<\/span><\/h2>\n\n\n\nIn the context of the above two statements, which one of the following is correct?<\/em><\/p>\n\n\n\n(a) Both A and R are true and R is the correct explanation of A.<\/p>\n\n\n\n
(b) Both A and R are true, but R is not the correct explanation of A.<\/p>\n\n\n\n
(c) A is true, but R is false.<\/p>\n\n\n\n
(d) A is false, but R is true.<\/p>\n\n\n\n
<\/span>Ans. (b)<\/strong><\/span><\/h3>\n\n\n\nBoth Assertion (A) and Reason (R) are true. However, Reason (R) does not provide the correct explanation for Assertion (A).<\/p>\n\n\n\n
The Real Per Capita Income indeed doubled during the first four decades, from 11,570 in 1950-51 to 24,634 in 1990-91. Nevertheless, there has been no significant improvement in the Per Capita Income level due to the persistent increase in population.<\/p>\n\n\n\n
While it is true that there is a considerable proportion of the population living below the poverty line in India, this fact alone does not adequately explain Assertion (A), as the population living below the poverty line is not directly related to Per Capita Income. According to the Central Statistics Office (CSO) Report of 2022, approximately 52% of India’s population currently lives below the poverty line.<\/p>\n\n\n\n
<\/span>Q8. National Income is the (1997)<\/strong><\/span><\/h2>\n\n\n\n(a) Net National Product at market price<\/p>\n\n\n\n
(b) Net National Product at factor cost<\/p>\n\n\n\n
(c) Net Domestic Product at market price<\/p>\n\n\n\n
(d) Net Domestic Product at factor cost<\/p>\n\n\n\n
<\/span>Ans. (b)<\/strong><\/span><\/h3>\n\n\n\nNational Income can be understood as the Net National Product at factor cost. It represents the monetary value of all final goods and services produced within an economy during a specific financial year. Essentially, it encapsulates the total market value of production within a country’s economy over the course of a year.<\/p>\n\n\n\n
The calculation of National Income involves several components, including the subtraction of indirect taxes from the Net National Product at factor cost and the addition of subsidies. This process helps to derive the Net National Product at market price, which is one of the methods used to determine National Income.<\/p>\n\n\n\n
<\/span>Q9. A consumer is said to be in equilibrium, if (1998)<\/strong><\/span><\/h2>\n\n\n\n(a) he is able to fulfill his need with a given level of income<\/p>\n\n\n\n
(b) he is able to live in full comforts with a given level of income<\/p>\n\n\n\n
(c) he can fulfil his needs without consumption of certain items<\/p>\n\n\n\n
(d) he is able to locate new sources of income<\/p>\n\n\n\n
<\/span>Ans. (a)<\/strong><\/span><\/h3>\n\n\n\nA consumer achieves equilibrium when they can satisfy their needs with the income they possess. Consumer equilibrium describes a scenario in which the consumer attains the highest level of satisfaction possible from the quantity of goods and services they purchase, given their income and prevailing market prices.<\/p>\n\n\n\n
<\/span>Q10. The supply-side economics lays greater emphasis on the point of view of (1998)<\/strong><\/span><\/h2>\n\n\n\n(a) producer<\/p>\n\n\n\n
(b) global economy<\/p>\n\n\n\n
(c) consumer<\/p>\n\n\n\n
(d) middle-man<\/p>\n\n\n\n
<\/span>Ans. (a)<\/strong>