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Question

Assertion :Green Box subsidies include amount spent on Government services such as research, disease control, infrastructure and food security. Reason: Blue Box subsidies are certain direct payments made to farmers. to limit production, and are certain government assistance programmes to encourage agriculture and rural development.

A
Both Assertion and Reason are correct and Reason is the correct explanation for Assertion
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B
Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion
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C
Assertion is correct but Reason is incorrect
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D
Assertion is incorrect but Reason is correct
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Solution

The correct option is A Both Assertion and Reason are correct and Reason is the correct explanation for Assertion

Green Box subsidies include the amounts spent on Government services such as research, disease control, and infrastructure and food security. The Amber box subsidies with conditions designed to reduce distortion are placed in Blue Box. They include the direct payment to the farmers to reduce production. Blue Box refers to a category of domestic support or subsidies under the WTO's Agreement on Agriculture. Blue box supports are subsidies that are tied to programmes that limit production. The Blue box subsidies aim to limit production by imposing production quotas or requiring farmers to set aside part of their land. The Green Box (GB) is a large metal container, designed and utilized for free public disposal and recycling of electronic waste option ‘a’ is correct answer.


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