Question : Assertion: Liberalization reforms aimed to reduce government control in the industrial sector.
Reason: Government control often leads to inefficiencies and hinders competition.
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, and the reason is the correct explanation of the assertion.
Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.
The assertion states that liberalization reforms aimed to reduce government control in the industrial sector, which is true. Liberalization involves reducing government regulations and interventions in the economy to promote competition and efficiency.
The reason given states that government control often leads to inefficiencies and hinders competition, which is also true. Excessive government control can create bureaucratic inefficiencies and limit market competition.
Furthermore, the reason provides a valid explanation for why liberalization reforms aim to reduce government control in the industrial sector. By reducing government control, it is expected that inefficiencies will be reduced and competition will be promoted.
Therefore, both the assertion and the reason are true, and the reason is the correct explanation of the assertion.
Question : Assertion: Liberalization reforms aimed to promote competition in the industrial sector.
Reason: Increased competition encourages innovation and efficiency.
Question : Assertion: Monopolistic competition is characterized by many firms selling similar, but slightly differentiated products.
Reason: Product differentiation in monopolistic competition allows firms to have some control over prices.
Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.
Option 3: The assertion is true, but the reason is false.
Option 4: The assertion is false, but the reason is true.
Question : Assertion: Prior to 1991, many large-scale industries in India have a greater control over Indian markets due to a lack of foreign competition.
Reason: The policymakers of India adopted granting licenses for expansion.
Question : Assertion: An oligopoly market structure is characterized by a few large firms dominating the market.
Reason: Oligopolistic firms tend to engage in non-price competition, such as advertising and product differentiation.
Question : Assertion: Entrepreneurship development leads to increased competition and market efficiency.
Reason: New businesses entering the market create choices for consumers and encourage existing firms to improve.
Option 1: Both assertion and reason are true, and the reason correctly explains the assertion.
Option 2: Both assertion and reason are true, but the reason does not correctly explain the assertion.
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