Practicing Success

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 regional balanced 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:

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

Explanation:

In order to reduce regional disparities, government encourages setting up of production units in the economically backward regions. Government also provides tax concession and subsidies to the production units to promote regional balanced growth.