Given below are two statements: one is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A): When a government-owned steel company increases its output, employment rises in private companies too.
Reason (R): Private companies which purchase steel from the government company also increase their output.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Both (A) and (R) are true and (R) is the correct explanation of (A).
Assertion (A): When a government-owned steel company increases its output, employment rises in private companies too. — True. Jobs rise in the government company directly and in private companies indirectly.
Reason (R): Private companies which purchase steel from the government company also increase their output. — True. The private companies get more steel to work with.
Why R explains A?
To produce more, the private companies need more workers. So their rise in output is what creates the new jobs. This is the indirect generation of employment by the government.
NCERT (2026-27): “6.9 Government and Employment Generation … When the output of goods and services from government enterprises increases, then private enterprises which receive raw materials from government enterprises will also raise their output and hence increase the number of employment opportunities in the economy. For example, when a government owned steel company increases its output, it will result in direct increase in employment in that government company. Simultaneously, private companies, which purchase steel from it, will also increase their output and thus employment. This is the indirect generation of employment opportunities by the government initiatives in the economy. …” |