Question

Which of the following statement(s) is/are correct about National Income?
1. Total value of final goods and services produced by the residents and non-residents of the country during an accounting year.
2. It is Net National Product (NNP) at Factor Cost (FC)
3. It does not include taxes, depreciation and non-factor inputs (raw materials)
Select the correct answer using the codes given below:

• A. Only 1 and 2
• B. Only 2 and 3
• C. Only 1 and 3
• D. All of the above

Answer 1

The correct option is B Only 2 and 3

National Income – Total value of final goods and services produced by the normal residents during an accounting year, after adjusting depreciation.
It is Net National Product (NNP) at Factor Cost (FC).
It does not include taxes, depreciation and non-factor inputs (raw materials)