Multiple choice

Assertion (A) : Los levels of labour productivity exist underdeveloped countries. Reason (R) It is due to the lack physical capital.

  1. Both (A) and (R) are false

  2. (A) is true, but (R) is false

  3. Both (A) and (R) are true and (R) is the correct explanation of (A)

  4. Both (A) and (R) are true, but (R) is not the correct explanation of (A)
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D Correct answer
Explanation

Underdeveloped countries indeed have low labor productivity levels. While lack of physical capital is one contributing factor, it's not the complete explanation: other factors like education, technology, institutional quality, and infrastructure also significantly affect productivity. The reason alone doesn't fully explain the assertion.

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