Question : Assertion: Per capita income is a measure of the average standard of living in a country.
Reason: Per capita income indicates the purchasing power of individuals in a country.
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. Per capita income is indeed a measure of the average standard of living in a country. It provides an indication of the average income or economic well-being of individuals in a given country. By dividing the total national income by the population, per capita income gives an estimate of the average income available per person.
The Reason is also true and serves as the correct explanation for the Assertion. Per capita income does indicate the purchasing power of individuals in a country. It reflects the average amount of income that each person has at their disposal for consumption and savings. Higher per capita income generally implies a greater ability to purchase goods and services, indicating a higher level of purchasing power.
Therefore, Both Assertion and Reason are true, and the Reason is the correct explanation of the Assertion.
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.
Question : Assertion: The Gini coefficient is used to measure income inequality within a country. Reason: Higher Gini coefficients indicate higher levels of income inequality.
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 : 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: Lack of access to financial services and credit facilities contributes to poverty.
Reason: Access to credit enables individuals and businesses to invest, generate income, and improve their standard of living.
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.
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