Question : Statement 1: Personal Savings represents the amount of income saved by individuals after deducting personal taxes.
Statement 2: Personal Saving is a component of disposable income.
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: Statement 1 is true, and Statement 2 is false.
Solution : The correct answer is (a) Statement 1 is true, and Statement 2 is false.
Statement 1 is true: Personal Savings represents the amount of income saved by individuals after deducting personal taxes. It reflects the portion of disposable income that individuals choose to save rather than consume.
Statement 2 is false: Personal Saving is not a component of disposable income. Disposable income represents the income available to individuals for consumption and savings after deducting personal income taxes. While personal savings are related to disposable income, they are not considered a direct component of it.
Therefore, Statement 1 is true, and Statement 2 is false.
