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Question
Assertion (A): Absence of competition is a feature of capitalist economy.
Reason (R): Under capitalism, there is high degree of competition in the commodity as well as factor market.
Options
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
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Solution
Assertion (A) is false but Reason (R) is true.
Explanation:
Absence of competition is NOT a feature of capitalist economy; rather, capitalism is characterized by high competition in commodity and factor markets, promoting efficiency and innovation. Hence, while the reason is true, it does not support the false assertion.
