Question

Assertion (A): Total income is not a very useful measure while comparing the development of different countries.

Reason (R): Different countries have different population levels.

• A. Both A and R are true, and R is the correct explanation for A.
• B. A is true, but R is false.
• C. A is false, but R is true.
• D. Both A and R are true, but R is not the correct explanation for A.

Answer 1

The correct option is A Both A and R are true, and R is the correct explanation for A.

National income is the total income of all the residents of a country. However, to compare the development of different countries, using total income is not a very useful measure. Since countries have different population levels, a country with a larger population might have higher income than another country.