In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.
Assertion (A)- Choice is the outcome of scarcity.
Reason (R)- Positive economics avoid value judgements.
Answer & explanation
Correct answer: option 2
The Correct Answer is option 2: Both (A) and (R) are true but (R) is not the correct explanation of (A).
Assertion (A)- Choice is the outcome of scarcity. This is correct. Unlimited wants and scarce resources put to different use results in making choices.
Reason (R)- Positive economics avoid value judgements. This is correct. Positive economics deals with "Facts and figures" and do not involve value judgment. Normative economics, which deals with the "Opinion" of different economists considers the value judgment.
However, Reason (R) is not the explanation for Assertion (A).