Read the following statements - Assertion (A) and Reason (R):
Assertion (A) - Every economy faces the problem of choice.
Reasoning (R) - Resources are limited and limited resources have alternative uses.
From the given alternatives choose the correct one:
Answer & explanation
Correct answer: option 1
The correct answer is: ☀ Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Here's why:
- Assertion (A) is true: Every economy, regardless of its structure or level of development, faces the challenge of choice. This is because resources (land, labor, capital, etc.) are limited.
- Reason (R) is true and explains (A): The limited nature of resources and the fact that they can be used for various purposes forces economies to make choices. Since resources cannot be used for everything at once, decisions must be made about how to allocate them to produce the most desired goods and services.
Because resource scarcity necessitates making choices, reason (R) directly explains assertion (A).