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)- Government encourages setting up of production units in economically backward regions.

Reason (R)- Government has the goal of achieving imbalanced regional growth.

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)- Government encourages setting up of production units in economically backward regions. This is correct. In order to reduce regional disparities, government encourages setting up of production units in the economically backward regions.

Reason (R)- Government has the goal of achieving imbalanced regional growth. This incorrect. The government's goal is generally to achieve balanced regional growth, not imbalanced growth. By encouraging development in backward regions, the government aims to reduce disparities and promote equitable growth across regions.