Question : Assertion (A): A higher value of primary deficit is better for the economy
Reason (R): High value of the primary deficit indicates the situation where even after paying the amount of interest, a significant amount of borrowing is left to be used for the expenses.
Option 1: Both A and R are true and R is the correct explanation of A
Option 2: Both A and R are true but R is not a correct explanation of A
Option 3: A is true but R is false
Option 4: A is false but R is true
Correct Answer: Both A and R are true and R is the correct explanation of A
Solution : The correct answer is (a) Both A and R are true and R is the correct explanation of A.
A primary deficit represents the deficit in the government budget excluding interest payments. It shows the borrowing needs of the government for its non-interest expenses.
In certain cases, a higher value of primary deficit can be considered better for the economy. It indicates that the government has more funds available to allocate towards non-interest expenditure, such as infrastructure development, social welfare programs, and investments that can stimulate economic growth.
The reason accurately explains that a high primary deficit means there is a significant amount of borrowing remaining after paying the interest on existing debt. This implies that a substantial portion of the borrowing is used for non-interest expenses, allowing the government to make more investments in the economy.
Therefore, the correct answer is (a) Both A and R are true and R is the correct explanation of A. I apologize for any confusion caused by my previous response.
Question : Assertion (A): Fiscal deficit is greater than budgetary deficit.
Reason (R): Fiscal deficit is the borrowing from the Reserve Bank of India plus other liabilities of the Government to meet its expenditure.
Option 1:
Both A and R are true and R is the correct explanation of A
Question : Assertion (A): Both microeconomics and macroeconomics are supplementary to each other. Reason (R): The superiority of one approach over the other can not be claimed.
Option 1: Both A and R are true and R is the correct explanation of A.
Option 2: Both A and R are true but R is not the correct explanation of A.
Option 3: A is true but R is false.
Option 4: A is false but R is correct.
Question : Assertion (A): The paradox is a seemingly absurd or contradictory statement, though, often a true statement. Reason (R): It means, an act which is beneficial for an individual, may prove to be harmful for the economy as a whole.
Option 2: Both A and R are true and R is not the correct explanation of A.
Option 4: A is false but R is true.
Question : Assertion (A): Central problems of an economy are called central problems. Reason (R): It is because these are the most basic problems of an economy and all other problems revolve around them.
Option 1: A and R are correct and R is the correct explanation of A.
Option 2: A and R are correct and R is not the correct explanation of A.
Question : Assertion (A): In India, there are significant and growing regional differences. Reason (R): As a result, several regions have seen ongoing political instability.
Option 1: Both assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Option 2: Both assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Option 3: Assertion (A) is true but Reason (R) is false.
Option 4: Assertion (A) is false but Reason (R) is true.
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