Question : Assertion: Dual Pricing policy was initiated in the reform process of China.
Reason: In order to attract foreign investors, special economic zones were set up.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Solution :
The correct answer is (b) Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
The assertion is true. China did implement a dual pricing policy as part of its economic reforms, where different prices were set for goods or services for the domestic market and the export or foreign investment market.
The reason provided is also true. Special economic zones (SEZs) were indeed set up in China as part of its economic reforms. These zones offered special regulations, incentives, and infrastructure to attract foreign investors and promote economic development.
However, the reason does not directly explain why the dual pricing policy was initiated. The dual pricing policy aimed to balance the needs of the domestic market and foreign investors, while the establishment of SEZs was a separate measure to attract foreign investment and promote economic growth.
Therefore, both the assertion and reason are true, but the reason is not the correct explanation of the assertion.
