Assertion (A): An important feature of high poverty rates has been the huge income inequalities.

Reason (R): Land and other resources are unequally distributed among the different sections and groups of society.

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Both (A) and (R) are True, and (R) is the correct explanation of (A).

Both (A) and (R) are True, but (R) is not the correct explanation of (A).

(A) is True but (R) is False.

(A) is False, but (R) is True.

answer is A.

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Detailed Solution

The major reason for high poverty rates has been the huge income inequalities in the economy. As we all know, in developing economies, resources like land and capital are unevenly distributed among the different sections and groups of society.
The section of society which lacks the resources is living a low standard of life and getting poor or fewer health and education facilities compared to those with sufficient resources. This increases the gap between the poor, becoming poorer, and the rich, becoming richer. To bridge the gap between the poor and the rich, we must redistribute resources evenly. Hence, Both assertion and reason are True, and the reason is the correct explanation of assertion.

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