In the given question, a statement of Assertion is followed by a statement of Reason. Mark the correct answer.
Assertion: After the inception of the People’s Republic of China in 1949, following the communist revolution under the leadership of Mao, its economy was based on the American model.
Reason: The economically backward communist China chose to sever its links with the capitalist world.
Answer & explanation
Correct answer: option 3
The correct answer is Option 3 - The assertion is incorrect but the reason is correct
Assertion: After the inception of the People’s Republic of China in 1949, following the communist revolution under the leadership of Mao, its economy was based on the American model. (Incorrect)
Reason: The economically backward communist China chose to sever its links with the capitalist world. (correct)
CORRECTION in Assertion: After the inception of the People’s Republic of China in 1949, following the communist revolution under the leadership of Mao, its economy was based on the Soviet model.
After the inception of the People’s Republic of China in 1949, following the communist revolution under the leadership of Mao, its economy was based on the Soviet model. The economically backward communist China chose to sever its links with the capitalist world. It had little choice but to fall back on its own resources and, for a brief period, on Soviet aid and advice. The model was to create a state-owned heavy industries sector from the capital accumulated from agriculture. As it was short of foreign exchange that it needed in order to buy technology and goods on the world market, China decided to substitute imports by domestic goods.