Directions: In the questions given below are two statements labeled Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): Compared to no trade, there are production and consumption gains to a country from free trade.
Reason (R): The magnitude of gain from trade is independent of the magnitude of price change from no trade.
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
5
Question Not Attempted