Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Market Equilibrium

Question:

Read the following statements - Assertion (A) and Reasoning (R):
Assertion: Goods available in ration shops are often of inferior quality.
Reasoning: Price floor is fixed for poor community.

Options:

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

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

Assertion (A) is true but Reasoning (R) is false.

Assertion (A) is false but Reasoning (R) is true.

Correct Answer:

Assertion (A) is true but Reasoning (R) is false.

Explanation:

The correct answer is Option 3: Assertion (A) is true but Reasoning (R) is false.

 

  • Assertion (A) is true: Goods available in ration shops (Public Distribution System - PDS) are often of inferior quality due to issues like poor procurement, storage, and distribution practices. The government provides subsidized goods, but quality control is often lacking.

  • Reasoning (R) is false: Price floors are not fixed for the poor community; instead, they are typically implemented to support producers by ensuring a minimum selling price (e.g., Minimum Support Price for farmers). What is relevant to ration shops is a price ceiling (maximum price) since goods are provided at subsidized rates to ensure affordability for the poor.