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According to Simon Kuznets, what is national income?
  • a)
    The total value of goods and services produced within a country's borders.
  • b)
    The net output of commodities and services reaching consumers within a year.
  • c)
    The income earned by a nation's government.
  • d)
    The income earned by foreign residents working in a country.
Correct answer is option 'B'. Can you explain this answer?
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According to Simon Kuznets, what is national income?a)The total value ...
Understanding National Income According to Simon Kuznets
National income is a crucial concept in economics, particularly in the measurement of a nation’s economic performance. Simon Kuznets, an influential economist, defined it specifically to reflect the economic activities that contribute to the welfare of a nation.
Definition of National Income
- National income is defined as the net output of commodities and services that reach consumers within a specific time frame, typically a year. This definition underscores the importance of consumption in gauging economic health.
Components of National Income
- Goods and Services: It encompasses all final goods and services produced for consumption, excluding intermediate goods to avoid double counting.
- Net Output: The term "net" indicates that depreciation of capital goods is accounted for, ensuring that only the value added during production is measured.
Importance of Option B
- Focus on Consumption: This definition emphasizes the flow of goods and services to consumers, highlighting the economy's role in fulfilling consumer needs.
- Economic Indicator: National income serves as a key indicator for policymakers and economists to assess economic activity and growth, guiding decisions on fiscal and monetary policy.
Contrast with Other Options
- Option A may refer to Gross Domestic Product (GDP), which includes total production without accounting for depreciation.
- Option C focuses solely on government income, while Option D involves foreign residents' earnings, neither of which provides a holistic view of national income.
In summary, option B accurately captures the essence of national income as defined by Kuznets, focusing on the net output reaching consumers, thereby serving as a vital measure of economic activity.
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According to Simon Kuznets, what is national income?a)The total value ...
Simon Kuznets defined national income as "the net output of commodities and services flowing from the country's productive system to the ultimate consumers within a year," focusing on actual output reaching consumers.
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Passage 1The classical realist theory of international relations has long dominated both academic institutions and the American government. Even at the birth of the nation, early political thinkers, such as Alexander Hamilton, promoted a realist view of international relations and sought to influence the actions of the government based on this perspective. While the classical realist school of international relations is not entirely homogeneous in nature, there are certain premises that all classical realists share.The primary principle underlying classical realism is a concern with issues of war and peace. Specifically, classical realists ask, what are the causes of war and what are the conditions of peace? The members of the classical realist school mainly attribute war and conflict to what is termed the security dilemma. In the absence ofany prevailing global authority, each nation is required to address its own security needs. However, each nations quest for security-through military buildups, alliances, or territorial defenses—necessarily unsettles other nations. These nations react to feelings of insecurity by engaging in their own aggressive actions, which leads other nations to react similarly, perpetuating the cycle.It is important to note that for realists, unlike idealists or liberal internationalists, international conflict is a necessary consequence of the structural anarchy that nations find themselves in. Whereas other schools may see international conflict as the result of evil dictators, historical chance, flawed socio political systems, or ignorance of world affairs, classical realists see war as the logical result of a system that by its nature lacks a true central authority.Hand in hand with this view of conflict as an inevitable condition of the global power structure is the realists view ofthe nation as a unitary actor. Because classical realists see international relations as a continuing struggle for dominance, the nation can not be viewed as a collection of individuals with disparate wants, goals, and ideologies. The realist view requires the formulation of a national interest, which in its simplest terms refers to the nations ability to survive, maintain its security, and achieve some level of power relative to its competitors.Realism is not without its critics, many of whom challenge the premise that war is the natural condition of international relations or that there can be a truly national interest. However, the realist school of international relations continues to shape foreign policy because ofthe successes it has had in describing real world interactions between nations.Q. According to the passage, the formation of a national interest serves what function in the classical realist theory of war and peace?

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According to Simon Kuznets, what is national income?a)The total value of goods and services produced within a country's borders.b)The net output of commodities and services reaching consumers within a year.c)The income earned by a nation's government.d)The income earned by foreign residents working in a country.Correct answer is option 'B'. Can you explain this answer?
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According to Simon Kuznets, what is national income?a)The total value of goods and services produced within a country's borders.b)The net output of commodities and services reaching consumers within a year.c)The income earned by a nation's government.d)The income earned by foreign residents working in a country.Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about According to Simon Kuznets, what is national income?a)The total value of goods and services produced within a country's borders.b)The net output of commodities and services reaching consumers within a year.c)The income earned by a nation's government.d)The income earned by foreign residents working in a country.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for According to Simon Kuznets, what is national income?a)The total value of goods and services produced within a country's borders.b)The net output of commodities and services reaching consumers within a year.c)The income earned by a nation's government.d)The income earned by foreign residents working in a country.Correct answer is option 'B'. Can you explain this answer?.
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