Economics · Economic Development
Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R): Assertion (A): Per Capita Income can decrease in a developing country even though National Income increases. Reason (R): The rate of growth of population is higher than the rate of growth of National Income. Select the correct answer using the codes given below:
- 1Both (A) and (R) are true, but (R) is not the correct explanation for (A).
- 2Both (A) and (R) are true and (R) is the correct explanation for (A).✓
- 3(A) is true, but (R) is false.
- 4(A) is false, but (R) is true.
Correct answer
Both (A) and (R) are true and (R) is the correct explanation for (A).
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