Multiple choice

Directions: The following question consists of two statements, one labelled as 'Assertion (A)' and the other labelled as 'Reason (R)'. You are to examine these two statements carefully and decide if the Assertion and the Reason are individually true and if so, whether the Reason is the correct explanation of the Assertion. Select your answer to this question using the codes given below.

Assertion (A): During the last two decades, there has been a continuous reduction in the tax rates. Reasoning (R): High rates of income tax had merely encouraged tax evasion and growth in black money.

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

  2. Both (A) and (R) are true, but (R) is not the correct explanation of (A).

  3. (A) is true, but (R) is false.

  4. (A) is false, but (R) is true.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

During the last two decades, there has been a continuous reduction in the tax rate because high rates of income tax had merely encouraged tax evasion and growth in black money.

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