Passage

“The conceptual difficulties in National Income comparisons between underdeveloped and industrialised countries are particularly serious because a part of the national output in various underdeveloped countries is produced without passing through the commercial channels”.

QUESTION

CSAT

Medium

Comprehension

Prelims 2016

In the above statement, the author implies that:

Select an option to attempt

Explanation

Statement A is incorrect. The passage does not claim that all national output in industrialized countries passes through commercial channels. It only highlights differences between underdeveloped and industrialized countries.

Statement B is correct. The passage explicitly states that in underdeveloped countries, a portion of national output does not pass through commercial channels, making national income comparisons difficult.

Statement C is incorrect. The passage does not suggest that all national output must pass through commercial channels. It only highlights conceptual difficulties in comparisons.

Statement D is incorrect. While the passage mentions that a part of national output does not pass through commercial channels, it does not explicitly state that this is a sign of underdevelopment.

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