Question

Consider the following statements: -

1. National disposable income includes Net National Product at Market prices only.

2. GDP is a measure of National Income/ National output and National expenditure produced in a particular country.

3. GNP includes the value of all goods and services produced by nationals whether in the country a abroad.

4. GNP does not include dividends and interest from abroad in Income.

Which of the above statements is are correct?

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1, 2 and 4 only
• D. All of these

Answer 1

The correct option is B

2 and 3 only

(source: NCERT)

• National disposable Income = Net national product at market prices + other current transfers from the rest of the world (Thus 1^st statement is incorrect)
• GNP = GDP + Net factor Income from abroad. The net income from abroad includes dividends, interest and profit. (Thus statement 4 is incorrect) Statement 2 and 3 are correct.