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 Domestic Product (NDP)
Option 4: Consumer Price Index (CPI)
Correct Answer: Consumer Price Index (CPI)
Solution : The correct answer is (d) Consumer Price Index (CPI)
Consumer Price Index (CPI) is not a measure of national income. The Consumer Price Index is an indicator of the average change in prices of a basket of goods and services consumed by households over time. It is used to measure inflation and changes in the cost of living. In contrast, Gross Domestic Product (GDP), Gross National Product (GNP), and Net Domestic Product (NDP) are measures of economic activity and income within an economy. They represent the total value of goods and services produced, either domestically or by the country's residents, after accounting for depreciation.
Option 3: Net National Product (NNP)
Option 4: Net Domestic Product (NDP)
Option 4: Inflation rate
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
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile