Assertion: Rise in price of burger at Burger Bliss raises demand for burgers at Burger Heaven. (True, they are substitutes).

Reason: Negative relationship between demand for a good and price of complementary good. (True, but irrelevant here; Burger Bliss and Heaven are substitutes).

Conclusion: Both are true, but Reason is NOT the correct explanation.

Example 2 (Banking):

Assertion: Commercial banks can deposit surplus funds with RBI. (True).
Reason: High reverse repo rate enables commercial banks to earn income. (True).
Conclusion: Both are true, and Reason IS the correct explanation.

6. Explicit and Implicit Costs

Explicit Cost: Direct monetary payments for inputs (e.g., buying a Xerox machine, paying wages).
Implicit Cost: The opportunity cost of using resources the firm already owns (e.g., foregone interest on savings, foregone salary for self-employment).
Example:
- Amit withdraws ₹50,000 from savings for business.
- Buys Xerox machine for ₹30,000.
- Explicit Cost: ₹30,000 (cost of Xerox machine).
- Implicit Cost: Foregone interest on ₹50,000 (savings used) and foregone salary (Amit's own labor).

7. Cost-Push Inflation

Definition: Inflation caused by an increase in the cost of production (e.g., higher wages, raw material prices).
Minimum Wage Act: If wages increase due to this act, it raises the cost of labor for firms, leading to higher production costs, which are then passed on to consumers as higher prices, thus causing cost-push inflation.

8. Selective Credit Control (SCC)

Definition: Measures used by the central bank to regulate the flow of credit for specific purposes.
Example: To enable Sagarika to get a maximum loan for a car:
- The central bank might reduce margin requirements for car loans.
- Margin Requirement: The percentage of the loan value that the borrower must pay from their own funds. Lowering this allows for a higher loan amount relative to the asset's value.

Section B: Macroeconomics & Market Structures

1. Money Supply Measures (India)

M1: Currency with public + Demand deposits + Other deposits with RBI.
M2: M1 + Savings deposits of post office savings banks.
M3: M1 + Time deposits with commercial banks. (The correct statement from the options).
M4: M3 + All deposits with post office savings organizations (excluding National Saving Certificates).

2. Balance of Payments (BoP)

Definition: A record of all economic transactions between residents of a country and the rest of the world over a period.
Current Account Deficit/Surplus:
- Deficit: Total payments > Total receipts. (e.g., ₹1526 Cr payments vs ₹1045 Cr receipts).
- Improvements (reduce deficit/increase surplus):
  - Foreign Institutional Investors (FII) buying shares of Indian companies (inflow of foreign currency).
- Worsening (increase deficit/decrease surplus):
  - Indian tourists buying souvenirs abroad (outflow).
  - Indian students joining foreign universities (outflow).
  - Value of US dollar falling against Indian rupee (makes imports cheaper, expor