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The national income of a country for a given period is equal to the
[2013]
- a)total value of goods and services produced by the nationals
- b)Sum of total consumption and investment expenditure
- c)Sum of personal income of all individuals
- d)money value of final goods and services produced
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
The national income of a country for a given period is equal to the[20...
The correct answer is the total value of goods and services produced by the nationals.
- National Income is the total monetary value of goods and services produced within the territory of the country in a given period of time.
- National Income = C+I+G+ (X-M)
Here,
C stands for Consumption
I stands for Total Investment
G stands for Total Government Expenditure
X stands for Export
M stands for Import
- S. No.Methods of calculating National IncomeMeaning1Income MethodIt is measured by adding four factors of production i.e. land, labour, capital, and entrepreneurship.2Production MethodIt is also known as Value Added Method. In this national income is measured on the value of intermediate goods and final goods.3Expenditure MethodIt is also known as Income Disposal Method. In this method, national income is measured by taking the final expenditure incurred by all sectors of the economy.
Additional Information
- Dadabhai Naroji was the first to estimate the National Income in the year 1867-68.
- V.K.R.V Rao is known as the father of National Income in India. He introduced the first scientific estimate of national income in the year 1931-32.
- National Income Committee under the chairmanship of P.C Mahalanobis was appointed by the Government of India in 1949
Most Upvoted Answer
The national income of a country for a given period is equal to the[20...
Understanding National Income
National income is a key economic indicator that reflects the monetary value of all final goods and services produced by a country within a specific period, typically a year.
Key Points about National Income:
- Total Value of Final Goods and Services:
National income represents the total value of all final goods and services produced in an economy. It ensures that only the end products are counted, avoiding double counting of intermediate goods.
- Monetary Measurement:
The national income is expressed in monetary terms, providing a clear and quantifiable measure of an economy's performance.
- Production and Not Consumption:
While consumption and investment are essential components of economic activity, national income focuses on production. It accounts for how much value is generated rather than how it is spent.
- Economic Health Indicator:
A higher national income indicates a stronger economy, reflecting increased production capabilities, higher employment levels, and better living standards.
Why Option D is Correct:
The correct answer is option 'D' because it encapsulates the essence of national income as the money value of final goods and services produced. Other options, while related to economic activity, do not specifically define national income:
- Option 'A' implies a broader scope that includes both nationals and foreigners, which can lead to confusion.
- Option 'B' focuses on consumption and investment but does not address the production aspect directly.
- Option 'C' refers to personal income, which is a different measure and does not represent the overall production in the economy.
In conclusion, national income is fundamentally about the value generated through production, making option 'D' the most accurate description.
National income is a key economic indicator that reflects the monetary value of all final goods and services produced by a country within a specific period, typically a year.
Key Points about National Income:
- Total Value of Final Goods and Services:
National income represents the total value of all final goods and services produced in an economy. It ensures that only the end products are counted, avoiding double counting of intermediate goods.
- Monetary Measurement:
The national income is expressed in monetary terms, providing a clear and quantifiable measure of an economy's performance.
- Production and Not Consumption:
While consumption and investment are essential components of economic activity, national income focuses on production. It accounts for how much value is generated rather than how it is spent.
- Economic Health Indicator:
A higher national income indicates a stronger economy, reflecting increased production capabilities, higher employment levels, and better living standards.
Why Option D is Correct:
The correct answer is option 'D' because it encapsulates the essence of national income as the money value of final goods and services produced. Other options, while related to economic activity, do not specifically define national income:
- Option 'A' implies a broader scope that includes both nationals and foreigners, which can lead to confusion.
- Option 'B' focuses on consumption and investment but does not address the production aspect directly.
- Option 'C' refers to personal income, which is a different measure and does not represent the overall production in the economy.
In conclusion, national income is fundamentally about the value generated through production, making option 'D' the most accurate description.
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The national income of a country for a given period is equal to the[2013]a)total value of goods and services produced by the nationalsb)Sum of total consumption and investment expenditurec)Sum of personal income of all individualsd)money value of final goods and services producedCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The national income of a country for a given period is equal to the[2013]a)total value of goods and services produced by the nationalsb)Sum of total consumption and investment expenditurec)Sum of personal income of all individualsd)money value of final goods and services producedCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The national income of a country for a given period is equal to the[2013]a)total value of goods and services produced by the nationalsb)Sum of total consumption and investment expenditurec)Sum of personal income of all individualsd)money value of final goods and services producedCorrect answer is option 'D'. Can you explain this answer?.
The national income of a country for a given period is equal to the[2013]a)total value of goods and services produced by the nationalsb)Sum of total consumption and investment expenditurec)Sum of personal income of all individualsd)money value of final goods and services producedCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The national income of a country for a given period is equal to the[2013]a)total value of goods and services produced by the nationalsb)Sum of total consumption and investment expenditurec)Sum of personal income of all individualsd)money value of final goods and services producedCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The national income of a country for a given period is equal to the[2013]a)total value of goods and services produced by the nationalsb)Sum of total consumption and investment expenditurec)Sum of personal income of all individualsd)money value of final goods and services producedCorrect answer is option 'D'. Can you explain this answer?.
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