Question : Assertion: Gross National Product (GNP) includes the value of goods and services produced by domestic residents within and outside the country.
Reason: GNP measures the total output of goods and services generated by the factors of production owned by a country's residents, regardless of their location.
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 correctly states that Gross National Product (GNP) includes the value of goods and services produced by domestic residents within and outside the country. GNP measures the total output of goods and services generated by the factors of production owned by a country's residents, regardless of their location.
The Reason provided is also correct and provides an explanation for the Assertion. GNP considers the output produced by a country's residents, regardless of whether it is produced within the country's borders or abroad. It includes the income earned by residents from their productive activities both domestically and internationally.
Therefore, both the Assertion and Reason are true, and the Reason is the correct explanation of the Assertion.
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
Question : Assertion: Gross Domestic Product (GDP) measures the value of all final goods and services produced within the domestic territory of a country during a specific period.
Reason: GDP includes the value of intermediate goods and services used in the production process.
Question : Assertion: Inflation can worsen the poverty situation in a country.
Reason: Rising prices erode the purchasing power of the poor, making it difficult to afford essential goods and services.
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.
Question : Assertion: Globalization has facilitated the integration of economies and markets worldwide.
Reason: Increased interconnectivity has enabled the seamless flow of goods, services, and capital.
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