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Question
Q. Which of the following is known as national income?
Q. Which of the following is known as national income?
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Solution
The correct option is A Net national product at factor cost
Explanation:
Net National Product at factor cost is also called national income.
Net national product is the monetary value of finished goods and services produced by a country's citizens in a given period irrespective of whether they are residing domestically or abroad.
Also, Net National Product =Gross National Product−Depreciation.
Factor cost:
It is the total cost of all the factors of production consumed or used in producing a good or service. Taxes are not included in calculation of factor cost. Taxes and subsidies are included in calculation of market price of the commodity.
Explanation:
Net National Product at factor cost is also called national income.
Net national product is the monetary value of finished goods and services produced by a country's citizens in a given period irrespective of whether they are residing domestically or abroad.
Also, Net National Product =Gross National Product−Depreciation.
Factor cost:
It is the total cost of all the factors of production consumed or used in producing a good or service. Taxes are not included in calculation of factor cost. Taxes and subsidies are included in calculation of market price of the commodity.
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