In its technical sense, 'national income' refers to which aggregate?

Gross Domestic Product at market pricesCorrect answerYour answerNet National Product at factor costCorrect answerYour answerGross National Product at market pricesCorrect answerYour answerNet Domestic Product at market pricesCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

National income is Net National Product at factor cost.
'Net' means depreciation has been deducted; 'national' means income earned abroad by residents is counted and income earned here by non-residents is not.
'At factor cost' means indirect taxes are removed and subsidies added back, so what remains is what went to the factors of production.

Worth noting

Per capita income is this figure divided by the population, which is why it is not simply GDP divided by the population.

Concept: What national income means technically
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The rule this testsNational income and official statistics

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Ten questions from Indian Economy & Institutions, at your own pace.

In its technical sense, 'national income' refers to which aggregate?

Explanation