WBCS.LIVE practice question

What does the 'NNP at Factor Cost' represent in the context of the Indian economy?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Gross Domestic Product
  2. Per Capita Income
  3. National Income
  4. Personal Disposable Income

Correct answer and explanation

Correct answer: National Income

Explanation: āœ… Correct Answer: C) National Income šŸ“š Explanation: In technical economic terms, Net National Product (NNP) at Factor Cost is the standard definition of 'National Income'. It is calculated by subtracting indirect taxes and adding subsidies to the NNP at market prices. It represents the total income earned by the factors of production (land, labor, capital, and entrepreneurship) of a nation.