Comprehension Passage
Directions In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which of the following is correct?
Assertion (A) Free international trade necessarily lowers the real wage of the scarce factor of production in terms of any good.
Reason (R) If the real wage declines in terms of every good, real income suffer regardless of tastes and expenditure patterns of the labourers consumer.
1
Both (A) and (R) are true and (R) is the correct explanation of (A)
2
Both (A) and (R) are true, but (R) is not the correct explanation of (A)
3
(A) is true, but (R) is false
4
(A) is false, but (R) is true