Question

Assertion (A): Festivals have a major economic impact on local and regional economies by increasing business activity specially in areas such as retail, tourism and entertainment.

Reason (R): Festivals stimulate increased consumer spending in sectors like retail, hospitality and transportation, thereby boosting local business and creating job opportunities.

Options

• (A) is true and (R) is false.

• (A) is false and (R) is true.

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

• Both (A) and (R) are true and (R) is not the correct explanation of (A).

Answer 1

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

Explanation:

Festivals help boost the economy by increasing business activities in sectors such as tourism, retail, and entertainment. During festivals, people spend more on shopping, food, travel, and accommodation, which supports local businesses and generates employment opportunities.