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): The assertion accurately describes the core characteristics of capitalism. From its inception, capitalism has been marked by its inherent dynamism, capacity for growth, expansion, constant innovation, and the use of technology and labor to increase productivity and profitability. This inherent dynamism is a foundational aspect of capitalism.
Reason (R): The reason provides the underlying mechanism of capitalism. It is indeed an economic system that is primarily structured around the accumulation of profit within a market framework. The pursuit of profit drives the entire system and incentivizes innovation, growth, and expansion.
Connection: The reason directly explains the assertion. Capitalism’s dynamism comes from its structural need to accumulate profit. Innovation, expansion and better use of labour are simply strategies employed to achieve higher profits. Thus R is the correct explanation of A.