Economics · Economic Development Models
Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below. Assertion (A): In P.N. Rosenstein-Rodan's Big Push model, the positive role of indivisibilities in production has been analysed. Reason (R): Overcoming these indivisibilities leads to decreasing returns to scale in production.
- 1(A) is false, but (R) is true.
- 2(A) is true, but (R) is false.✓
- 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
(A) is true, but (R) is false.
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