Question : Assertion: Trade reforms in the 1991 economic policy aimed to reduce import restrictions.
Reason: Lower import restrictions can promote competition and offer consumers a wider variety of choices.
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 trade reforms in the 1991 economic policy aimed to reduce import restrictions, which is true. The aim of these reforms was to liberalize trade and reduce barriers to imports, such as tariffs and quotas, in order to promote economic growth, increase competition, and provide consumers with a wider variety of choices.
The reason provided is also true. Lower import restrictions indeed promote competition and offer consumers a wider variety of choices. When import restrictions are reduced, it allows for a greater influx of imported goods, which creates more competition in the domestic market. This increased competition can lead to improved product quality, lower prices, and a greater range of options for consumers.
Therefore, both the assertion and reason are true, and the reason correctly explains the assertion.
Question : Assertion: Trade reforms in the 1991 economic policy aimed to reduce import tariffs.
Reason: Lower import tariffs can stimulate domestic industries and enhance competitiveness.
Question : Assertion: Liberalization reforms aimed to promote competition in the industrial sector.
Reason: Increased competition encourages innovation and efficiency.
Question : Assertion: Trade reforms in the 1991 economic policy aimed to reduce trade barriers.
Reason: Lower trade barriers can enhance market access and promote international trade.
Question : Assertion: Financial sector reforms aimed to promote financial inclusion in India.
Reason: Access to financial services is essential for inclusive economic growth.
Question : Assertion: External sector reforms aimed to liberalize foreign trade and investment policies.
Reason: Liberalized policies attract foreign capital and enhance competitiveness.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile