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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): If AD>AS, the firm will employ more factors of production.
Reason (R): When AD is more, in order to get back to the equilibrium level the economy bringing AD equal to AS.
- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false.
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'A'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A...
In response to the increase in the price level, producers create more goods and services. This continues until the amount of aggregate production equals the amount of aggregate demand. As prices fall, the amount of aggregate demand increases and the economy returns to equilibrium.
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Directions : In the following questions, a statement of Assertion (A...
Explanation:
Assertion (A) and Reason (R):
There are two parts to this statement, the Assertion (A) and the Reason (R). Let's break down each part to understand the relationship between them.
Assertion (A):
- The assertion states that if AD (Aggregate Demand) is greater than AS (Aggregate Supply), the firm will employ more factors of production.
- This is true because when there is an increase in demand for goods and services (AD), firms need to produce more to meet this demand. This leads to an increase in the hiring of factors of production such as labor, capital, and raw materials.
Reason (R):
- The reason provided is that when AD is more, the economy needs to bring AD equal to AS to reach equilibrium.
- This is also true as in an economy, equilibrium is achieved when Aggregate Demand (AD) equals Aggregate Supply (AS). This balance ensures that there is neither excess demand nor excess supply in the market.
Relationship between Assertion and Reason:
- The reason (R) explains why the assertion (A) is true. When AD is greater than AS, it indicates an imbalance in the economy which needs to be corrected by adjusting production (employing more factors of production) to bring AD back in line with AS and achieve equilibrium.
Conclusion:
- Therefore, both Assertion (A) and Reason (R) are true, and the reason (R) provides a correct explanation for why the assertion (A) holds true. Hence, the correct answer is option 'A'.
Assertion (A) and Reason (R):
There are two parts to this statement, the Assertion (A) and the Reason (R). Let's break down each part to understand the relationship between them.
Assertion (A):
- The assertion states that if AD (Aggregate Demand) is greater than AS (Aggregate Supply), the firm will employ more factors of production.
- This is true because when there is an increase in demand for goods and services (AD), firms need to produce more to meet this demand. This leads to an increase in the hiring of factors of production such as labor, capital, and raw materials.
Reason (R):
- The reason provided is that when AD is more, the economy needs to bring AD equal to AS to reach equilibrium.
- This is also true as in an economy, equilibrium is achieved when Aggregate Demand (AD) equals Aggregate Supply (AS). This balance ensures that there is neither excess demand nor excess supply in the market.
Relationship between Assertion and Reason:
- The reason (R) explains why the assertion (A) is true. When AD is greater than AS, it indicates an imbalance in the economy which needs to be corrected by adjusting production (employing more factors of production) to bring AD back in line with AS and achieve equilibrium.
Conclusion:
- Therefore, both Assertion (A) and Reason (R) are true, and the reason (R) provides a correct explanation for why the assertion (A) holds true. Hence, the correct answer is option 'A'.
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): If AD>AS, the firm will employ more factors of production.Reason (R): When AD is more, in order to get back to the equilibrium level the economy bringing AD equal to AS.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): If AD>AS, the firm will employ more factors of production.Reason (R): When AD is more, in order to get back to the equilibrium level the economy bringing AD equal to AS.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): If AD>AS, the firm will employ more factors of production.Reason (R): When AD is more, in order to get back to the equilibrium level the economy bringing AD equal to AS.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): If AD>AS, the firm will employ more factors of production.Reason (R): When AD is more, in order to get back to the equilibrium level the economy bringing AD equal to AS.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): If AD>AS, the firm will employ more factors of production.Reason (R): When AD is more, in order to get back to the equilibrium level the economy bringing AD equal to AS.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): If AD>AS, the firm will employ more factors of production.Reason (R): When AD is more, in order to get back to the equilibrium level the economy bringing AD equal to AS.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): If AD>AS, the firm will employ more factors of production.Reason (R): When AD is more, in order to get back to the equilibrium level the economy bringing AD equal to AS.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?.
Solutions for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): If AD>AS, the firm will employ more factors of production.Reason (R): When AD is more, in order to get back to the equilibrium level the economy bringing AD equal to AS.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): If AD>AS, the firm will employ more factors of production.Reason (R): When AD is more, in order to get back to the equilibrium level the economy bringing AD equal to AS.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): If AD>AS, the firm will employ more factors of production.Reason (R): When AD is more, in order to get back to the equilibrium level the economy bringing AD equal to AS.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): If AD>AS, the firm will employ more factors of production.Reason (R): When AD is more, in order to get back to the equilibrium level the economy bringing AD equal to AS.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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