Assertion (A): The development of agriculture and industry leads to the development of the service sector.

Reason (R): As the primary and secondary sectors develop, the demand for transport, storage structures, banks, insurance, etc., increases.

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An Intiative by Sri Chaitanya

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

Both (A) and (R) are true and (R) is the correct explanation of (A).
Agriculture and industry come under the primary and secondary sectors, respectively. Primary sectors are labour-intensive and form the backbone of most economies. Products from these primary sectors are then manufactured to make a final product. These industries come under the secondary sector.
As the primary and secondary sectors develop, the demand for tertiary activities increases. The tertiary sector includes transport, communication, trade, education, banks, insurance, etc. The primary and secondary industry creates jobs in the tertiary sector. As a result, the growth of the primary and secondary sectors leads to the development of the service or tertiary sectors.

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