[UPSC Prelims PYQ 2001] The term National Income represents (NNP at Factor...

The term National Income represents:

1. Gross National Product at market prices minus depreciation
2. Gross National Product at market prices minus depreciation plus net factor income from abroad
3. Gross National Product at market prices minus depreciation and indirect taxes plus subsidies
4. Gross National Product at market prices minus net factor income from abroad

Explanation

• National Income refers to Net National Product (NNP) at Factor Cost. It is calculated by subtracting depreciation and net indirect taxes (indirect taxes minus subsidies) from Gross National Product (GNP) at market prices. Therefore, option (C) correctly represents the concept of National Income.

Answer: (c) Gross National Product at market prices minus depreciation and indirect taxes plus subsidies