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Assertion (A): The Global Competitiveness Index ranks countries based on productivity and competitiveness factors. Reason (R): It evaluates indicators such as infrastructure, innovation and macroeconomic stability.

1. Both A and R are true and R explains A
2. Both A and R are true but R does not explain A
3. A is true but R is false
4. A is false but R is true

Correct answer: Both A and R are true and R explains A

Solution

The Global Competitiveness Index assesses the competitiveness of countries using several economic and institutional indicators. Since infrastructure, innovation, and macroeconomic stability are part of those indicators, the reason correctly explains the assertion.

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