UPSC Prelims 2013 · Question 49 of 99
UPSC Prelims 2013 question on National Income Definition
- ExamUPSC CSE
- Year2013
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicEconomic Growth
- DifficultyMedium
- TypeDirect
The national income of a country for a given period is equal to the:
Show answer
Answer: A. Total value of goods and services produced by the nationals
Analysis
National Income refers to the total income earned by the nationals of a country from all economic activities during a given period. It is commonly measured as Net National Product (NNP) at factor cost. Options referring only to domestic production may exclude income earned abroad by nationals. Therefore, the best definition is the total value of goods and services produced by the nationals.
Extra UPSC info
GDP measures domestic production, whereas National Income focuses on income earned by nationals.