Question

In the following Question, read the following statement: Assertion (A) and Reason (R). Choose the correct alternative:

Assertion (A): Tools of microeconomics are demand and supply.

Reason (R): Microeconomics studies the behaviour of individual units of an economy.

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:

Both statements are true: demand and supply are the main tools of microeconomics, which studies individual economic units. However, the definition of microeconomics does not explain why demand and supply are its tools.