Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

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)- Various types of tax concessions and subsidies are offered by the government of India to production units.
Reason (R)- It has been the aim of the government  to promote backward areas and increase the regional disparities.

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:

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

Explanation:

The correct answer is option 3: (A) Is true but (R) is false.

Assertion (A): "Various types of tax concessions and subsidies are offered by the government of India to production units." This assertion is true. The government provides tax concessions and subsidies to various sectors and production units to encourage investment, support industries, and promote economic development.

Reasoning (R): "It has been the aim of the government to promote backward areas and increase the regional disparities." This reasoning is false. The actual aim of offering tax concessions and subsidies is generally to promote economic development in backward or less-developed areas and reduce regional disparities, not to increase them.