Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

Assertion: Farmers will cultivate water intensive crops if water is supplied free, although the water resources in that region may be scarce.

Reasoning: If water is priced to reflect scarcity, farmers will cultivate crops suitable to the region.

Options:

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

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

Assertion (A) is true but Reasoning (R) is not correct.

Assertion (A) is not true but Reasoning (R) is correct.

Correct Answer:

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

Explanation:

The correct answer is Option 2:Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

If water is supplied free, farmers may be incentivized to cultivate water-intensive crops, even in regions with scarce water resources. This is because the cost of water is not factored into their decision-making process, leading to inefficient use of water.

However, if water is priced to reflect its scarcity, farmers will be more likely to consider the water requirements of different crops and choose those that are more suitable to the region's water availability. This will help to ensure that water resources are used more efficiently and sustainably.

While both statements are true, Reasoning (R) is more about incentivizing farmers to choose appropriate crops by reflecting water scarcity in pricing, rather than directly explaining why free water leads to the cultivation of water-intensive crops.