Assertion (A): Some economists argued that protection made Indian industry inefficient.
Reason (R): Protected firms faced no foreign competition and so had little pressure to improve.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Competition pushes firms to cut costs and raise quality; without it they need not.
R explains A.

Concept: Criticism of protection
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsAchievements and failures

Practise this chapter →

Ten questions from Industry & Trade, 1950–90, at your own pace.

Practise this chapter →

Ten questions from Industry & Trade, 1950–90, at your own pace.

Practise this chapter All 53 questions in Industry & Trade, 1950–90 Revise the notes for Industry & Trade, 1950–90

Assertion (A): Some economists argued that protection made Indian industry inefficient.Reason (R): Protected firms faced no foreign competition and so had little pressure to improve.

Explanation

Assertion (A): Some economists argued that protection made Indian industry inefficient.
Reason (R): Protected firms faced no foreign competition and so had little pressure to improve.