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SSC GD 2023 PYQ — Question 35

SSC GD Constable (English) - 23 Jan 2023 - Shift 1 • General Awareness • Q35

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National income is defined as ______.

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Correct answer: A

Explanation

The correct answer is optiom 1 i.e. At factor cost N.N.P

National income is defined as Net National Product (NNP) at factor cost.

  • NNP at factor cost is the total income earned by a country's residents (including overseas) from all factors of production (land, labor, capital, and entrepreneurship) after deducting depreciation (capital consumption) and indirect taxes, while adding subsidies.

Other options:

  1. NNP at market price: Includes indirect taxes but excludes subsidies, making it broader than factor cost.

  2. GNP (Gross National Product): Measures total output before deducting depreciation, unlike NNP.

  3. NNP: The correct base measure, but must be specified as 'at factor cost' for national income.

Thus, NNP at factor cost is the most precise definition of national income, as it reflects pure income generated by production factors.