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UPSC 2001: The term National Income represents
(a)Gross National Product at market prices minus depreciation
(b)Gross National Product at market prices minus depreciation net factor income from abroad
(c)Gross National Product at market prices minus depreciation and indirect taxes subsidies
(d)Gross National Product at market prices minus net factor income from abroad
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Not attemptedCorrect Answer: (c) Gross National Product at market prices minus depreciation and indirect taxes subsidies
National Income is Net National Product at factor cost. Starting with Gross National Product (GNP) at market prices, one first deducts depreciation to obtain Net National Product and then adjusts from market prices to factor cost by subtracting indirect taxes and adding subsidies. Option (c) correctly describes this: ‘GNP at market prices minus depreciation and indirect taxes (+ subsidies)’. Options (a) and (b) omit the price-to-factor-cost adjustment; option (d) mixes up net factor income from abroad. ([examrobot.com](https://examrobot.com/content/term-national-income-represents?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2001 Indian Economy question?▼
The correct answer is option (c): Gross National Product at market prices minus depreciation and indirect taxes subsidies. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this National Income & Economic Growth question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2001, GS Paper 1, as Question 19. It falls under Indian Economy > National Income & Economic Growth.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from National Income & Economic Growth?▼
UPSC has asked 37 questions from National Income & Economic Growth (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.