Assertion: Higher the level of income, the higher is the level of human development as per Income Approach to human development..

Reasoning: Human development is linked to income in Income approach.

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

The correct answer is Option 1: Both (A) and (R) is true and (R) is the correct explanation of (A)

Assertion: Higher the level of income, the higher is the level of human development as per Income Approach to human development. This statement is true because the Income Approach considers income as an important factor in improving living standards, education, health, and overall quality of life.

Reasoning: Human development is linked to income in Income approach. This statement is also true because the Income Approach assumes that higher income enables people to access better facilities and opportunities.

The Reason correctly explains the Assertion since the idea of higher income leading to higher human development is the core basis of the Income Approach.

NCERT: "Income Approach: This is one of the oldest approaches to human development. Human development is seen as being linked to income. The idea is that the level of income reflects the level of freedom an individual enjoys. Higher the level of income, the higher is the level of human development".