Question

National income is also called as _______.

• A. real income
• B. money income
• C. gross national product
• D. nominal income

Answer 1

The correct option is C gross national product

National income is the total amount of income accruing to a country from economic activities in a year’s time. It is also called as real income. It is measured by following methods:

Product method: In this method, national income is measured as a flow of goods and services.

Income method: National income is measured as a flow of factor incomes. There are generally four factors of production labour, capital, land and entrepreneurship.

Expenditure method: National income is measured as a flow of expenditure.