Question : Statement 1: National income is an important measure of a country's economic performance.
Statement 2: National income reflects the total value of goods and services produced within a country's borders during a specific period.
Option 1: Statement 1 is true, and Statement 2 is false.
Option 2: Statement 1 is false, and Statement 2 is true.
Option 3: Both Statement 1 and Statement 2 are true.
Option 4: Both Statement 1 and Statement 2 are false.
Correct Answer: Both Statement 1 and Statement 2 are true.
Solution : The correct answer is (c) Both Statement 1 and Statement 2 are true.
Statement 1 is true: National income is an important measure of a country's economic performance. It provides an indication of the total value of goods and services produced within a country's borders and is often used as a key indicator of the country's economic health and productivity.
Statement 2 is true: National income reflects the total value of goods and services produced within a country's borders during a specific period. It encompasses the income generated by all factors of production within the country, including labor, capital, and land.
Therefore, Both Statement 1 and Statement 2 are true.
