Assertion (A): Reserving goods for small units protected them from big firms.
Reason (R): Small units had a cost advantage over big firms in every good.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Big firms could not make the reserved goods, so A is true.
Big firms usually have the cost advantage from scale; that is why reservation was needed. R is false.

Concept: Protection of SSI
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsSmall-scale industry

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Ten questions from Industry & Trade, 1950–90, at your own pace.

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Ten questions from Industry & Trade, 1950–90, at your own pace.

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Assertion (A): Reserving goods for small units protected them from big firms.Reason (R): Small units had a cost advantage over big firms in every good.

Explanation

Assertion (A): Reserving goods for small units protected them from big firms.
Reason (R): Small units had a cost advantage over big firms in every good.