Question : Assertion: National income is an important indicator of the economic performance of a country.
Reason: National income reflects the total value of goods and services produced within a country's borders during a specific period.
Option 1: Both Assertion and Reason are true, and the Reason is the correct explanation of the Assertion.
Option 2: Both Assertion and Reason are true, but the Reason is not the correct explanation of the Assertion.
Option 3: Assertion is true, but the Reason is false.
Option 4: Assertion is false, but the Reason is true.
Correct Answer: Both Assertion and Reason are true, and the Reason is the correct explanation of the Assertion.
Solution : The correct answer is (a) Both Assertion and Reason are true, and the Reason is the correct explanation of the Assertion.
The Assertion is true. National income is indeed an important indicator of the economic performance of a country. It provides a measure of the total value of goods and services produced within a country's borders during a specific period. National income reflects the overall economic activity and output of a country, making it a crucial measure for assessing the economic performance and growth of a nation.
The Reason is also true and serves as the correct explanation for the Assertion. National income represents the total value of goods and services produced within a country's borders. It encompasses various economic activities and sectors, including manufacturing, services, agriculture, and more. By measuring the total value of production, national income offers insights into the size and health of the economy.
Therefore, the Both Assertion and Reason are true, and the Reason is the correct explanation of the Assertion.
Question : Assertion: The per capita income of a country is obtained by dividing the total national income by the population.
Reason: Per capita income represents the average income earned per person in a country.
Question : Assertion: Gross National Disposable Income (GNDI) measures the total income available to the residents of a country for consumption and savings.
Reason: Gross National Disposable Income (GNDI) is calculated by subtracting net indirect taxes from Gross National Product (GNP).
Question : Assertion: Per capita income is a measure of the average standard of living in a country.
Reason: Per capita income indicates the purchasing power of individuals in a country.
Question : Assertion: The Gini coefficient is used to measure income inequality within a country. Reason: Higher Gini coefficients indicate higher levels of income inequality.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Question : Assertion: Net National Disposable Income (NNDI) represents the income available to the residents of a country for final consumption and savings.
Reason: Net National Disposable Income (NNDI) is obtained by subtracting net indirect taxes and depreciation from Gross National Disposable Income (GNDI).
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