Assertion(A): Capital economy fosters self-interest and pushes economic growth. Reason(R) : Market ecomomies make best use of available resources to economic growth.
(a) Both are true and R is the correct explanation of A
(b) Both are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Dear Student,.
Correct Option is A (Both are true and R is the correct explanation of A).
A market economy is the one where the capitalist or the private entrepreneurs control the economic activities. They organise and undertake production with the sole motive of earning profits. In such an economy the government does not interfere in the economic activities and its role is limited only to defence and maintaining law and order. Capitalist economy fosters self-interest and pushes the economic growth and make best use of available resources to economic growth.
Regards
Correct Option is A (Both are true and R is the correct explanation of A).
A market economy is the one where the capitalist or the private entrepreneurs control the economic activities. They organise and undertake production with the sole motive of earning profits. In such an economy the government does not interfere in the economic activities and its role is limited only to defence and maintaining law and order. Capitalist economy fosters self-interest and pushes the economic growth and make best use of available resources to economic growth.
Regards