Which of the following is the correct sequence of national income from broader to narrower concepts?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. GNP at factor cost-NNP at factor cost-Personal income-Personal disposable income.
The correct sequence of national income concepts from broader to narrower is:
GNP at factor cost → NNP at factor cost → Personal income → Personal disposable income
Thus, the correct option is:
GNP at factor cost - NNP at factor cost - Personal income - Personal disposable income
This sequence starts with Gross National Product (GNP) at factor cost, which is the broadest measure, and narrows down through Net National Product (NNP) at factor cost, Personal income, and finally, Personal disposable income, which is the amount available for spending and saving.