Which of the following is the most logical rational and crucial message that is implied in the above...........

English ( Master) Reading Comprehension (C)

Read the passage and answer the following questions:

India has suffered from persistently high inflation. Increase in administered prices, demand and supply imbalances, imported inflation aggravated by rupee depreciation, and speculation – have combined to keep high inflation going. If there is an element common to all of them, it is that many of them are the outcomes of economic reforms. India’s vulnerability to the effects of changes in international prices has increased with trade liberalisation. The effort to reduce subsidies has resulted in a continuous increase in the prices of commodities that are administered.

Which of the following is the most logical, rational and crucial message that is implied in the above passage?

Under the present circumstances, India should completely avoid all trade liberalisation policies and all subsidies.

Due to its peculiar socio-economic situation, India is not yet ready for trade liberalisation process.

There is no solution in sight for the problems of continuing poverty and inflation in India in the near future.

Economic reforms can often create a high inflation economy.

छोटे Courses बड़े Results

Master Reading Comprehension (C)

Prepare through Micro-courses

Try Now

Explanation:

- The passage discusses how various factors contribute to India's persistent inflation, many linked to economic reforms.

- Option 1 suggests avoiding trade liberalization and subsidies entirely. While it addresses issues of inflation, it is too drastic and not viable for long-term economic growth.

- Option 2 implies India is not ready for trade liberalization due to its unique socio-economic conditions. This may be partially true but doesn't focus on the relationship between reforms and inflation.

- Option 3 states there are no solutions for poverty and inflation, which is overly pessimistic and contradicts the idea of reforms as potential solutions if managed properly.

- Option 4 highlights that economic reforms can lead to a high inflation economy, which aligns with the passage's implication that reforms affect inflation.