Multiple choice

While calculating national income in India. National income is same as

  1. GDP at factor cost

  2. GNP at market price

  3. NNP at market price

  4. NNP at factor cost
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In India's national income accounting, National Income refers to NNP (Net National Product) at factor cost. This is because NNP at factor cost represents the total income earned by factors of production (land, labor, capital, entrepreneurship) within the economy, which is the true measure of national income.

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