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)- Production is the outcome of combined efforts of 2 inputs i.e. land and labour.
Reason (R)- Factors of production are paid for their services, therefore income is generated in the production process.
Answer & explanation
Correct answer: option 4
Production is the outcome of combined efforts of four inputs, also called factors of production - land, labour, capital and entrepreneur. These factors of production are paid for their services out of value of output, therefore income is generated in the production process.