Question : Statement 1: National income is an important measure of a country's economic performance.
Statement 2: National income reflects the total value of goods and services produced within a country's borders during a specific period.
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.
Correct Answer: Both Statement 1 and Statement 2 are true.
Solution : The correct answer is (c) Both Statement 1 and Statement 2 are true.
Statement 1 is true: National income is an important measure of a country's economic performance. It provides an indication of the total value of goods and services produced within a country's borders and is often used as a key indicator of the country's economic health and productivity.
Statement 2 is true: National income reflects the total value of goods and services produced within a country's borders during a specific period. It encompasses the income generated by all factors of production within the country, including labor, capital, and land.
Therefore, Both Statement 1 and Statement 2 are true.
Question : Statement 1: Gross Domestic Product (GDP) measures the value of all final goods and services produced within a country's borders.
Statement 2: Gross National Product (GNP) measures the value of all final goods and services produced by a country's residents, regardless of their location.
Question : Statement 1: Net National Product (NNP) represents the value of final goods and services produced by a country's residents during a specific period.
Statement 2: NNP is obtained by deducting depreciation from Gross National Product (GNP).
Question : Statement 1: Gross Domestic Product (GDP) is a measure of the total output of final goods and services produced within a country's borders.
Statement 2: GDP excludes the value of intermediate goods and services used in production.
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.
Question : Statement 1: A consumer's demand for a luxury good is income elastic.
Statement 2: As the consumer's income increases, their demand for luxury goods increases at a proportionately higher rate.
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.
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