Consider the following Assertion (A) and Reason (R) and choose the correct code: Assertion (A): The National Product measures all goods and services that arise out of economic activity, whereas National Income is the sum of all factor incomes generated as a result of that economic activity. Conceptually, these two are identities in national accounting. Reason (R): The production of goods and services is the outcome of the use of factors of production like capital and labour, along with raw materials, and this economic process automatically generates corresponding income for those factors.

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Economics · Economy

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Both (A) and (R) are true and (R) explains (A).

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Answer 1

(A) is false, but (R) is true.

Answer 2

(A) is true, but (R) is false.

Answer 3

Both (A) and (R) are true, but (R) does not explain (A).

Answer 4

Both (A) and (R) are true and (R) explains (A).

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