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.