Read the following passage and answer the item that follows. Your answer to this item should be based on the…
Read the following passage and answer the item that follows. Your answer to this item should be based on the passage only.
Passage: Economic liberalization in India was shaped largely by the economic problems of the government than by the economic priorities of the people or by the long-term development objectives. Thus, there were limitations in conception and design which have been subsequently validated by experience. Jobless growth, persistent poverty and rising inequality have mounted as problems since economic liberalization began. And all these years later, four quiet crises confront the economy; agriculture, infrastructure, industrialization and education as constraints on the country's future prospects. These problems must be resolved if economic growth has to be sustained and transformed into meaningful development.
Which of the following is/are the most rational and logical inference/inferences that can be made from the passage?
1. It is essential to rethink and redefine the economic role of the State in the quest for development.
2. India has not made effective implementation of its policies in social sectors nor made sufficient investments in them.
Select the correct answer using the code given below.
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Solution
Inference 1 is rational: since liberalization had design limitations and crises persist, it is essential to rethink and redefine the State's economic role. Inference 2 is also rational: the passage cites persistent poverty, inequality and education as a crisis, implying ineffective policy implementation and insufficient investment in social sectors. Both inferences follow. Hence both 1 and 2.