Question

Assertion (A): The supply of resources is limited in relation to demand.

Reason (R): Human wants are unlimited.

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 not the correct explanation of Assertion (A).

Explanation:

Resources are limited in supply, while human wants are unlimited, making scarcity the central economic problem. This unlimited nature of wants explains why resources appear limited in relation to demand, necessitating choices in their allocation.