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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
Assertion (A): Private Consumption Expenditure is determined by the level of personal disposable income of the economy.
Reason (R): The total demand for all goods or services by the household in an economy during an accounting year, is termed as Private Consumption Expenditure.
- a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
- b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- c)Assertion (A) is true, but Reason (R) is false.
- d)Assertion (A) is false, but Reason (R) is true.
Correct answer is option 'B'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A...
Assertion (A): Private Consumption Expenditure is determined by the level of personal disposable income of the economy.
Reason (R): The total demand for all goods or services by the household in an economy during an accounting year is termed as Private Consumption Expenditure.
The correct answer is option B: Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Explanation:
Private Consumption Expenditure refers to the total expenditure made by households on goods and services for their personal consumption. It includes expenses on items such as food, clothing, housing, healthcare, education, transportation, etc. Assertion (A) states that Private Consumption Expenditure is determined by the level of personal disposable income of the economy.
Understanding Assertion (A):
Personal disposable income is the income available to households after deducting taxes and other mandatory payments. It represents the purchasing power of individuals or households. The level of personal disposable income influences the ability of households to spend on consumption. When personal disposable income increases, households have more money available for spending, which leads to an increase in private consumption expenditure. Conversely, when personal disposable income decreases, households have less money to spend, resulting in a decrease in private consumption expenditure.
Understanding Reason (R):
Private Consumption Expenditure refers to the total demand for goods and services by households in an economy during an accounting year. It represents the consumption behavior of households and their willingness to spend on various goods and services. The reason states that private consumption expenditure is the total demand for all goods or services by households during an accounting year.
Explanation of the Correct Answer:
Both Assertion (A) and Reason (R) are true. Private Consumption Expenditure is indeed determined by the level of personal disposable income of the economy. However, Reason (R) is not the correct explanation of Assertion (A) because it only defines private consumption expenditure without explaining the relationship between personal disposable income and private consumption expenditure.
In conclusion, personal disposable income plays a significant role in determining the level of private consumption expenditure. When personal disposable income increases, private consumption expenditure tends to increase, and vice versa. However, the reason provided does not explain the cause-and-effect relationship between personal disposable income and private consumption expenditure, making it an incorrect explanation for Assertion (A).
Reason (R): The total demand for all goods or services by the household in an economy during an accounting year is termed as Private Consumption Expenditure.
The correct answer is option B: Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Explanation:
Private Consumption Expenditure refers to the total expenditure made by households on goods and services for their personal consumption. It includes expenses on items such as food, clothing, housing, healthcare, education, transportation, etc. Assertion (A) states that Private Consumption Expenditure is determined by the level of personal disposable income of the economy.
Understanding Assertion (A):
Personal disposable income is the income available to households after deducting taxes and other mandatory payments. It represents the purchasing power of individuals or households. The level of personal disposable income influences the ability of households to spend on consumption. When personal disposable income increases, households have more money available for spending, which leads to an increase in private consumption expenditure. Conversely, when personal disposable income decreases, households have less money to spend, resulting in a decrease in private consumption expenditure.
Understanding Reason (R):
Private Consumption Expenditure refers to the total demand for goods and services by households in an economy during an accounting year. It represents the consumption behavior of households and their willingness to spend on various goods and services. The reason states that private consumption expenditure is the total demand for all goods or services by households during an accounting year.
Explanation of the Correct Answer:
Both Assertion (A) and Reason (R) are true. Private Consumption Expenditure is indeed determined by the level of personal disposable income of the economy. However, Reason (R) is not the correct explanation of Assertion (A) because it only defines private consumption expenditure without explaining the relationship between personal disposable income and private consumption expenditure.
In conclusion, personal disposable income plays a significant role in determining the level of private consumption expenditure. When personal disposable income increases, private consumption expenditure tends to increase, and vice versa. However, the reason provided does not explain the cause-and-effect relationship between personal disposable income and private consumption expenditure, making it an incorrect explanation for Assertion (A).
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Directions : In the following questions, a statement of Assertion (A...
Private consumption expenditure measures consumer spending on goods and services.
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Private Consumption Expenditure is determined by the level of personal disposable income of the economy.Reason (R): The total demand for all goods or services by the household in an economy during an accounting year, is termed as Private Consumption Expenditure.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?
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Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Private Consumption Expenditure is determined by the level of personal disposable income of the economy.Reason (R): The total demand for all goods or services by the household in an economy during an accounting year, is termed as Private Consumption Expenditure.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Private Consumption Expenditure is determined by the level of personal disposable income of the economy.Reason (R): The total demand for all goods or services by the household in an economy during an accounting year, is termed as Private Consumption Expenditure.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Private Consumption Expenditure is determined by the level of personal disposable income of the economy.Reason (R): The total demand for all goods or services by the household in an economy during an accounting year, is termed as Private Consumption Expenditure.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?.
Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Private Consumption Expenditure is determined by the level of personal disposable income of the economy.Reason (R): The total demand for all goods or services by the household in an economy during an accounting year, is termed as Private Consumption Expenditure.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Private Consumption Expenditure is determined by the level of personal disposable income of the economy.Reason (R): The total demand for all goods or services by the household in an economy during an accounting year, is termed as Private Consumption Expenditure.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Private Consumption Expenditure is determined by the level of personal disposable income of the economy.Reason (R): The total demand for all goods or services by the household in an economy during an accounting year, is termed as Private Consumption Expenditure.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Directions : In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:Assertion (A): Private Consumption Expenditure is determined by the level of personal disposable income of the economy.Reason (R): The total demand for all goods or services by the household in an economy during an accounting year, is termed as Private Consumption Expenditure.a)Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).b)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).c)Assertion (A) is true, but Reason (R) is false.d)Assertion (A) is false, but Reason (R) is true.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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