Which of the following is a correct statement?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. National Income is NNP at FC.
Yes, the statement "National Income is NNP at FC" is correct. It refers to the total value of all goods and services produced within a nation during a specific period (usually a year), adjusted for depreciation and indirect taxes/subsidies.
In economic terms, National Income = Net National Product (NNP) at Factor Cost (FC).
NNP is derived from Gross National Product (GNP) by subtracting depreciation (i.e., wear and tear of capital assets).
FC refers to the cost of production, including wages, rent, interest, and profit, but excluding indirect taxes (like GST) and subsidies.