Economics · Labor Market Economics
Assertion (A): MGNREGA has been observed to contribute to wage rate increases in the rural labour market, particularly during peak agricultural seasons. Reason (R): By creating an alternative public employment option with statutory minimum wages, MGNREGA raises the reservation wage of rural agricultural workers. Choose the correct option:
- 1A is true, but R is false
- 2A is false, but R is true
- 3Both A and R are true, but R is NOT the correct explanation of A
- 4Both A and R are true, and R is the correct explanation of A✓
Correct answer
Both A and R are true, and R is the correct explanation of A
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