WBCS.LIVE practice question

Which of the following is equivalent to 'National Income'?

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

Answer options

  1. NNP at Factor Cost
  2. GDP at Market Price
  3. NNP at Market Price
  4. GDP at Factor Cost

Correct answer and explanation

Correct answer: NNP at Factor Cost

Explanation: āœ… Correct Answer: A) NNP at Factor Cost šŸ“š Explanation: National Income (NI) is defined as the Net National Product calculated at Factor Cost. It represents the total income earned by the factors of production (land, labor, capital, and entrepreneurship) of a country. It is calculated by subtracting indirect taxes and adding subsidies to the NNP at Market Price.