Question

Assertion (A): What marked capitalism from the very beginning was its dynamism, its potential to grow, expand, innovate, and use technology and labour in the best possible way.
Reason (R): Capitalism is an economic system organised to accumulate profits within a market system.

• 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 \textbf{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. \vspace{0.5cm}

Hint:

When analyzing statements about economic systems, focus on understanding their core drivers and mechanisms. This helps in establishing relationships between different aspects.

Answer 1

The Correct Option is A

Assertion (A): Capitalism is inherently dynamic, characterized by growth, expansion, constant innovation, and the utilization of technology and labor to boost productivity and profitability. This dynamism is fundamental to capitalism.
Reason (R): Capitalism is an economic system fundamentally structured around profit accumulation within a market. The pursuit of profit drives the system, incentivizing innovation, growth, and expansion.
Connection: The reason directly explains the assertion. Capitalism's dynamism stems from its structural imperative for profit accumulation, with innovation, expansion, and efficient labor use serving as strategies to achieve higher profits. Therefore, R correctly explains A.