Multiple choice

The following question consists of two statements, one labelled as 'Assertion' and the other labelled as 'Reason (R)'. You are to examine these two statements carefully and decide if the Assertion (A) and the Reason (R) are individually true and if so, whether the Reason is the correct explanation of the Assertion.

Assertion: India's Gini coefficient is lower than that of many developing countries, including China. Reason: Various steps taken by different authorities accompanied by political will have led to India's good performance on the Lorenz Curve. Mark you answer as

  1. if both assertion and reason are true and statement 2 is the correct explanation for statement 1

  2. if both assertion and reason are true but statement 2 is not the correct explanation for statement 1

  3. if assertion is true but reason is wrong

  4. if reason is correct but assertion itself is wrong
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

India's Gini coefficient is lower than that of many developing countries, including China. But this is not due to steps taken by authorities or due to political will. Instead, the National Sample Survey's data under-represent the rich. Moreover, while for other developing countries the Gini coefficient often refers to income distribution, India's refers to distribution of consumption expenditure (as NSS does not collect income data), which is usually less than that of income (partly because the rich tend to save more than the poor).

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