Question : Which of the following is NOT a characteristic of national income?
Option 1: It measures the economic performance of a country.
Option 2: It includes the value of all goods and services produced.
Option 3: It measures the distribution of wealth in a society.
Option 4: It is a flow concept measured over a specific time period.
Correct Answer: It measures the distribution of wealth in a society.
Solution : The correct answer is (c) It measures the distribution of wealth in a society.
National income is a measure of the total value of goods and services produced within a country in a specific time period. It is used to assess the economic performance of a country and is considered a flow concept, as it is measured over a specific time period.
However, national income does not directly measure the distribution of wealth in a society. While national income can provide some insights into income inequality within a country, it primarily focuses on the overall economic output rather than the distribution of wealth among individuals or households. The distribution of wealth is typically analyzed using other measures, such as income distribution statistics, wealth inequality indices, or specific surveys focused on wealth distribution.
Question : ______ is the monetary value of all final goods and services produced within a country in a specific time period.
Option 1: National income
Option 2: Gross Domestic Product (GDP)
Option 3: Gross National Product (GNP)
Option 4: Net Domestic Product (NDP)
Question : The total value of goods and services produced in a country during a given period is
Option 1: disposable income
Option 2: national income
Option 3: per capita income
Option 4: net national income
Question : ______ is the market value of all final goods and services produced within a domestic territory of a country measured in a year.
Option 1: Gross margin
Option 3: Net National Product (NNP)
Option 4: Gross National Product (GNP)
Question : Assertion: National income is an important indicator of the economic performance of a country.
Reason: National income reflects the total value of goods and services produced within a country's borders during a specific period.
Option 1: Both Assertion and Reason are true, and the Reason is the correct explanation of the Assertion.
Option 2: Both Assertion and Reason are true, but the Reason is not the correct explanation of the Assertion.
Option 3: Assertion is true, but the Reason is false.
Option 4: Assertion is false, but the Reason is true.
Question : Statement 1: National income is an important measure of a country's economic performance.
Statement 2: National income reflects the total value of goods and services produced within a country's borders during a specific period.
Option 1: Statement 1 is true, and Statement 2 is false.
Option 2: Statement 1 is false, and Statement 2 is true.
Option 3: Both Statement 1 and Statement 2 are true.
Option 4: Both Statement 1 and Statement 2 are false.
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