh and Raghu in his
shop. He pays them well, however, none of the workers get any paid leaves in the year.
R:- Rakesh and Raghu are employed in unorganized sector.
42. A:- ‘Kudumbashree’ is a women –oriented community-based poverty reduction programme being implemented
in kerala.
R:- The SHGs promote thrift in small proportions by a minimum contribution from each member.
43. A:- As agriculture is already overcrowded, a major proportion of the increasing labour force needs to find
alternative employment opportunities in other non-farm sectors.
R:- Non-farm economy has several segments in it; some possess dynamic linkages that permit healthy growth
while others are in subsistence, low productivity propositions.
44. A:- A state has per capita income of 25,000 per annum. The infant mortality rate of state is 2%. So the state
cannot be considered as developed state.
R:- There are medical facilities in the state , but people fail to take their children to hospital in time.
45. A:- Sustainable development is essential for economic growth of the countries.
 R:- Sustainable development ensures that environment friendly measures are adopted for carrying out production
process.
46. A:- Absorption capacity means the ability of the environment to absorb degradation.
R:- Many resources have become extinct and the wastages generated are beyond the absorptive capacity of the
environment.
47. A:- With the help of photovoltaic cells, solar energy can be converted into electricity.
R:- India is naturally endowed with a large quantity of solar energy in the form of sunlight.
48. A:- GLF campaign initiated in 1958 aimed at industrializing the country on a massive scale.
R:- under the commune system, people collectively cultivated lands.
49. A:- In 1978, economic reforms were initiate din china.
R:- The reform process involved dual pricing.
50. A :- There was significant decline in overall population of the china.
R:- Scholars point out the ‘one child norm’ introduced in China in the late 1970’s as the major reason for low
population growth.