JKSSB Sub Inspector of Police (JKPSI) 2022 — Q61 Solved Answer with Explanation

Question

Read the following statements and choose the CORRECT answer. (i) GDP is a specific measure of economic welfare that does 'NOT' include aspects like leisure time, environmental quality, freedom, social justice or gender equality. (ii) Per Capita Income includes and also indicates the level of income equality among people.

1. A. (i) is True and (ii) is False (Correct answer)
2. B. (i) is False and (ii) is True
3. C. (i) is True and (ii) is True
4. D. (i) is False and (ii) is False

Correct Answer

Option A — (i) is True and (ii) is False

Detailed Solution & Explanation

Statement (i) is TRUE: GDP (Gross Domestic Product) measures the total monetary value of goods and services produced. It does NOT capture leisure time, environmental degradation, freedom, social justice, or gender equality -- these are its well-known limitations. Statement (ii) is FALSE: Per Capita Income (GDP/population) gives only the average income per person. It does NOT indicate income distribution or equality -- a country with very high average income can still have extreme inequality (e.g., if wealth is concentrated among a few). Therefore, (i) is True and (ii) is False.