Read the following statements - Assertion (A) and Reason (R):
Assertion: In macroeconomics, in many cases, instead of a single representative category of good or labour, we may take a handful of different kinds of goods.
Reasoning: Focusing on a representative good may lead to overlooking of some vital distinctive characteristics of individual goods.
From the given alternatives choose the correct one:

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

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: In microeconomics, in many cases, instead of a single representative category of good or labour, we may take a handful of different kinds of goods. This is correct. Macroeconomic models can sometimes benefit from using multiple good categories to capture a more nuanced picture of the economy. For instance, analyzing sectors like manufacturing, services, and agriculture separately can provide more insights than using a single "all-encompassing" good.
Reasoning: Focusing on a representative good may lead to overlooking of some vital distinctive characteristics of individual goods. This is correct. Focusing solely on a representative good or labor category may oversimplify the analysis and fail to capture the unique characteristics and complexities of individual goods or types of labor. For example, production conditions of agricultural and industrial commodities are of a different nature. Or, if we treat a single category of labour as a representative of all kinds of labours, we may be unable to distinguish the labour of the manager of a firm from the labour of the accountant of the firm. So, in many cases, instead of a single representative category of good or labour, we may take a handful of different kinds of goods.

Thus, Reasoning provides correct explanation for the assertion.