Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

In the question given below, there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.

Assertion (A)- It is generally agreed that it was necessary to use subsidies to provide an incentive for adoption of the new HYV technology by farmers in general and small farmers in particular.

Reason (R)- Any new technology will be looked upon as being risky by farmers.

Options:

Both (A) and (R) are true and (R) is the correct explanation.

Both (A) and (R) are true but (R) is not the correct explanation of (A).

(A) Is true but (R) is false.

(A) Is false but (R) is true.

Correct Answer:

Both (A) and (R) are true and (R) is the correct explanation.

Explanation:

The correct answer is Option 1: Both (A) and (R) are true and (R) is the correct explanation.

 Assertion (A) is correct because subsidies are often used to encourage the adoption of new technologies.

Reason (R) is correct because new technologies are typically perceived as risky by farmers. The Reason (R) explains why subsidies might be necessary. New technologies indeed seem risky to farmers because of potential uncertainty and the investment required. Therefore, subsidies can help mitigate this risk and encourage adoption.

Therefore, Reason (R) does provide a valid explanation for Assertion (A).