Question : Which of the following is not a measure of national income?
Option 1: Gross Domestic Product (GDP)
Option 2: Gross National Product (GNP)
Option 3: Net National Product (NNP)
Option 4: Consumer Price Index (CPI)
Correct Answer: Consumer Price Index (CPI)
Solution : The correct answer is (d) Consumer Price Index (CPI)
The Consumer Price Index (CPI) is a measure of inflation or changes in the average prices of a basket of consumer goods and services over time. It is used to track changes in the cost of living for consumers. It does not directly measure national income or the total value of goods and services produced in an economy.
GDP represents the total value of all final goods and services produced within a country's borders during a specific time period.
GNP represents the total value of all final goods and services produced by the residents of a country, whether they are located within the country or abroad.
NNP is derived from GNP by subtracting depreciation or the consumption of fixed capital from the GNP. It provides a measure of the net output or income earned by the residents of a country after accounting for capital depreciation.
Option 3: Net Domestic Product (NDP)
Option 4: Net Domestic Product (NDP)
Question : Net domestic product is calculated as_______.
Option 1: Gross Domestic Product (GDP) - Depreciation
Option 2: Gross National Product (GNP) - Depreciation
Option 3: Gross Domestic Product (GDP) - Net income earned from abroad
Option 4: Gross National Product (GNP) - Net income earned from abroad
Question : Which of the following is a measure of national income that takes into account the depreciation of capital?
Option 1: Gross National Product (GNP)
Option 2: Net National Product (NNP)
Option 3: Gross Domestic Product (GDP)
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