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).
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. Gross National Disposable Income (GNDI) does measure the total income available to the residents of a country for consumption and savings. It represents the income that individuals and households have at their disposal after deducting taxes but including subsidies and transfers.
The Reason is also true and serves as the correct explanation for the Assertion. Gross National Disposable Income (GNDI) is indeed calculated by subtracting net indirect taxes from Gross National Product (GNP). Net indirect taxes represent the difference between indirect taxes and subsidies. By deducting net indirect taxes from GNP, GNDI is obtained, which reflects the total income available for consumption and savings by the residents of a country.
Therefore, Both Assertion and Reason are true, and the Reason is the correct explanation of the Assertion.
