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Question
Assertion (A): In a socialist economy only those goods are produced which are in great demand.
Reason (R): Under socialism, social welfare is the chief motivating force behind all economic activities.
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:
In a socialist economy, production is planned based on social welfare and use rather than just market demand; hence, not only goods in great demand are produced. However, social welfare is indeed the chief motivating force behind all economic activities under socialism.
