Question

Assertion (A): Economic problem is the problem of scarcity and choice.

Reason (R): The problem: What to produce? relates to the choice of techniques of production.

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

Assertion (A) is true but Reason (R) is false.

Explanation:

• Assertion (A) is true because the economic problem fundamentally arises due to scarcity of resources and the need to make choices among alternative uses.
• Reason (R) is false because the problem “What to produce?” relates to deciding the kinds and quantities of goods and services to be produced, not the choice of production techniques. The choice of techniques of production is related to the problem “How to produce?”.

Hence, while both parts of the assertion and reason deal with the economic problem, the reason does not correctly explain the assertion.