Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Rural Development

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)- We should not put all our eggs in one basket.

Reason (R)-  The fact that there is greater risk in depending exclusively on farming for livelihood. Diversification towards new areas is necessary not only to reduce the risk from agriculture sector but also to provide productive sustainable livelihood options to rural people.

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:

Diversification arises from the fact that there is greater risk in depending exclusively on a single source of income. Diversification towards new areas is necessary to reduce the risk from agriculture sector in order to provide productive sustainable livelihood options to rural people. Thus, we can say that we should not keep all our eggs in same basket. If the basket falls all will be broken at a single go. Diversification spreads the risk.