Question

In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the correct option:
Assertion (A) : Money in your pocket cannot buy all the goods and services that you

may need to live well.

Reason (R): Income by itself is not a completely adequate indicator of material goods and services that citizens are able to use

Options:

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

(b) Both A and R is true, but R is not the correct explanation of A.

(c) A is correct, but R is wrong.

(d) A is wrong, but R is correct

Answer 1

The correct option is (b)

(b) Both A and R is true, but R is not the correct explanation of A.

Assertion (A): Money in your pocket cannot buy all the goods and services that you may need to live well.

The Correct Explanation Of The Assertion Is:-

• Money in the pocket is a limited resource whereas in economics man is a social animal who has unlimited and unending wants which cannot be fully satisfied.
• Goods and services are bought by consumers to fulfil their wants. But the consumer's wants are unlimited and cannot be fulfilled with limited resources.

Reason (R): Income by itself is not a completely adequate indicator of material goods and services that citizens are able to use

The Explanation Of The Reason

• Income by itself is not a completely adequate indicator of material goods and services that citizens are able to use because the quality of life also depends on non-material goods.

• Money from income cannot buy non-material goods like knowledge, management skills and motivation. Money cannot buy health, happiness, self-respect, morals, and values. Money cannot buy a healthy environment that is an environment free from pollution.

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