AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
(A) Both A and R are true, and R is the correct explanation of A.
Wheat and flour are intermediate goods; their value is already included in the final value of biscuits (Rs 80). Counting them separately would mean counting the same value multiple times — first as wheat, then as flour, then as biscuits.
Source: Comparing the Three Sectors, Chapter 2
---
The textbook explicitly states: "The value of final goods already includes the value of all the intermediate goods... To count the value of the flour and wheat separately is therefore not correct because then we would be counting the value of the same things a number of times." This directly makes R the correct explanation of A. In MCQs like this, check whether the Reason not only is true but also directly explains the Assertion — here it does, so option (A) is correct.