QUESTION

Medium

Economy

Prelims 2013

The National income of a country for a given period is equal to the:

Select an option to attempt

Explanation

The National income of a country for a given period is defined as the total monetary value of all final goods and services produced within the geographical boundaries of the country during that period. Here are the key points to remember

It does not include the total value of goods and services produced by the nationals (option A) as it may include the production outside the country.

It is not the sum of total consumption and investment expenditure (option B) as it excludes the value of intermediate goods and services.

It is also not the sum of personal income of all individuals (option C) as it includes the income from production and not just personal income.

Therefore, the correct answer is the money value of final goods and services produced (option D).

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