Read the following Two passages and answer the items that follow. Your answers to these items should be based on the passages only.

Passage-1
In introducing the Permanent Settlement, British officials hoped to resolve the problems they had been facing since the conquest of Bengal. By the 1770s, the rural economy in Bengal was in crisis, with recurrent famines and declining agricultural output. Officials felt that agriculture, trade and the revenue resources of the state could all be developed by encouraging investment in agriculture. This could be done by securing rights of property and permanently fixing the rates of revenue demand. If the revenue demand of the state was permanently fixed, then the Company could look forward to a regular flow of revenue, while entrepreneurs could feel sure of earning a profit from their investment, since the state would not siphon it off by increasing its claim. The process, officials hoped, would lead to the emergence of a class of yeomen farmers and rich landowners who would have the capital and enterprise to improve agriculture. Nurtured by the British, this class would also be loyal to the Company.

Based on the above passage, the following assumptions have been made:

1.The primary deterrent to agricultural investment prior to Permanent Settlement was the lack of available capital among potential entrepreneurs.

2.Economic self-interest and gratitude for favorable property and revenue arrangements would override any pre-existing political allegiances or grievances among yeomen farmers and rich landowners.Which of the assumptions given above is/are valid?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Question

Read the following Two passages and answer the items that follow. Your answers to these items should be based on the passages only.

Passage-1
In introducing the Permanent Settlement, British officials hoped to resolve the problems they had been facing since the conquest of Bengal. By the 1770s, the rural economy in Bengal was in crisis, with recurrent famines and declining agricultural output. Officials felt that agriculture, trade and the revenue resources of the state could all be developed by encouraging investment in agriculture. This could be done by securing rights of property and permanently fixing the rates of revenue demand. If the revenue demand of the state was permanently fixed, then the Company could look forward to a regular flow of revenue, while entrepreneurs could feel sure of earning a profit from their investment, since the state would not siphon it off by increasing its claim. The process, officials hoped, would lead to the emergence of a class of yeomen farmers and rich landowners who would have the capital and enterprise to improve agriculture. Nurtured by the British, this class would also be loyal to the Company.

Based on the above passage, the following assumptions have been made:

1.The primary deterrent to agricultural investment prior to Permanent Settlement was the lack of available capital among potential entrepreneurs.

2.Economic self-interest and gratitude for favorable property and revenue arrangements would override any pre-existing political allegiances or grievances among yeomen farmers and rich landowners.Which of the assumptions given above is/are valid?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

TutorArc · Accepted Answer

Statement 1 is not correct: While the emergence of a class with "capital" is a hoped-for outcome, the passage suggests the core problem addressed by fixed revenue was the disincentive created by the state potentially "siphoning off" profits through increased claims, not primarily a pre-existing lack of any capital among potential entrepreneurs.

Statement 2 is correct: The passage states, &ldquo;emergence of a class of yeomen farmers and rich landowners who would have the capital and enterprise to improve agriculture. Nurtured by the British, this class would also be loyal to the Company.&rdquo; For officials to expect loyalty from a class "nurtured" by a new system that secured their property and profit potential, they must have assumed that these economic benefits and the perceived security provided by the British would engender a sense of allegiance, strong enough to ensure their support for the Company.

British Colonial Rule in India

Permanent Settlement in Bengal

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Read the following Two passages and answer the items that follow. Your answers to these items should be based on the passages only. Passage-1 In introducing the Permanent Settlement, British officials hoped to resolve the problems they had been facing since the conquest of Bengal. By the 1770s, the rural economy in Bengal was in crisis, with recurrent famines and declining agricultural output. Officials felt that agriculture, trade and the revenue resources of the state could all be developed by encouraging investment in agriculture. This could be done by securing rights of property and permanently fixing the rates of revenue demand. If the revenue demand of the state was permanently fixed, then the Company could look forward to a regular flow of revenue, while entrepreneurs could feel sure of earning a profit from their investment, since the state would not siphon it off by increasing its claim. The process, officials hoped, would lead to the emergence of a class of yeomen farmers and rich landowners who would have the capital and enterprise to improve agriculture. Nurtured by the British, this class would also be loyal to the Company. Based on the above passage, the following assumptions have been made: 1.The primary deterrent to agricultural investment prior to Permanent Settlement was the lack of available capital among potential entrepreneurs. 2.Economic self-interest and gratitude for favorable property and revenue arrangements would override any pre-existing political allegiances or grievances among yeomen farmers and rich landowners. Which of the assumptions given above is/are valid? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

British Colonial Rule in India

Permanent Settlement in Bengal

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