Question

Assertion (A): According to Adam Smith, economics is a study of wealth.

Reason (R): According to him, economics is a subject that tells us how to make a nation wealthy.

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.

Answer 1

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

Explanation:

 Adam Smith defined economics as the “science of wealth” or the study of wealth. According to him, economics deals with how wealth is created and increased, essentially telling us how to make a nation wealthy. Therefore, the assertion that economics is a study of wealth is true, and the reason that economics tells us how to make a nation wealthy correctly explains the assertion.