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Statement I: Since all the current coming to our house returns to the powerhouse (as current travels in a closed loop), there is no need to pay the electricity bill.
Statement II: The electricity bill is paid for the power used, not for the current used.
A. Statement I is True, Statement II is True, Statement II is a correct explanation for Statement I.
B. Statement I is True, Statement II is True, Statement II is NOT a correct explanation for statement I.
C. Statement I is True, Statement is False.
D. Statement I is False, Statement II is true.

Answer
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487.8k+ views
Hint: Let us first understand the concept of power and current. So basically electrical Power is the rate at which energy is absorbed or produced within a circuit due to applied voltage and current.When current flows through a conductor, heat energy is generated in the conductor. The equation is called the Joule’s equation of electrical heating.

Complete step by step answer:
The electrical power P delivered to a component is given by
$P=VI$
where, $P$ is the power, measured in watts (joules per second), $V$ is the potential difference across the component, measured in volts and $I$ is the current through it, measured in amperes.
$V=IR$
From above two equations we get
$P = {I^{^2}}R$

Statement I is false because all the current coming to our house returns to the powerhouse as current travels in a closed loop but we don't pay the bill for the current but we pay the electricity bill according to the number of units of power consumed. Also heat is lost in the form of resistance due to different voltage appliances in our home.

Similarly, Statement 2 is correct because the electricity bill is paid for the power used, not for the current used. We pay our electricity bill in kilowatts since there is huge loss of power due to resistance and different appliances in the form of heat. Therefore, when the current flows, the power is consumed and not current. So we pay the bill for the total power consumed.

Hence the correct option is D.

Note:Current is measured as the net rate of flow of electric charge. The moving particles are called charge carriers. By varying the current and the length of the wire, the heat produced is proportional to the square of the current multiplied by the electrical resistance of the wire.