Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R
Assertion A : The Endogenous growth theory examines production function that shows increasing returns.
Reason R : Increasing returns in Endogenous growth theory is due to specialization
and investment in knowledge capital and learning by doing.
In the light of the above statements, choose the most appropriate answer from the options given below:
1
Both (A) and (R) are correct and (R) is the correct explanation of (A).
2
Both (A) and (R) are correct but (R) is NOT the correct explanation of (A)
3
(A) is correct but (R) is not correct
4
(A) is not correct but (R) is correct