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.
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 states that the per capita income of a country is obtained by dividing the total national income by the population. This is correct. Per capita income is a measure that represents the average income earned per person in a country. It is calculated by dividing the total national income (or gross national income) by the population of the country.
The Reason provided states that per capita income represents the average income earned per person in a country. This is also true. Per capita income is specifically designed to measure the average income of individuals within a country by taking into account the total income and dividing it by the population.
Therefore, both the Assertion and Reason are true, and the Reason is the correct explanation of the Assertion.
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.
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 Gini coefficient is used to measure income inequality within a country. Reason: Higher Gini coefficients indicate higher levels of income inequality.
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: 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
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