Multiple choice

For a hypothetical economy, the Net National Product is Rs. 10,000 crores, indirect taxes are Rs. 1,500 crores and subsidy is Rs. 800 crores. The value of national income will be

  1. Rs. 7,700 crores

  2. Rs. 9,300 crores

  3. Rs. 10,800 crores

  4. Rs. 12,300 crores
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

National Income (Net Domestic/National Product at Factor Cost) is calculated by taking Net National Product at market prices (Rs. 10,000 crores), subtracting indirect taxes (Rs. 1,500 crores), and adding subsidies (Rs. 800 crores). This yields 10,000 minus 1,500 plus 800, which equals Rs. 9,300 crores.

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