Which of the following statement regarding income is correct? I. Out of private income, what finally reaches the households is known as personal income. II. The total national income of the country is composed of two parts private income and public income.
Both I and II
This question tests the concept of income aggregates used in national income accounting.
Statement I is correct: out of private income, the portion that finally reaches households after certain deductions is known as personal income.
Statement II is also correct: the total national income of a country is broadly composed of two parts, namely private income and public income.
Since both statements accurately describe standard income concepts, neither is false.
Hence 'Only I' and 'Only II' are ruled out because they exclude a correct statement.
'Neither I nor II' is wrong because both statements are actually true.
Therefore the correct answer is Both I and II.
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In the context of Indian economy, consider the following statements:
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2) The growth rate in per capita income has steadily increased in the last five years.
Which of the statements given above is/are correct?
The national income of a country for a given period is equal to the
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During a recession when GDP falls, disposable income _______.
