Read the following statements - Assertion (A) and Reason (R):
Assertion: Goals of macroeconomic agents are different from those of individual decision-makers.
Reasoning: The government or statutory bodies like RBI and SEBI pursue public goals whereas individual economic agents focus on maximising their private profit.
From the given alternatives choose the correct one:
Answer & explanation
Correct answer: option 1
The correct answer is Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Assertion: Goals of macroeconomic agents are different from those of individual decision-makers. This assertion is true. Macroeconomic agents such as governments, central banks like the RBI, and regulatory bodies like SEBI often pursue broader public goals such as price stability, full employment, and economic growth. In contrast, individual decision-makers, such as firms or households, typically focus on maximizing their own private goals, such as profit maximization or utility maximization.
Reasoning: The government or statutory bodies like RBI and SEBI pursue public goals whereas individual economic agents focus on maximising their private profit.This is also correct.
Does R explain A?
- Yes, it does.
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Assertion says the goals are different.
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Reason explains why: because macro agents serve public goals, while individuals serve private goals.
This difference in motivation and responsibility explains the difference in goals.