Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Introduction

Question:

In the question given below there are 2 statements marked as Assertion (A) and Reason (R). Choose the correct alternative from the following options.

Assertion (A)- Choice is the outcome of abundance. When there are abundant resources in the economy, it is difficult to make a decision of choosing one.

Reason (R)- Choice emerges when the limited resources are to be used to satisfy unlimited wants of humans.

Options:

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

Both (A) and (R) are true but (R) is not the correct explanation of (A).

(A) Is true but (R) is false.

(A) Is false but (R) is true.

Correct Answer:

(A) Is false but (R) is true.

Explanation:

Choice is the direct outcome of scarcity. Human wants are unlimited and resources are scarce in nature. When an individual has to put a resource with different uses to satisfy his wants, he has to allocate the resource so that maximum benefit could be attained from it.