Question

National Income is equal to:



(a) GNP at fc + Depreciation

(b) GNP at fc - Depreciation

(c) NNP at mp – Net indirect Taxes

(d ) Both (b) and ( c )
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Answer 1

Answer:

the correct answer is option b

Answer 2

Answer:

(b) option

National income is equal to GNP less the consumption of fixed capital (i.e., depreciation). Personal Income measures the amount of income available to individuals in terms of funds on hand.

Explanation:

National income means the value of goods and services produced by a country during a financial year. Thus, it is the net result of all economic activities of any country during a period of one year and is valued in terms of money. National income is an uncertain term and is often used interchangeably with the national dividend, national output, and national expenditure. We can understand this concept by understanding the national income definition.