In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the correct option:
Assertion (A): The aim of production is to produce the goods and services that we want.
Reason (R): There are four requirements for production of goods and services.
Options are:
(a) Both (A) and (R) are true and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(c) (A) is correct but (R) is wrong.
(d) (A) is wrong but (R) is correct.
Answer:
So, the correct answer is (b)
Explanation:
- The aim of production is to produce the goods and services that we want.
- There are four requirements for the production of goods and services.
- The first requirement is land, and other natural resources such as water, forests, and minerals.
- The second requirement is labor i.e, people who will do the work.
Some production activities require highly educated workers to perform the necessary tasks. Other activities require workers who can do the manual work.
- The third capital is physical capital i.e, the variety of inputs required at every stage during production.
- The fourth requirement is knowledge and enterprise to put together land, labor, and physical capital and produce an output. It is called human capital.
- Every production is organized by combining land, labor, physical capital, and human capital, known as production factors.
Let’s check
- Assertion (A): The aim of production is to produce the goods and services that we want. This is true.
- Reasoning (R) : There are four requirements for the production of goods and services. This is true.
- The aim of production is to produce the goods and services that we want or according to the consumer needs and does not depend on the factors for production.
So, the reasoning is not the correct explanation to assertion
So,
- Assertion is true
- Reasoning is true
- And, reasoning is not the correct explanation of assertion.
Thus, the correct answer is (b).
