Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Rural Development

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)- Minimum support price is the price at which the government buys the product. The price has been allocated to all the agricultural products.

Reason (R)- It has been realised that if farmers directly sell their produce to consumers, it increases thier incomes.

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 false but (R) is true.             

Explanation:

Minimum Support Price (MSP) is an assurance given by the government to the farmers in order to secure their financial condition. It gives guarantee to the farmers that if due to any reason the price of the crop falls below a certain level, the government will buy it at MSP. It is given to some selective commodities only.