National Income Notes

National Income is the total money value of all goods and services produced in a financial year. The national income of India is calculated by “Central Statistical Organization”.

Note- Financial year of India is from 1st April to 30th March.

National Income Notes

Changes which come with increase in national income

  • Growth of the country increases
  • Employment increases

Important measures of National Income

GDP

  1. It means “Gross Domestic Product”
  2. It is total monetary value of all final goods and services produced within the boundary of a country in a financial year
  3. In India, it is calculated by “Ministry of Statistics and Program implementation”
  4. GDP = Consumption + Investment + Govt expenditures + Exports – Imports

GNP

  1. It means “Gross National Products”
  2. It is the total monetary value of all goods and services produced by normal residents (people of India living anywhere in the world) in a financial year
  3. GNP = GDP +Net income inflow from overseas – Net income outflow to foreign

NDP

  • it means “Net Domestic Products”
  • it is annual measure of economic output of a nation calculated by subtracting depreciation from GDP
  • NDP = GDP – Depreciation

NOTE –  GDP is always greater than NDP

National Income Notes

NNP –

  • it means “Net National Products”
  • it is purest form of national income
  • NNP = GNP – Depreciation
  • Per Capita Income = NNP/Total population

Depreciation

  • Decrease in the monetary value of an asset over time
  • It is different for different assets
  • It is published by “Ministry of Commerce”

National income question Answers

1. Which Indian state gives the highest income tax collection

A.Kerala

B.Maharashtra

C.UP

D.Goa

Ans – b

2.What % of Indians pay Income tax?

A.10

B.20

C.3

D.9

Ans – c

3.Which sector contributes the most to the Indian economy?

A.Service sector

B.Agriculture sector

C.Small service sector

D.Manufacturing sector

Ans – a

4.What is the base year to calculate the per capita income in India?

A.2004 -05

B.2011 -12

C.2014 – 15

D.2001 – 02

Ans – b

5.What is the present per capita income of India?

A.Rs. 85261

B.Rs. 103007

C.Rs. 93293

D.Rs. 85261

Ans – b

6.Which ministry calculates the GDP of India?

A.Ministry of Central statistical & program implementation

B.Ministry of Finance

C.Ministry of Consumer Affairs

D.Ministry of Commerce & Industries

Ans – a

7.Which one of the following is not added in the calculation of National Income of India

A.The value of goods & services

B.The sold value of old fridge

C.Services rendered by housewives

D.Both b & c

Ans – d

8.How much does the primary sector contributes to the India’s GDP?

A.53%

B.26%

C.20%

D.15%

Ans – c

9.Which one is the purest form of income of a nation?

A.GNP

B.GDP

C.NDP

D.NNP

Ans – d

10.GDP is always?

A.Greater than NDP

B.Less than NDP

C.May be greater or less than NDP

D.None of the above

Ans – a

11.The Indian Financial year is from-

A.1st March to 30th April

B.1st January to 31st December

C.1st April to 31st March

D.1st February to 31st January

Ans – c

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