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Question
Choose the correct answers to the questions from the given options.
Assertion (A): There has been a significant increase in global airfares post Russia - Ukraine war.
Reason (R): Higher fuel prices in the international market due to war.
Options
A is true but R is false.
A is false but R is true.
Both A & R are true and R explains A.
Both A & R are true but R does not explain A.
Solution
Both A & R are true and R explains A.
Explanation:
- Following the Russia-Ukraine war, global airfares increased significantly. This is because the conflict-affected supply networks, resulting in shortages and higher costs in various industries, including air travel.
- One of the primary causes for the increase in airfares is the rise in international fuel prices, which has resulted from the war, as Russia is a significant exporter of oil and gas.
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RELATED QUESTIONS
What is walking inflation?
What is the meaning of creeping inflation?
Study the relationship in the first pair of words and complete the second pair.
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| Column A | Column B | ||
| (i) | Inflation caused by demand pull factors | A. | Hyper inflation |
| (ii) | Inflation caused by cost push factors | B. | Creeping inflation |
| (iii) | First stage of inflation | C. | Cost push inflation inflation |
| (iv) | Last stage of inflation | D. | Demand pull inflation |
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Reason (R): Government employees are compensated for inflation by raising their dearness allowance.
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