Read the following statements - Assertion (A) and Reason (R)carefully and choose the correct alternative given below:
Assertion (A) :Most economies are mixed economies in modern times.
Reason (R) : In a mixed economy, the government will provide whatever goods and services it can produce well, and the market will provide essential goods and services which the market fails to do.
Answer & explanation
Correct answer: option 3
The correct answer is option 3: Assertion (A) is true but Reason (R ) is false
Assertion (A) :Most economies are mixed economies in modern times. This is correct. Most economies are mixed economies, i.e. the government and the market together answer the three questions of what to produce, how to produce and how to distribute what is produced.
Reason (R ) : In a mixed economy, the government will provide whatever goods and services it can produce well, and the market will provide essential goods and services which the market fails to do. This is false. In a mixed economy, the market will provide whatever goods and services it can produce well, and the government will provide essential goods and services which the market fails to do.