Question

Given below are two statements:
Statement-I : In 2020 a farmer purchased 5 new tractors at ₹ 2,00,000 each. He sold his 5 old tractors to other farmers for ₹ 50,000 each in same year. The net increase in GDP 2020 due to these transactions was ₹ 12,50,000. 
Statement-II: In 2020 a farmer purchased 5 new tractors at 2,00,000 each. He sold his 5 old tractors to other farmers for ₹ 50,000 each in same year. The net increase in GDP of year 2020 due to these transactions was ₹ 10,00,000. 
In the light of the above statements, choose the correct answer from the options given below:

• A. Both Statement I and Statement II are true
• B. Both Statement I and Statement II are false
• C. Statement I is true but Statement II is false
• D. Statement I is false but Statement II is true

Answer 1

The Correct Option is D

The correct answer is (D) : Statement I is false but Statement II is true