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Question
Assertion (A): Production for self-consumption is not accounted for in the national income.
Reasoning (R): The products kept for self consumption do not enter the market.
Options
(A) is true, but (R) is false.
(A) is false, but (R) is true.
Both (A) and (R) are True and (R) is the correct explanation of (A).
Both (A) and (R) are True and (R) is not the correct explanation of (A).
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Solution
Both (A) and (R) are True and (R) is the correct explanation of (A).
Explanation:
- The assertion is true because production for self-consumption (like vegetables grown and consumed at home) is generally not included in national income, as it is not sold in the market.
- Reason is also true because such products do not enter the market, so their market value cannot be easily measured.
- Since they do not enter the market, they are not counted, so (R) correctly explains (A).
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