Assertion Reason

(A) : Domestic Income is a territorial Concept. (R) : Domestic Income includes value of final goods & services produced in the entire world.

• Both (A) & (R) are True and (R) is the correct explanation.
• Both (A) & (R) are True but (R) is not the correct explanation
• (A) is True but (R) is False
• (A) is False but (R) is True

(A) : Domestic Income is equal to National Income in case of Closed Economy. (R) : Closed Economy has no economic relations with rest of the world.

• Both (A) & (R) are True and (R) is the correct explanation.
• Both (A) & (R) are True but (R) is not the correct explanation
• (A) is True but (R) is False
• (A) is False but (R) is True

(A) : National Income is a National Concept. (R) : National Income includes value of final goods & services produced in the entire world by all producers who are normal residents of the country.

• Both (A) & (R) are True and (R) is the correct explanation.
• Both (A) & (R) are True but (R) is not the correct explanation
• (A) is True but (R) is False
• (A) is False but (R) is True

(1) : NDP FC is also known as Domestic Income. (2) : NDP FC is less than NNP FC when net factor income from abroad is positive.

• Both the statements are true.
• Both the statements are false.
• Statement 1 is true & statement 2 is false.
• Statement 2 is true & statement 1 is false.

(1) : Gross Domestic Product at Market Price is a territorial concept. (2) : Gross Domestic Product at Market price excludes net indirect taxes.

• Both the statements are true.
• Both the statement are false.
• Statement 1 is true & statement 2 is false.
• Statement 2 is true & statement 1 is false.

(1) : Domestic Income considers all producers who are normal residents of the country. (2) : Domestic Income does not include NFIA

• Both the statements are true.
• Both the statement are false.
• Statement 1 is true & statement 2 is false.
• Statement 2 is true & statement 1 is false.

(1) : In a closed economy, domestic income is equal to national income. (2) : Closed economy has no economic relations with rest of the world.

• Both the statements are true.
• Both the statement are false.
• Statement 1 is true & statement 2 is false.
• Statement 2 is true & statement 1 is false.

(1) : GNP MP includes goods & services produced by all units located within the domestic territory irrespective of fact whether produced by residents or non-residents. (2) : GNP MP is always more than GDP MP.

• Both the statements are true.
• Both the statement are false.
• Statement 1 is true & statement 2 is false.
• Statement 2 is true & statement 1 is false.

(A) : Value added method, Income Method & Expenditure Method are three different methods to measure the National Income. (R) : Production, Income & Expenditure are three different phases of circular flow of income.

• Both (A) & (R) are True and (R) is the correct explanation.
• Both (A) & (R) are True but (R) is not the correct explanation
• (A) is True but (R) is False
• (A) is False but (R) is True

(A) Nominal GDP is always equal to Real GDP. (R) : Real GDP is a better measure to make periodic comparison in the physical output of goods & services over different years as compared to Nominal GDP.

• Both (A) & (R) are True and (R) is the correct explanation.
• Both (A) & (R) are True but (R) is not the correct explanation
• (A) is True but (R) is False
• (A) is False but (R) is True