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.
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

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.

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.

Team Careers360 · Accepted Answer

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 states that national income at factor cost is obtained by deducting net indirect taxes from national income. This is correct. National income at factor cost is the total income earned by the factors of production in an economy, and it is derived by deducting net indirect taxes from the national income.

The Reason provided states that net indirect taxes represent the difference between indirect taxes and subsidies. This is also true. Net indirect taxes are calculated by subtracting subsidies from the total indirect taxes collected by the government. It represents the net impact of indirect taxes on the economy.

Therefore, both the Assertion and Reason are true, and the Reason is the correct explanation of the Assertion.

Exams

Colleges

Predictors

Resources

Quick links

B.Tech CompanionUse Now Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Online Courses

Products

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

NEET CompanionUse NowYour one-stop Counselling package for NEET, AIIMS and JIPMER

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Student Visas

Exams

Top Schools

Products & Resources

NCERT Study Material

Related Questions

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

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: 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.

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: The per capita income of a country is obtained by dividing the total national income by the population. Reason: Per capita income represents the average income earned per person in a country.

Trending Articles/News

Sign In/Sign Up

Download the Careers360 App on your Android phone

B.Tech CompanionUse Now
Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

NEET CompanionUse Now
Your one-stop Counselling package for NEET, AIIMS and JIPMER

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

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: 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.

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: The per capita income of a country is obtained by dividing the total national income by the population.

Reason: Per capita income represents the average income earned per person in a country.