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.
Correct Answer: Statement 1 is true, and Statement 2 is false.
Solution : The correct answer is (a) Statement 1 is true, and Statement 2 is false.
Statement 1 is true. Personal Disposable Income (PDI) does represent the income available to individuals for consumption and savings. It is the amount of income that individuals have at their disposal after deducting personal income taxes.
Statement 2 is false. Personal Savings is not calculated by subtracting personal taxes from personal income. Personal savings represent the portion of personal income that is not spent on consumption. It is calculated by subtracting personal consumption expenditures from personal income.
Therefore, the Statement 1 is true, and Statement 2 is false.
Question : Statement 1: Disposable income is always greater than personal income.
Statement 2: Disposable income represents the amount of income available to individuals after paying personal income taxes.
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.
Question : Statement 1: Personal Savings represents the amount of income saved by individuals after deducting personal taxes.
Statement 2: Personal Saving is a component of disposable income.
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 : Statement 1: National income at factor cost is obtained by adding indirect taxes to the net national product.
Statement 2: Indirect taxes are taxes levied on the production and sale of goods and services.
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