Question : Read the following statements of Assertion (A) and Reason(R) and choose the correct alternative:
Assertion (A)- Saving curve will have a negative intercept on Y-axis of the same magnitude as the consumption curve has positive intercept on Y-axis.
Reason(R)- If consumption is positive at Y=0, there would be dissavings of the same mangnitude.
Option 1: Both A and R are correct and R is correct explanation
Option 2: A is correct and R is wrong.
Option 3: R is correct and A is wrong
Option 4: Both A and R are correct and R is not the correct explanation of A.
Correct Answer: Both A and R are correct and R is correct explanation
Solution : The saving curve will have a negative intercept on Y-axis of the same magnitude as the consumption curve has positive intercept on the X-axis. It happens because it consumption is positive is zero level of income then they would be savings of the same magnitude. Hence, Option A is correct.
Question : Assertion (A)Budget line is also known as the consumption possibility curve. Reason (R): Budget line is a negatively sloped straight line.
Question : Assertion: The same demand curve moves upward in response to an expansion in demand. Reason: A rise in the price of the specified commodity results in an upward movement along the same demand curve.
Question : Assertion: Another name for the budget line is the consumption possibility curve. Reason (R): Budget line is negatively sloped.
Question : Assertion (A): The demand curve for the market is flatter than the demand curve for an individual.
Reason (R): By horizontally summing individual demand, the market demand curve is created.
Question : Read the following statements of Assertion (A) and Reason(R) and choose the correct alternative: Assertion(A): Financial Management is imaginative function. Reason(R): Financial Management is one of the functional areas of management.
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