Read the following statements carefully: Statement 1: Consumption and Savings are the components of National output of an economy. Statement 2: Higher level of Income often leads to lower savings. In the light of the given statements, choose the correct alternative from the following:

Question

Read the following statements carefully:   Statement 1: Consumption and Savings are the components of National output of an economy. Statement 2: Higher level of Income often leads to lower savings. In the light of the given statements, choose the correct alternative from the following:

cdquestions Admin · Accepted Answer

Statement 1 is correct as National output is derived from Consumption and Savings. However, Statement 2 is false because higher levels of income generally lead to higher savings due to increased disposable income.

Answer

Statement 1 is true and Statement 2 is false.

Answer

Statement 1 is false and Statement 2 is true.

Answer

Both Statement 1 and 2 are true.

Answer

Both Statement 1 and 2 are false.

Read the following statements carefully:
Statement 1: Consumption and Savings are the components of National output of an economy.
Statement 2: Higher level of Income often leads to lower savings.
In the light of the given statements, choose the correct alternative from the following:

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The Correct Option is A

Solution and Explanation

Top Questions on National Income Accounting

Questions Asked in CBSE CLASS XII exam

Read the following statements carefully: Statement 1: Consumption and Savings are the components of National output of an economy.Statement 2: Higher level of Income often leads to lower savings.In the light of the given statements, choose the correct alternative from the following: