Question : Assertion (A): Central problems of an economy are called central problems.
Reason (R): It is because these are the most basic problems of an economy and all other problems revolve around them.
Option 1: A and R are correct and R is the correct explanation of A.
Option 2: A and R are correct and R is not the correct explanation of A.
Option 3: A is true but R is false.
Option 4: A is false but R is true.
Correct Answer: A and R are correct and R is the correct explanation of A.
Solution : Central issues in an economy are referred to as central problems. This is so because all other issues in an economy stem from these fundamental issues. Hence, the correct option is 1.