Question : Assertion: Personal Disposable Income (PDI) represents the income available to individuals for consumption and savings after deducting personal income taxes.
Reason: Personal Disposable Income (PDI) is calculated by subtracting personal savings from personal income.
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: Assertion is true, but the Reason is false.
Solution : The correct answer is (c) Assertion is true, but the Reason is false.
The Assertion is true. Personal Disposable Income (PDI) does represent the income available to individuals for consumption and savings after deducting personal income taxes. PDI is a measure that reflects the portion of income that individuals have at their disposal after accounting for taxes.
However, the Reason is false. Personal Disposable Income (PDI) is not calculated by subtracting personal savings from personal income. PDI is calculated by subtracting personal income taxes and other compulsory deductions (such as social security contributions) from total personal income. Personal savings are not directly subtracted from personal income to obtain PDI.
Therefore, the correct answer is (c) Assertion is true, but the Reason is false.
Question : Assertion: Disposable income is always greater than personal income.
Reason: Disposable income represents the amount of income available to individuals after paying personal income taxes.
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).
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 : Statement 1: Personal Disposable Income (PDI) represents the income available to individuals for consumption and savings.
Statement 2: Personal Savings is calculated by subtracting personal taxes from personal income.
Option 1: Statement 1 is true, and Statement 2 is false.
Option 2: Statement 1 is false, and Statement 2 is true.
Option 3: Both Statement 1 and Statement 2 are true.
Option 4: Both Statement 1 and Statement 2 are false.
Question : Assertion: National income at factor cost is obtained by deducting net indirect taxes from national income.
Reason: Net indirect taxes represent the difference between indirect taxes and subsidies.
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